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HomeMy WebLinkAboutPACKET Town Board 2026-09-22Town Board of Trustees Regular Meeting Tuesday, September 22, 2026, 7:00 p.m. Town Hall Board Room, 170 MacGregor Ave, Estes Park Accessibility Statement The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970 -577-4777 or townclerk@estes.org. Meeting Participation This meeting will be streamed live and available on the Town YouTube page at www.estes.org/videos. Click on the following links for more information on Digital Accessibility, and Public Comment. Agenda Pledge of Allegiance Proclamation – Human Trafficking Awareness Day Agenda Approval Public Comment Town Board Comments/Liaison Reports Town Administrator Report Policy Governance Monitoring Report – Policy 3.8 Board Policy 2.3 designates specific reporting requirements for the Town Administrator to provide information on policy compliance to the Board. The above policy is reported each September. Consent Agenda 1. Expenditure Approval Lists – Bills 2. Town Board Meeting and Study Session Minutes dated September 8, 2026 3. Estes Park Planning Commission Minutes dated August 18, 2026 (acknowledgement only) 4. Resolution 97-26 Extension No. 2 of the Colorado-Big Thompson Subcontract among the Town of Estes Park, the YMCA of the Rockies, and the Northern Colorado Water Conservancy District 5. Acceptance of Town Administrator Policy Governance Monitoring Report 6. Estes Park Housing Needs Assessment Addendum and Housing Action Plan - Item continued by staff to October 13, 2026 Reports and Discussion Items (Outside Entities) 1. Support Our Firefighters Estes Valley Fire Protection District – Ballot Question 6D Overview Presented by Randy Repola, Chairperson, Estes Valley Fire and Safety Coalition Presenting the Estes Valley Fire Protection District’s priorities, needs, and rationale for proposing a 0.5% sales tax through Ballot Question 6D. An overview of wildfire risks, volunteer firefighter support, staffing, apparatus needs, and comparative tax data to illustrate why the funding is being requested. Planning Commission Items Items reviewed by Planning Commission or staff for Town Board Final Action . 1. Action Items: A. Resolution 98-26 Amended Plat of Lots 12 and 13 of the Amended Plat of Lots 12, 13, and 14, Block 1, Amended Plat of Lots 12 through 16 and 23 through 35, Block 1, Fall River Estates, Schuele Family Revocable Trust/Owner, Van Horn Engineering/Applicant Presented by Senior Planner Hornbeck Proposal to amend the subdivision plat to combine two lots in the E -1 Estate Zoning District. Agenda continues on page 3 Action Items 1. Resolution 99-26 Supporting Estes Valley Fire Protection District Ballot Issue 6D Presented by Town Administrator Machalek Consider a Resolution supporting Estes Valley Fire Protection District Ballot Issue 6D to levy a 0.5% sales tax to support maintaining wildland firefighting capabilities; maintaining, replacing, and/or upgrading fire apparatus and equipment; and funding volunteer firefighting training and support. 2. Ordinance 13-26 Third Amendment to 2016 Verizon Wireless Land Lease Agreement Presented by Deputy Town Administrator Damweber To amend the lease agreement with Verizon granting the ability to install and operate cell phone communication equipment and antenna in the Moraine/Wiest parking lot. 3. Ordinance 14-26 Amending Chapter 18.04 of the Municipal Code Regarding Floodplain Regulations Presented by Engineer Waters To amend floodplain regulations to reference finalized floodplain maps by the November 27, 2026 deadline required by FEMA. 4. Ordinance 15-26 Prospect Mountain Water Project Repayment Surcharge Presented by Project Manager Wesley To establish a surcharge on the water bill of the customers benefiting from the project. 5. Appointments to the Estes Park Housing Authority Board of Commissioners Presented by Town Clerk Williamson To present the interview committee’s recommendation to fill three vacancies due to the resignations of Rut Miller, Julia Daley, and Marty Miranda. Adjourn Csitesi ^arfe, Colorabo > rodamation WHEREAS, human trafficking is a global plague impacting millions of people each year, including tens of thousands of Americans; and WHEREAS, the United States has a substantial human trafficking problem; and WHEREAS, human trafficking impacts people across all demographics and ages, including teenagers and children; and WHEREAS, the battle against human trafficldng includes supporting efforts in schools, churches, non-^rofits, across law enforcement agencies, and businesses through prevention, intervention, disruption and dismantling human trafficking syndicates; and WHEREAS, human trafficking victims need the necessary resources, assistance and support; and WHEREAS, organizations throughout Colorado increase public awareness of the human trafficking epidemic that impacts our community, state, nation, and world; and WHEREAS, United 2 Stop Human Trafficking (U2S) endeavors to connect regional agencies, leaders, responders, and organizations involved in the effort to stop human trafficking - with over 30 organizations currently collaborating - to share resources, create solutions, and inspire involvement; and WHEREAS, U2S is holding a United to Stop Human Trafficking Summit on October 3, 2026, at Colorado House of Prayer, 328 Remington St., Fort Collins; NOW, THEREFORE, BE IT RESOLVED, that the Mayor and Board of Trustees of the Town of Estes Park, proclaim October l, 2026, as Human Trafficking Awareness Day and support the efforts of law enforcement and front-line organizations in their ongoing commitment to combat human trafficking. In witness whereof I have hereunto set my hand and caused this seal to be affixed. Gary Hall, Mayor Attest: September 22, 2026 • $34 FOR A • A Critical Look at the Proposed Estes Park Public Safety Facility The Town Board is moving forward with plans to build a massive 30,000-square-foot Public Safety Facility at Community Dr'ive and Manford Avenue. As residents, we need to ask: Is this a reckless waste of our tax dollars? 1. The Reality of Crime in Estes Park • The Facts: Estes Park is one of the safest communities in Colorado. Our violent and property crime rates sit significantly below national and state averages. • The Truth: We do not have a crime crisis. The town is pitching a massive, high-tech command bunker for a year-round population of just 6,000 residents. 