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HomeMy WebLinkAboutPACKET Town Board Study Session 2022-09-13 September 13, 2022 5:15 p.m. — 6:45 p.m. EPTOWN BOARD Board Room STUDY SESSION 5:00 p.m. Dinner In Person Meeting — Mayor, Trustees, Staff and Public AGENDA No public comment will be heard This study session will be streamed live and available on the Town YouTube page at www.estes.org/videos 5:15 p.m. Racial Covenants Ordinance. (Town Attorney Kramer and Town Administrator Machalek) 5:45 p.m. Proposed Framework for Expenditure of Potential Lodging Tax Revenues. (Assistant Town Administrator Damweber) 6:35 p.m. Trustee & Administrator Comments & Questions. 6:40 p.m. Future Study Session Agenda Items. (Board Discussion) 6:45 p.m. Adjourn for Town Board Meeting. Informal discussion among Trustees concerning agenda items or other Town matters may occur before this meeting at approximately 5:00 p.m. Page 1 F TOWN BOARD STUDY SESSION MEETING September 13, 2022 Racial Covenants Ordinance. No packet material will be provided for this item. Page 3 F ft Report TOWN OF ESTES PARK TOWN ADMINISTRATOR OFFICE To: Honorable Mayor Koenig Board of Trustees Through: Town Administrator Machalek From: Jason Damweber, Assistant Town Administrator Date: September 13, 2022 RE: Proposed Framework for Expenditure of Potential Lodging Tax Revenues Purpose of Study Session Item: Discuss a proposed framework and strategies for addressing workforce and childcare challenges through the use of lodging tax revenues in the event of a successful November ballot initiative. Town Board Direction Requested: Provide feedback to staff regarding the proposed framework. In particular: • Are there any strategies not included in the framework that you would like to see included? Conversely, are there any strategies included that you do not think should be part of the framework? • Is the Board okay with the Town partnering with organizations to implement strategies (primarily the Estes Park Housing Authority and EVICS Family Resource Center)? Including providing funding for staffing-related increases necessary to create and/or administer programs? • With respect to childcare, does the Board wish to make any distinction between nonprofit/for profit and/or licensed/unlicensed facilities? • Does the Board find the governance structure as proposed acceptable? Present Situation: House Bill 22-1117, enacted by the State in March 2022, permits the use of lodging tax revenue collected by a local marketing district to address local issues related to workforce housing and childcare. It is up to voters in the local marketing district to decide whether to authorize the use of lodging tax revenue for these purposes. In light of significant challenges in the Estes Valley related to the lack of workforce and attainable housing and options for childcare, Visit Estes Park convened a "Lodging Tax Exploration Task Force" charged with, simply put, developing recommendations for the Visit Estes Park Board regarding a potential ballot initiative. Page 5 After taking into consideration the recommendations of the Task Force, discussions with community members, and the findings from a significant amount of research, the Visit Estes Park Board of Directors recommended the following: • 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. • Funds should be administered by the Town of Estes Park. • 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. At a special joint meeting held on August 1, 2022, the Visit Estes Park Board, Town of Estes Park Board of Trustees, and Larimer County Board of Commissioners indicated agreement on and approved these recommendations. The Boards confirmed that the Town of Estes Park would be responsible for: • Administration of funds received through the potential new revenue stream. • Development of an initial framework for how funds collected would be used. • Prioritization of projects based on community needs and opportunities as they arise. Proposal: With respect to the development of a framework for how funds would be used, Town staff proposes that the Town Board discuss and provide feedback regarding the attached, developed in collaboration with partners from the Estes Park Housing Authority (EPHA), the EVICS Family Resource Center, and input from several other interest parties and stakeholders in the community. It is important to note that the proposed framework is based on the assumption that a local marketing district ballot initiative is successful and that funds can be used to address both workforce housing and childcare. In many cases, policy decisions related to proposed strategies will need to be brought back to the Town Board for consideration. Advantages: • House Bill 22-1117 provides an unprecedented opportunity to create a new revenue source dedicated to mitigating the significant workforce housing and childcare issues faced by workers in the Estes Valley. Disadvantages: • None. Finance/Resource Impact: To be determined. Level of Public Interest High Attachments: 1. Proposed Framework: Expenditures of Local Marketing District Funds for Workforce Housing and Childcare Page 6 Attachment 1 A Proposed Framework: Expenditures of Local Marketing District Funds for Workforce Housing and Childcare Town of Estes Park September 2022 [p ®8 Page 7 Introduction