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HomeMy WebLinkAboutPACKET Joint Study Session Town Board, County Commissioners and VEP 2022-08-01TOWN OF ESTES PARK BOARD OF TRUSTEES BOARD OF LARIMER COUNTY COMMISSIONERS VISIT ESTES PARK (VEP) BOARD Joint Study Session No public comment will be heard Monday, August 1, 2022 3:00 p.m. TO BE HELD VIRTUALLY If you are joining the Zoom meeting and are experiencing technical difficulties, staff will be available for assistance from 2:30-3:00 p.m. by calling 970-577-4777. ONLINE (ZOOM WEBINAR): https://us06web.zoom.us/j/82458490315 Webinar ID: 824-5849-0315. Agenda I. Introductions II. Recommendations on the Outcomes of the Lodging Tax Exploration Task Force. (CEO Franker) III. Adjourn NOTE: The Town Board and County Commissioners reserve the right to consider other appropriate items not available at the time the agenda was prepared. VISIT ESTES PARK BOARD OF DIRECTORS Recommendations on the Outcomes of the Lodging Tax Exploration Task Force To pursue a 3.5% increase over the current lodging tax by administering a ballot initiative for the voters of the marketing district in November 2022. To use funds for both workforce housing and childcare and that the allocation of funds should be administered by the Town of Estes Park. After taking into consideration the recommendations of the Task Force, discussions with community members and a significant amount of research, the Visit Estes Park Board of Directors recommends the following: Additionally, the Board acknowledges that the Town of Estes Park is in the process of developing a strategic plan as part of the 2022 housing needs assessment and supports their intent to use it to build a plan for the use of these funds. Visit Estes Park Board of Directors Deborah Gibson Board Chair, Visit Estes Park Thank you, Sean Jurgens Scott Webermeier McShan Walker Visit Estes Park 1692 Big Thompson Ave., Suite 101 Estes Park, CO 80517 Vice Chair Treasurer, Mayor Pro Tem Secretary Director Director Director Pat Murphy Rich Chiappe Jerusha Rice LODGING TAX EXPLORATION TASK FORCE FINDINGS Quotes Introduction & Purpose Task Force Members Community Consultation Committee Meeting #1 – May 18, 2022 Meeting #2 – May 25, 2022 Meeting #3 – June 1, 2022 Meeting #4 – June 8, 2022 Meeting #5 – June 15, 2022 Meeting #6 – June 22, 2022 Conclusion Appendix 3-5 6 7 7 8-10 11-13 14-16 17-20 21-25 26-29 30 31 Table of Contents 2 TASK FORCE MEMBER QUOTES J O D Y S H A D D U C K -M C N A L L Y L A R I M E R C O U N T Y C O M M I S S I O N E R , D I S T R I C T 3 I appreciate the thoughtful public process the Visit Estes Park Board developed and the formation of a community-based task force. This group has met over several weeks and engaged in honest, robust discussion. These discussions will help decision- makers better understand the opportunities and challenges facing the community in the Estes Valley." This is the time for greatness. This is not the time to sacrifice for mediocrity. We have a rare opportunity, given the bill, to do something great. We can make a difference in this town, on the level of F.O. Stanley. We have the chance to define who we are as a community and how we support each other." J O H N C U L L E N T H E S T A N L E Y H O T E L , G R A N D H E R I T A G E M A N A G E M E N T L L C A N D G R A N D H O L D I N G S 3 29 Estes Park is now on the path of many other resort destinations which have become too expensive for working families to afford. Already we have seen an exodus of working families and professionals who can no longer afford housing here. Added to this, available child care represents only a small fraction of the need for working parents who staff our local businesses, health care, public services and other critical services. Our town has an ever growing number of our workforce commuting from surrounding communities. Even if this was sustainable, it will become far more expensive to recruit necessary workers this way. The lifestyle costs to those families are likely too high for them to sustain long commutes for long. Labor costs are becoming prohibitive for local businesses to maintain services and remain open regular hours. This is for business that is already here. The lack of an available and affordable workforce deters new business and services in the community. The lack of available and affordable housing and childcare prevents new workers from moving into the community and we are losing more and more of our current workers daily. As we have more and more commuters serving the community's needs in the healthcare, public services and education sectors, we lose our historical sense of community, where the mature nurture the young and the young care for and provide services to their elders. The bond of community in Estes Park has seen us through over one hundred years of life's challenges and