Vail Town Council Special Meeting Highlights from April 17

Town of Vail, Colorado sent this bulletin at 04/18/2025 01:30 PM MDT

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Vail Town Council Special Meeting Highlights

April 17, 2025

This is an unofficial summary of the meeting produced by the Communications Department. To read the official minutes; please click here. Minutes are posted once they are approved.

Council Members Present
Biszantz, Chapin, Coggin, Davis, Phillips, Seibert, Staufer

Presentations/Discussion/Announcements

West Middle Creek Update
- A special meeting of the Vail Town Council was called to discuss volatile market conditions and interest rate movement as the town considers finalizing financing of the West Middle Creek project.
  
  Town Council first discussed the development agreement and construction agreements, which reflect an effective bracketing of risk from tariffs and other cost escalations. All parties are motivated to stay within the guaranteed maximum price and minimize material cost escalation and reach substantial buyout of the project in a timely fashion. The overall construction cost of $134 million is very close to the original bid amount. Council approved the development and construction agreements unanimously.
  
  Town Council also approved the deed restriction for West Middle Creek unanimously. The deed restriction is the same as was used for Residences at Main Vail, where residents have to work at a business located in Eagle County on average 30 hours a week during the year, earning 80% of their income from that employment.
  
  Town staff and advisors presented an update on the financing of the project. At current rates, the $72.5 million Certificates of Participation would already be beyond the original parameters set by Council of $65.5 million. There is little indication that rates will decrease significantly in the next two weeks. Council discussed a possible increase in the upfront equity investment, from $10 million originally committed to $20 million, reducing the COP to $60.9 million at today's rates which is within the original parameters. Council members debated the pros/cons of a delay in the project, and cited concerns over construction cost escalation compared to interest rate risk. The emergency ordinance passed 6-1, with Staufer dissenting, for a COP parameter maximum of $85 million.
  
  Council requested a special meeting for May 5, to make a last minute final decision on the financing that would occur on May 6. They also requested additional information from staff for that meeting: a financial modeling of what the COP amount and future exposure if the town invested additional cash up front of $25 million rather than the original $10 million, and how staff would plan for the future exposure amounts during the first 5 to 8 years.

Actions/Decisions

Approved Resolution No. 19, Development Management Agreement for the West Middle Creek Village Apartments between the Town of Vail, Vail Home Partners Corporation and Corum Real Estate Group Inc. (7-0)
Approved Resolution No. 20, Approving the Deed Restriction for West Middle Creek (7-0)
Approved Ordinance No. 8, Authorizing the Leasing of Certain Town Property, the Advance of a Loan to the Vail Home Partners Corporation, and the Execution and Delivery of a Site Lease, Lease Purchase Agreement and Other Documents Regarding West Middle Creek (6-1, Staufer opposed)

Resources

Vail Town Council Meeting Agenda & Materials
Vail Town Council Meeting Minutes
Sign up to receive Meeting Agendas and other Announcements
Watch the Meetings on High Five Access Media
Contact the Town Council at towncouncil@vail.gov
Visit the Town of Vail website at vail.gov for additional topics

The Vail Town Council meets the 1^st and 3^rd Tuesday of each month. Join us for public comment at 6 p.m. Public hearing and comment opportunities are also noted on the agendas.

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