House Bill 22-1117, enacted by the State in March 2022, permits the use of lodging tax revenue collected by a local marketing district to address local issues related to workforce housing and childcare. It is up to voters in the local marketing district to decide whether to authorize the use of lodging tax revenue for these purposes. In light of significant challenges in the Estes Valley related to the lack of workforce and attainable housing and options for childcare, Visit Estes Park convened a "Lodging Tax Exploration Task Force" charged with,simply put, developing recommendations for the Visit Estes Park Board regarding a potential ballot initiative. After taking into consideration the recommendations of the Task Force, discussions with community members, and the findings from a significant amount of research,the Visit Estes Park Board of Directors recommended the following: • 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. • Funds should be administered by the Town of Estes Park. • 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. At a special joint meeting held on August 1, 2022,the Visit Estes Park Board,Town of Estes Park Board of Trustees, and Larimer County Board of Commissioners indicated agreement on and approved these recommendations.The Boards confirmed that the Town of Estes Park would be responsible for: • Administration of funds received through the potential new revenue stream. • Development of an initial framework for how funds collected would be used. • Prioritization of projects based on community needs and opportunities as they arise. To that end,the Town offers the following"framework," developed in collaboration with partners from the Estes Park Housing Authority(EPHA),the EVICS Family Resource Center, and input from several other interest parties and stakeholders in the community. It is important to note that the proposed framework is based on the assumption that a local marketing district ballot initiative is successful and that funds can be used to address both workforce housing and childcare. Estimated costs listed with each strategy are, at best, rough guesses if such strategies were implemented. Foundational Documents Several existing resources were used to inform development of this framework, including: • Colorado General Assembly House Bill 22-1117: Use of Local Lodging Tax Revenue (2022) • Recommendations on the Outcome of the Lodging Tax Exploration Task Force (2022) • Workforce Housing and Childcare Ad-Hoc Task Force Final Report (2019) • Childcare Needs Assessment(2018) • Housing Needs Assessment (2016) Page 8 How Would Funds be Spent? A 3.5% increase in the lodging tax would equate to approximately$5,000,000 annually, based on estimates provided by Visit Estes Park. Needless to say,this unprecedented revenue source could present a range of new opportunities to address workforce housing and childcare challenges in the Estes Valley. While there is potential for this money to accumulate over the years, it could also be spent very quickly in light of the great need in the community and the high costs for property, construction, and other such expenditures. The sections below provide a framework of strategies that could be implemented using lodging tax revenues to meet workforce housing and childcare needs, respectively. While we would want the ability to be nimble with a portion of the funds in order to capitalize on property acquisition opportunities as they arise,we also need to move quickly on implementing strategies that promote retention of existing local workers and recruitment of new ones. If a ballot initiative is successful,the first year would entail formalizing partnerships, prioritizing strategies, creating new programs, hiring new staff to administer programs and coordinate with partnering organizations (and possibly consultants with expertise in development of relevant programs), and beginning to utilize funds as they become available to implement strategies. Similar to the caveat in the previous section, it is important to note here that the strategies outlined in this framework are examples of how funds could be spent and that the summaries following each strategy are simply meant to provide further explanation about the strategy. Each would need to be fleshed out as programs and formal implementation plans are developed. Workforce Housing The 2016 Housing Needs Assessment concluded that between 1,480 and 1,690 housing units were needed to address workforce housing shortages in the Estes Valley. In order to meet this need,which only seems to be growing more urgent,we must plan for and implement a mix of strategies that includes new construction and conversion of existing housing in the valley that is not currently occupied by residents in the local workforce. With financial assistance from the Colorado Department of Local Affairs (DOLA),the Town is currently working with a consultant to conduct a new Housing Needs Assessment and Strategic Plan.The study is expected to conclude in November 2022, at which point the results and report will be provided to the Town. We acknowledge that the proposed framework and strategies outlined below may need to be reassessed depending on new information gleaned. However, it has long been clear that there is a need to address a range of