Vail releases draft of agreement for deal to build at Middle Creek
Council will discuss the agreement at its March 2 meeting
A draft development agreement between the town of Vail and Triumph Development for construction of deed-restricted homes on the town-owned Lot 3, Middle Creek site has been released for public comment in advance of the March 2 Vail Town Council meeting.
The draft is available for review at http://www.vailgov.com/HousingActionsandInitiatives with public comment accepted in advance of the meeting by email at email@example.com or registering to attend the virtual March 2 meeting at http://www.vailgov.com/town-council.
Preparation of the draft development agreement follows the Vail Town Council’s Feb. 2 approval of a pre-development agreement between the two parties. Initial steps of the entitlement process for the Lot 3 property are already underway.
According to the executed agreement, the town and Triumph Development are co-applicants in the preparation and presentation of the development review applications, with the town paying the cost of the investment in the entitlement process. This has included hiring Triumph Development for project management services in an amount not to exceed $300,000 and to fund the town’s investment in the entitlement process in an amount not to exceed $390,000.
Including public input
During an update to the community on Feb. 16, Vail Town Manager Scott Robson said the town was making good progress on the draft agreement and had been able to incorporate some, but not all, of the suggestions offered earlier by members of the public.
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Robson noted the agreement is no longer a component of the Alternate Housing Sites Initiative to protect and preserve the Booth Heights parcel in East Vail from future development, as originally intended. Vail Resorts has opted to step back from the discussions while continuing to maintain development rights on the property. Robson said the town has made it clear to Vail Resorts that the town is eager to partner on a variety of community initiatives in the future.
To address the changing circumstances, Robson said the draft development agreement requires Triumph Development to waive any and all rights it may have to developing the Booth Heights property. As previously stated, the town cannot legally prevent or otherwise prohibit the Booth Heights development within the framework of its draft agreement with Triumph.
Robson said the primary focus of the development agreement has shifted to make progress on the town’s housing goal by providing for the construction of deed-restricted homes for as many as 175 residents on the Lot 3 site and initiate a process to redevelop Timber Ridge Village Apartments to create a minimum of 200 deed-restricted homes in town.
The town’s housing goal is to acquire a total of 1,700 deed restrictions by the year 2027. Robson said the Middle Creek site is arguably the premier undeveloped housing site in the community, owned by the town, on a lot appropriately zoned for housing, adjacent to existing multi-family homes and within a 5- to 10-minute walk of Vail Village, Vail Health, the new Children’s Garden of Learning facility and the center of employment in Vail.
As envisioned, the Middle Creek development would be designed as a 100% deed-restricted residential development to include a minimum of 144 beds. Construction of the new homes would begin in September and would be completed by November, 2022. The town would retain the option to master lease and sublease units, if interested.
The future redeveloped Timber Ridge property would continue to be a 100% deed-restricted residential development and would include a minimum of 200 units of varying size. Triumph would be responsible for all costs incurred to receive entitlements and develop the site. Triumph would enter into a ground lease for the property with the town and construction would begin only after completion of the Lot 3 project; no sooner than April 2023. The redevelopment of Timber Ridge is to be completed by November, 2025.
Key terms of the draft agreement include:
- Partnering with Triumph Development, as a co-applicant, on the design development and entitlement process for the development of Lot 3, Middle Creek for 100% deed-restricted homes.
- Hiring Triumph Development for project management services in an amount not to exceed $300,000 and to fund the town’s investment in the design development and entitlement process in an amount not to exceed $390,000.
- In exchange for the $690,000 investment in the entitlement process, the town will receive a deed restriction value of approximately $4.42 million.
- Authorizing Triumph Development to proceed through the development review process for redevelopment of Timber Ridge Village Apartments upon the completion of Lot 3.
- Ensuring the development of at least 144 beds on Lot 3, Middle Creek with considerations made to ensure energy conservation and the use of renewable energy sources.
- Retaining town ownership of the two sites.
- A waiver by Triumph Development foregoing their participation in any development on the Booth Heights parcel.
To register to provide public comment on the draft agreement at the March 2 virtual meeting, go to https://www.vailgov.com/town-council.