Urban Land Institute - ULI...

Urban Land Institute

Eagle County Colorado

Advisory Services Panel

Eagle County,Colorado

December 10-15, 2006




About ULI

Established in 1936Independent nonprofit education and research organizationMission: ULI’s mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwideMore than 34,000 members worldwideRepresenting the entire spectrum of land use and real estate development disciplines




Special Thanks

Harry Frampton

Economic Council of Eagle County

Don CohenKathy Chandler-HenryTori Franks

The Mayors and Members of the town councils of Eagle County

More than 56 community members we interviewed




Our Assignment

Our assignment was to look at the current and future housing conditions in Eagle County and provide direction on how best to address the need for work-force housing, including side effects, such as transportation




The PanelTony Salazar (Chair)President – West Coast DivisionMcCormack Baron SalazarLos Angeles, California

Gary AltergottPrincipalMorris ArchitectsHouston, Texas

Richard D. CentolellaPrincipalEDSASanta Monica, California

William CollinsConsultantCollins Planning AssociatesJackson, Wyoming

Diana M. GonzalezHomestead Reuse Plan CoordinatorMiami-Dade County, FloridaMiami, Florida

Vincent W. McBrienManaging DirectorGryphon Realty CapitalChicago, Illinois

Steven E. SpickardSenior Vice PresidentEconomics Research AssociatesSan Francisco, California

Brad WiblinDirectorBRIDGE Southern CaliforniaSan Diego, California




The Process

Four TeamsMarket BackgroundOrganizing for SuccessImplementationPlanning & Design




Market BackgroundMarket Background

Vincent McBrienSteven Spickard




Economic BaseHistorical

• Hunting and Fishing• Ranching• Mining

Today• Ski Operation (+ Golf, Other Recreation)• Resort Lodging, F&B, Retail• Second Homes• Construction – Development and

Redevelopment




Rental Market SegmentsTypes of Housing Units Assistance?

Rental Market Rate

FinancialEntry-Level Rental Assistance

Required

Winter SummerNov. - April. May - Oct. Subsidized by

Seasonal Rental Some EmployersSki Resort Driven Construction

"Ski Bums"/"Kids" High % Hispanic

High % Hispanic

Sources of Demand (People and Households)

Primarily Service Industry WorkersWant to be Full-time Residents

(But Potentially Holding Multiple Part-time or Seasonal Jobs)

Full-time Residents(But Potentially Holding Multiple

Part-time or Seasonal Jobs)




Ownership Market SegmentsTypes of Housing Units Assistance?

Very Expensive Market Rate

Expensive Market Rate

Move-up Ownership Market Rate

FinancialEntry-Level For-Sale Assistance

Required

Working Middle Class

Working Couples/Young Families(Often Interested in Schools, Space,

Yards, and Garages)

Aspiring to Middle Class

Sources of Demand (People and Households)

Second-Home Buyers Looking for Lifestyle and Investment

Equity RichLong Term Homeowners

Independently Wealthyand Retirees




The Economy Requires the Whole Area (I-70 + Hwy 24 Corridors)




Will the Private Market Solve the Problem?




No, Because There are Market Imperfections

1. Land is Constrained. Expansion of Supply is Extraordinarily Expensive.

2. Global Investment Push is an Uncontrollable Exogenous Force.

3. If You Allow the Market to Reach Equilibrium, You Might Not Like the Result!




Projected Full-Time Resident Population Growth for Eagle

County

15,700 more permanent residents (2005 to 2015)31,400 more permanent residents (2005 to 2005)




Projected Eagle County Job Growth

18,265 more jobs (2005-2015)36,763 more jobs (2005-2025)Most new jobs in service sector paying $30,000 and $80,000 per year




Projected New Housing Units Needed For Full Time

Residents of Eagle County

3,500 units current reported shortage of work force housing units600 new housing units needed annually (2005-2025)Majority of the new housing units are needed for workforce housing sector




Average Increase in Home Prices Over Last Five Years

(2000-2005)

Single family up 15% ($465,700 to $535,350)Condominium up 31% ($279,500 to $365,000)Continuing upward pressure on home values due to

Limited developable land Booming second home market in Eagle County




Single Family Affordability Example

10152542Additional Hours per week worked to make up gap

$ 1,654 $ 2,014 $ 2,509 $ 2,914 Monthly Affordability Gap $ 3,814 $ 3,814 $ 3,814 $ 3,814 Monthly Total Housing Costs$535,350 $535,350 $535,350 $535,350

Average Single Family Home Price (2005)