affordability, to create a variety of unit types, and to provide opportunities for renters,those interested in purchasing homes, and the seasonal workforce. While further details on each are provided below,the following is a summary of strategies that a dedicated source of revenues for workforce housing would enable us to hone and implement. As further outlined in the section on administration of funds, creation and implementation of new programs would likely require additional staff positions within the Town and/or partnering agencies. In no particular order, strategies to address the shortage in workforce housing in the Estes Valley include: Page 9 1. Property Acquisition o Purchase/preservation of existing housing units o Purchase of other properties, such as accommodations establishments,that could be rehabbed and converted into housing units o Land-banking 2. New Construction o Through partnerships with developers (including the Estes Park Housing Authority) o Incentives such as use of publicly-owned property, density bonuses, fee waivers, amortization of tap fees, and other subsidies 3. Incentives to Construct Accessory Dwelling Units (ADU) o Direct Subsidies or Revolving Loan Fund 4. Incentives for Deed Restrictions 5. Assistance for Home Purchases o Down payment assistance or"cash-buyer" program 6. Rental Assistance o Subsidies to tenants and/or landlords 7. Subsidies for Conversion of Short-Term Rentals to Long-Term Rentals 8. Employer Assistance Programs 9. Development Code Amendments to Allow/Encourage Density Property Acquisition • Summary: Perhaps the most obvious strategy to address the shortage of workforce housing is to buy existing structures that could only be used to house the local workforce.This could be apartment complexes or other multi-family residences, single-family homes, hotels/motels that could be converted into units for the workforce, or other such properties as they become available. In addition to existing structures, land where workforce housing could be developed in future could be purchased for"land-banking" as it becomes available. Given the geographical location of the Estes Valley and the need for so many units,the acquisition of developable (or redevelopable) land is one of the most critical strategies for addressing the challenges we face. Depending on costs and available funds, purchases could be made with cash or through other financing mechanisms (including bonding, issuance of Certificates of Participation, a revolving loan fund, proceeds from disposition of other property, etc.).The Town could purchase property directly or provide funding to other entities, such as the EPHA, in order to acquire property for workforce housing. • Estimated Costs in first 5 Years: $10,000,000+ New Construction • Summary: Partner with developers—whether from the private or non-profit sector(including the Estes Park Housing Authority)—to construct new workforce housing in the Estes Valley. Town-owned property could be leveraged for this purpose. Other incentives could include direct financial contributions/assistance, density bonuses,fee waivers associated with the development review process,tap fee amortization, and/or other subsidies to cover costs for building permit services and the like. Page 10 • Estimated Costs in first 5 Years: $5,000,000+ Incentives to Construct Accessory Dwelling Units(ADUs) • Summary: Create an incentive program to encourage the construction of ADUs to house members of the local workforce.This could be through direct subsidies or a revolving loan program. Such a program would provide an existing eligible property owner with cash or a low- interest loan for the construction or conversion of an existing space to an Accessory Dwelling Unit on the owner's property,where permitted. In exchange, the owner would lease the ADU to an eligible household. Limits could be placed on the amount of rent charged, depending on how the agreement was structured.The agreements would be in the form of a restrictive covenant. • Estimated Costs in first 5 Years:—$1,000,000; depends on the number of ADUs constructed/converted and whether there is a preference for direct subsidies, loans, or a combination of the two. Incentives for Deed Restrictions • Summary: Create an incentive program to encourage prospective local buyers of homes to place price-capped restrictions and/or workforce restrictions on their homes in exchange for cash. Capping prices for resale (pegged to some measure of affordability)would help keep housing more attainable from an affordability standpoint,while deeds requiring a housing unit that is resold be sold to a member of the local workforce would ensure that it remains housing for local workers. Eligibility would be based on income and/or net worth of the buyer. • Estimated Costs in first 5 Years: —$2,500,000; depends on the number and cost of deed restrictions Assistance for Home Purchases(down payment assistance or"cash-buyer" program) • Summary: Existing down payment assistance programs offered through the Estes Park Housing Authority and Larimer County could be bolstered and better funded. In addition to down payment assistance, a "cash-buyer" program could be created that supports buyers in the local workforce who desire to participate in the real estate market but have difficulty