HomeMy Public PortalAboutTBP 2016-01-20Town Board Briefing
January 20, 2016
Please note that members of the Town Board will have dinner together starting at
5:30pm.
The Board will begin the meeting at 6pm with an executive session regarding the Fraser
US 40 Highway Improvement Project. This is anticipated to conclude by 7pm at which
time the regular meeting will begin.
Please note that Touch the Sun is not on the agenda as was discussed at the last
meeting. Live Nation is still working through their traffic control plan so the answers to
the questions from the Town Board are not available yet. I have them tentatively
scheduled for the February 3rd agenda, and expect the County would continue their
January 26th meeting pending further information also.
We look forward to a presentation from McKinstry regarding our energy sustainability
work, this is rescheduled from a meeting late last year.
As we work to close out the Fraser US Highway 40 Improvement Project we may have a
resolution for consideration pending the outcome of the executive session.
Please see supplemental information in the packet regarding the other agenda matters.
As always, feel free to contact me if you have any questions or need any additional
information.
Jeff Durbin
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
FRASER BOARD OF TRUSTEES
MINUTES
DATE: Wednesday, January 6, 2016
MEETING: Board of Trustees Regular Meeting
PLACE: Fraser Town Hall Board Room
PRESENT
Board: Mayor Peggy Smith; Mayor Pro -Tem Philip Vandernail; Trustees; Eileen
Waldow, Katie Soles, Andy Miller and Jane Mather
Staff: Town Manager Jeff Durbin; Town Clerk, Lu Berger; Public Works Director
Allen Nordin; Town Planner, Catherine Trotter; Police Chief, Glen Trainor,
Others: See attached list
1. Regular Meeting: Roll Call
Mayor Smith called the meeting to order at 6:04 p.m.
2. Executive Session; Town Manager Evaluation: For discussion of a personnel matter
under C.R.S. Section 24-6-402(4)(f)(1) and not involving any specific employees who
have requested discussion of the matter in open session and to include TM Durbin.
Trustee Soles moved, and Trustee Vandernail seconded the motion to enter executive
session. Motion carried: 5-0.
Enter: 6:05 p.m.
Exit: 7:05 p.m.
Trustee Soles moved, and Trustee Vandernail seconded the motion to exit executive
session. Motion carried: 6-0.
3. Approval of Agenda:
Trustee Vandernail moved, and Trustee Waldow seconded the motion to approve the
Agenda. Motion carried: 6-0.
4. Consent Agenda:
a) Minutes — December 2, 2015
Trustee Soles moved, and Trustee Waldow seconded the motion to approve the
consent agenda. Motion carried: 6-0.
5. Open Forum:
6. Public Hearings:
7. Discussion and Possible Action Regarding:
Page 2 of 2
a) Divide Music Festival
Grand County is in receipt of an application for a Temporary Use Permit for the Divide
Music Festival, proposed for the same location July 22-24, 2015. The Town of Fraser
has opportunity to provide comments to Grand County via the public hearing process.
Other interested parties can attend the hearings and/or provide comment to Grand
County.
Public comment was taken from:
Team Player Productions — Jason Ornstein
Jay Clough
Trustees directed the Town Manager to forward a letter of support to the Commissioners
with the following recommendations.
• All Touch the Sun conditions would need to apply to this festival as well.
Trustee Vandernail moved, and Trustee Soles seconded the motion to approve. Motion
carried: 6-0.
b) Touch the Sun Music Festival
Grand County approved a Temporary Use Permit for Touch the Sun country music and
camping festival planned for June 24-26, 2016. They have requested the capacity cap
be raised. The Town of Fraser has opportunity to provide comments to Grand County via
the public hearing process. Other interested parties can attend the hearings and/or
provide comment to Grand County.
Touch the Sun will be back on January 20, 2016.
Public comment was taken from:
Live Nation - Sean O'Connell
Jay Clough
C) 2016 Town Board Workplan
TM Durbin outlined the status of 2016 projects as identified in the 2016 Budget
message.
Clark Lipscomb spoke regarding housing and the local economy.
8. Other Business:
Election petitions were available January 5, 2016, they will need to be returned by
January 25, 2016.
Trustee Soles moved, and Trustee Vandernail seconded the motion to adjourn. Motion
carried: 6-0. Meeting adjourned at 9:45 p.m.
Lu Berger, Town Clerk
TOWN OF FRASER
RESOLUTION NO. 2016-01-02
A RESOLUTION EXTENDING THE APPROVAL OF ELK CREEK AT GRAND PARK FINAL
PLAN AND FINAL PLAT FILING NO. 1 IN PLANNING AREA 5W OF THE GRAND PARK
PLANNED DEVELOPMENT DISTRICT.
WHEREAS, Grand Park Development LLC is the current owner of Planning Area 5W;
and
WHEREAS, the applicant, has requested that the Board of Trustees extend the date of
execution of all plat documents; and
WHEREAS, the Board of Trustees previously approved the Final Plan and Final Plat for
Elk Creek at Grand Park Filing No. 1 via Resolution No. 2015-07.
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FRASER, COLORADO THAT THE APPROVAL OF THE FINAL PLAN AND FINAL
PLAT FOR ELK CREEK AT GRAND PARK FILING NO. 1 IS HEREBY EXTENDED WITH THE
FOLLOWING SAME CONDITIONS:
1. The applicant shall provide written documentation from the USACE confirming
that the applicant is in compliance with the requirements to fill within the waters
of the United States on Elk Creek within Grand Park Planning Area 5W prior to
building permit issuance.
2. The Final Plan and plats boundaries encompass parts of Planning Area 23W,
4W.1 and 4W.2, thus the Final Plan title should reference those areas. Revise
accordingly.
3. All engineering documents to be approved by Town Engineer.
4. All legal documents to be approved by Town Attorney.
5. A Subdivision Improvement Agreement (SIA) shall be provided prior to
recordation of each Final Plat.
6. The SIA required improvements and collateral associated with those
improvements shall be subject to Town Engineer and Town Attorney approval
prior to execution and the schedule for completion of said improvements shall be
within one (1) year of execution of the SIA.
7. Payment of all applicable fees
8. The Final Plan and Final Plats Filing No. 1 shall be executed and recorded within
sixty (60) days of this resolution. The Final Plats for subsequent Filings must be
executed and recorded within five (5) years of this resolution or they shall expire
unless an extension is approved by the Board of Trustees.
9. Provide 911 Mylar and electronic copy of the plat in accordance with the
Subdivision Regulations and updated title commitment.
10. Prior to plat recordation, Grand Park must sign the Mary's Pond Access and
Operations Agreement.
11. The Board of Trustees authorizes the Town Manager and Town Attorney to
negotiate the final terms of the conservation easement and to authorize
appropriate Town officials to accept and execute such easement upon approval
of the terms thereof by the Town Manager and Town Attorney.
12. Change General Note #15 on the Final Plan to state the following:
Elk Ranch Road shall be improved from CR72 through Filing No.1 as a twenty-
four foot (24') wide all-weather surface (CDOT Class 6 road base) access road
constructed to the lines, grades and vehicle weight loading requirements of the
Town of Fraser Design and Construction Standards for a Local Street. This
roadway improvement shall be included in the SIA for Filing No.3. At the
completion of Filing No. 4 the all-weather surface access road shall be paved in
accordance with Town of Fraser Standards and said improvements shall be
included in the SIA for Filing No. 4. Until such time as the access road is paved,
it shall be maintained by the HOA or Developer for year-round public access.
This does not satisfy the PDD requirement to connect County Road 72 and Old
Victory Road unless a trail/sidewalk connection from County Road 72 to Old
Victory road is provided.
13. The Town is not requiring formal identification of an easement for the Elk Creek
Ditch No. 2, at this time. However, by virtue of its ownership of decreed Elk
Creek Ditch No. 2 water rights, the Town owns, and claims, all rights-of-way and
easements associated with, or used for, the historical delivery of the water
associated with these water rights.
14. Complete attainable housing unit audit in accordance with the Cornerstone
Attainable Housing Plan no later than October 31, 2015. Prior to approving the
final plat for Filing 3 or October 31, 2016, whichever comes first, the Town and
Grand Park will work together to discuss sufficient market demands, negotiate
the terms of the deed restriction program and discuss potential incentives.
APPROVED AND ADOPTED THIS 20t" DAY OF JANUARY, 2016.
BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO
3'11
Mayor
ATTEST:
Town Clerk
MEMO TO: Mayor Smith and the Board of Trustees
FROM: Catherine E. Trotter, AICP, Town Planner
DATE: January 13, 2016
SUBJECT: Planner Briefing on Elk Creek — Major Subdivision -Round 2
MATTER BEFORE BOARD:
The applicant is requesting an extension of time for execution of all documents pertaining to the
Final Plan and Final Plat - Elk Creek at Grand Park (Planning Area 5W), Filing No. 1.
ACTION REQUESTED:
Motion to approve Resolution 2015-01-02 authorizing a sixty day extension for the execution of
all documents pertaining to the Final Plan and Final Plat of Elk Creek at Grand Park (Planning
Area 5W), Filing No.1.
EXECUTIVE SUMMARY:
Resolution 2015-07-03 approving the Final Plan and Final Plat for Elk Creek at Grand Park
Filing No. 1 and Filing No. 2 provided 120 days for execution of all documents, that time has
expired and the applicant is requesting an additional 60 days to complete execution of all
documents. Staff recommends approval of Resolution 2016-01-02 approving said extension.
BACKGROUND:
Previously, the TB approved the Resolution 2015-07-03. This resolution required that all
documents be executed within 120 days of approval of said resolution. The applicant is
requesting an extension to have time to comply with all the conditions listed in Resolution 2015-
07-03. The applicant has asked for an extension until February 4, 2016. Let's give us enough
time so this doesn't have to come back to TB again. The Resolution as drafted specifies a sixty
day extension.
The Town Board has previously approved this final plan and final plat with conditions.
RECOMMENDATION:
Staff is recommending approval of Resolution 2016-01-02 with the same conditions.
Please contact me with questions/concerns. ctrotter(cbtown.fraser.co.us
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
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January 12, 2016
Sent Via e-mail
Town of Fraser
Attn: Jeff Durbin
P.O. Box 120
Fraser, CO 80442
Re: Town of Fraser Resolution No. 2015-07-03
Dear Jeff,
Please accept this letter as a request to the Town of Fraser Board of Trustees to consider an
extension of time for execution of all documents pertaining to Elk Creek at Grand Park — Final
Plan and Final Plats Filing No. 1 in the Planning Area 5W of the Grand Park Planned
Development District.
Resolution No. 2015-07-03 pertains to Elk Creek at Grand Park — Filing 1
Grand Park respectfully requests the Board of Trustees extend the approval for a period of 15
days to February 4, 2016 for the execution of all documents relating to Elk Creek at Grand Park
—Filing 1.
Thank you for your consideration of this request.
P.O. Box 30 Phone: 970-726-8600
Winter Park, CO 80482 Fax: 970-726-8833
TOWN OF FRASER
RESOLUTION NO. 2015-07-03
A RESOLUTION APPROVING ELK CREEK AT GRAND PARK FINAL PLAN AND FINAL
PLATS FILING NO. 1 AND FILING NO. 2 IN PLANNING AREA 5W OF THE GRAND PARK
PLANNED DEVELOPMENT DISTRICT.