$303,385 $252,821 $183,295 $126,411 Affordable housing price$ 2,160 $ 1,800 $ 1,305 $ 900 Monthly housing budget$ 86,400 $ 72,000 $ 52,200 $ 36,000 Annual Wages

120%100%80%50%% of AMI




Organizing for SuccessWorkforce housing is a challenge that transcends any of our abilities to solve

alone.”…Richard Syron, Chairman and CEO of Freddie

Mac

Bill CollinsDiana Gonzalez




Impact on Community

Impact of lack of housing Communities ultimately pay the priceWithout affordable housing, businesses are not able to recruit and retain workers




Housing Progress to Date

As of 2004 over 2,100 units of targeted housingSignificant participation of local businesses




Methods of Development

Increased DensityDeed RestrictedDevelopment RegulationsSubsidized landRevision to zoning codeInfill HousingMixed Income DevelopmentMixed Use DevelopmentDown Payment Assistance




Financing Mechanisms

Colorado Housing Finance AuthorityMortgage Revenue Bond ProgramMortgage Credit Certificate ProgramIndustrial Revenue BondsHUD Subsidized rents and Section 8Taxable bonds issued by Eagle CountyRural Development 515 and 521 programsMountain Valley Residential ServicesReal Estate Transfer TaxTax exemption to enhance affordability63-20 Tax Free Bond FinancingLow Income Housing Tax CreditEmployer supported financing programs




Goals for Moving Forward

1. Consolidated vehicle for delivery of workforce housing

2. Improve coordination and communication

3. Improve quality of information4. Promote Countywide

coordination 5. Work with local governments




Eagle County Housing Coalition

Finance and Construct HousingBuy, Sell and Lease PropertyLevy TaxesAccess State and Federal ResourcesTake Advantage of Tax Exceptions




Potential Programs

PartnershipsHousing DevelopmentGrants and LoansPhilanthropic CommunityTraining/Education




Regional VoiceCoordinated EffortsSustained FocusShared Resources

Needs to be More




Executive Director & Staff

Development ExperienceAdministrative AbilitiesPolitical Skills




Board of DirectorsResource BoardTask Forces

Structure




Board of Directors

Elected OfficialsRed CliffMinturnVailAvonEagleGypsumEagle County




Resource Board

Diversity of ParticipationExpertisePublic AgenciesPrivate Partners




Task Forces

Specific TasksPublic Private Expertise




Funding

Operating ExpensesLocal GovernmentsVail ResortsBeaver CreekEconomic CouncilSales Commissions




Funding

Dedicated RevenueSales TaxProperty TaxReal Estate Transfer Tax

Community Wide Effort




ImplementationImplementation

““Give Us the Tools and WeGive Us the Tools and We’’ll Finish the Jobll Finish the Job””Winston ChurchillWinston Churchill

Brad Wiblin




Guiding Principles

Healthy vibrant regions have a diverse workforce and a range of housing choices for residents at all income levelsThe development of significant quantities of workforce and affordable housing in the Eagle Valley can help to insure a more sustainable communityThe housing challenges in the Eagle Valley did not materialize overnight, but tangible results can be achieved in the near term with a coordinated effort




Guiding Principles

Below are principles that if applied to this housing challenge will insure this housing will be a valued community wide asset.

High Quality DesignWell LocatedSustainable Development PracticesTargeted to Specific Market SegmentServes a Range of IncomesPerceived as a Community AssetCreation of a Community not a BuildingProvide Appropriate Services




ToolsMany have been used here with varying degress of success

Land Use Planning and Regulatory ReliefInclusionary Housing ProgramsZoningDensityFee Waivers

Financing

63-20 CorporationsIn-Lieu Fees Linkage FeesBond FinancingLow Income Housing Tax CreditsHousing Trust Fund / Dedicated Source




Structures for Production

Public / Private / Nonprofit CooperationBy taking advantage of what Government does well and combining it with the strengths of the private sector, affordable housing production can leverage the regions creativity and resources

Land MiningThe Eagle County Housing Coalition can play an important role in advocating for land recycling. Many of these opportunities will require multi-year efforts to achieve, a role not well suited to the private sector

Ground LeasePublic agencies like the proposed ECHC, can maintain long-term control through a ground lease that includes performance criteria. This structure can also help to make rental housing more competitive with for-sale housing so long as the landowner is willing to take the long view





Land BankingThe ECHC can assemble and acquire land as it becomes available, in preparation for future affordable housing development

Mixed-Income DevelopmentCreating apartments that provide a range of housing, from market-rate to affordable in one development can be more acceptable to adjacent neighbors that 100 % affordable projects, and provide a better long term return on investment