competing with cash buyers who are typically more agile, can offer a higher purchase price, and can close more quickly because there is no financing contingency.This program would allow the Town or Estes Park Housing Authority to act as a cash buyer on behalf of an eligible household or in its own interest to acquire a property,which may then be resold to the eligible household. In exchange, the Town or EPHA would record a price-capped (appreciation cap and/or AMI limit) and/or workforce deed restriction on the property,which will preserve the property for future local housing. • Estimated Costs in first 5 Years:"'$2,500,000 Rental Assistance (subsides to tenants and/or landlords) • Summary: Create a fund for rental/lease assistance for members of the local workforce who sign a new 12-month lease in the Estes Valley based on predetermined eligibility criteria. Page 11 Assistance could be provided throughout the term of a lease or at the outset,which would increase the viability of obtaining a local long-term rental by assisting with up-front costs. Another approach to providing rental assistance could be to "buy down" rents through direct subsidies to landlords. • Estimated Costs in first 5 Years:—$400,000 Subsidies for Conversion of Short-Term Rentals to Long-Term Rentals • Summary: Often referred to as "lease-to-locals," a program could be established where incentives in the form of direct subsidies could be provided to owners of short-term rentals to convert their housing units to long-term rentals (or even seasonal rentals)for members of the local workforce.The amount of the subsidy would increase with the number of bedrooms offered in the housing units. Summit County recently implemented a "lease to locals" program that could serve as a model for our purposes.Additionally, subsidies could be provided when there is a need to rehab existing houses in order to make improvements necessary to increase the number of bedrooms in a unit being converted to a long-term rental. • Estimated Costs in first 5 Years:"'$300,000; depends on the number of units that would agree to convert from short-to long-term rentals and the amount of the subsidies. Employer Assistance Program • Summary: Create a program to provide assistance in the form of subsidies to local employers who house members of the workforce, including seasonal employees, locally. • Estimated Costs in first 5 Years: "200,000 Development Code Amendments to Allow/Encourage Density • Summary: Although lodging tax revenues may not be needed to address this strategy, it is still worth mentioning that consideration of amendments to the Development Code could lead to more housing when it comes to increased density and infill developments. • Estimated Costs in first 5 Years: Staff time associated with processes required to amend the development codes pertaining to the local marketing district. Page 12 Childcare The June 2019 Final Report of the Workforce Housing and Childcare Task Force, informed by a 2018 Estes Valley Childcare Needs Assessment, states that "the lack of availability of infant and toddler care in the Estes Valley is at a crisis level and has been getting worse for several years." Census data shows that the population of Estes Park has aged significantly since 2010: the median age in 2010 was 50.9, and in 2020 it was 62.1. While the population grew slightly over that period of time, these figures suggest that young people are leaving Estes Park and/or choosing not to come here. Anecdotal evidence gleaned through various surveys, including a 2019 Youth in Action survey, clearly shows that the lack of childcare is a major consideration for young people when deciding to either move to or leave the Estes Valley. Key findings from a more recent report by the Common Sense Institute, "The Growing Strain on the Child Care Business Model: Economic Impacts and Opportunities for Improving Affordability and Access," indicate that in Colorado: • The "Childcare gap" is growing (about 38%of children in Colorado need childcare but families cannot reasonably access it) • Childcare providers are struggling to get started and stay open • Families that can access childcare are paying more than double what is deemed "affordable" • The high cost of childcare is impacting the workforce • Operational and regulatory reform are needed With respect to Larimer County and the Estes Valley more specifically: • There are currently only 4 licensed infant slots in Estes Park. • According to the Early Childhood Council of Larimer County, 75%of Larimer County families cannot find infant care. • According to the Early Childhood Council of Larimer County, 40%of Larimer County families with preschoolers cannot find care. • Young people in Estes Park(Youth in Action survey 2019) don't have the expectation of being able to stay here, get a good job, and raise a family. • Young people planning to begin a family find no early care options and decide to move down into the valley to start their family. • In Estes Park, all sectors have experienced loss of employees directly due to inability to find early care in our community.This includes the school district, hospital/clinic,Town of Estes Park, retail, and lodging. • 10%of Colorado residents quit or don't take jobs because of childcare challenges. During the pandemic,this