At the special meeting of the Fraser Planning Commission held on May 13, 2015, and
two regular meetings of the Fraser Planning Commission held on May 27, 2015 and June 22,
2015, Grand Park Development LLC requested a recommendation of approval for a Final Plan,
Preliminary Plat and Final Plat Filing No. 1 and Filing No. 2 for Elk Creek at Grand Park; and
WHEREAS, Grand Park Development LLC is the current owner of Planning Area 5W;
and
WHEREAS, Grand Park Development LLC is requesting final plat approval which would
create 75 lots in four (4) phases; and
WHEREAS, Staff has determined that this application is in compliance with the
subdivision and zoning regulations of the Town of Fraser.
WHEREAS, the Fraser Planning Commission approved Planning Commission
Resolution 2015-05-02 and 2015-06-02 recommending approval of the Final Plan, Preliminary
Plat and Final Plat Filing No. 1 and Filings No. 2 Elk Creek at Grand Park with conditions.
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO THAT:
The Town Board of Fraser, Colorado hereby approves the Final Plan and Final Plats Filing No.
1 and Filing 2 for Elk Creek at Grand Park, Grand Park PDD with the following conditions:
1. The applicant shall provide written documentation from the USACE confirming
that the applicant is in compliance with the requirements to fill within the waters
of the United States on Elk Creek within Grand Park Planning Area 5W prior to
building permit issuance.
2. The Final Plan and plats boundaries encompass parts of Planning Area 23W,
4W.1 and 4W.2, thus the Final Plan title should reference those areas. Revise
accordingly.
3. All engineering documents to be approved by Town Engineer.
4. All legal documents to be approved by Town Attorney.
5. A Subdivision Improvement Agreement (SIA) shall be provided prior to
recordation of each Final Plat.
6. The SIA required improvements and collateral associated with those
improvements shall be subject to Town Engineer and Town Attorney approval
prior to execution and the schedule for completion of said improvements shall be
within one (1) year of execution of the SIA.
7. Payment of all applicable fees
8. The Final Plan and Final Plats Filing No. 1 shall be executed and recorded within
one hundred twenty (120) days of this resolution. The Final Plats for subsequent
Filings must be executed and recorded within five (5) years of this resolution or
they shall expire unless an extension is approved by the Board of Trustees.
9. Provide 911 Mylar and electronic copy of the plat in accordance with the
Subdivision Regulations and updated title commitment.
10. Prior to plat recordation, Grand Park must sign the Mary's Pond Access and
Operations Agreement.
11. The Board of Trustees authorizes the Town Manager and Town Attorney to
negotiate the final terms of the conservation easement and to authorize
appropriate Town officials to accept and execute such easement upon approval
of the terms thereof by the Town Manager and Town Attorney.
12. Change General Note #15 on the Final Plan to state the following:
Elk Ranch Road shall be improved from CR72 through Filing No.1 as a twenty-
four foot (24') wide all-weather surface (CDOT Class 6 road base) access road
constructed to the lines, grades and vehicle weight loading requirements of the
Town of Fraser Design and Construction Standards for a Local Street. This
roadway improvement shall be included in the SIA for Filing No.3. At the
completion of Filing No. 4 the all-weather surface access road shall be paved in
accordance with Town of Fraser Standards and said improvements shall be
included in the SIA for Filing No. 4. Until such time as the access road is paved,
it shall be maintained by the HOA or Developer for year-round public access.
This does not satisfy the PDD requirement to connect County Road 72 and Old
Victory Road unless a trail/sidewalk connection from County Road 72 to Old
Victory road is provided.
13. The Town is not requiring formal identification of an easement for the Elk Creek
Ditch No. 2, at this time. However, by virtue of its ownership of decreed Elk
Creek Ditch No. 2 water rights, the Town owns, and claims, all rights-of-way and
easements associated with, or used for, the historical delivery of the water
associated with these water rights.
14. Complete attainable housing unit audit in accordance with the Cornerstone
Attainable Housing Plan no later than October 31, 2015. Prior to approving the
final plat for Filing 3 or October 31, 2016, whichever comes first, the Town and
Grand Park will work together to discuss sufficient market demands, negotiate
the terms of the deed restriction program and discuss potential incentives.
If such conditions are not satisfied, the approval provided by this resolution is no longer valid.
DULY MOVED, SECONDED AND ADOPTED THIS 29th DAY OF JULY, 2015.
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TOWN OF FRASER
RESOLUTION NO. 2016-01-01
A RESOLUTION EXTENDING THE APPROVAL OF A SUBDIVISION EXEMPTION PLAT FOR
GRAND PARK DRIVE, TOWN OF FRASER, GRAND COUNTY, COLORADO
WHEREAS, Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC
are the owners of Parcel 1 and Parcel 2, as identified on said exemption plat; and
WHEREAS, the applicant, has requested that the Board of Trustees extend the date of
execution of all exemption plat documents; and
WHEREAS, the Board of Trustees previously approved the exemption plat via
Resolution No. 2015-11-04 which created two parcels to convey to the West Mountain
Metropolitan District in order to provide the road right-of-way corridor and construction area
associated with the Union Pacific Railroad Underpass (UPRR) project; and
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FRASER, COLORADO THAT THE APPROVAL OF THE SUBDIVISION
EXEMPTION PLAT FOR GRAND PARK DRIVE IS HEREBY EXTENDED WITH THE
FOLLOWING SAME CONDITIONS:
1. Add the following plat note: Parcel 1 and Parcel 2 can only be sold or transferred
to the West Mountain Metropolitan District or the Town of Fraser.
2. Revise the plat to identify ownership of adjacent lots and identify the Fraser and
Winter Park town boundaries.
3. Delete reference to a "60' County Road" on the plat. (The title examiner says
that it is not a public or valid ROW and is not referenced in the title commitment.)
4. Delete Final Plat from the title of the exemption plat in accordance with the
Subdivision Regulations.
5. Provide electronic copy of the plat in accordance with the Subdivision
Regulations.
6. Payment of all applicable fees
7. Execution of all documents within 60 days of the adoption of this Resolution.
8. Approval of the Subdivision Exemption Plat for Grand Park Drive does not
change the conditions of the Grand Park Planned Development District (PDD),
Reception # 2005-012709, Roadway Master Plan
APPROVED AND ADOPTED THIS 201h DAY OF JANUARY, 2016.
BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO
Aw
Mayor
ATTEST:
Town Clerk
MEMO TO: Mayor Smith & Board of Trustees
FROM: Catherine E. Trotter, AICP, Town Planner
DATE: January 13, 2016
SUBJECT: Planner Briefing on Grand Park Drive Exemption Plat -Round 2
MATTER BEFORE THE PLANNING COMMISSION:
The applicant is requesting an extension of time for execution of all plat documents pertaining to
the Subdivision Exemption Plat - Grand Park Drive.
ACTION REQUESTED:
Motion to approve Resolution 2016-01-01 authorizing a sixty day extension for the execution of
all plat documents pertaining to Grand Park Drive Exemption Plat.
EXECUTIVE SUMMARY:
Resolution 2015-11-04 approving the exemption plat for Grand Park Drive provided 30 days for
execution of all documents, that time has expired and the applicant is requesting an additional
60 days to complete execution of all documents. Staff recommends approval of Resolution
2016-01-01 approving said extension.
BACKGROUND:
Previously, the TB approved an exemption plat for Grand Park Drive via Resolution 2015-11-04.
This resolution required that all plat documents be executed within 30 days of approval of said
resolution. The applicant is requesting a sixty day extension to have time to comply with all
conditions listed in Resolution 2015-11-04.
Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC previously
requested approval of a subdivision exemption plat on both sides of the Union Pacific Railroad
(UPRR) right-of-way near Leland Creek. The two parcels identified as parcel 1 and parcel 2
represent the planned road right-of-way corridor and railroad underpass construction corridor
associated with the UPRR underpass project. The exemption plat will allow the applicant to
convey the two parcels to the West Mountain Metropolitan District. The West Mountain
Metropolitan District entered into a construction and maintenance agreement with UPRR and
the Town of Fraser for the construction of the railroad underpass at this location. This property
will ultimately become part of Grand Park Drive.
The Town Board has previously approved this exemption plat with conditions.
RECOMMENDATION:
Staff is recommending approval of Resolution 2016-01-01 with the same conditions.
Please contact me with questions. ctrotter(a)town.fraser.co.us
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
-IJ __ afPR - 7CT_ K
---
January 12, 2016
Sent Via e-mail
Town of Fraser
Attn: Jeff Durbin
P.O. Box 120
Fraser, CO 80442
Re: Town of Fraser Resolution No. 2015-11-04
Dear Jeff,
Please accept this letter as a request to the Town of Fraser Board of Trustees to consider an
extension of time for execution of all documents pertaining to a Subdivision Exemption Plat for
Grand Park Drive.
Resolution No. 2015-11-04 pertains to the Subdivision Exemption Plat for Grand Park Drive,
Parcel 1 and Parcel 2.
Cornerstone Winter Park Holdings, LLC and Grand Park Development, LLC respectfully request
the Board of Trustees extend the approval for a period of 60 days for the approval of a
subdivision exemption plat in order to convey Parcel 1 and Parcel 2 to the West Mountain
Metropolitan District.
Thank you for your consideration of this request.
P.O. Box 30 Phone: 970-726-8600
Winter Park, CO 80482 Fax: 970-726-8833
TOWN OF FRASER
RESOLUTION NO. 2015-11-04
A RESOLUTION APPROVING A SUBDIVISION EXEMPTION PLAT FOR GRAND PARK
DRIVE, TOWN OF FRASER, GRAND COUNTY, COLORADO
At the regular meeting of the Fraser Planning Commission held on October 28, 2015,
Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC requested a
recommendation of approval for a Subdivision Exemption Plat; and
WHEREAS, Cornerstone Winter Park Holdings, LLC and Grand Park Development LLC
are the owners of Parcel 1 and Parcel 2, as identified on said exemption plat; and
WHEREAS, the applicant, is requesting approval of a subdivision exemption plat in order
to convey the two parcels to the West Mountain Metropolitan District. The two parcels identified
as parcel 1 and parcel 2 represent the road right-of-way corridor and construction area
associated with the Union Pacific Railroad Underpass (UPRR) project; and
WHEREAS, the West Mountain Metropolitan District entered into a construction and
maintenance agreement with UPRR and the Town of Fraser for the construction of the railroad
underpass; and
WHEREAS, Staff has determined that the application is in compliance with the
subdivision exemption regulations of the Town of Fraser; and
WHEREAS, the Fraser Planning Commission voted to recommend approval of the
Subdivision Exemption Plat Grand Park Drive via Planning Commission Resolution 2015-10-01.
NOW THEREFORE BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE
TOWN OF FRASER, COLORADO THAT THE SUBDIVISION EXEMPTION PLAT FOR GRAND
PARK DRIVE IS HEREBY APPROVED WITH THE FOLLOWING CONDITIONS:
1. Add the following plat note: Parcel 1 and Parcel 2 can only be sold or transferred
to the West Mountain Metropolitan District or the Town of Fraser.