2. The Flawed 'Gridlock' Location Logic • The Town's Argument: Moving the station to the eastern edge of town on Community Drive will help police avoid downtown summer gridlock. • The Reality Check: If downtown is bottlenecked in July, an officer dispatched from the east side is just as stuck trying to get to the west side or the national park entrances. Moving the station doesn't clear the pavement—it just shifts the starting line further away from high-incident tourist zones. 3. A Better, Cheaper Solution: The Distributed Plan We can fix our first responders' technological and space constraints without spending $34 million. A decentralized network would cost an estimated $9 Million, saving taxpayers roughly $25 Million: • A Targeted Tech Annex ($4.5M): Build a small, hyper-focused infrastructure facility on cheap, non-prime land to house modem 911 dispatch networks, digital server racks, and backup power generators. • Pre-Staged Patrol Hubs ($1.5M): Lease small commercial spaces or use mobile booths on both sides of town. Officers can stay pre-staged near high-incident zones, allowing them to deploy instantly without crossing gridlocked choke points. • Town Hall Renovations ($2M): Target and modify the current footprint to expand evidence vaults and create secure detainee paths without a sprawling, luxury expansion. • What Else Could We Do With $25 Million? By downsizing this project, the town could reallocate tens of millions of dollars toward urgent local needs that directly improve the lives of year-round citizens: • $12 Million for40+ dedicated Workforce Housing Units to keep teachers, nurses, and workers local. • $8 Million for aggressive Road Repair, Sidewalks, and Bike Lanes in our neighborhoods. • $5 Million for Seasonal Transit Expansion to intercept tourists and give locals their roads back. Handout Provided with Public Comment 2026-09-22 A Decentralized Public Safety Blueprint for Park Estimated Budget: $8.0M - $10.0M | Estimated Savings: ~$25 Million Overview Instead of constructing a massive, consolidated $34 million mega-campus on the eastern edge of town, this alternative blueprint shifts the investment strategy toward a targeted, distributed network. This plan fully solves the town's mechanical and communication infrastructure challenges while maintaining a prompt, unhindered emergency response model that adapts directly to seasonal tourist gridlock. Core 1. Secure Communications & Server Annex (Target Budget: $4.5 Million) Construct a dedicated, hyper-focused infrastructure annex on existing town-owned property or retrofit a secure, industrial-zoned facility. This modest 4,000 to 5,000 square foot building will house the full Emergency Communications Center (EPECC), dimate-controiled sen/er racks, and battery backup systems. This delivers the identical modern Next-Generation 911 tech upgrades required by the department without the bloat of multi-story administrative suites. 2. Distributed Patrol Hubs & Substations (Target Budget: $1.5 Million) Establish tactical, pre-staged stations on both sides of the town's primary traffic choke points. This includes a small, leased storefront substation on the west side (near the Beaver Meadows entrance) and a visible mobile kiosk in the downtown core during high tourist season. Officers will deploy directly from these hubs, entirely bypassing Elkhorn Avenue gridlock and ensuring prompt, decentralized coverage. 3. Targeted Town Hall Retrofitting (Target Budget: $2.0 Million) Implement minimal, precise internal renovations within the vacated spaces of the current headquarters. Reconfiguring non-load-bearing walls will safely expand the square footage of secure evidence vaults and locker rooms. A single secure interior corridor will isolate detainee transfers from public sight lines, resolving structural liability at a fraction of the cost of a multi-car garage sally port. The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees From: Town Administrator Machalek Date: September 22, 2026 Subject: Policy Governance Monitoring Report – Policy 3.8 Type: Other: Policy Board Policy 2.3 designates specific reporting requirements for the Town Administrator to provide information on policy compliance to the Board. Reporting on Policy 3.8 – Compensation and Benefits is required in September of each year. Policy 3.8 states: “With respect to employment, compensation, and benefits to employees, consultants, contract workers and volunteers, the Town Administrator shall not cause or allow jeopardy to fiscal integrity.” This report constitutes my assurance that, as reasonably interpreted, these conditions have not occurred and further, that the data submitted below are accurate as of this date. Travis Machalek Town Administrator Policy 3.8: With respect to employment, compensation, and benefits to employees, consultants, contract workers and volunteers, the Town Administrator shall not cause or allow jeopardy to fiscal integrity of the Town. Accordingly, pertaining to paid workers, he or she may not: 3.8.1: Change his or her own compensation and benefits. Status: Compliance Interpretation: I interpret this to mean that I cannot take any action that would result in a personal financial benefit, including modifying my benefits, leave provisions, or compensation in any way that is not defined in my employment agreement or specifically approved by the Town Board. Compliance with the policy will be achieved when: All of my compensation and benefits remain as approved by the Board through either my employment agreement or by specific action of the Town Board. Evidence: 1. The adopted budget and Annual Comprehensive Financial Report document that I have not taken any action to change my own compensation or benefits. Report: I report compliance. 3.8.2: Promise or imply permanent or guaranteed employment. Status: Compliance Interpretation: I interpret this to mean that I cannot make any statements to current or potential employees that they can be assured of guaranteed employment with the Town of Estes Park. Compliance with the policy will be achieved when: I did not make any comments, verbally or in writing to any employee that can be construed as implying permanent or guaranteed employment. Evidence: 1. Since this is a requirement NOT to do something, the evidence would be for non-compliance (a substantiated allegation that such a promise or implication was made). No such allegations have been raised with myself, Human Resources, or with the Town Board. Report: I report compliance Attachment 1 3.8.3: Establish current compensation and benefits which deviate materially for the regional or professional market for the skills employed. Interpretation: I interpret this to mean we regularly compare our compensation and benefits to the regional market. That market has been defined in Policy 303 as adopted by the Board. The specifics of the market comparison process are defined in Policy 303. Compliance with the policy will be achieved when: I ensure we fully comply the procedures and steps outlined in the Board adopted Policy 303 regarding Classification and Compensation Evidence: 1. The compensation study, as prepared by the Town Compensation Consultant under the supervision of Human Resources staff. 