challenge was heightened and families in Larimer County reduced their work by 42%due to lack of childcare. It is very clear that affordability and access to childcare are significant issues across all of Colorado. Because of our geographical location,the issues seem to be even more dire in the Estes Valley. In light of the varied challenges faced by families in need of childcare and providers struggling to start a business and stay open,there are three areas where funding from the lodging tax revenues could help Page 13 turn the tide. Providers of childcare may need assistance with all three in order to start or remain in business.They include: 1. Facilities/Capital 2. Addressing Workforce Challenges 3. Tuition Assistance/Scholarships A comprehensive childcare program would need to be developed that includes the process for awarding funds, determining eligibility and how eligibility is verified on a regular basis, regularly ensuring accountability on the part of providers, etc. Development and implementation of such a program would almost certainly require additional staff. Facilities/Capital • Summary: Needless to say, childcare providers require adequate and safe space in order to operate their businesses. Especially for licensed facilities, and depending on the number of spaces available and the ages of the children,there are standards that must be met related to things like the number and size of rooms, how the rooms are used (free play, sleeping, preparing and eating food), and the number of bathrooms and toilets, etc. Costs to purchase or rent facilities for childcare can be a huge barrier for providers to start or stay in business. While it is unclear exactly how great the need for space is in the Estes Valley, it is believed that there is currently not enough space to meet current demand, at least not for spaces in licensed facilities and especially not for infants. With respect to facilities/capital, lodging tax revenues could be used in the following ways: o Purchase land or existing building(s)to be used for childcare and offer to provider at affordable rate. o Provide financial assistance to childcare provider wishing to purchase a facility for childcare, whether as a direct subsidy or through a low interest loan. o Provide rental assistance for providers. o Provide funding for capital improvements to existing facilities needed in order to open or to maintain or increase capacity. • Estimated Costs in first 5 Years: $1,000,000+ Addressing Workforce Challenges • Summary: While it is often believed that "if you build it,they will come"—which may have been true in the past—it is now clear that even with low-cost (or even free) space, providers are finding it increasingly challenging to recruit and retain staff at childcare facilities. Case in point: in 2022, a local childcare provider utilizing a facility with spaces for up to 40 children free of charge was unable to stay in operation because they could not successfully hire and retain staff. At an average of$13-15 per hour,wages in the childcare industry are low compared to other industries, one of the main difficulties with recruitment and retention. Providers can only charge as much as people can afford to pay,which results in a vicious cycle when it comes to affordability for parents and the amount of revenues providers are able to bring in to operate Page 14 and retain staff. Often, childcare providers are unable to afford to provide staff with health insurance, paid leave, and other such benefits. With respect to workforce challenges, lodging tax revenues could be used in the following ways: o Subsidies to providers based on the number of spaces provided and/or number of staff to encourage them to start or stay in business in the Estes Valley, including for out-of- school time programs. o Subsidies to providers to help bridge the gap between what they are able to afford to pay staff and what is deemed (when a program is developed)to be a reasonable, living wage. o Subsidies to help pay or offset costs for benefits such as healthcare and paid leave. o Assistance with costs associated with licensing and/or staff training. o Assistance with costs associated with housing staff. o Assistance with costs associated with transportation needs of staff and/or children. By accepting funds, providers would be required to demonstrate how the funds are being used to address workforce challenges.The Town would dictate these requirements, likely to include a minimum salary or wages for staff and a minimum number of spaces provided. Requirements would formally be agreed to by the providers. • Estimated Costs in first 5 Years:—$750,000 Tuition Assistance/Scholarships • Summary:The US Department of Health and Human Services considers childcare affordable if it costs no more than 7%of a household's income. Colorado families spend, on average, about 18% of their annual household income on childcare. And that is just for those who are able to overcome challenges with accessibility. Many parents simply cannot afford to put their children in childcare,which has significant negative impacts on the workforce and economy. While there are a variety of long-standing programs that provide tuition assistance and scholarships for parents and children in Larimer County,these programs are often underfunded