blessings including wildfires, floods and pandemics. So much would be lost if we as a community do not step in to retain our workforce by addressing the now severe housing and childcare needs of these working families. Through the state legislature, we have been offered the opportunity to reverse or curtail this destructive direction by raising funding for affordable housing and childcare through visitor lodging taxes (HB22-1117). This allows us to generate funds needed to address critical needs from the very tourism industry that generates much of the demand for a sustainable workforce. With exploding costs and extremely limited private real estate available, this opportunity could not be more timely, for a need so urgent. As a community, I hope that we can act now to use this once in a lifetime opportunity to preserve our community's workforce. D E B O R A H G I B S O N C H A I R O F T H E V I S I T E S T E S P A R K B O A R D O F D I R E C T O R S R A M S H O R N V I L L A G E R E S O R T 4 The Estes Park EDC has been intricately involved in developing solutions related to workforce housing issues since 2015, most recently in an advisory role to the Visit Estes Park Lodging Tax Exploration Task Force. With combined challenges like Covid, the great resignation, the great migration and the continued loss of our 25 to 45 year old workforce combined with a lack of housing inventory, rising property values and lack of childcare options, our workforce is being squeezed out. This puts the quality of life and the economic sustainability of the Estes Valley at risk. Visit Estes Park's possible ability to collect additional lodging taxes for workforce housing and childcare through the passage of HB 22-1117, offers yet another opportunity to help mitigate our current workforce housing challenges and the Estes Park EDC is proud to be a part of this process." A D A M S H A K E E S T E S P A R K E C O N O M I C D E V E L O P M E N T C O R P O R A T I O N I am passionately aware that we must expand our thinking to protect the economic foundation of Estes Park so it can thrive both now and in the future. We've spent phenomenal energy studying the needs of our community, and now we must take action. It is critical that employees and their families live, work and play right here in this beautiful Rocky Mountain Valley. Their energy, commitment and love of nature will give us the stability necessary to address the challenges this Valley faces over the next 20 years. We are bringing forth solutions, and I stand in support of making it possible for businesses, public institutions and the Park to be able to attract and retain the staff they need here in the Valley, by providing access to quality housing and childcare." D A N C E N T U R I O N E , E S T E S P A R K H O U S I N G A U T H O R I T Y There is solid agreement in the Estes Park community that we have had a long-term problem with available and affordable workforce housing and with early childhood education capacity. I have found no one that questions the need. The new state legislation (HB 22-1117) provides a robust tool to address those needs by permitting a local marketing district such as Visit Estes Park to obtain voter approval of a ballot initiative to address the problem. What was most surprising and encouraging about the task force was the consensus amongst most lodging owners to impose a significant new lodging tax on guests to finally provide funds to address these issues in a meaningful way while still supporting the important destination marketing function of Visit Estes Park.” 5 Provide an organizational framework to ensure effective communication and coordination among representatives of Larimer County, the Town of Estes Park, Visit Estes Park, lodging partners, workforce housing and childcare advocates and other local leaders in the district. Serve as a vehicle for the collection and exchange of information and expertise and representation of the interests of the residents and businesses inside the local marketing district boundaries. Provide a forum to identify, discuss, study and collectively endorse solutions to regional workforce housing and childcare initiatives for consideration by the Board of County Commissioners, Town of Estes Park Board of Trustees and Visit Estes Park Board of Directors. Present recommendations to Visit Estes Park Board members, Town of Estes Park Board of Trustees, and the Board of County Commissioners for consideration. To pursue an increase in the lodging tax. To use funds for both workforce housing and childcare without allocating a specific percentage to each. That the percentage breakdown should be decided by the organization responsible for allocation of the funds. To recommend a 3.5% lodging tax increase over the current lodging tax (with robust discussion on various caveats, which are detailed in the