2. Revise the plat to identify ownership of adjacent lots and identify the Fraser and
Winter Park town boundaries.
3. Delete reference to a "60' County Road" on the plat. (The title examiner says
that it is not a public or valid ROW and is not referenced in the title commitment.)
4. Delete Final Plat from the title of the exemption plat in accordance with the
Subdivision Regulations.
5. Provide electronic copy of the plat in accordance with the Subdivision
Regulations.
6. Payment of all applicable fees
7. Execution of all documents within 30 days of the adoption of this Resolution.
8. Approval of the Subdivision Exemption Plat for Grand Park Drive does not
change the conditions of the Grand Park Planned Development District (PDD),
Reception # 2005-012709, Roadway Master Plan
APPROVED AND ADOPTED THIS 18th DAY OF NOVEMBER, 2015.
BOARD OF TRUSTEES OF THE TOWN OF
FRASER, COLORADO
Qss�
BY:
se
cO��° ATTEST:
Town Clerk
TOWN OF FRASER
RESOLUTION NO. 2016-01-03
A RESOLUTION AUTHORIZING BUDGETED EXPENDITURES FOR THE 2016 — SAFEWAY
FRONTAGE ROAD UNDERDRAIN AND RESURFACING PROJECT AND AUTHORIZING THE
TOWN MANAGER TO ENTER INTO A CONTRACT.
BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF FRASER,
COLORADO THAT:
1. The Town Board of Fraser, Colorado hereby authorizes expenditures not -to -exceed the
approved 2016 budget amount of $50,000 for the work as outlined by the Public Works
Director and authorizes the Town Manager to enter into a contract for the work.
2. The public bidding process will be used for this project.
3. Following the opening and review of the bids received, staff intends to award the
Contract to the most responsible and responsive bidder.
4. All documents must be executed and work completed within fiscal year 2016 or this
approval shall no longer be effective.
READ, PASSED ON ROLL CALL VOTE, AND ADOPTED BY THE BOARD OF TRUSTEES
THIS 20th DAY OF JANUARY, 2016.
Votes in favor:
Votes opposed:
Absent:
Abstained:
(S E A L)
BOARD TRUSTEES OF THE
TOWN OF FRASER, COLORADO
BY:
Mayor
ATTEST:
Town Clerk
MEMO TO: Mayor Smith and the Board of Trustees
FROM: Allen Nordin, CWP, Public Works Director
DATE: January 20, 2016
SUBJECT: Staff Report PW: Safeway Frontage Road Underdrain and Resurfacing Project
MATTER BEFORE BOARD:
Staff is seeking authorization to initiate bidding and contracting for repairs to the Safeway
frontage road. The 2016 Budget includes $50,000 for this project.
ACTION REQUESTED:
Approval of Resolution 2016-01-03 to expend budgeted funds from the General Fund in the
amount not -to -exceed $50,000, and, to authorize the Town Manager to enter into an agreement
with the most responsive and responsible bidder for the work associated to the "2016 — Safeway
Frontage Road Underdrain and Resurfacing Project" as described in the Town of Fraser
Contract Documents and Technical Specifications bid packet dated January 20, 2016.
EXECUTIVE SUMMARY:
A section of town roadway accessing the Safeway grocery store and The Fraser Market Place,
also known as the Safeway frontage/secondary access road, has failed and staff is seeking
approval to initiate bidding and contracting for work to address the problem. Staff recommends
approval of Resolution 2016-01-03.
BACKGROUND:
A section of town roadway accessing the Safeway grocery store and The Fraser Market Place,
also known as the Safeway frontage/secondary access road, has failed and is impacting the
traveling public when they come to Fraser to shop at one of our primary commercial areas.
The 2016 Budget includes $50,000 for this project. It is our hope to begin bidding the project
promptly in hopes of obtaining better bids and completing the project in 2016.
The work will be scheduled to begin in late April/early May and is anticipated to be completed in
advance of the June 24-26 Touch the Sun festival. However, if the work cannot be completed
by the end of the day on Wednesday June 22nd, no work will be allowed on Thursday, June 23rd
through Monday June 27th, and again beginning Thursday June 301h through Tuesday July 5th
for the Independence Day weekend.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
It is believed that groundwater underneath this section of roadway is coming from a couple of
different sources, possibly the adjacent upper Lion's pond and/or the subsurface utility trench
that runs beneath the asphalt roadway. This condition was initially observed several years ago
and may possibly be linked to the trench that is used for the sewer main trunk line and
Pumpback line that were installed in the mid -2000 and eventually daylighting through the
asphalt roadway. For a temporary solution, staff installed a rudimentary underdrain along the
west shoulder of the roadway in an effort to carry the flows away from the asphalt road surface
and a nearby sanitary sewer manhole to minimize inflow & infiltration (I&I). This solution was
successful for several years until last summer when apparently the groundwater flows, including
the freeze/thaw cycles, took a toll on the road sub -base and asphalt causing the roadway
failure. In the fall of 2015, staff removed the failed asphalt and added compacted road base
material into the area in hopes of making it through the winter and until such time that a
permanent fix could be researched and applied.
Staff has been working closely with the town's engineering consultants, Bowman Consulting
Group (BCG), to develop a plan for this work. Staff and BCG engineers have developed what
we believe is a solution to the groundwater impacts on this section of roadway. Additionally,
Winter Park Ranch W&S was contacted to inform them of the upcoming project and to get input
from them of any concerns they may have as a result of the work. They did not feel there would
be any immediate impacts to their augmentation ponds.
The 2016 project work includes the removal of the failed asphalt and subgrade materials;
installation of angular, permeable and alternative geotextile materials including perforated drain
pipe that will promote the groundwater to flow-through and under the roadway section and into
the drainage ditch along the west side of the frontage road. Once the road base is
reconstructed and all geo technical testing completed, the road will receive the final asphalt
surfacing application. It is anticipated to close the frontage roadway to traffic during the work to
allow the contractor full use of the area and work freely to expedite the time needed to make this
repair which is estimated to be approximately 3 weeks.
Alternate bid work includes, but is not limited to, installation of additional drain pipe to carry
groundwater flows along the east side of the frontage road and into the lower pond.
ALTERNATIVES:
1. The "no action alternative," leave roadway as is with additional traffic control measures
as appropriate.
2. Approve Resolution 2016-01-03 which provides for replacement of existing materials
with a new underdrain system and pavement.
3. Replacement of the failed section of pavement without the underdrain component.
4. Design the project on a broader scope to accommodate a full movement intersection
and traffic signal at US40 and Old Victory Road.
RECOMMENDATION:
Staff recommends approval of Resolution 2016-01-03 authorizing the expenditure and
authorizing the Town Manager to enter into a contract with the winning bidder for the "2016 —
Safeway Frontage Road Underdrain and Resurfacing Project" consistent with the Budget.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
J i
TON syscwvlsf +
`TV * �'
r
i
L of A
Project Site Location
'77
Lott
u' 4
Safeway Frontage Road- South Facing
Safeway Frontage Road- North Facing
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
/I*
TOWN OF FRASER - CHALLENGES FACING HOUSING
Water and Sewer Tap Fee Analysis of 14 Colorado Mountain Town Communities
Town
Median
Household
Income
Rank Hi
to Low
Median Real
Estate Value
Rank Hi
to Low
Affordability And Tap Fees
Water/Sewer Rank Hi Tap Fees as a
Tap Fees to Low % of Med HHI
Rank Hi Tap Fees as a %
to Low of Med R/E Val
Rank HI
to Low
Fraser
$47,000
13
$250,000
10
$15,000
4
31.9%
3
6.0%
3
Granby
$60,000
6
$205,000
13
$14,810
6
24.7%
6
7.2%
1
Kremling
$45,000
14
$205,000
13
$11.700
10
26.0%
5
5.7%
4
Winter Park
$65,000
4
$360,000
8
$23,100
1
35.5%
1
6.4%
2
Grand County
9.3
11
5.3
3.75
2.5
Glenwood Sp s
$57,000
8
$405,000
7
$11,344
11
19.9%
9
2.8%
12
Carbondale
$67,000
3
$475,000
3
$10,870
12
16.2%
12
2.3%
14
Rifle
$53,000
11
$255,000
9
$12,575
8
23.7%
7
4.9%
5
Garfield County
7.3
6.3
10.3
9.3
10.3
Steamboat Sp s
$65,000
4
$500,000
2
$11,847
9
18.2%
11
2.37%
13
Craig
$52,000
12
$235,000
11
$6,680
14
12.8%
14
2.84%
10
Hayden
$55,000
9
$220,000
12
$7,200
13
13.1%
13
3.27%
8
Moffat and Routt Counties
8.3
8.3
12
12.7
10.3333
Breckenridge
$55,000
9
$450,000
5
$17,950
2
32.6%
2
3.99%
7
Eagle
$75,000
1
$410,000
6
$17,000
3
22.7%
8
4.15%
6
Silverthorne
$68,000
2
$460,000
4
$13,000
7
19.1%
10
2.83%
11
Dillon
$56.000
7
$521,000
1
$15,000
4
26.8%
4
2.9%
9
Ea le and Summit Counties
4.8
4.0
4.0
4.8
8.3
*Median value includes all homes in the community
Summary:
1. Fraser's Median Household Income is next to last of the 14 communities evaluated
2. Fraser's Median Real Estate Value came in 10th ranking one of the lowest
3. Fraser's Water & Sewer Tap Fee is the 4th highest out of the 14 communities evaluated
4. Fraser's Water & Sewer Tap Fee is the 3rd most costly when compared to Median Household Income of the community
5. Fraser's Water & Sewer Tap Fee is the 3rd most costly when compared to Median Real Estate Values of the community
Tap Fees I'a(,c I of 2
r
TOWN OF FRASER - CHALLENGES FACING HOUSING
Water and Sewer Service Fees of 14 Colorado Mountain Communities
Town
Base Fee
Service Fees on a MONTHLY basis
Water Sewer
Monthly Usage Charge per 1000 Base Fee Usage Charge
Total Base
Fee
Base Fee Rank
Hi to Low
Consumption
at 6K gallons
Total w/
Consumption
Fraser
$51.00
$1.50 per 1000
$45.83
$96.83
14
$9.00
$105.83
Granby
$44.92
None indicated
$48.72
$93.64
13
$93.64
Kremling
Not Found
Not Found
$39.00
$39.00
2
$39.00
Winter Park
$33.50
$3/1000 gallons > 4000 gallons
$36.00
$69.50
10
$6.00
$75.50
Grand County
$32.35
$42.39
$74.74
$3.75
$78.49
Glenwood Spgs
$23.33
$1.70 per 1000
$46.33
$69.67
11
$10.20
$79.87
Carbondale
$3.76
$3.84 per 1000
$5.03 $6.00 per 1000
$8.79
1
$23.04
$31.83
Rifle
$25.20
Undisclosed
$40.71
$65.91
8
$65.91
Garfield County
$17.43
$30.69
$48.12
$11.08
$59.20
Steamboat Spgs
$21.84
$2.30 1000-4000; $3.45 5000-12000
$42.57
$64.41
5
$20.70
$85.11
Craig
$28.50
$2.90 per 1000
$28.00 $2.90 per 1000
$56.50
4
$34.80
$91.30
Hayden
$37.58
$3.61 6000-12000; $4.11 >12000
$30.75
$68.33
9
$3.61
$71.94
Moffat and Routt Counties
$29.31
$33.77
$63.08
$19.70
$82.78
Breckenridge
$38.45
$5.25 per 1000 above 10000 gallons
$26.00
$64.45
7
$0.00
$64.45
Eagle
$29.10
$5.45 6001-28000 gallons
$44.00
$73.10
12
$0.00
$73.10
Silverthorne
1 $13.62
$1.35 for 0-15000 gallons calculated quarterly
$31.32
$44.94
3
$8.10
$53.04
Dillon
1 $23.30
$5.50 0-6,000gallons; $6.55 6000-10000; $8.05 > 10000
1 $41.201 1
$64.50
6
$33.001
$97.50
Eagle and Summit Counties
1 $26.121
1 $35.631 1
$61.751
1
$10.281
$72.02
Summary:
1. Fraser has the highest TOTAL Base Fee of all 14 communities evaluated
2. Fraser has the highest Base WATER fee of all 14 communities evaluated
3. Fraser has the 3rd highest Base SEWER fee of all 14 communities evaluated
4. Fraser has the highest Total Fee when assuming consumption of 6,000 gallons of water per month
Water & Sanitation Mill Levies
W&S Mill
City Levies
Fraser
0
0
2.273
7.04
13.951
0
0
0
0
0
0
0
0
0
0
0
0
0
Granby
Kremling
Winter Park Ski Area
WP - Grand County One
Glenwood Spgs
Carbondale
Rifle
Garfield County
Steamboat Spgs
Craig
Hayden
Moffat and Routt Counties
Breckenridge
Eagle
Silverthorne
Dillon
Eagle and Summit Counties
Service Fees Page 2 of 2
Leading the Way
Housing Ladder is Key to Denver's Continued Growth
what elements of our current vibrancy do you think will
have the most impact on our future?