2. Published Compensation schedules and Classification plan which is congruent with the results of the annual Compensation Study. 3. Specifics of the compensation model and most recent study are available for inspection upon request. Report: I report compliance. 3.8.4: Establish deferred or long-term compensation and benefits, without approval of the Town Board. Interpretation: I interpret this to mean that I cannot take any action that would create or change any deferred or other long-term compensation for any employees without specific Board approval. Compliance with the policy will be achieved when: There have been no changes to anyone’s deferred or other long-term compensation or benefits without Board approval. Evidence: 1. The adopted budget and the Annual Comprehensive Financial Report document that I have not taken any action to change any long-term compensation or benefits without the prior approval of the Board. Report: I report compliance. Town of Estes Park, Larimer County, Colorado, September 8, 2026 Minutes of a Regular meeting of the Board of Trustees of the Town of Estes Park, Larimer County, Colorado. Meeting held in the Town Hall in said Town of Estes Park on the 8th day of September, 2026. Present: Gary Hall, Mayor Kirby Hazelton, Mayor Pro Tem Trustees Bill Brown Chris Eshelman Mark Igel Frank Lancaster Jamie Mieras Also Present: Travis Machalek, Town Administrator Jason Damweber, Deputy Town Administrator Dan Kramer, Town Attorney Sarah Stoddard Cameron, Recording Secretary Absent: None Mayor Hall called the meeting to order at 7:00 p.m. and all desiring to do so, recited the Pledge of Allegiance. Proclamation – Constitution Week Mayor Hall proclaimed September 17, 2026 through September 23, 2026, as Constitution Week. Proclamation – Hispanic Heritage Month Mayor Hall proclaimed September 15, 2026 through October 15, 2026, as Hispanic Heritage Month. Agenda Approval. It was moved and seconded (Eshelman/Igel) to approve the Agenda, and it passed unanimously. Public Comments. Terry Rustin/Town resident commended Trustee Lancaster for his foresight to add two (2) additional stories to the Visitor Center Parking Garage during his tenure as Town Administrator. David Thomas/Town resident and president of the Estes Park Sister Cities Association encouraged the public, the Town Board, and Town staff to attend Estes Park Sister Cities Association’s annual meeting on September 11, 2026, and noted a free class teaching dances local to Estes Park’s sister city, Monteverde, Costa Rica, would be provided. Trustee Comments. Board comments were heard and have been summarized: Commended Visit Estes Park (VEP) for a successful Tourism Summit; noted the event was well attended, had informative panelists and speakers, and that the inaugural annual tourism awards had been presented; acknowledged Bruce Davies, winner of the Nick Mollé Tourism Legacy Award, Poppy’s Pizza and Grill and Mama Rose’s Restaurant, winners of the Tourism Dream Team Award, and the Estes Park Police Auxiliary, winner of the Visitor Champion Volunteer Award; reported ten (10) applications had been received for the VEP Board of Directors; noted interviews for the VEP Board of Directors opening as well as three (3) vacant seats on the Estes Park Housing Authority (EPHA) Board of Commissioners would be conducted; attended a meeting of the Colorado Association of Ski Town’s (CAST) in Carbondale, CO; reported notes from the CAST meeting would be forthcoming; encouraged constituents to attend the Estes Park Sister Cities Association’s annual meeting; attended Estes Park High School Teacher Angela Barberi’s Leadership and DRA F T Board of Trustees – September 8, 2026 – Page 2 Organizational Development Class to assist with repairs and cleanup of the High School’s greenhouse; summarized the work and history of the Estes Valley Restorative Justice Partnership (EVRPJ) and acknowledged its value to the community; noted the EVRJP Board would be engaging in a Strategic Plan; encouraged the public to attend the Longs Peak Scottish and Irish Highland Festival; recognized the 25th anniversary of the incredible heroism displayed by first responders on September 11, 2001; and encouraged the public to participate in the 9/11 Memorial Stair Climb Annual Remembrance Event . Town Administrator Report. None. Consent Agenda: 1. Expenditure Approval List - Bills 2. Town Board Meeting and Study Session Minutes dated August 25, 2026 3. Resolution 94-26 Water Lease Agreement with Trout Haven 4. Resolution 96-26 Setting Water Rates Public Hearing Dates It was moved and seconded (Eshelman/Mieras) to approve the Consent Agenda, and it passed unanimously. Report and Discussion: 1. Proposed Amendments to Estes Park Development Code Section 3.3 - Code Amendments Per the request of the Town Board at the Joint Study Session with the Estes Park Planning Commission (EPPC) on August 7, 2025, Director Careccia reviewed proposed amendments to Estes Park Development Code (EPDC) Section 3.3 regarding review criteria for rezonings. The draft proposed two (2) new review criteria be added and one (1) existing criterion be modified. Proposed Review Criteria 1 was drafted to ensure consistency with the Future Land Use (FLU) Plan of the Estes Forward Comprehensive Plan and replace the “change in conditions” criteria per the Town Board’s request. It would further allow rezonings to correct a technical error in the text of the Official Zoning Map of the Development Code. Proposed Review Criteria 2 had been drafted to ensure developmental consistency with surrounding properties, mitigate adverse impacts to development such as environmental, wildlife, traffic, and safety externalities, and add conditions of approval. Proposed Review Criteria 3 had been modified to replace “application” with “amendment which did not alter the intent of the criteria. Advantages identified with amendment approval included increased procedural clarity for staff and stakeholders. It was noted that an update to Section 3.3 would not adversely affect the Development Code update process or schedule. Upon direction to proceed from the Town Board, staff would hold public hearings before the Estes Park Planning Commission on September 15, 2026, and the Town Board on October 27, 2026. Board discussion ensued and has been summarized: Confirmed Proposed Review Criteria 2 (a.) language would be changed from “reduction” to “modification;” questioned advantages to hearing Section 3.3 outside of the Development Code update hearings; agreed a conversation separate from the Development Code update would allow for greater discussion and public comment; and confirmed the presented language was ready for Planning Commission review. 