report). To request clear and transparent communication among all parties on all decisions that are made, and to request that decision makers take all the time needed for thorough planning and preparation for election success and project effectiveness in addressing our community’s workforce housing and childcare needs. In March of 2022, Colorado Governor Jared Polis signed House Bill 22-1117 into law, allowing for the expanded use of local lodging tax revenue to address gaps in the need for workforce housing and childcare. For the legislation to be applicable to the local community, a ballot initiative must be introduced asking voters in the local marketing district to decide whether to authorize the use of lodging tax revenue for investments in workforce housing and childcare. To help determine if a ballot measure should be introduced, and if so, what it should propose, Visit Estes Park with support from the Town of Estes Park and Larimer County, created the Lodging Tax Exploration Task Force made up of community members and business owners. The Task Force facilitated the exchange of information, sharing of expertise and representation of the interests of the residents and businesses inside the local marketing district boundaries to provide a forum to identify and collectively endorse solutions to regional workforce housing and childcare initiatives. The purpose of the Lodging Tax Exploration Task Force was to: Over the course of six meetings, the group discussed questions set by the County, Town and Visit Estes Park in advance, to determine core recommendations on the issue of increasing the lodging tax. The following report outlines the discussions, conclusions and recommendations of the Lodging Tax Exploration Task Force. Task Force members voted to make the following recommendations to the Board of County Commissioners, the Town of Estes Park Trustees and the Visit Estes Park Board of Directors: INTRODUCTION & PURPOSE 6 Michael Andrzejek, David Batey, Austen Bierl, Dan Centurione, Teresa Commerford, John Cullen, Elk Meadow And Spruce Lake RV Parks EstesPark.com Estes Park Health Board of Directors, Estes Park Estes Park Resort, Mountain Village Management and Voyago Vacation Rentals Estes Park Housing Authority Stonebrook Resort The Stanley Hotel, Grand Heritage Management LLC and Grand Holdings Maria Brownell, Bob Fixter, Marvin R Hart, Gerald Mayo, Lowell Richardson, Becky Robbins, Vacation home owner Vacation homeownerVacationhomeowner Fall River Lodge Estes Park Team Realty PMI Estes Park EDC Strategic Planning Committee, Historic Stanley Home Foundation Board, Estes Park Trail Gazette Editorial Board Pep Dekker, Richard James, Dzidra Junior, Laurie Dale Marshall, Trevor Scott McGuire, Michael Romero, Greg Rosener, Suzanne Smikahl, Seth Smith, Scott Thompson, Mountain Rendezvous YMCA of the Rockies EVICS Family Elkhorn Law Office Estes Park Trail Gazette SkyRun Estes Park WorldMark Estes Park Ponderosa Realty & Management Thompson Group/Keller Williams Resource Center Vacation Rental Jody Shadduck-McNally, Laura Walker, Alea Rodriguez, Scott Webermeier, Cindy Younglund, Jason Damweber, Adam Shake, Visit Estes Park Board of Directors Deborah Gibson, Sean Jurgens, Scott Webermeier, McShan Walker, Pat Murphy, Rich Chiappe, Jerusha Rice, Larimer County Commissioner, Bill Brown, Attorney, mediator and Estes Park resident Larimer County Larimer County Town of Estes Park Trustee Town of Estes Park Trustee Town of Estes Park Estes Park Economic Development Corporation District 3 Board Chair Vice Chair Treasurer & Mayor Pro Tem Secretary Director Director Director V O T I N G M E M B E R S A D V I S O R Y M E M B E R S C O M M U N I T Y C O N S U L T A T I O N C O M M I T T E E M E M B E R S C O N T R A C T M A N A G E R 7 TASK FORCE MEMBERS Workforce Housing and Childcare Ad-Hoc Task Force Final Report Estes Valley Childcare Needs Assessment Estes Park Area Housing Needs Assessment The group agreed that there is a need for a significant, consistent funding source supported by a thorough, executable plan. They stated that while a lodging tax increase alone will not solve Estes Park’s workforce housing and childcare issues, it is a step forward. A general sales tax increase, as an alternative to a lodging tax increase, was a popular suggestion bolstered by an argument stating that because everyone pays sales tax, overnight visitors, day trip visitors and residents alike would contribute to these important issues. A funding solution was proposed by Task Force member John Cullen that would involve a bond financing solution through Stifel Public Finance. 14 are in favor, 1 is opposed, 1 is not present to vote. Teresa Commerford is opposed. She stated that she would rather see this problem solved with sales tax. Meeting #1 – May 18, 2022 Do we want to pursue an increase to the lodging tax levied by the local marketing district for the purposes of workforce housing and/or childcare? 