1B: Denver and the metro area have so much going for
them. Mayor Hancock's vision for downtown and the airport
culminated by the airport cities and growth in the metro area
have created what many call nodes linked by transportation.
Nodes such as downtown Denver, the Denver Tech Center, Au-
rora Medical Center, Arvada and points beyond now linked by
significant transportation including light rail and the new In-
terstate 70 redevelopment just getting started. The collabora-
tion between multiple city leaders has set the stage for smart
growth that will keep it pleasurable to live here. I've lived in
Arvada for nearly 30 years and the possibility of having my
morning coffee in Old Town and hopping on the light rail to
downtown is fantastic!
One of our opportunities is to resolve the congestion to the
access of our biggest asset as a region - the mountain areas
and, specifically, the west -bound I-70 access thereto.
Let's face it, beyond our strong and diversified business cli-
mate, it's our recreation resources that give us a big advan-
tage and reason people want to live here. We have to solve the
transportation challenges there.
1S: Colorado and the Front Range, in particular, have seen
tremendous growth and new construction in the past
few years. Coming out of the recession, what is the state
of the construction industry and can you speak to the
construction cost increases you are seeing in the market?
JB: Construction costs increases are a factor of supply and
demand and I think it will be a short-term issue.
During the recession, we saw a great loss of labor and talent
in the trades due to a drop off in construction activity. The
protracted duration of the recession resulted in those work-
ers leaving this profession to seek other job opportunities. I
don't think we'll ever get them back So now, we have an op-
portunity to train new workers for a variety of construction
trades. The benefit to the current construction growth is that
the industry has good jobs to offer both new and seasoned
workers, which builds industry expertise and headcount. Un-
til the building cycle tapers and/or labor resources meet the
demand, we'll see construction pricing on an upward path.
1S: Looking to the future, what do you see as our greatest
challenge?
IB: Denver seems to be at the epicenter of the national
scene. We have seen and continue to see a large increase in
22 / BUILDING DIALOGUE / SEPTEMBER 2015
we are seeing currently is just not realistic
for the millennials who are maybe three to
five years into their careers and finding real estate prices out
of reach. We are missing affordable housing options that are
between rental and single-family home prices - were miss-
ing housing product in the $200K to S250K range, for instance.
One of the answers is condos and owned affordable prod-
uct. In the last 10 years, we really haven't seen any new condo
development. This leaves a huge gap in the housing options
ladder.
We have to solve the legal framework that increases condo
construction risk and makes it too expensive to embark upon.
Developers won't develop condos. Contractors won't build
them and architects won't design them.
Affordable housing is key to the sustainability of growth
in Denver. We are at our strongest when we have conditions
that help young people grow up, get educated, have robust job
opportunities, and can live and own real estate in the urban
corridors. We have all of the above except the latter. This is a
critical challenge for our future.
It is the housing ladder topic that spawned a conversation
with Chris Waggett, CEO of D4 Urban and chairman of Tran-
sit Alliance.
1S: Pertaining to the housing stock, specifically at affordah
price range, what do you see as implications from the lack
of entry-level ownership options?
CW: I moved here nine years ago, so I'm one of the many w
migrated to Denver. We love the lifestyle, the opportunity,'
business climate, openness to newcomers and the prospE
of Denver's growth we've witnessed
in the last nine years. It's been fas-
cinating to watch the pendulum
swing from employees in 2006 to
employer in the downturn, and now
back to the employee. Talent is criti-
cal to our future and the good news <
is that we have lots of talent here and
new talent moving here. Talent moves
to where it wants to be and employers
follow that educated talent. The symbi-
osis of talent and employers is importChriS
-
ant to Colorado's economic engine. FJ,
Right now we have lots of rental op- Principal'
tions for young workers and then nothing
V.
between multifamily rental and single-family homes, whose
price tags are either out of reach for most young professionals
or are located in suburban locations that they don't aspire to
move to until they have families. Condominium construction
is virtually nonexistent, so we have a both an affordability and
housing product gap.
This gap is the result of constrained supply, which increas-
es pricing, and we are simply pricing ourselves out of the af-
fordable range. Key competitors like Dallas, Phoenix and Salt
Lake City have relatively affordable median house prices of
$165K to $175K compared to Denvers at $33OK and an average
home price of S4O4K This is a key concern for corporate relo-
cations to Colorado in terms of being an attractive place for
their workforce to live.
The ability to offer our young talent and our retiring baby
boomers a full spectrum of affordable urban and suburban
housing product types is critical to our future. I'm concerned
that without it, we will see impacts on migration to Den-
ver -metro region and an exodus from these two populations
in search of affordable housing opportunities. Lack of housing
affordability will be a headwind to growth - both economic
and population. Loss of population will reduce our tax base
and will impact our ability to attract businesses that seek tal-
ent, all of which could put us at risk in terms of continued
prosperity and also in an economic downturn.
We have an opportunity to look to the future and prevent a
loss of young, educated talent in the next generation by offer-
Leading the Way
ing common sense construction defects reforms that would
stimulate condo development as an affordable economic
pathway to home ownership and close the housing gap. Fur-
thermore, focusing that development around transit is "smart
growth" and what was promised to, and endorsed by, the vot-
ers in FasTracks and the expansion of RTD's light-rail system.
It's actually the only way that we can prudently manage pop-
ulation growth and preserve our quality of life.
The business and population growth that is going on in
Colorado right now is amazing and it's enabled us as a region
to achieve what we are today. However, we need to be proac-
tive to solve the housing affordability and options problem
and it requires leadership froth the state, cities and regional
leaders - wttnout a couaooranve error[, r m concernea mar me
housing affordability and opportunity issue could derail our
positive growth and our regional prosperity. It's just another
reason why the Metro Mayors Caucus has been unanimously
imploring the state to act on this issue as they know the im-
pact it's having in their communities now and going forward.
Finally, our first project is a market -rate affordable product
at Alameda Station, known as Denizen. We are currently col-
laborating with Medici Communities to develop a tax credit
affordable product on our mixed-use Bus Barn site, west of
Alameda Station, that will be connected to it via pedestrian
bridge. We would dearly like to be developing condominium
product next for first-time homebuyers, but current legislative
realities make this a challenging proposition. \\
ers Construction built the Triangle Building adjacent to Union Station.
Photo courtesy SClundel'S Construction
SEPTEMBER 2015 \ BUILDING DIALOGUE \ 23
top of mind
MARKET PULSE Home sales are outpacing last year's sales, but tight inventories
and mortgage underwriting continue to weigh on the market. First-time buyers are slowly emerging
but make up just 30 percent of buyers, down from historical norms of around 40 percent.
SUPPLY & DEMAND
All trend lines are from August 2014 to August 2015.
•r
• Seasonally adjusted annual rale, which is the actual rate of sales for the month,
multiplkid by 12 and adjusted for seasonal sales differences. 2014 data reflects final seasonal adjustments.
Number of existing homes on the market at the end of the month.
National median.
UPS AND DOWNS OF
HOME PRICES AND
INCOME
Equilibrium between home prices and
household income helps keep the housing
market stable, although the two rarely line up.
Since early 2014, the gap has been widening
but at a more modest pace than in previous
vears as home Brice eains have slowed.
o
Source! NAR Research
Why Renters Can't Make the Move
COf course, renters don't like forking
--
Lawrence Yun is over more money to be tenants. That's
NAR chief economist. why, when rents rise strongly, it creates
demand for home buying But that isn't
In August, rents spiked 3.6 percent over
the same time a year earlier, the fastest
pace since 2008. As rental vacancy rates
fall across most parts of the country and
more jobs are created, they will continue
to jump further. This trend is both good
news and bad news.
Naturally, people collecting rents are
thrilled with the gains they're seeing.
Both large apartment investors and
mom-and-pop landlords are enjoying the
best conditions they've seen in years. As
REALTORS,", many of you are among the
biggest beneficiaries: our surveys indi-
cate about a third of you own investment
property.
happening this time. In fact, the share of
first-time buyers, who typically lead the
move from renting to owning, continues
to hover at near 30 -year lows.
Rising rents are making it difficult for
potential first-time buyers to become
owners, especially since rent increases
are outpacing wage gains. That means
more of a tenant's income is being eaten
up in rent, making it harder to save for a
down payment.
The weak wage growth is a conse-
quence of decade-long subpar economic
growth. Historically. U.S. gross domestic
product grows at a 3 percent annual rate.
But since the recession, growth has been
averaging only 2.2 percent. A decrease of
0.8 percentage points might sound small
but, in an economy of $18 trillion, it has a
significant, cumulative impact.
Meanwhile, home prices are rising, in
large part because builders aren't adding
new homes for sale at a rate matching
demand. Only 5 million single-family and
apartment homes have been built in the
last five years, even though 12.5 million
jobs have been added during that period.
The lag in construction represents
good and bad news. It's helping to keep
rents and home prices up, but it's making
home ownership more difficult as tenants
struggle to save for the down payment
they'll need to buy an increasingly costly
home. While the construction outlook is
unclear, until builders contribute to the
overall housing stock at a more normal
pace, home prices and rents will continue
to rise.