Carry-Back FinancingPay off the land cost over time using a percentage rent structure. This can allow land owners to participate in long term appreciation





Timber Ridge, A Local Example

City of Vail provides land for redevelopmentCity provides entitlements - upzone for additional densityPrivate sector development partner takes construction and market risk and pays off City debt used to acquire landReplacement housing, plus a large quantity of new workforce housing adds to rental and workforce housing stockAmenity Rich – Pedestrian bridge over I70 to allow residents to walk to jobs and amenities at VailMixed-Income development – Market rate housing helps off-set workforce housing costsCity, County and Vail Resorts provide gap financingCommunity Accepts density in return for well located, high quality housing mixed-income development




Planning & DesignPlanning & Design

Richard CentolellaGary Altergott




“Everyone needs a place to call home. When night falls, every person confronts the need for a place that is safe, decent and restful, a place to stow one’s possessions, to clean up, to recharge for the challenges of the next day……These are basic human needs that require the physical space we call home, whether for a night or a lifetime.”

Henry CisnerosChairman and CEO, American City Vista

Former HUD Secretary, Clinton Administration




Guiding Principles

• Produce Livable and Flexible Housing Units

• Accommodate the Daily Needs and Activities of the Residents

• Separate Public Spaces from Private Spaces thru Site Design and Architecture

• Respect the Existing Visual Quality of the Region

• Protect the Existing Unique Qualities of Each Town or Community

• Provide Sufficient Land Area in Logical Locations for Residential Uses




The ProcessIdentify the Potential Development

Sites• Locate new development close to an

existing town/village, preferably adjoining or close to the town center

• Utilize already disturbed sites or sites with existing inventory identified for re-development

• Locate near existing or future Public Transportation Hubs








• Locate near existing or future Public Transportation Hubs




Establish Planning and Development Design Guidelines

• Utilize Traditional Neighborhood Design for several reasons:• Higher densities in an acceptable

manner• Creates a sense of community• Creates a sense of safety• Creative site design and detailing

establish an aesthetic excellence and pride in community




• Integration of Public Open Space and connectivity to the existing town/village center






• Mixed-income neighborhoods and…• Mixed-uses to create a “Village”

atmosphere






• Mixed-income neighborhoods and…• Mixed-uses to create a “Village”

atmosphere• Compatible architectural design in a

“Mountain Village” vernacular (i.e.. Beaver Creek)





• Include necessary neighborhood and community services and amenities:• Community Center• Post Office• Day Care Center• Teen Center• Village Green• Bike/Hike/Walking Trails (connect to

the regional system)





• Utilize sustainable/green building design practices and technology to reduce utility and maintenance costs to the residents





• Utilize sustainable/green building design practices and technology to reduce utility and maintenance costs to the residents

• Define specific Housing Types• Seasonal/Temporary Resident• Permanent/Mid-Income Resident• Service Industry Resident





EAGLE COUNTY IMPLEMENTATION MATRIX

DEFINITION OF TERMSUser Need

LifestyleExperienceService

Housing Type TransitDevelopment




Dotsero Gypsum Eagle Wolcott Edwards Avon Minturn/ Redbluff Valley VailUser Need Priority Need #1 Service Lifestyle Lifestyle Lifestyle Lifestyle Service Seasonal #2 Service Seasonal Seasonal Seasonal Lifestyle Lifestyle #3 Heroes Heroes Heroes

Housing Type Priority Need #1 Home Home Home Home/Townhome Condo Rental Apartment Rental Apartment #2 Townhome Townhome Townhome Condo Townhome Townhome Condo #3 Condo Condo Condo Rental Apartment Home

Transit Priority Need #1 Link to hub Link to hub Link to hub Link to hub Adjacent Adjacent TOD #2 Adjacent Adjacent Link to hub

DevelopmentType 4 Type 4 Type 3/4 Type 3/4 Type 2/3 Type 1/2 Type 1

Site Selection Criteria #1 Single Family Single Family Single Family Single Family Mixed Use Mixed Use-midrise Mixed Use-high density #2 Mixed Use Mixed Use Mixed Residential #3

Sustainability Criteria #1 Sustainable Community Sustainable Community Sustainable community Sustainable community Financial performance Sustainable Building Sustainable Building #2 Financial performance Financial performance #3

MATRIX




Transit




DevelopmentVail

Type 1 Transit Oriented Design




Development

Vail




Development

Edwards

Type 2/3 Single/Multifamily Residential




Development

Edwards




DevelopmentEagle

Type 4 Single Family Residential




DevelopmentEagle




Development

Eagle




Eagle County,Colorado

December 10-15, 2006

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