Timber Ridge redevelopment remains on track for demolition this fall
Vail Town Council hosted a special meeting on Tuesday for the project
Triumph Development/Courtesy Photo
The Vail Town Council on Tuesday hosted a special meeting to finalize several agreements for the redevelopment of Timber Ridge.
The council approved an amended development agreement between the town and Triumph Development, a tri-party agreement with the town, Triumph and First Bank as well as an emergency ordinance conveying the town-owned property to the developer.
The session was held outside the town’s regular meeting schedule to keep the development on track.
“The ordinance is a final step necessary to convey the land at the time of closing on the construction financing which may occur prior to the next Town Council meeting set for Aug. 6. Timing of the construction financing and these agreements is critical in order to get started with demolition and excavation this fall,” said Kathleen Halloran, the deputy town manager.
For this reason, the Town Council had to unanimously pass an emergency ordinance rather than follow its typical process. Typically, with the requirement for two readings, an ordinance takes approximately 20 days to go into effect, said Town Attorney Matt Mire on Tuesday.
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“We are not in control of the loan closing between Triumph and the bank and therefore, we need to do this in one reading. We don’t have 20 days, which would muck up the gears for our partners,” Mire said.
The three approvals finalize the financial agreements for the Timber Ridge redevelopment, which is estimated to cost around $165 million.
Per the development agreement, the town will contribute $38.6 million in cash to the project. The town will also be kicking in funds for a new transit stop (around $1.9 million) as well as the land contribution (around $10 million). The approved tri-party agreement will enable Triumph to close on a $115 million construction loan.
The development agreement also stipulates that the town will be paid back for its contributions — as the units sell — following repayment of the construction loan. With the agreement, the town should recoup its cash and land contributions. The town is expected to have a total reimbursement of around $49 million.
As the town pursues Timber Ridge concurrently with the construction of housing at West Middle Creek and the redevelopment of Dobson Ice Arena, the timing and success of unit sales could have a significant impact on the town’s financial reserves. In May, town staff presented the council with several financing options for the three projects to prevent its general fund from dropping below its reserves policy.
While the town should be repaid in full for its Timber Ridge contributions by 2026 — which would recover its reserves — staff reported it “could push into 2027 depending on the timing of sales of the homes.”
“There is significant financial risk to the town if not all homes sell, or sell much later than anticipated,” a staff memo added.
The council has yet to decide what financing options it will use for these large capital projects. However, at its July 16 Town Council meeting, Town Manager Russ Forrest indicated it would use “a combination of cash and potentially financing” for its Timber Ridge contributions.
Finance Director Carlie Smith added that staff has been primarily looking at financing Dobson to “mitigate some of the financing risks associated with Timber Ridge.”
The Town Council is expected to discuss this option, and several others, at a future meeting.
The new Timber Ridge development will bring 294 deed-restricted units — and 555 bedrooms — of housing across seven buildings. A portion of these units will be sold to local businesses and organizations with the remainder going to individual residents for purchase. The town is buying $25.5 million worth of homes at the new Timber Ridge.
As of Tuesday, there have been over $95 million in pre-sales on the development, according to George Ruther, the town’s former housing director.
With these approvals, the project is on track to begin demolition and excavation this fall. Ultimately, the goal is to have its first occupancy ahead of the 2025-26 ski season.