12 REALTOR' NOVEMBER/OECEMBER2015 REALTORMAG.REALTOR.ORG
•� Med— Home Pate
—t— Median Ha,s Wd
12I-
income
9'
6:
3i"
1"1AA
o
Source! NAR Research
Why Renters Can't Make the Move
COf course, renters don't like forking
--
Lawrence Yun is over more money to be tenants. That's
NAR chief economist. why, when rents rise strongly, it creates
demand for home buying But that isn't
In August, rents spiked 3.6 percent over
the same time a year earlier, the fastest
pace since 2008. As rental vacancy rates
fall across most parts of the country and
more jobs are created, they will continue
to jump further. This trend is both good
news and bad news.
Naturally, people collecting rents are
thrilled with the gains they're seeing.
Both large apartment investors and
mom-and-pop landlords are enjoying the
best conditions they've seen in years. As
REALTORS,", many of you are among the
biggest beneficiaries: our surveys indi-
cate about a third of you own investment
property.
happening this time. In fact, the share of
first-time buyers, who typically lead the
move from renting to owning, continues
to hover at near 30 -year lows.
Rising rents are making it difficult for
potential first-time buyers to become
owners, especially since rent increases
are outpacing wage gains. That means
more of a tenant's income is being eaten
up in rent, making it harder to save for a
down payment.
The weak wage growth is a conse-
quence of decade-long subpar economic
growth. Historically. U.S. gross domestic
product grows at a 3 percent annual rate.
But since the recession, growth has been
averaging only 2.2 percent. A decrease of
0.8 percentage points might sound small
but, in an economy of $18 trillion, it has a
significant, cumulative impact.
Meanwhile, home prices are rising, in
large part because builders aren't adding
new homes for sale at a rate matching
demand. Only 5 million single-family and
apartment homes have been built in the
last five years, even though 12.5 million
jobs have been added during that period.
The lag in construction represents
good and bad news. It's helping to keep
rents and home prices up, but it's making
home ownership more difficult as tenants
struggle to save for the down payment
they'll need to buy an increasingly costly
home. While the construction outlook is
unclear, until builders contribute to the
overall housing stock at a more normal
pace, home prices and rents will continue
to rise.
12 REALTOR' NOVEMBER/OECEMBER2015 REALTORMAG.REALTOR.ORG
A Dream Too Far
Owning a home is a key rung on the ladder of economic advancement.
What happens if that rung remains elusive for many? By Meg white
It's been almost a year since the gap
Policy Center. And an uneven recovery
and further out of reach." he says, noting
between America's wealthiest and
has only exacerbated the divide. While the
the correlation between low home own-
_. middle-income-familiesreachedits highest—stock
marketreboundedlor investors—tile—Prship levels and high wealth inequality -_
level on record. The Pew Research Center
latest tumult notwithstanding—many
"They're joined at the hip. They perpetuate
found the median net worth of the nation's
current and former home owners are still
each other."
upper-income families ($639,400) was
dealing with fallout dating back to 2008.
In the second quarter of this year, the
almost seven times that of middle-income
Some positive economic indicators are
home ownership rate fell to 63.5 percent,
families ($96,500), making for the widest
not as reassuring as they once were. Chris
its lowest level since 1967. In particular, the
wealth disparity since the Federal Reserve
Herbert, managing director of Harvard's
relative scarcity of first-time buyers sug-
began collecting such data. The situation
Joint Center for Housing Studies, notes
gests continuing challenges for an industry
was ten times worse for the families earn-
that even though the unemployment rate
that relies on a continual move -up trend.
ing too little to enter the middle income
has decreased significantly, many of the
"if people cannot make that first step into
bracket, with a 70 -to -1 ratio separating
gains have been in low-wage, part-time
their starter home, it stops the whole chain
them from high-income families.
jobs with few benefits. "There's still a lot
reaction.' Yun says. "For a home owner
Paul Weech, CEO of NeighborWorks, a
national coalition of local affiliates working
to support affordable housing and com-
munity development, has been watching
this gap for decades. "We've always had
inequality in this country [but] the macro
data has shown a growing gap,' he says.
"It's a fact that more and more of the
wealth is flowing to fewer people:"
For those who care about maintaining
a high home ownership rate, it's a trouble-
some trend, says National Association of
REALTORSu`' Chief Economist Lawrence
Yun. "It's certainly not in the interest of
broader America, and it's something that
everyone should be concerned about."
A Vicious Cycle
Though no one was immune to the Great
Recession, its impact was felt far more
acutely by lower-income Americans than
those with more wealth. "The housing
boom and bust really did widen wealth
inequality;' says Laurie Goodman, director
of The Urban Institute's Housing Finance
of underemployment;' Herbert says. "A
5 percent unemployment rate is not what
it used to be."
One of the most common ways for
Americans to move up the economic
ladder and invest in other wealth -
generating activities—such as the stock
market, paying for advanced educational
opportunities, or starting a business—is by
leveraging equity they have in their homes.
"We traditionally have been huge sup-
porters of home ownership,"' says Weech.
"We see it as a way to provide stability for
households but also as an asset -building
strategy."
John Taylor, CEO of the National Com-
munity Reinvestment Coalition, an associ-
ation of about 600 organizations focused
on improving access to private capital in
underserved communities, agrees that
those who lack the opportunity to become
home owners have a weakened ability to
reinvest their wealth. "If you continue to be
a renter, locked out of the home ownership
arena, increasingly those things are further
in the upscale neighborhood, who are the
future buyers?"
Opening the Credit Box
Many would-be buyers are still unable to
take advantage of home affordability—
fostered by low interest rates—because
they can't secure mortgage approval. They
entered the market on the wrong side of
the "buy low, sell high" equation, and now
they're locked out. "They suffered dispro-
portionate losses,' says Goodman. "Now,
we see mortgage credit being unavailable
exactly when it would be the most useful:'
Goodman says pilot programs that use
less traditional credit -scoring factors—
such as allowing family members who are
not on the deed to contribute to the overall
tally of household wealth and counting
utility, cell phone, and rent bills toward
payment history—can help correct this.
"Right now if you don't pay utility bills on
time it hurts you, but if you do, it doesn't
help," she says. "This will allow [companies
such as Vantage and FICO] to score a lot
0
0
Z)
0
v
a
Z
Z)
0
Y
0
O
N
16 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG
3
A
more people than before."
Goodman also favors a closer focus on
overall employment history, rather than a
person's longevity with a single employer.
"Take someone who's had three jobs over
the last three years but has been steadily
employed. That person wouldn't be able to
get a mortgage [under current rules]," she
says. "Rethinking those types of issues is
very
To ensure lower- and middle-income
Americans have access to nonpredatory
loans, Taylor says, the federal government
needs to strengthen the Community
Reinvestment Act. The 1977 law aims to
ensure banks serve the credit needs of
everyone in the communities where they
work. The Federal Reserve Board enforces
the rule, but Taylor says banks have found
loopholes, such as closing branches in
low-income areas. Taylor also describes a
sophisticated game of hot potato, where
bank A sells a mortgage that satisfies
CRA requirements to bank B just in time
for bank B's CRA inspection. Then bank
B turns around to sell the same qualifying
loan to bank C for the same reason, so
they're all using one loan to secure passing
grades. "Frankly, it's pretty sad;' he says.
Building More Homes
Another approach to improving access is
to increase the supply of affordable homes.
In September, NAR released a study that
found new -home construction was not
keeping pace with job growth in two-thirds
of the 146 metro areas it studied.
Increased tax incentives for builders
of low- and moderate -income housing
could help, but that alone won't solve the
problem. The crunch is partly a result of
slow permitting. "Many local and state
officials are not providing what the builders
are requesting;' he says. "Approving more
permits will allow more building."
Taylor says he has spoken with major
home builders who want to alleviate the
inventory crunch but can't due to permit
issues. "A lot of cities and towns don't nec-
essarily want to build moderate -income
homes;' Taylor says, but he predicts the
Supreme Court's recent ruling upholding
the validity of disparate impact claims
under the Fair Housing Act will make
it harder for municipalities to hamper
building. "It's only going to take the federal
government suing the first three or four
towns and emptying out their
coffers before they all come up
with [low- and moderate -income
housing] initiatives:'
Such initiatives are likely to benefit
local economies in the long-term. A recent
Harvard University study found that when
low-wage workers are forced to migrate to
lower-cost areas, the cities they leave be-
hind stagnate. So without affordable hous-
ing, cities such as San Francisco will find it
difficult to maintain a balanced workforce.
"it undermines the ability of metro areas
to grow," Herbert says. "Not everyone can
be a software developer. Somebody has to
be doing all the other jobs that need to be
done in that economy. The Bay Area would
be growing much faster if it didn't have this
problem:'
Some problems go far deeper. Dysfunc-
tion in the public education and criminal
justice systems weighs more heavily on
the poor. The housing and mortgage
industries can do little to alleviate these
deep-seated societal challenges. "The
thing about the credit issues is that they're
solvable:' Goodman says. "You work on
what you can fix." But Taylor says policy
makers should be paying attention to how
these dilemmas are affecting people's
ability to own a home. "The 48 -year low in
home ownership ought to be the canary in
the coal mine letting Wall Street and banks
and others know we're reaching a tipping
point:'
REALTORMAG.REALTOR.ORG REALTOR' NOVEMBER/DECEMBER 2015 17
Town of Fraser
Sustainability
Planning
Q...or Ypd+a ealad+AgY
• Background & Overview
• GHG Emissions Inventory Results
• Government Operations
• Community -wide
• Outreach
• Potential Actions/Scenario Planning and Goals
• Work Plan/Next Steps
• Technical Energy Audit Update
• Questions/Discussion
Q...or Ypd+r ealad+AgY
Q...or Ypd+a ealad+AgY
Many definitions! Town of Fraser definition:
The Town of Fraser believes in and encourages sustainable
development, which is defined as a pattern of resource use
that aims to meet human needs while preserving the
environment so that these needs can be met not only in the
present but also for future generations. Incorporating
sustainability concepts into the development review
process would involve evaluating the triple bottom line,
economic prosperity, environment quality and social
equity (people, planet and profit). AIM kh i,
rr
Q...
