A new deal for Vail’s $152 million redevelopment of Timber Ridge | VailDaily.com

A new deal for Vail’s $152 million redevelopment of Timber Ridge

Town Council to review a deal that would allow local businesses, organizations and residents to purchase deed-restricted homes at the new development

The Town of Vail is currently working through the details of a new deal structure with Triumph Development for the redevelopment of Timber Ridge. As proposed, it would encourage local businesses, organizations and individuals to purchase units at the new site.
Town of Vail/Courtesy Photo

Vail Town Council’s latest look at the Timber Ridge redevelopment project will include a recently proposed deal structure meant to break down the estimated $152 million price tag into bite-sized pieces.

This deal structure not only establishes the private-public partnership between the town and Triumph Development but would also allow private-sector business owners, nonprofit organizations and community members to purchase deed-restricted homes in the new development.

At Vail Town Council’s Tuesday, March 7 meeting, the council will receive an update on the new potential deal structure as well as the status of other elements of the redevelopment. This includes a timeline for the project, the current site plan and a draft proposal of marketing materials.

As proposed, the redevelopment of Timber Ridge Village Apartments would replace the property’s 98 deed-restricted homes (196 bedrooms) with 284 deed-restricted residential homes with a total of 567 bedrooms.

These units would be spread across seven buildings and include 56 studio, 46 one-, 97 two-, 69 three- and 16 four-bedroom homes, which will be available both for purchase and for rent to individuals working at least 30 hours a week in Eagle County.

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The seven buildings contemplated would be constructed on the current Timber Ridge site as well as on an adjacent parcel owned by the Colorado Department of Transportation. The town is on track to acquire this 0.75-acre parcel from the state agency, with a hearing scheduled in front of the Transportation Commission on March 15.

The most recent pitch for the redevelopment includes preliminary purchase prices for the units. These prices and terms are still subject to change. The packet estimates that the pricing will be “approximately $300,000 on average per bedroom for the for-sale homes,” with individual home prices expected to range from $357,000 to $1,003,000 depending on the unit.

The presentation also outlines terms for reserving purchases, including a $5,000 per unit fully refundable deposit due June 1, 2023; a $10,000 additional refundable deposit due Oct. 1, 2023; with 20% total non-refundable earnest money payment upon final approvals.

A new deal

As outlined in a Town Council packet memo, the total redevelopment of Timber Ridge is estimated to cost $152 million. The proposed deal structure stipulates that the town would provide the land as well as “seed money” for site development and infrastructure costs, estimated to cost around $38 million. Triumph Development would be responsible for the remainder of development costs (estimated at around $114 million).

At the Feb. 7 Town Council meeting, the town and developer said they were working on ways to leverage local employers and pair down the project into “bite-sized pieces,” as Vail’s housing director George Ruther put it.

Under the proposed structure, “at least” five of the property’s contemplated seven buildings would be sold to local businesses and individuals. The town would then retain two buildings as “rental homes for individuals who meet the deed restriction qualifications.”

“This deal structure allows for (the town of Vail) to stimulate the development of new housing (374 incremental new bedrooms) with its seed money but also allows any potential proceeds to be ‘recycled’ into more housing solutions in the future,” reads the memo.

This, it adds, would allow these businesses and organizations to lease or rent the units to their local workforce. The deal structure would also allow for individual community members to purchase deed-restricted homes “not unlike the opportunities afforded at Chamonix Vail Townhomes, North Trail Townhomes, Vail Commons Residence,” the memo reads.

The town is planning to begin marketing these opportunities to local businesses, organizations and residents to “gauge the depth of the market and level of interest of private sector participation in the redevelopment of the Timber Ridge Village Apartments.”

After this, it would create a home selection process based on the level of interest.

As it stands, the town and Triumph are targeting construction to begin May 1, 2024 — securing entitlements and permits before that date. This start date, however, is contingent on the town receiving sales contracts on 30% or more of the for-sale homes and purchasers providing a minimum of 20% of the purchase price as an earnest money deposit.

If all goes to plan with this construction start, the town is targeting to have residents move in by November 2025, but does not yet have a concrete plan for the relocation of the current residents.

The proposed deal between the town and Triumph will be finalized no later than June 20, 2023.

Vail Town Council is scheduled to discuss this deal and the Timber Ridge update at its Tuesday, March 7 afternoon meeting. This meeting begins at 1 p.m. both in person at Vail Town Hall (75 South Frontage Road West, Vail) and virtually via High Five Media and Zoom. To register, provide public comment or learn more, visit VailGov.com.

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