8 MATERIALS REVIEWED HIGHLIGHTS Do we want to pursue an increase to the lodging tax levied by the local marketing district for the purposes of workforce housing and/or childcare? VOTE MOTION 9 Meeting #1 Minutes 10 5/26/2022 Consolidated sales and lodging tax rates in Colorado 2016 Housing Needs Assessment Recommendations The effect of lodging tax increases on US destinations study Housing Authority Possible Use for Fees letter to Town Trustees Top 150 urban center lodging tax rates In response to a suggestion by John Cullen, Stifel Public Finance presented debt financing scenarios that, if adopted, would provide equity toward projects to reduce the cost of housing for the Estes Park workforce. The majority of Task Force members stated that lodging tax funds should be designated for both workforce housing and childcare and that the two issues are intertwined. A minority opinion stated that funds should be used for workforce housing only, citing a lack of data demonstrating need. It was argued that without childcare a ballot measure is unlikely to pass. 15 are in favor, zero are opposed, 1 is not present to vote. Meeting #2 – May 25, 2022 If both, a specific percentage to each? If both, would the breakdown be decided by the voters or by the organization responsible for oversight and prioritization/allocation of the funds? What should the funds be designated for i.e. workforce housing, childcare, both)? 11 MATERIALS REVIEWED HIGHLIGHTS VOTE MOTION To designate the lodging tax funds for both workforce housing and childcare without identifying how the funds should be split. The breakdown will be decided by the organization responsible for allocation of the funds. 12 Meeting #2 Minutes 13 6/1/22 Stifel Public Finance presentation The Rise and Fall of Colorado Tourism study Visit Estes Park’s 2021 Annual Report The Rise and Fall of Colorado Tourism study by Longwoods International was presented and discussed. It stated that market share plunged 30% within two years after the State of Colorado eliminated its tourism marketing budget in 1993. The cut resulted in a loss of over $1.4 billion in tourism revenue annually. Over time, the revenue loss increased to well over $2 billion yearly. The budget was reinstated in 2000. Lost market share wasn’t regained until 2015, which was more than 20 years after the marketing budget was cut. Stifel Public Finance’s presentation was revisited. Their solution would help fund equity for people who do not have the equity to buy a house. A comparison of 13 Colorado destinations was shared. All 13 have increased their lodging tax within the last five years. The increases were approved by voters, and in many cases implemented, prior to the introduction of HB22-1117. (See the new taxes tab of the Consolidated Sales Tax and Lodging Tax rates - CO spreadsheet for details.) When asked what percent increase is appropriate about half of the group stated that there is not enough information to make a decision or supported other solutions. The other half gave answers that ranged from two to four percent. No consensus was reached. A vote was not taken. Meeting #3 – June 1, 2022 What percent increase should be pursued? 14 MATERIALS REVIEWED HIGHLIGHTS VOTE MOTION No motion was made. 15 Meeting #3 Minutes 16 6/8/2022 Changes in Lodging Taxes over the Past 5 Years table Housing Needs vs Construction table from the Housing Authority Estes Park Research Questions and video interview The Rise and Fall of Colorado Tourism study Summary of What Could be Created at Varying Bed Tax Increase Via Leverage thru Bonding Different Bed Tax Income Streams Using HB22-1117 Funding for Workforce Housing and Childcare, A Draft Model of Plans for Discussion After a consensus was not reached at the prior meeting, the group found a majority opinion in the recommendation of a 3.5% lodging tax increase. Three members were absent. The group discussed recommending Larimer County, the Town of Estes Park, or the Colorado Housing and Finance Authority (CHFA) oversee, prioritize and allocate the funds with oversight from an advisory committee, a local representative or the local Housing Authority. 9 are in favor, 4 are opposed. Three members are absent. Opposed votes: Teresa Commerford, Richard James, Dzidra Junior, Seth Smith. Opposed votes were explained at the June 15 meeting. Absent members were given the chance to vote at the June 15 meeting. Meeting #4 – June 8, 2022 Who should be responsible for oversight and prioritization/allocation of the funds? 