Oi Ypd+r eniAdtAgY
Solid Waste Energy Use Transportation
Local government policies affect all major sources of
greenhouse gas emissions
Q...or Ypd+r ealad+AgY
ICLEI-Local Governments for Sustainability
• Membership association of local governments committed to
increasing sustainability
• Over 1,000 local government members Leadership
• Tools, resources, technical assistance Commitment
• Five Milestones for Sustainability J&
Planning process
M�ilestone 1
Inventory
---�Mflestone 2
�:::stablish T . arget
Westo e 3
Develop Climate
Action Plan
------------------------------------------------------------------------------
M�ilestone 4
Implement Climate
Action Plan
• Document baseline emissions sources
• Government Operations
• Community -wide
• Illustrate opportunities for emissions reductions
• Enable focused and effective policymaking
• Monitor progress toward emission reduction goals
• 3rd party verification
Q...or Ypd+r ealad+AgY
• It maps Fraser's 2014 activities with GHG emissions
represented as carbon dioxide equivalent (CO2e)
• Boundary
• Operational Control - government operations
• Town of Fraser limits - community
• Activity Sectors Include:
• Buildings Energy Use: Electricity & Natural Gas
• Transportation: Tail -Pipe Emissions
• Materials and Waste
• Other
GHGs included: CO2i CH4, Neo
• Scopes (1, 21 3 recommended)
Q...or Ypd+r ealad+AgY
Q...or Ypd+a ealad+AgY
Inventory Boundary: All facilities, vehicles, etc. operated
Stationary Sources
Buildings and Facilities
Public Lighting -streetlights,
traffic signal
Water Treatment & Transport -
pumps, irrigation
Refrigerants (N/A)
Solid Waste from
Government Operations
Wastewater Treatment
Facility
Q...or Ypd+r ealad+AgY
Mobile Emissions
Vehicle Fleet
Mobile Equipment (N/A)
Refrigerants (N/A)
Employee Commute
Business Travel (in VF)
Materials Production
Asphalt & Cement (N/A)
Copy Paper
Computers & Hardware
Fertilizer
Five Basic Emissions Generating Activities:
• Use of Electricity by the Community
• Use of Fuel in Residential and Commercial Stationary
Combustion Equipment (natural gas)
• On -Road Passenger and Freight Motor Vehicle Travel
(ADT)
• Use of Energy in Potable Water and Wastewater
Treatment and Distribution (also in gov ops)
• Generation of Solid Waste by the Community (Laurie)
Q...or Ypd+r ealad+AgY
Q...or Ypd+a ealad+AgY
*Includes JFF Or —40% gasoline use
Q...or Ypd+a ealad+AgY
Q...or Ypd+a ealad+AgY
Q...or Ypd+a ealad+AgY
Q...or Ypd+a ealad+AgY
Q...or Ypd+a ealad+AgY
• Ways to message sustainability:
• Quality of life
• Responsibility
• Instead of "economic development', "business" or
making "viable" decisions
• Interested i n :
• Transit
• Housing
• What other communities are doing
0...or Ypd+r ealad+AgY
• A few facilities have taken action:
• Grand Park Community Recreation Center
• Reduced energy use 10-20% since opened 5 years ago
• Built with LEED in mind - many sustainable features
• Fraser Valley School District
• ESPC in 2009, typical savings 1-v20% energy
• Safeway
• Won't give out store -specific information
• Safeway goal to reduce emissions by 25% by 2020 from
2010
• Fraser Valley Shopping Center
• Rooftop unit replacement
• Fraser Marketplace
Q...or Ypd+r ealad+AgY
Take Aways :
• Some action/engagement
• Many are uninterested/unengaged
• Not much knowledge of rebates -
• Upfront cost an issue
Xcel or M PEI
• Some interest once made aware
• Interest in LED parking lot lighting
• Limited recycling
Q...or Ypd+r ealad+AgY
Natural Gas - Town of Fraser - last 5 years
Program o,f participants
Energy Efficient Soa - Co
�Ener,gy Star Homes - Co
Home Energy Audits - Co
Insulation Rebates - Co
XcelaergySu
LowIncome Kits - CO 14
Low Income at ri ti - CO2
Refrigerator Recycling - CO 2
Residential) eaiting - CO 4
Water Heating - Co, 2
...............................................................................................................................
Grand Total 28
Q...or Ypd+r ealad+AgY
Electricity - Grand & Jackson Counties, etc. (20,000 customers)
• 2014 COMMERCIAL TOTALS:
• Customers:9
• Amount invested: _ $14,072
• MMBTU Savings: 538.5
` "F A I N A : N
• 2014 RESIDENTIAL TOTALS: `� 4n.iui:w ilk
• Customers: 488
• Amount invested: _ $37,677
• MMBTU Savings: 1,025.14
Q...or Ypd+r ealad+AgY
Q...or Ypd+a ealad+AgY
Local Examples
• 20% below 2005 by 2020 (State of CO)
• Denver, Fort Collins
• Towns of Mountain Village, Norwood, Ophir and Telluride, San Miguel
County
• 80% below 2005 by 2050 (Boulder, CO)
• Recommendation:
• 20% below 2014 by 2025
Q...or Ypd+r ealad+AgY
Government Operations
• Energy Savings Performance Contracting at WWTP
• —700,000 kWh at the WWTP (solar and aeration/mixing upgrades)
• 40+% reduction in electricity, N 600 mt-0O2e
• 28% reduction in gov. ops GHG emissions overall
• Waste management - Recycling Resources Economic Opportunity
Fund Grant
• Increased public transportation
Community -wide
• Community Solar - 100kW (example)
• Residential Energy Education/Awareness - 10% reduction
• Commercial RCx - N5% reduction energy use
• Residential & Commercial Rebates - lighting, heat pump water
heaters
• Increased public transportation (2A)
Q...or Ypd+r ealad+AgY
H'.
30k
25k
20k
0
15 k
E
10k
0
u
sk
ok
2014 20191 2024,
Residential Energy 0 Commercial Energy Transportation & Mobile Sources
10 Water & Wastewater 100 Solid Waste -- Original Forecast
-- 20% by 2025 Goal Reduction l
�-Hghchar('s Corn
• Assumptions:
• 5% annual growth
• Clean Power Plan - emissions reduction
• CAFE standards - MPG increase
• Residential Energy Education/Awareness: 6% reduction
• Commercial Retro -commissioning: 4% reduction
• Community Solar: 3.5% reduction
• ESPC at the WWTP: 2.5% reduction
Q...or Ypd+r ealad+AgY
• Ouray
• "Greenlights" LED lightbulb program - "prebate" up to 75% of cost
• Green Projects Grant Program
• Sneffels Energy Board - regional effort
• Green Business Certificate Program - sustainability certificate
• Regional Compost Facility and Waste Campaigns
• Regional Solar Garden
• Educational/Outreach Program
• Nederland
• NedSustainable - Advisory Board, Action Plan
• Sustainability Resolution, Envision 2020
• Increased tracking and managing resources
• Sustainability Action Matrix
Q...or Ypd+r ealad+AgY
bag fees, M�FU recycling space
ope,ratio�n�s
'14
LA Aweiates, IcMay 6,' 015
Bs� n. 2
Q...
Oi Ypd+a eniadtAgY
r
Energy
N le
J7 �
c ° ° d T l� ���
Q...or Ypd+a ealad+AgY
• Summary Report - January/February 2016
• Staff Training for Ongoing Tracking - January 2016
• Replicate analysis in 2016
• Resolution - Early 2016
• Commitment
• Goals
• Implementation
Q...
or Ypd+r ealad+AgY
Town of Fraser
Technical Energy Audit (TEA) Update
Q...or Ypd+a ealad+AgY
• 11 Facilities were included in the TEA:
• Bus Barn
• Community Center
• Fraser Water Treatment Plant
• Lions Park
• Maryvale Water Treatment Plant
• Public Works Facility
• School House Park
• Storage Building
• Town Hall
• Visitor Center
• Wastewater Treatment Plant
• The TEA effort has involved the following:
• N70,400 ft2 of indoor space surveyed
• N590 existing lighting fixtures surveyed
• N50 Data logging devices deployed
• 3 Years of Utility Data Analyzed
• 39 Utility Meters
Q...or Ypd+r ealad+AgY
0
• March 2015: TEA Executed
• May 2015: TEA Kick -Off Meeting
June 2015: Preliminary Presentation
• Initial List of Potential Measures (+/- 30010 Accuracy)
July 2015 - Ongoing: Project Delay
2016 Activities
• Pre -Final Presentation (9001b Complete)
• M&V Workshop
• Delivery of TEA Report and ESPC Proposal
• ESPC Project Contract Execution
• Commence Construction Phase
• Commence Performance Assurance Phase
Q...or Ypd+r ealad+AgY
v
Q...or Ypd+a ealad+AgY
• Guaranteed Outcomes: Costs, Savings & Performance
• Single Point of Accountability
• Project Oversight from the Colorado Energy Office
• Reduced utility and operation costs
• Reduced exposure to energy price volatility
• Ability to blend long payback capital intensive
upgrades with short payback measures
• Freedom to select preferred contractors to implem(
the proposed scope of work
• Less reactive maintenance for equipment that has
exceeded its useful life
• Focused training for staff on new equipment and
improved operations
• Overall improvement to system reliability and
equipment performance
Q...or Ypd+r ealad+AgY
DESIGN -BUILD ACHIEVED HIGHER
QUALITY IN ALL MEASURED CATEGORIES
as compared to Design -Bid -Build
TOTAL PROJECT
DELIVERY
SPEED
CONSTRUCTION
SPEED
UNIT COST
CHANGE
ORDERS
SCHEDULE
DELAYS
Source: Construction Industry Institute (CII)/Penn State Research comprising 351 projects ranging from 5K to 2.5M square
feet. The study includes varied project types and sectors.
Q...
Oi Ypd+r eniAdtAgY
The WWTP accounts
for 65% of the total
annual utility costs.
Therefore, we have
prioritized our efforts
to investigate utility
and operational
savings opportunities
at this facility to
maximize the
project's overall
impact.
MEMIUM
CornirnuinflLy Center n.,)A(iri
20/o 3 11,4c
Visitor Center
1, IDA)
rks Facility
D/01
Fraser Water
Treatment Plant
4%
er Treatment
Vant
'5%
• Aeration/Mixing Upgrades - High efficiency Jet Mixing & Aeration for
digesters
• Tertiary Treatment - Construct tertiary treatment system to meet new
copper & phosphorus effluent requirements
• WWTP 100 kW Solar PV Array - Ground mounted solar photovoltaic
a rray
• Process Flexibility Upgrades Total - Modifications to aeration basins to
better manage peak Infiltration & Inflow (I & I)
• Flow Equalization Tanks - Holding tank to help better manage short -
duration periods of high I&I
• Downsizing of Aerated Grit Chamber Blowers - Right -size blowers to
match plant requirements
• LED Lighting - High efficiency, long lasting LED lighting
Q...or Ypd+r ealad+AgY
• $2.8M WWTP Project:
• Tertiary Treatment
• Digester Jet Aeration/Mixing Upgrades
• 100 kW Solar PV system
• Funded over 15 year period using ESPC Model
• $1M Tier II DoLA grant
• $1.2M in guaranteed utility savings over 15 year period
• $850k capital infusion from WWTP
• $10k in MPEI utility incentives
• Benefits
• Meet new copper and phosphorus requirements
• Avoid potential EPA fines
• Guaranteed construction cost
• Reduce energy use at WWTP
• Reduce CO2 emissions
Q...or Ypd+r ealad+AgY
• Financial (Simple Payback, ROI) - This is easy but doesn't address all
important factors that need to be considered for the life of the facility
• Complexity - Overly complex systems may be difficult to operate and
maintain and this needs to be accounted for in the overall evaluation of
viability
• Durability - Whatever is installed needs to be designed to last, and low
first cost does not always provide for this
• Persistence - Savings must not degrade over time
• Sustainability- What are the environmental effects from implementing
the measure.
• Other Benefits - Some measures may provide tangible benefits to an
entity that do not show up on a utility bill (e.g. end of life replacement,
enhanced working environment, lower maintenance costs, etc.)
A Tota/ Cost of Ownership approach must be followed that considers
a// of the items above
Q...or Ypd+r ealad+AgY
• Cost ROI
• Engineering & Design
• Permits
• Equipment & Materials
• Bonding
• Installation
Savings —Cost
Cc
• Construction Management / Safety
• Commissioning / Performance Assurance
• Savings
• Utility savings (electricity, natural gas, propane, water, sewer, etc.)
• Maintenance savings (services calls/contracts, parts, lift rentals, labor, etc.)
