Vail council to authorize town-initiated financing for Residences at Main Vail
Council will establish the steps and timetable for publicly financing construction of $24.4 million project
With record low interest rates and the ability to retain ownership of the property in perpetuity, the Vail Town Council will consider the first reading of an ordinance that will authorize town-initiated financing for the construction of the Residences at Main Vail during its regular meeting on Tuesday, Sept. 7.
The council Aug. 3 cleared the way for the workforce housing project to be built on a parcel formerly known as lot 3 at Middle Creek after overturning a Vail Design Review Board rejection of the plan July 7. Council members voted 5-2 to overturn that decision. Council Members Brian Stockmar and Kevin Foley voted against the motion to overturn the decision. The move completed the town’s approval process.
The action item, which is listed as 5.2 on the evening meeting agenda, will establish the steps and timetable that will be used to publicly finance the construction of the estimated $24.4 million project by Triumph Development.
Tuesday’s action follows earlier direction by the Town Council to shift from initial agreements in which it authorized the execution of a development agreement between the town and Triumph for construction of 72 deed-restricted homes on the town-owned site. The agreement had required Triumph to fund the construction, own the improvements and operate the rental housing development.
However, as the development application made its way through the town’s development review process, opportunities to place the town in a controlling position were identified. The town will retain annual rental income from the development to cover annual debt payments from town-initiated financing. In this scenario, the role of Triumph Development is shifting from a leasehold interest developer that owns and operates the improvements on the property to a fee-based developer with a property manager role upon execution of a management agreement.
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“This is a very complex project that we’ve been going through for months and months now,” Council Member Kim Langmaid said in June. “I feel like this is a great path forward for us that will set up (the) town in terms of its economic, social and environmental sustainability into the future.”
The town has hired a bond underwriter, Piper Sandler, to facilitate the sale of the $25 million tax-exempt certificates of participation for the housing development with a payback over 30 years. Public sector financing is currently near record low interest rates that the Town Council previously experienced in financing $15 million for the Public Works Shops expansion and renovation project earlier this year. The town’s existing debt is minimal.
The Residences at Main Vail have been designed as a 100% deed-restricted, for-rent residential development that would include a mix of one- and two-bedroom apartments containing at least 144 beds and 72 parking spaces onsite. Additional amenities include individual storage unit lockers, on-site laundry, indoor and outdoor community gathering spaces and a solar panel installation. The central location near the Main Vail Roundabout provides convenient pedestrian access to Vail Village and Lionshead Village. More than 200 year-round and seasonal residents of Vail will call the Residences at Main Vail home.
Construction of the new homes is anticipated to begin in October with completion by May 31, 2023. To make way for the new development, the town of Vail and the Board of the Children’s Garden of Learning have collaborated on the relocation of the Children’s Garden of Learning early childhood education center. In separate agreements between the town and Children’s Garden of Learning, the school will be moving to a temporary facility under construction in Lionshead in October.
Opportunities for public comment are available in advance of the meeting by emailing firstname.lastname@example.org or will be available in-person at the meeting or virtually by registering at VailGov.com/town-council. The meeting begins at 6 p.m. in the Vail Town Council Chambers and will be live-streamed by High Five Access Media.
For details, contact Vail Town Manager Scott Robson at 970-479-2105 or email@example.com.