and cannot keep up with demand. Local partner, EVICS Family Resource Center, has a well- managed tuition assistance ("scholarship") program, requiring verification of eligibility every three-months, but the organization often struggles to raise adequate funding for the program to meet the need in the community.The Town could create its own program or partner with EVICS and/or others with established tuition assistance programs to provide funds to help bridge the affordability gap. • Estimated Costs in first 5 Years: —$150,000 Page 15 Overview of Administration and Governance of Lodging Tax Funds for Workforce Housing and Childcare While the local marketing district, Visit Estes Park,would be the recipient of all lodging tax revenues,the organization's Board of Directors indicated its primary desire was to levy the tax and aggregate funds earmarked for workforce housing and childcare, but not serve as the administrator of funds. At the August 1 joint meeting of the Boards of Visit Estes Park, the Town of Estes Park, and Larimer County,the group determined that the Town should administer the funds.The Town indicated its willingness to serve in this capacity in the event of a successful ballot initiative. Administration of the funds would entail receiving the tax revenue from Visit Estes Park, creating and implementing programs and strategies to address workforce housing and childcare challenges, and accounting for the expenditure and utilization of funds. Programs and services could be offered directly through the Town but the Town would also likely serve as a pass-through and oversight organization for funds going to partnering organizations in the community that have their own programs to address workforce housing and/or childcare. This is not to say that the Town would be making all decisions unilaterally. While it would be tedious and unnecessary for multiple entities to review and approve individual expenditures or fund disbursements, there will need to be agreement between the Town and County on higher-level decisions.To that end, the Town proposes a governance structure involving the Town and County where the Town prepares a brief plan on an annual basis that includes an estimate of expected lodging tax revenues (consistent with Visit Estes Park's Operating Plan),the proportion that would go toward workforce housing vis-à-vis childcare, and the amount of funds to be budgeted as expenditures associated with strategies as outlined above (to the extent that funds are allocated for specific strategies).The Town Board and Board of County Commissioners would agree to and affirm the plan on an annual basis.This structure could be agreed to through an amendment to our existing Intergovernmental Agreement. Other items for discussion and consideration may include: • Definition of Workforce Housing. • Eligibility parameters for end recipients of funds. • Parameters for fund disbursement to partnering agencies. • Funding required in order to administer programs. o New staff would likely be needed within the Town and possibly within partnering organizations. o Partnering organizations may require an administration fee to administer certain programs. Conclusion It is very clear that shortages in workforce housing and the lack of access to childcare, especially affordable childcare, are significant issues in the Estes Valley. Unless addressed in short order,the issues are likely to have increasingly negative impacts on the economy and quality of life for residents. House Bill 22-1117 enables a never-before-seen revenue stream that could help reverse the negative trends we are seeing with respect to recruitment and retention of staff in just about every industry. As outlined in this document,there is no shortage of strategies that we can implement to create more housing for the Page 16 local workforce and more opportunities for parents to find quality, affordable childcare. Now we just need the funds to do so. Page 17 9/14/2022 A Proposed Framework: Expenditures of Local Marketing District Funds for Workforce Housing and Childcare September 13, 2022 A EP Tonight's • Share high level framework for how potential local marketing district tax funds could be spent Objectives to address workforce housing and childcare issues in the Estes Valley. • Receive feedback from the Town Board in order to finalize the framework for adoption. Page 18 9/14/2022 Overview & Caveats • Assumption that November's ballot initiative will be successful. o 3.5% =-$5 million • Each proposed strategy will need to be further fleshed out. o Program development, policy decisions, MOUs with partnering agencies, consultants,etc. • Framework of Strategies =Menu of Potential Options • We are in the midst of a Housing Needs Assessment and development of a Strategic Plan • We will not be able to implement proposed strategies without significant assistance from partners and/or adding staff. • Need ability to be nimble with funds. • Need to move quickly to promote retention of existing employees and recruitment of new ones. o BUT much of this will take time(receipt of funds, development of programs, construction timeframes, etc.) • County will need to be on board with structure. Workforce Housing Strategies 1. Property Acquisition o Purchase/preservation of existing housing units • Purchase