• Increased revenue (memberships, event rentals, etc.)
• Expected equipment service life
• Grants, rebates, other incentives
Q. -or Ypd+r ealad+AgY
EPC Benefit - Leverage the savings from measures with faster returns to
help fund more capital intensive measures.
Payback Term
(Years)
Measure Description
Short Programmable Thermostats
(0-6)
Medium LED Lighting (Interior/ Exterior/ Decorative Poles)
(7-12) WWTP Aeration / Mixing Upgrades
Building Weatherization
WWTP Solar Photovoltaic Array
Long WWTP Tertiary Treatment
(13-25+) WWTP Flow Equalization Tanks
WWTP Process Flexibility Upgrades
Town Hall Cooling Improvements
Combined Proiects Typical Finance Period 12 — 20 years (Max 25 Years)
Interactivity between measures is also important to consider.
Q...or Ypd+r ealad+AgY
• Authorize McKinstry to proceed forward with the
remaining TEA activities with focus on improving the
performance of the WWTP and resolving the pending
compliance issues.
• Approve Final TEA Report in 2016
• Approve ESPC Contract in 2016
• Construction commences in 2016
Q...or Ypd+r ealad+AgY
Alison Schwabe
Sustainability Program Manager, McKinstry
alisonc@mckinstry.com 1 303-215-4076
Aaron Skroch
Energy Engineer, McKinstry
aaronsk@mckinstry.com 1 303-215-4064
0...
or Ypd+r ealad+AgY
Questions?
• 55 years of success
• Privately held
• Vendor and product neutral
• Fully integrated delivery approach
• Emphasis on Client satisfaction
• Experienced staff of 57+ in Golden, CO
• In-house design -build construction expertise
• National buying power
• Self -perform energy engineering, building
modeling, mechanical design & construction,
construction management, commissioning and M&V
• powerED - staff & community engagement
• Energy efficiency and sustainability is what we do!
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Lectdincg tyle VVoyj
Housing Ladder is Key to Denver' Continued Growth
byloy Spatz, AIA
John Beeble, chairman of Saunders Construction, has a 30 -
year history building in Colorado and offers his perspective on
Denver's future.
Chris Waggett is n foLrnding principal and CEO of D4 Urban.
He has over 30 years' experience in development and funds
mrinagement internationally, including nine years in Den-
ver. He provides insight on the criticality of the real estate
?rri.der (7ni tho motro nP iwor' roginn'S rnTntimjori ornnnnl it
2rosnerav
JS: You've been a part of building Denver and had a hand
in paving the road to the future. From your vantage point,
what elements of our current vibrancy do you think will
have the most impact on our future?
JB: Denver and the metro area nave so much going for
them. Mayor Hancock's vision for downtown and the airport
culminated by the airport cities and growth in the metro area
have created what many call nodes linked by transportation.
Nodes such as downtown Denver, the Denver Tech Center, Au-
rora Medical Center, Arvada and points beyond now linked by
significant transportation including light rail and the new In-
terstate 70 redevelopment just getting started. The collabora-
tion between multiple city leaders has set the stage for smart
growth that will keep it pleasurable to live here. I've lived in
Arvada for nearly 30 years and the possibility of having my
morning coffee in Old Town and hopping on the light rail to
downtown is fantastic!
One of our opportunities is to resolve the congestion to the
access of our biggest asset as a region - the mountain areas
and, specifically, the west -bound 1-70 access thereto,
Let's face it, beyond our strong and diversified business cli-
mate, it's our recreation resources that give us a big advan-
tage and reason people want to live here. We have to solve the
transportation challenges there.
JS: Colorado and the Front Range, in particular, have seen
tremendous growth and new construction in the past
few years. Coming out of the recession, what is the state
of the construction industry and can you speak to the
construction cost increases you are seeing in the market?
JB: Construction costs increases are a factor of supply and
demand and I think it will be a short-term issue.
During the recession, we saw a great loss of labor and talent
in the trades due to a drop off in construction activity. The
protracted duration of the recession resulted in those work-
ers leaving this profession to seek other job opportunities. I
don't think we'll ever get them back So now, we have an op-
portunity to train new workers for a variety of construction
trades. The benefit to the current construction growth is that
the industry has good jobs to offer both new and seasoned
workers, which builds industry expertise and headcount. Un-
til the building cycle tapers and/or labor resources meet the
demand, well see construction pricing on an upward path.
JS: Looking to the future, what do you see as our greatest
challenge?
JB: Denver seems to be at the epicenter of the national
scene. We have seen and continue to see a large increase in
22 1 HILDINC, DIALOGUE / 5EREMBER 2015
people mov
good news i.
offer from jc
diverse busi
lenge is to cr
for the long
and business
Part of thr
looked at is t
ban centers
built, apartrt
demand, but
renters wan
The crazy rE
we are seeing currently is just not realistic
for the millennials who are maybe three to
five years into their careers and finding real estate prices out
of reach. We are missing affordable housing options that are
between rental and single-family home prices - were miss-
ing housing product in the $200K to $250K range, for instance.
One of the answers is condos and owned affordable prod-
uct. In the last 10 years, we really haven't seen any new condo
development. This leaves a huge gap in the housing options
ladder.
We have to solve the legal framework that increases condo
construction risk and makes it too expensive to embark upon.
Developers won't develop condos. Contractors won't build
them and architects won't design them.
Affordable housing is key to the sustainability of growth
in Denver. We are at our strongest when we have conditions
that help young people grow up, get educated, have robust job
opportunities, and can live and own real estate in the urban
corridors. We have all of the above except the latter This is a
critical challenge for our future.
It is the housing ladder topic that spawned a conversation
with Chris Waggett, CEO of D4 Urban and chairman of Tran-
sit Alliance.
JS: Pertaining to the housing stock, specifically at affordah
price range, what do you see as implications from the lack
of entry-level ownership options?
CW: I moved here nine years ago, so I'm one of the many w
migrated to Denver. We love the lifestyle, the opportunity,'
business climate, openness to newcomers and the prospE
of Denver's growth we've witnessed
in the last nine years. It's been fas-
cinating to watch the pendulum
swing from employees in 2006 to
employer in the downturn, and now
back to the employee. Talent is criti-
cal to our future and the good news
is that we have lots of talent here and
new talent moving here. Talent moves l
to where it wants to be and employers
follow that educated talent. The symbi-
osis of talent and employers is import-
ant to Coloradds economic engine.
Right now we have lots of rental op-
tions for young workers and then nothing
between multifamily rental and single-family homes, whose
price tags are either out of reach for most young professionals
or are located in suburban locations that they don't aspire to
move to until they have families. Condominium construction
is virtually nonexistent, so we have a both an affordability and
housing product gap.
This gap is the result of constrained supply, which increas-
es pricing, and we are simply pricing ourselves out of the af-
fordable range. Key competitors like Dallas, Phoenix and Salt
Lake City have relatively affordable median house prices of
S165K to $175K compared to Denver's at S33OK and an average
home price of S4O4K This is a key concern for corporate relo-
cations to Colorado in terms of being an attractive place for
their workforce to live.
The ability to offer our young talent and our retiring baby
boomers a full spectrum of affordable urban and suburban
housing product types is critical to our future. I'm concerned
that without it, we will see impacts on migration to Den-
ver -metro region and an exodus from these two populations
in search of affordable housing opportunities Lack of housing
affordability will be a headwind to growth - both economic
and population. Loss of population will reduce our tax base
and will impact our ability to attract businesses that seek tal-
ent, all of which could put us at risk in terms of continued
prosperity and also in an economic downturn.
We have an opportunity to look to the future and prevent a
loss of young, educated talent in the next generation by offer-
1 Leoch ng the Ways
ing common sense construction defects reforms that would
stimulate condo development as an affordable economic
pathway to home ownership and close the housing gap. Fur-
thermore, focusing that development around transit is "smart
growth" and what was promised to, and endorsed by, the vot-
ers in FasTracks and the expansion of RTD's light-rail system.
It's actually the only way that we can prudently manage pop-
ulation growth and preserve our quality of life.
The business and population growth that is going on in
Colorado right now is amazing and it's enabled us as a region
to achieve what we are today. However, we need to be proac-
tive to solve the housing affordability and options problem
and it requires leadership from the state, cities and regional
leaders - without a collaborative effort, l'm concerned that the
housing affordability and opportunity issue could derail our
positive growth and our regional prosperity. It's just another
reason why the Metro Mayors Caucus has been unanimously
imploring the state to act on this issue as they know the im-
pact it's having in their communities now and going forward.
Finally, our first project is a market -rate affordable product
at Alameda Station, known as Denizen. We are currently col-
laborating with Medici Communities to develop a tax credit
affordable product on our mixed-use Bus Barn site, west of
Alameda Station, that will be connected to it via pedestrian
bridge_ We would dearly like to be developing condominium
product next for first-time homebuyers, but current legislative
realities make this a challenging proposition.\\
ers Construction built the Triangle Building adjacent to Union Stotion
Phato courtesy Sawiders Constructioi7
SEPTEMBER 2015 1 BUILOING DIALOGUE 1 23
top Of rnind
(MARKET PULSE Home sales are outpacing last year's sales, but tight inventories
and mortgage underwriting continue to weigh on the market. First-time buyers are slowly emerging
but make up just 30 percent of buyers, down from historical norms of around 40 percent.
SUPPLY & DEMAND
All trend lines are from August 2014 to August 2415.
Seasonally adjusted annual rate, which is the actual rate of sales for the month.
multiplied by 12 and adjusted for seasonal sales differences. 2014 data reflects final seasonal adjustments.
Number of existing homes on the market at the end of the month.
National median.
UPS AMD DOWNS OF
HOME PRICES AND
INCOME.
Equilibrium between home prices and
household income helps keep the housing
market stable, although the two rarely line up.
Since early 2014, the gap has been widening
but at a more modest pace than in previous
years as home price gains have slowed. _
Source. NAR Research
Why Renters Can't Make the Move
f^
r
Lawrence Yun is
NAR chief economist
In August, rents spiked 3.6 percent over
the same time a year earlier, the fastest
pace since 2008. As rental vacancy rates
fall across most parts of the country and
more jobs are created, they will continue
to jump further. This trend is both good
news and bad news.
Naturally, people collecting rents are
thrilled with the gains they're seeing.
Both large apartment investors and
mom-and-pop landlords are enjoying the
best conditions they've seen in years. As
R EALTORSO, many of you are among the
biggest beneficiaries; our surveys indi-
cate about a third of you own Investment
property.
Of course, renters don't like forking
over more money to be tenants. That's
why, when rents rise strongly, it creates
demand for home buying. But that isn't
happening this time. in fact, the share of
first-time buyers, who typically lead the
move from renting to owning, continues
to hover at near 30 -year lows.
averaging only 2.2 percent. A decrease of
0.8 percentage points might sound small
but, in an economy of $18 trillion, it has a
significant, cumulative impact.
Meanwhile, home prices are rising, in
large part because builders aren't adding
new homes for sale at a rate matching
demand. Only 5 million single-family and
apartment homes have been built in the
last five years, even though 12.5 million
Rising rents are making it difficult for jobs have been added during that period.
potential first-time buyers to become
owners, especially since rent increases
are outpacing wage gains. That means
more of a tenant's income is being eaten
up in rent, making it harder to save for a
down payment.