2. 2027 Annual 6E Workforce Housing and Childcare Funding Plan Draft Review Manager Speedlin presented the 2026 funding plan for 6E lodging tax revenue as required by the Intergovernmental Agreement (IGA) between Larimer County and the Town of Estes Park, reviewed outcomes of the 2025 funding plan, and requested feedback on 2027 objectives. Projected revenue for the Workforce Housing and Childcare Lodging Tax account had been estimated to total $6,300,000 for 2027. Staff proposed maintaining the 2026 allocation between workforce housing and childcare initiatives through 2027 with 80% of sales tax revenue generated transferred to the Estes Park Housing Authority (EPHA) and DRA F T Board of Trustees – September 8, 2026 – Page 3 dedicated to workforce housing initiatives, the remaining 20% would be retained by the Town to address local childcare needs. Childcare priority objectives included tuition assistance, childcare workforce stability and retention, out -of-school programming, and facility expansion. Tuition assistance of $450,000 would be provided in coordination with the Estes Valley Investment in Childhood Success (EVICS) Family Resource Center and Larimer County’s 1B Early Childhood Sales Tax through Northern Colorado Kids Thrive. Childcare workforce would be supported through the expansion of access to benefits and professional development opportunities as well as through increased wages. The Childcare Stability Initiative (CSI) 2027 award recommendation totaled $325,500 and would be distributed to nine (9) organizations as large operational subsidies. Out-of- school programming grants of $20,000 would continue to support reoccurring programs providing supervision and recreation or enrichment activities. Facility expansion investment would be focused toward the creation of additional infant and toddler classrooms at Mountaintop Child Care Inc. This expenditure would be requested during the Town Board’s annual budget review. Additional 6E funded childcare assistance programs and grants included a new license incentive of $1,000, friends, family, and neighbor (FFN) support, professional development and training grants, and workforce rental assistance for early childhood educators. Housing priority objectives included land banking, development, support for assistance programs, and administration. The primary priority for the land banking objective was to maintain and steward previously obtained properties to assure long-term affordability and stability, rather than pursuit of new acquisitions. Funding directed to development would be focused towards pre-development and planning of new workforce rentals and homes. It was noted that investment in pre - development and planning would reduce project risk as well as strengthen state and federal grant applications. Funding for assistance programs would be directed towards established programs which improve housing affordability for both renters, homebuyers, and seasonal workers. Remaining workforce housing funds would be allocated towards staffing, compliance, fiscal and asset management, and administrative functions at the EPHA. Staff noted the consideration of allocating 6E funds to a portion of the Grant Specialist’s salary due to the position’s vital role in obtaining additional funding for the childcare and the workforce. A final draft of the 6E Funding Plan must be approved by the Town Board, Local Marketing District (Visit Estes Park), and Larimer County Board of Commissioners, and filed with Larimer County by November 1, 2026. Board discussion ensued and has been summarized: Commended Manager Speedlin for her efforts; questioned whether Estes Park’s investment in childcare and workforce housing would cause the County to prioritize grant investment in other municipalities, and whether childcare facility and capital improvement funding was being accumulated across years ; and noted the importance of addressing seasonal housing issues. Whereupon Mayor Hall adjourned the meeting at 8:20 p.m. ___________________________________ Gary Hall, Mayor ______________________________________ Sarah Stoddard Cameron, Recording Secretary DRA F T RECORD OF PROCEEDINGS Town of Estes Park, Larimer County, Colorado September 8, 2026 Minutes of a Study Session meeting of the Town Board of the Town of Estes Park, Larimer County, Colorado. Meeting held at Town Hall in the Board Room in said Town of Estes Park on the 8th day of September, 2026. Board: Mayor Hall, Mayor Pro Tem Hazelton, Trustees Brown, Eshelman, Igel, Lancaster, and Mieras Attending: Mayor Hall, Mayor Pro Tem Hazelton, Trustees Brown, Eshelman, Igel, Lancaster, and Mieras Also Attending: Town Administrator Machalek, Deputy Town Administrator Damweber, Town Attorney Kramer, and Recording Secretary Bramwell Absent: None Mayor Hall called the meeting to order at 5:00 p.m. Administrative Regulations Enforcement Process. Director Bergsten and Water Superintendent Fredricks presented information about establishing an administrative penalty process for utility violations. Existing enforcement options were to discontinue service, issue a citation through Municipal Court, or place a lien on the property. Discontinuing service would require operating older, private valves that are prone to breaking. Fixing such valves would cost approximately $3,000 to $4,000 per valve. Issuing citations through Municipal Court would result in increased staff time in court. Imposing property liens would require additional administrative capacity to track and renew liens every six (6) years. Staff recommended establishing an administrative penalty process as an alternative to the existing enforcement options. The administrative penalty process would include identifying the violation and providing verbal and written notice, allowing a defined and reasonable cure period to resolve issues, imposing administrative fines with written notice of escalating future fines if a property remained non-compliant, and using service termination as a last resort until the property was compliant and funds paid. Board comments and questions have been summarized: expressed support for establishing an administrative penalty process for utilit y violations; asked for additional information on the number of