of other properties, such as accommodations establishments,that could be rehabbed and converted into housing units Land-banking 2. New Construction o Through partnerships with developers (including the Estes Park Housing Authority) o Incentives such as use of publicly-owned property, density bonuses,fee waivers, amortization of tap fees, and other subsidies 3. Incentives to Construct Accessory Dwelling Units(ADU) o Direct Subsidies or Revolving Loan Fund 4. Incentives for Deed Restrictions Page 19 9/14/2022 Workforce Housing Strategies 5. Assistance for Home Purchases Down payment assistance or"cash-buyer"program 6. Rental Assistance c Subsidies to tenants and/or landlords 7. Subsidies for Conversion of Short-Term Rentals to Long-Term Rentals 8. Employer Assistance Programs 9. Development Code Amendments to Allow/Encourage Density Childcare Strategies 1. Facilities/Capital o Purchase land or existing building(s)to be used for childcare and offer to provider at affordable rate. o Provide financial assistance to childcare provider wishing to purchase a facility for childcare,whether as a direct subsidy or through a low interest loan. o Provide rental assistance for providers. o Provide funding for capital improvements to existing facilities needed in order to open or to maintain or increase capacity. 2. Addressing Workforce Challenges o Subsidies to providers based on the number of spaces provided and/or number of staff to encourage them to start or stay in business in the Estes Valley, including for out-of-school time programs. o Subsidies to providers to help bridge the gap between what they are able to afford to pay staff and what is deemed(when a program is developed)to be a reasonable, living wage. o Subsidies to help pay or offset costs for benefits such as healthcare and paid leave. o Assistance with costs associated with licensing and/or staff training. o Assistance with costs associated with housing staff. o Assistance with costs associated with transportation needs of staff and/or children. 3. Tuition Assistance/Scholarships Page 20 9/14/2022 • It is impossible to know how much funding will Breakdown of Costs? be needed to address workforce housing vis-a- vis childcare, though it is reasonable to assume that costs for workforce housing will be significantly greater. • Initial year will likely have—90% budgeted for workforce housing and —10%for childcare. • With respect to childcare, costs will likely be higher in the first few years if funds are used for capital expenditures, then reduce when focus will be more on workforce and tuition assistance. • Will need to have flexibility to capitalize on opportunities as they arise! • Visit Estes Park Administration and 0 Levy tax;pass on to Town. Governance of Funds • Town of Estes Park o Receive funds from VEP. o Create and implement programs and strategies (in partnership with recognized partnering organizations). O Formalize and maintain partnerships. o Prepare proposed annual plan for expenditure of funds. o Account for expenditure and utilization of funds. • Larimer County o Review and approve proposed plan on an annual basis. • Structure could be formalized through amendments to existing IGA with County. Page 21 9/14/2022 • Definition of Workforce Housing. Items for Discussion/ • Eligibility parameters for end recipients of Consideration with funds. County • Parameters for fund disbursement to partnering agencies. • Funding required in order to administer programs. o New staff will be needed within the Town and possibly within partnering organizations. Partnering organizations may require an administration fee to administer certain programs. • Are there any strategies not included in the Questions for the framework that you would like to see included? Conversely, are there any strategies included that Town Board you do not think should be part of the framework? • Is the Board okay with the Town partnering with organizations to implement strategies (primarily the Estes Park Housing Authority and EVICS Family Resource Center)? Including providing funding for staffing-related increases necessary to create and/or administer programs? • With respect to childcare, does the Board wish to make any distinction between nonprofit/for profit and/or licensed/unlicensed facilities? • Does the Board find the governance structure as proposed acceptable? Page 22 9/14/2022 • Use feedback provided by the Board to finalize Next Steps framework for adoption. • IGA with County. • MOUs with partnering agencies. • Program creation. • Create position(s); recruit staff. 11 •. -. •Iirr - --..,,i,.-, - gs. 4'-:1Ws.ar.-. Ill _ it , .. . ,,,..... i . , `-'12 mill Att.. Tip Page 23 F A EP TOWN oi ESTES PARK Future Town Board Study Session Agenda Ite September 13, 2022 September 13, 2022 Items Approved — Unscheduled: • None • Rooftop Rodeo Operations Overview • 1 A Renewal September 27, 2022 • Zoom Public Participation Option • Fire District Sales Tax Percentage • Air Quality and Woodsmoke Request • Governing Policies Updates • Draft Downtown Wayfinding Plan • Stanley Park Master Plan • Building Codes, Energy Code, and Implementation Property Maintenance Code Overview • Quarterly Comprehensive Plan Advisory Committee Update • Downtown Loop Updates as Necessary Items for Town Board Consideration: None Page 25 F