17 MATERIALS REVIEWED HIGHLIGHTS VOTE MOTION Lodging tax increase percentage (withdrawn): To recommend a 6% lodging tax increase, based on what the market will tolerate, with the proviso that with additional information that percentage may be reconsidered. Lodging tax increase percentage (passed): To recommend a 3.5% lodging tax increase, over the current lodging tax, based on what the market will tolerate, possibly changed by additional information and to be affected by the discussion on what to do with the short-term rental fee. 18 Meeting #4 Minutes 19 20 Jun 15, 2022 Colorado Housing and Finance Authority overview Census Profile for 80517 zip code Registered vacation homes in town limits Room tax collections with annual analysis Visit Estes Park Lodging Tax Collections Since 2015 Using HB22-1117 Funding for Workforce Housing and Childcare, A Draft Model of Plans for Discussion Members who were absent at the June 8 meeting were asked to submit their vote on whether they would support a 3.5% increase to the lodging tax. Dan Centurione voted in favor, Michael Andrzejek was opposed. Pep Dekker was not present. Final votes for the June 8 motion were 10 in favor, 5 opposed. Members who were opposed to the motion were asked to state why: Michael Andrzejek – The RV industry is not putting stress on the system. RV customers should not have to pay these extra taxes. Teresa Commerford – The workforce housing shortage is not driven solely by overnight visitors. A sales tax would capture day trippers and second homeowners. Dzidra Junior – The YMCA’s mission is to offer affordable vacations. The type of influence the YMCA will have as one of the larger contributors is not clear. The YMCA would support a 2% increase, but not 3.5%. Richard James – He would support the 3.5% increase if the Town Trustees would move to defer the implementation of the short-term rental fee until the outcome of the election and if the ballot initiative is approved, to repeal the short-term rental fee. Seth Smith – He would support a 3.5% increase if language was included that would strongly suggest that the local short-term rental fee be repealed as part of this ballot initiative. Regarding a potential structure for the oversight, prioritization and allocation of the funds: VEP CEO Kara Franker stated VEP could disburse the funds, but it is strongly preferred that another government entity does so. The County reported they disburse funds for other taxing districts and that they have the knowledge and the capacity to disburse the funds. The Town is willing to be a partner or the administrator of the funds. Meeting #5 – June 15, 2022 What is needed in terms of governance, administration and disbursement of the new lodging tax revenues? 21 MATERIALS REVIEWED HIGHLIGHTS A vote was not taken, other than clarifying the votes from the previous meeting. VOTE MOTION No motion was made. 22 Meeting #5 Minutes 23 24 25 Jun 23, 2022 Organizational Plan for the Use and Management of HB22-1117 Funds by Eric Blackhurst Early Care and Education in Estes Park Proposal and Data by Laurie Dale Marshall Bill Brown stated that it is beyond the scope of this Task Force to devise the structure for how the funds will be allocated and managed and that it will be devised through discussion between the boards of Visit Estes Park, the Town of Estes Park and Larimer County. Eric Blackhurst presented an organizational plan for the use and management of HB22-1117 funds. He recommended that the Town of Estes Park act as the administrator of the funds and stated that The Estes Park Housing Authority could manage the funds. Laurie Dale Marshall presented data and a planning template for early childhood care and education. She reported that with better childcare options, students would be better prepared when entering the elementary school. She discussed multifaceted solutions including a childcare center, home-based care, subsidies and renovations. Issues mentioned include affordability, the need for emergency care, seasonality and compensation. The Task Force discussed the following next steps to suggest to the governmental entities: Resolve the project organizational structure. Establish a working group. Determine when to go to election. Establish an issue committee to work on the details of an effective campaign. Develop plans for years zero to five. Determine if the short-term rental fee should be reconsidered. Determine if the Fish Hatchery workforce housing project should be put on hold. Meeting #6 – June 22, 2022 What level of programmatic detail is needed to justify a proposed lodging tax increase to the voters? 26 MATERIALS REVIEWED HIGHLIGHTS MOTION To request clear and transparent communication among all parties on all decisions that are made and requests that decision makers take all the time needed for thorough planning and preparation for election success and project effectiveness in addressing our community’s workforce housing and childcare needs. 