violations and questioned the rationale of establishing additional penalties, Superintendent Fredricks stated failure to comply with state cross- connection control regulations resulted in 50 to 100 notices of violation annually and the Colorado Department of Public Health and Environment (CDPHE) have issued violations to the Town when property owners fail to correct a backflow prevention system; requested additional information on the existing fine under Chapter 1.20 - General Penalty, Attorney Kramer stated a citation under Chapter 1.20 - General Penalty could only be issued to homeowners within the town boundaries with a maximum fine of $2,650 whereas administrative fines could be greater, and noted the Water Division service area extends beyond town boundaries; supportive of implementing escalating fines; questioned if the policy would also apply to unpaid bills, staff stated it could and noted the existing policy charged interest on unpaid bills; asked if the proposed administrative fines would be applied to electrical utility violations , staff stated it could although non-payment was the only recurring electrical service violation; noted the proposed policy aligned with the objective of exceptional community services outlined in the 2026 Town of Estes Park Strategic Plan ; expressed support for ensuring violators were financially responsible for the cost of correcting violations; asked if the administrative fine policy would be established by ordinance, Attorney Kramer confirmed it would be established through an ordinance delegating authority to the Water Division to set administrative fines; and stated support for the proposed policy as a method of conserving water by enforcing the repair of surface lines. DRA F T RECORD OF PROCEEDINGS Town Board Study Session Minutes dated September 8, 2026 – Page 2 Housing Definitions and Density Bonuses in the Development Code. Director Careccia presented an overview of the proposed housing definitions, base densities, density and height bonuses for qualifying projects, review processes, parking, and new residential use in the 50% draft Development Code. The housing definitions were from Policy 227 Workforce and Attainable Housing Guidelines. Board comments and questions have been summarized: requested clarification on if density increases and reductions of lot size minimums would be permitted for non-workforce housing developments, Director Careccia confirmed the reduction of lot size minimums and some of the density increases were not limited to workforce housing developments ; asked if residents had provided feedback, Director Careccia stated lot sizes and density were a focus of one (1) feedback session hosted by Community Conversations about the 50% draft Development Code and the report of those discussions was not yet available; questioned if existing lots that met the criteria could be subdivided, Director Careccia confirmed changes to lot size minimum s would be applicable to all properties within the specified zone districts; expressed concern about permitting a less than two (2) cars per unit parking minimum for new developments, Estes Park Housing Authority (EPHA) Director Moulton stated a parking minimum of 1.2 to 1.4 cars per unit would be sufficient for all existing EPHA properties; supportive of parking minimums of less than two (2) cars per unit; expressed support for expediting the review process; asked about retirement qualifications for deed restricted housing, Director Moulton stated those seeking to retire-in-place in deed restricted housing must demonstrate they have worked in the community for seven (7) years; questioned the rationale for defining attainable housing rentals as costing no more than 30% of a renter’s income and defining attainable housing homeownership as costing no more than 40% of a homeowner’s income, Director Moulton stated these income percentages were commonly used by attainable housing providers, Attorney Kramer clarified these percentages were a cap on what could be charged for rent and not a cap on the income of qualifying individuals; expressed both support and concern for reducing lot sizes; questioned the definition of employed in the existing Development Code, Director Moulton stated the definition of a workforce household in the Development Code was one (1) occupant 18 years of age or older working within the Estes Park School District R-3 boundary; questioned if a minimum number of work hours was required to qualify as a workforce household in the Development Code, Director Moulton stated the Development Code did not set a minimum number of required work hours per week and that existing EPHA properties with deed restrictions for workforce households set a 30 work hours per week minimum and properties that did not have a land use restriction agreement administratively set a minimum of 24 hours per week for part-time workers; supportive of the existing attainable and workforce housing definitions; concerned about the existing attainable, affordable, and workforce housing definitions; expressed support to increase the base density of the RM zoning district to 16 units per acre; expressed concern to expand the density and height bonuses to additional zone districts; supportive of reducing parking minimum requirements; questioned if the proposed provisions would be a use by right or special review use, Attorney Kramer stated the provisions as proposed were a use by right, but some provisions could be a special review use; asked for a distinction between what provisions would be a use by right or special condition use; stated desire to review the report of the public input when available; questioned the number of attainable workforce housing units desired in town; discussed opportunities to incentivize employers to provide employee housing; and concerned about height bonuses. Housing Issues – Seasonal Workforce and Seniors. Manager Speedlin and EPHA Director Moulton presented an overview of the results of the Seasonal Housing Survey and existing seasonal and senior housing options provided by EPHA. The survey was conducted in coordination with the Estes Chamber of Commerce and received 70 responses from employers representing a variety of sectors. 