The weak wage growth is a conse-
quence of decade-long subpar economic
growth. Historically, U.S. gross domestic
product grows at a 3 percent annual rate.
But since the recession, growth has been
The lag in construction represents
good and bad news. It's helping to keep
rents and home prices up. but it's making
home ownership more difficult as tenants
struggle to save for the down payment
they'll need to buy an increasingly costly
home. While the construction outlook is
unclear, until builders contribute to the
overall housing stock at a more normal
pace, home prices and rents will continue
to rise.
12 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG
T Meclan Ho—ha'd
l2 ;-
I,c_nens
9;
i
aF
T-1,AA
Source. NAR Research
Why Renters Can't Make the Move
f^
r
Lawrence Yun is
NAR chief economist
In August, rents spiked 3.6 percent over
the same time a year earlier, the fastest
pace since 2008. As rental vacancy rates
fall across most parts of the country and
more jobs are created, they will continue
to jump further. This trend is both good
news and bad news.
Naturally, people collecting rents are
thrilled with the gains they're seeing.
Both large apartment investors and
mom-and-pop landlords are enjoying the
best conditions they've seen in years. As
R EALTORSO, many of you are among the
biggest beneficiaries; our surveys indi-
cate about a third of you own Investment
property.
Of course, renters don't like forking
over more money to be tenants. That's
why, when rents rise strongly, it creates
demand for home buying. But that isn't
happening this time. in fact, the share of
first-time buyers, who typically lead the
move from renting to owning, continues
to hover at near 30 -year lows.
averaging only 2.2 percent. A decrease of
0.8 percentage points might sound small
but, in an economy of $18 trillion, it has a
significant, cumulative impact.
Meanwhile, home prices are rising, in
large part because builders aren't adding
new homes for sale at a rate matching
demand. Only 5 million single-family and
apartment homes have been built in the
last five years, even though 12.5 million
Rising rents are making it difficult for jobs have been added during that period.
potential first-time buyers to become
owners, especially since rent increases
are outpacing wage gains. That means
more of a tenant's income is being eaten
up in rent, making it harder to save for a
down payment.
The weak wage growth is a conse-
quence of decade-long subpar economic
growth. Historically, U.S. gross domestic
product grows at a 3 percent annual rate.
But since the recession, growth has been
The lag in construction represents
good and bad news. It's helping to keep
rents and home prices up. but it's making
home ownership more difficult as tenants
struggle to save for the down payment
they'll need to buy an increasingly costly
home. While the construction outlook is
unclear, until builders contribute to the
overall housing stock at a more normal
pace, home prices and rents will continue
to rise.
12 REALTOR' NOVEMBER/DECEMBER 2015 REALTORMAG.REALTOR.ORG
A Dream Too Far
Owning a home is a key rung on the ladder of economic advancement.
What happens if that rung remains elusive for many? By Meg White
It's been almost a year since the gap
between America's wealthiest and
middle-inromP familia5 reached its highest
level on record. The Pew Research Center
found the median net worth of the nation's
upper-income families ($639,400) was
almost seven times that of middle-income
families ($96,500), making for the widest
wealth disparity since the Federal Reserve
began collecting such data. The situation
was ten times worse for the families earn-
ing too little to Pi iter the middle Income
bracket, with a 70 -to -1 ratio separating
them from high-incorne families.
Paul Weech. CEO of NeighborWarks, a
national coalition of local affiliates working
to suppoi t affordable housing and com-
munity developiner it, has been watching
this grap for decades. "We've always had
inequality in this country [brit] the macro
data has shown a growing gap," he says.
"It's a fact that more and more of the
wealth is flowing to fewer people."
For those who care about maintaining
a high home ownership rate, it's a trouble-
sometrend, says National Association of
RLAU"ORSO Chief Economist Lawrence
Yun, "It's certainty not in the interest of
broader America, and it'-, something that
everyone should be concerned about."
A Vicious Cycle
Though no one was inmiuno to the Great
Reces,ion, its impact woo felt far more
acutely by kuwnrincorm- An wricans than
thoso with more wealth "IFfie housing
txiorri and bust really dii I widen wealth
irrequxiity," .:,Llys Laurie Coodman, director
of The lhtran Institute's I it losing Finance
Policy Center. And an uneven recovery
has only exacerbated the divide. While the
stock market rebounded for investors—the
latest tumult notwithstanding—many
current and former home owners are still
dealing with fallout dating back to 2008.
Some positive economic indicators are
not as reassuring as they once were. Chris
Herbert, managing director of Harvard's
Joint Center for Housing Studies, notes
that even though the unemployment rate
has decreased significantly, many of the
gains have been in low-wage, part-time
jobs with few benefits. 'There's stili a lot
of underemployment,' Herbert says. "A
5 percent unemployment rate is not what
it used to be."
One of the most common ways for
Americans to move up the economic
ladder and invest in other wealth -
generating activities—such as the stock
market, paying for advanced educational
opportunities, or starting a business—is by
leveraging equitythey have in their homes.
"We traditionally have been huge sup-
porters of home ownership;' says Weech.
"We see it as a way to provide stability for
households but also as an asset -building
strategy."
John Taylor, CEO of the National Com-
munity Reinvestment Coalition, an assocl-
ation of about 600 organizations focused
on improving access to private capital in
underserved communities, agrees that
those who lack the opportunity to become
home owners have a weakened ability to
reinvest their wealth. "If you continue to be
a renter, locked out of the home ownership
arena, increasingly those things are further
and further out of reach" he says, noting
the correlation between low home own-
ership levels and high wealth inequality.
"They're joined at the hip. They perpetuate
each other."
In the second quarter of thisyear, the
home ownership rate fell to 63.5 percent,
its lowest level since 1967. In particular, the
relative scarcity of first time buyers sug-
gests continuing challenges for an industry
that relies on a continual move -up trend.
"If people cannot make that first step into
their starter home, it stops the whole chain
reaction," Yuri says. "For a home owner
in the upscale neighborhood, who are the
future buyers?"
Opening the Credit Box
Many would-be buyers are still unable to
take advantage of home affordability—
fostered by low interest rates—because
they can't secure mortgage approval. They
entered the market on the wrong side of
the "buy low, sell high" equation, and now
they're locked out. "They suffered dispro-
portionate lasses:' says Goodman. "Now.
we see mortgage credit being unavailable
exactly when it would be the most useful."
Goodman says pilot programs that use
less traditional credit -scoring factors—
such as allowingfamily members who are
not on the deed to contribute to the overall
tally of household wealth and counting
utility, cell phone, and rent bills toward
payment history—can help correct this.
"Right now if you don't pay utility bills on
time it hurts you, but if you do, it doesn't
help," she says "This will allow [companies
such as Vantage and FICO] to score a lot
16 REALTOR' NOVEMBERir5UXMBER 2015 REALTORMAG.REALTOR.ORG
more pcenplethirn hufore:'
caundrnar r allo favors a closer focus on
overall employment history, rather than a
person's lot igevitywitlr;rsingle employer.
"'lake somt.-wi a who'twd three jobs over
1 he IwA i hrot? ywirs I mt tragi; been steadily
employed. f iFA l ur am wouldn't be able to
f;et n rnurtgclf;r� � nndarr rr rr r ont rules]," she
" Rothinkin hosr! l,yfrras of issues is
Viceryirnportant"
TO err mlc kiwi:r-rind middle-income
Arne--ric;arre, h;avo access to nonpredatory
lu;.anv, Taylor ,;.ry:., the fvd;r ral government
nry_od:: tu'Ai e4 qjl hun thr, Community
Weirivr: ArT i r i Act.] Ftr 11.x7 / law aims to
r)r r;ure banks sr rvo tho ct o dit needs of
nvcryone in thv i,ur nmur idics where they
work. Thn I'erintal Ri,;-mrvo l bard enforces
th- rule, but Faylor r„ ry; b, inks have found
Inr,l rl rolr e�,, •,ru;h ,r,. rlur.ii q; ta-irnche,s in
low-income areas. Taylor *.o describes a
:,pt iir.trc atircl f;arrrre of 1101 potato, where
b. ink A';rell'.:iworir;:ri(r 1lratsatisfies
CRA requirements to bank U just in time
fnr hank Wr; CRA inra-)er:•t.iw i. Then bank
1 i ti rens ai our it I to -:r rl1 I I ju r;+;arae qualifying
It ran to bank f: fol. t1V''01A W r(Nson, so
thr;y'n: ifl i r.ir i) ono loan i ti r r;ecure passing
;;r71rlf=."FrotMy. it'riprr4ty-;ad;'hesays.
tau -riding Marc Hors es
Aro rther apps um1 i lir it oproving access is
to itu.rre;,r;r; I I w :.ut q ply of affordable homes.
Irl fir-pt(!rnhr•r, NAIL relfw%urf a study that
f0urud nrrw hourr: r:urr,l, urtiun was not
keeping (race with job growth in two-thirds
of the TAG nitro areas it studied.
Iru.n-.,;e.r•cf I:ax ii ii.wil ive,; for builders
of low- and n'ioder ote-iticorno housing
Cr)Wdlir!Ipi I'PW th,rt;ri0nr,-woritsofvethe
lirublr:rn.I1rr:i:niii;Iir� I wr fly a result of
,.Ir,&pr,roriifirr; "lvl;ariylocolmirlstate
ofii�xh, irf;rrrr1provirdiiigwhat the. builders
are, r ertueriting," he says. "Approving more
pr m nil -; will; illow Iroro III rildr ig."
Taylor says he has spoken with major
home builders who want to alleviate the
inventory crunch but can't due to permit
issues. "A lot of cities and towns don't nec-
essarily Want to build moderate-incorne
homes," Taylor says, but he predicts the
Supreme Court's recent ruling upholding
the validity of disparate impact claims
under the Fair Housing Act will make
it harder for municipalities to hamper
building. "It's only going to take the federal
government suing the first three or four
towns and emptying out their
coffers before they all come up
With [low- and moderate -income
housing] initiatives:'
Such initiatives are likely to benefit
local economies in the long-term. A recent
Harvard University study found that when
low-wage workers are forced to migrate to
lower-cost areas, the cities they leave be-
hind stagnate. So without affordable hous-
ing, cities such as San Francisco will find it
difficult to maintain a balanced workforce.
"it undermines the ability of metro areas
to grow;" Herbert says. ''Not everyone can
be a software developer. Somebody has to
be doing all the other jobs that need to be
done in that economy. The Bay Area would
be growing much faster if it didn't have this
problem:'
Some problems go far deeper. Dysfunc-
tion in the public education and criminal
justice systems weighs more heavily on
the poor. The housing and mortgage
industries can do little to alleviate these
deep-seated societal challenges. "The
thing about the credit issues is that they're
solvable;' Goodman says. "You work on
what you can fix " But Taylor says policy
makers should be paying attention to how
these dilemmas are affecting people's
ability to own a home "The 48 -year lour in
home ownership ought to be the canary in
the coal mine letting Wall Street and banks
and others know we're reaching a tipping
point:'
L-1
REALTOWAG. REAi T(JP.URG REALTOR' NOVEMBER/DECEMBER 2015 17