13 are in favor, 1 is opposed, two are not present to vote. VOTE 27 Meeting #6 Minutes 28 29 Jul 8, 2022 The majority of the Task Force is in favor of pursuing a 3.5% lodging tax increase for use in investments in workforce housing and childcare, without allocating a specific percentage to each, agreeing that the breakdown should be decided by the organization responsible for allocation of the funds. A formal motion recommending who should be responsible for oversight and prioritization/allocation of the funds was not made. Some members of the Task Force have said that in order for voters to adequately assess the merits of a ballot measure, the electorate would need to be presented with a thorough and executable plan. CONCLUSION 30 N E X T S T E P S The boards of Visit Estes Park, Town of Estes Park and Larimer County will meet to discuss next steps on: August 1, 2022 APPENDIX 31 2016 Housing Needs Assessment Recommendations A B C Census Profile for 80517 zip code Changes in Lodging Taxes over the Past 5 Years table Colorado Housing and Finance Authority overview Consolidated sales and lodging tax rates in Colorado D E Early Care and Education in Estes Park Proposal and Data by Laurie Dale Marshall Estes Park Area Housing Needs Assessment Estes Park Research Questions and video interview Estes Valley Childcare Needs Assessment F G H Housing Authority Possible Use for Fees letter to Town Trustees Housing Needs vs Construction table from the Housing Authority I J K L M N O Organizational Plan for the Use and Management of HB22-1117 Funds by Eric Blackhurst Q R Registered vacation homes in town limits Room tax collections with annual analysis S Stifel Public Finance presentation Summary of What Could be Created at Varying Bed Tax Increase Via Leverage thru Bonding Different Bed Tax Income Streams T The effect of lodging tax increases on US destinations study The Rise and Fall of Colorado Tourism study Top 150 urban center lodging tax rates U Using HB22-1117 Funding for Workforce Housing and Childcare, A Draft Model of Plans for Discussion V Visit Estes Park’s 2021 Annual Report Visit Estes Park Lodging Tax Collections Since 2015 W Workforce Housing and Childcare Ad-Hoc Task Force Final Report X Y Z While I applaud the effort put forth by the committees and advisory staff over the course of the six meetings held to discuss the application of SB 22-1117, it is with chagrin that I note the fatal flaw in the basic assumptions; that Estes Park could support anything beyond seasonal housing for a relatively brief tourist season not experienced by other mountain communities with access to winter activities like skiing. The minutes of these meetings support that a large problem for the Town’s year round workforce is the continual emigration of 25-45 year-olds from the Estes Valley, who no doubt are departing because of the lack year round employment opportunities. The half hour commute of seasonal workers to Estes from Lyons or Loveland is no more of a hardship than normal commutes to the place of work in many front range communities. Why would a seasonal worker move permanently to Estes and then suffer the commute back down to a front range community during the winter months for employment? The Town has also put its tourism focus ahead of the importance of maintaining the quality of its residential neighborhoods with the passage of Town Ordinance 13-21, which created for those owners with Town VHR licenses, the establishment in perpetuity in existing residential neighborhoods ‘short term rental units’. It demonstrated full awareness of that fact with the passing of Town Ordinance 16- 21 a month later which put a moratorium on new VHR applications while the waiting list of roughly 50 applications is worked off (10 years from turnover numbers provided by Town Clerk’s Office). Without support for residential neighborhood character within the Town, there will be a continual erosion of decent neighborhoods for retirees and other full time Estes residents to live, including those working from home. So by all means work to improve the development and access to seasonal housing for the tourist season, but don’t further burden the accommodations industry with another tax for a set of benefits that do not apply to Estes Park’s seasonal workforce. Secondly, pass sensible regulations that promote the maintenance of our residential neighborhoods instead of helping to transform them into resort properties. PUBLIC COMMENT RECEIVED ON 7/29/2022  Board of Trustees Public Comment Name: Stewart Squires Stance on Item: Against Agenda Item Title: Special Joint Study Session on August 1, 2022. Public Comment: ? File Upload Please note, all information provided in this form is considered public record and will be included as permanent record for the item which it references. Files are limited to PDF or JPG. Public Comment for Special Joint Study Session August 1 2022 - Stewart Squires.pdf 66.47KB 25 MB limit. Video files cannot be saved to the final packet and must be transcribed before submitting.