40% of respondents reported losing seasonal staff due to housing availability and 60% identified a need for summer seasonal housing. Affordable, shared or dormitory, and flexible short-term housing were desired by employers for their employees. At the time of the meeting, EPHA housed 658 people within 334 units, 20% of EPHA residents were elderly and of the elderly residents the average age was 73, 5% of the EPHA housing stock was used to house 33 seasonal employees in the DRA F T RECORD OF PROCEEDINGS Town Board Study Session Minutes dated September 8, 2026 – Page 3 summer of 2026. Manager Speedlin stated funds allocated by Ballot Initiative 6E were dedicated to supporting workforce housing and childcare programs. The Housing Needs Assessment Addendum prepared by Root Policy found future job growth could create demand for an estimated 276 seasonal workforce housing units, 56% of homes in the Estes Valley were occupied year-round, approximately 27% of the Estes Valley labor force are age 60 and older, and 64% of cost burdened renter households in Estes Park earned less than $75,000 annually. Board comments and questions have been summarized: discussed the challenges of creating and maintaining dormitory style housing; discussed the role of faith-based organizations providing senior living options; inquired about incentives for privately funded senior living developments; Director Moulton stated EPHA can operate as a developer of workforce housing with the assistance of 6E funds and then leverage the developer fees collected to create income-qualified and senior housing; supportive of hiring a coordinator for seasonal housing to collaborate with local businesses through the Chamber of Commerce; expressed support for staff to continue to evaluate housing strategies, Director Moulton stated EPHA continually reviews property development options; thanked the Chamber of Commerce for collaborating on the survey; requested further information on the survey responses expressing concerns about the role of the Town in addressing employer housing needs, Director Moulton stated some survey respondents questioned the appropriate use of the workforce housing regulatory linkage fee and how EPHA’s efforts impact the housing market; recognized many survey respondents hired zero (0) to two (2) employees and likely did not have the resources to provide housing for employees; supportive of seasonal housing and funding seasonal housing using taxes from visitors; and expressed support to prioritize providing workforce housing to full-time workers. Trustee and Administrator Comments and Questions. None. Future Study Session Agenda Items. None. There being no further business, Mayor Hall adjourned the meeting at 6:48 p.m. ___________________________________ Stephanie Bramwell, Recording Secretary DRA F T The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Reuben Bergsten, Utilities Director Department: Utilities Date: September 22, 2026 Subject: Resolution 97-26 Extension No. 2 of the Colorado-Big Thompson Subcontract among the Town, the YMCA of the Rockies, and the Northern Colorado Water Conservancy District Type: Resolution Objective: Approve a second extension of the C-BT subcontract between the Town of Estes Park (the Town) and the YMCA of the Rockies (the YMCA). Present Situation: Under the 2021 Amended and Restated Water Service Agreement, the Town provides water to the YMCA for a 60-year term. In exchange, the YMCA agreed to transfer 32 C- BT units. This transfer allowed for the waiver of the YMCA's water rights fee. The application to transfer the C-BT units was submitted to the Northern Colorado Water District (Northern Water). Northern Water’s approval of the transfer became contingent on the Town’s inclusion of land into Northern Water. The Town’s inclusion process is ongoing. The Town has completed its responsibility for inclusion of all property within the Town’s boundary into Northern Water. The Town is starting the process to include all lands being served by the Town’s water system located outside the Town’s boundaries into Northern Water. The Town anticipates completing the inclusion process within the two-year term of the Second Extension of the Subcontract. Following the execution of the Second Extension of the Subcontract by the Town and the YMCA, the Second Extension of the Subcontract will be forwarded to Northern Water for approval. Proposal: Approve the Second Extension of the C-BT subcontract between the Town of Estes Park and the YMCA of the Rockies. Advantages: • Protects the Town's right to use the 32 C-BT units until completion of the inclusion process of lands into Northern Water. • Allows uninterrupted use of the 32 C-BT units until the permanent transfer is finalized. Disadvantages: • None Action Recommended: Approve the Second Extension of the C-BT Subcontract between the Town of Estes Park and the YMCA of the Rockies. Finance/Resource Impact: Administrative time only Level of Public Interest: Low. Sample Motion: I move for the approval/denial of the Resolution Attachments: 1. Resolution 97-26 2. Second Extension of the C-BT Subcontract between the Town of Estes Park and the YMCA of the Rockies 3. Amended and Restated Water Service Agreement Entry ID 176722 RESOLUTION 97-26 AN EXTENSION OF THE COLORADO-BIG THOMPSON SUBCONTRACT BETWEEN THE TOWN OF ESTES PARK AND THE YMCA OF THE ROCKIES WHEREAS, under the 2021 Amended and Restated Water Service Agreement, the Town of Estes Park provides water to the YMCA of the Rockies for a 60 -year term, and in exchange, the YMCA agreed to transfer 32 Colorado -Big Thompson (C-BT) units to the Town; and WHEREAS, a temporary C-BT Subcontract was executed to allow the Town uninterrupted use of the 32 C-BT units while the Town completes the required land inclusion process with the Northern Colorado Water Conservancy District; and WHEREAS, the inclusion process has proven more complicated than anticipated, requiring an extension of the Subcontract beyond its original deadline to maintain legal use of the 32 C-BT units until the permanent transfer is finalized; and WHEREAS, the Board of Trustees wishes to approve this Second Extension of the Subcontract to protect the Town's right to use the 32 C-BT units until the permanent transfer of the units is finalized. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: The Board of Trustees hereby approves the Second Extension of the Colorado- Big Thompson Subcontract between the Town of Estes Park and the YMCA of the Rockies. DATED this day of , 2026. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk Attachment 1 SECOND EXTENSION OF COLORADO-BIG THOMPSON SUBCONTRACT This Second Extension of Colorado-Big Thompson Subcontract is entered into this ___ day of September, 2026 by and between the YMCA of the Rockies, a Colorado nonprofit corporation (“YMCA”) and the Town of Estes Park, a Colorado statutory town, acting by and through its Water Activity Enterprise (“Town”). RECITALS WHEREAS, the Town and YMCA entered into the Colorado-Big Thompson Subcontract dated November 24, 2021 (“Subcontract”), attached as Exhibit A to this Second Extension, to allow YMCA to temporarily provide 32 C-BT Units to the Town until such time as the Town has included all properties served by the Town’s Water System within the Northern Water District and the Municipal Subdistrict; and WHEREAS, Section 3 of the Subcontract provides that term of the Subcontract is from January 1, 2022 through October 31, 2024, unless extended or sooner terminated under the terms and conditions set forth in the Subcontract; WHEREAS, Section 3.a of the Subcontract allows the Town and the YMCA to extend the term of the Subcontract by mutual written agreement if Northern Water has not yet approved the YMCA’s transfer of the 32 C-BT Units to the Town, although YMCA and the Town may not extend the Subcontract beyond October 31, 2026 or enter into any new subcontract without Northern Water approval; WHEREAS, the Town and YMCA entered into an Extension of Colorado-Big Thompson Subcontract dated October 28, 2024, attached as Exhibit B to this Second Extension, that extended the term of the Subcontract through October 31, 2026; and WHEREAS, Northern Water has not yet approved YMCA’s transfer of 32 C-BT Units to the Town, and the Town and YMCA now desire to extend the term of the Subcontract to October 31, 2028 in order to provide adequate time to facilitate that transfer. SUBCONTRACT EXTENSION AGREEMENT In consideration of the above recitals and of the mutual covenants, agreements, and promises set forth herein, the Town and YMCA agree as follows: 1. Pursuant to the provisions of Section 3.a of the Subcontract, the Town and YMCA extend the term of the Subcontract through October 31, 2028, subject to Northern Water’s approval. YMCA agrees to present this Second Extension to Northern Water for approval immediately following approval by the Town. 2. All terms and conditions of the Subcontract remain in full force and effect, with the acknowledgment that the 32 C-BT Units provided by YMCA to the Town are now from a Attachment 2 May 12, 2022 allotment contract for 32 C-BT Units instead of the March 10, 1995 allotment contract for 100 C-BT Units referenced in paragraph 4 of the Subcontract. 3. In the event that the Town does not satisfy the Northern Water and Municipal Subdistrict inclusion processes necessary to facilitate the transfer of the 32 C-BT Units from YMCA to the Town by October 31, 2028, the Town shall be responsible for all legal fees and costs incurred by YMCA associated with seeking an additional extension of the Subcontract, amending the Subcontract, or entering into a new subcontract for any or all of the 32 C-BT Units. YMCA of the Rockies By____________________________________ Date______________________ Title__________________________________ Town of Estes Park By____________________________________ Date______________________ Title__________________________________ EXHIBIT A COLORADO-BIG THOMPSON SUBCONTRACT This Colorado-Big Thompson Subcontract ("Subcontract")is entered into this 24rdday ofNovember2021,by and between die YMCA of the Rockies,a Colorado nonprofit corporation("YMCA"or "Allottee")and the Town of Estes Park,a Colorado statutory town,acting by andthroughitsWaterActivityEnterprise("Town"or "Subcontractor").Town and YMCA maysometimesbereferredtohereinindividuallyasa"Party"or collectively as "Parties." RECITALS WHEREAS,YMCA owns and operates the YMCA of the Rockies Estes Park Center("Center"),which provides outdoor-oriented recreational and programming activities,includinglodgingandcabinfacilities,within a property comprising approximately 725 acres in LarimerCounty,Colorado; WHEREAS,YMCA owns water rights,including 313 units in the Colorado-BigThompsonProject("C-BT Units")pursuant to multiple allotment contracts with the NorthernColoradoWaterConservancyDistrict("Northern Water"),that YMCA utilizes via an existingwatertreatmentfacilityattheCentertosatisfywaterdemandsassociatedwiththeCenter,including providing treated water to privately-owned cabin properties located within theboundariesoftheCenter; WHEREAS,the Town owns and operates a municipal water treatment and distributionsystemandsuppliestreatedwatertoconsumerslocatedintheTownandtheunincorporatedportionofLarimerCounty,an area commonly known as the Estes Valley; WHEREAS,because of the ongoing resources and expertise necessary for YMCA tooperateitswatertreatmentfacilitytosupplythewaterdemandsoftheCenter,and to provideYMCAwithanalternativetooperatingitsownwatertreatmentfacility,YMCA and Town haveenteredintoanagreementbywhichtheTownwillprovidepotablewatertoYMCAonamaster-meter/bulk sale basis ("Water Service Agreement,"as amended on November 3,2021); WHEREAS,the Water Service Agreement provides that YMCA will transfer 32 C-BTUnitstotheTownuponapprovalbyNorthernWateraspartofYMCA's consideration under theWaterServiceAgreement;and WHEREAS,until YMCA applies for and Northern Water approves the transfer of 32 C-BT Units to the Town,YMCA wishes to temporarily provide 32 C-BT Units to the TownpursuanttoNorthernWater's Rule Governing the Subcontracting of Beneficial Use of Colorado-Big Thompson Project Allotment Contracts ("Subcontracting Rule"). SUBCONTRACT AGREEMENT In consideration of the above recitals and of the mutual covenants,agreements,andpromisessetforthherein,including the Town's provision of water to YMCA under the WaterServiceAgreement,YMCA will provide the water yielded by 32 C-BT Units to the Town under Attachment 3 Colorado-Rig Thompson Subcontract YMCA and Estes Park Page 2 the following terms and conditions: 1.Grant of Right to Use.YMCA hereby grants the Town the right to beneficially use all the water under 32 of its C-BT Units while YMCA and the Town take the necessary steps for YMCA to prepare and submit to Northern Water an application to transfer 32 C-BT Units to the Town as provided in Paragraph 7.5 of the Water Service Agreement.The 32 C-BT Units typically yield 22.4 acre-feet per year on a fixed quota basis of 0.7 acre-feet per unit,subject to Northern Water’s rules and regulations relating to the provision of water under a fixed quota, including but not limited to Northern Water’s possible adjustment of fixed quota amounts during drought or other emergency conditions. 2.Consideration.As consideration for the right to use the water provided under the 32 C-BT Units,the Town has entered into the Water Service Agreement with YMCA and agrees to take all necessary steps as required by Northern Water for YMCA to submit and obtain approval of an application to transfer 32 C-BT Units to the Town. 3.Term,The term of this Subcontract shall be from January 1,2022 through the end of the 2024 Water Year (October 31,2024),unless extended or sooner terminated under the terms and conditions set forth in this Subcontract. a.If Northern Water has not approved the YMCA’s transfer of 32 C-BT Units to the Town by October 31,2024,upon mutual written agreement the Parties may extend this Subcontract for up to two additional years until and through October 31,2026.Northern Water approval is not required for the Parties to extend this Subcontract for any duration up to October 31,2026.The Parties may not extend this Subcontract beyond October 31,2026 or enter into any new subcontract without Northern Water approval. h.This Subcontract will automatically terminate after Northern Water approves YMCA’s transfer of 32 C-BT Units to the Town,and YMCA completes such transfer to the Town. 4.Source of Water Provided to Town.The 32 C-BT Units provided by YMCA to the Town under this Subcontract will be from YMCA’s March 10,1995 allotment contract for 100 C-BT Units on a fixed quota basis of 0.7 acre-feet per unit in accordance with Northern Water’s rules and regulations,including but not limited to Northern Water’s possible adjustment of fixed quota amounts during drought or other emergency conditions.YMCA shall retain all rights to use the remaining 68 C-BT Units from that allotment contract during the term of this Subcontract. 5.Bponsibulitv for Deliven’.The Town shall be responsible for its own legal and physical ability to take delivery of the water provided under the 32 C-BT Units.This Subcontract provides no guarantee of water,and the timing,location,and amount of water delivered to the Town shall be coordinated by the Town with Northern Water after Northern Water’s approval of this Subcontract. EXHIBIT A Colorado-Big Thompson Subcontract YMCA and Estes Park Page 3 6.Northen(essments.Upon approval of this Subcontract by Northern Water,the Town will be responsible for paying any assessments levied on the 32 C-BT Units by Northern Water until this Subcontract terminates.The Town will communicate with Northern Water directly to coordinate payment of such assessments and will notify YMCA when the Town pays any assessments associated with these 32 C-BT Units. 7.hern WateL&1proval.YMCA agrees to present this Subcontract to Northern Water for approval immediately following approval by the Town.This Subcontract will terminate if Northern Water does not approve it before January 1,2022,If Northern Water does not approve this Subcontract by January 1,2022,all rights and obligations hereunder shall terminate and become null and void. 8.crnpijancewith Subcontractim Rule.The Parties agree and understand that this Subcontract is subject to the requirements of the Subcontracting Rule and shall be construed accordingly.Said Subcontracting Rule is attached hereto as Exhibit A and incorporated herein as if fully set forth,and shall be considered part of said Subcontract.Without limiting the generality of the foregoing statement,the Parties acknowledge and shall comply with the requirements of Sections 5.4 through 5.6 of the Subcontracting Rule. 9.Compliance with Laws and_Regulations.In addition to compliance with the Subcontracting Rule as described above,the Town shall be bound by and must comply with all federal,state,and local laws,orders,and regulations that may pertain to the use of the 32 C-BY Units,including all rules and regulations of Northern Water. 10.Possible Sale of C-BT Units.YMCA may sell any C-BT Units during the term of this Subcontract from any of YMCA’s allotment contracts with Northern Water,provided that YMCA retains 32 C-BY Units from its March 10,1995 allotment contract to satisfy its obligations to the Town under this Subcontract. 11.Use of C-BT Units.The Town will use the 32 C-BT Units provided by Northern Water for municipal purposes within the Town’s service area.The Town is entitled to use all water allocated to the 32 C-BY Units during the term of this Subcontract.The Town may not reuse water received under the 32 C-BY Units,and any return flows resulting from the Town’s initial use will be returned within the boundaries of Northern Water. 12.LoiiiiThilltics.The Town shall bear all responsibility for its use of the water provided under this Subcontract,together with the costs associated therewith. 13.Encumbrances.YMCA warrants that the 100 C-BT Units provided under the March 10,1995 allotment contract are not encumbered in any way. 14.Noncompliance and Rjgjt to Terminate.The Town shall be responsible for handling all water rights accounting associated with the use of the water yielded by the 32 C-BY Units and will supply such accounting in an accurate and timely manner as may be required by Northern Water.If YMCA becomes aware of any conduct that violates this Subcontract or any laws or regulations,YMCA shall notify the Town and the Town shall take prompt action to EXHIBIT A Colorado-Big Thompson Subcontract YMCA and Estes Park Page 4 remedy such violations and prevent fiimre violations.If there are recurring violations that are not adequately remedied by the Town within the cure period described in Section 15 below,then the Town’s right to use the water yielded by the 32 C-BT Units shall be suspended until the Town remedies the violations. 15.Default and Riiht to Cure.In the event that either Party believes that the other is in default of any obligation under this Subcontract,the non-defaulting Party shall give written notice of the default to the defaulting Party.If a notice of default is provided,the Party accused of the default shall either cure it or provide a written statement explaining why it is not in default.If the alleged default is not cured or otherwise resolved within 30 days,the Parties may resort to any and all legal and equitable remedies. 16.Notices.All notices or other communications under this Subcontract shall be in writing,except as otherwise provided for in this Subcontract.All such notices and communications shall be deemed to have been duly given on the date of service,if delivered and served personally,or served via electronic means on the person to whom notice is given;on the next business day afler deposit for overnight delivery by a courier service such as Federal Express;or on the third day after mailing,if mailed to the Party to whom notice is to be given by first class mail,postage prepaid,and properly addressed as follows: The Town:finance Officer Town of Estes Park P.O.Box 1200 170 MacGregor Ave. Estes Park,CO 80517 With a Copy to:Town Attorney Town of Estes Park P.O.Box 1200 170 MacGregor Ave. Estes Park,CO 80517 The YMCA:YMCA of the Rockies Attn:Accounts Payable 2515 Tunnel Road Estes Park,CO 80511 With a Copy to:YMCA of the Rockies Attn:VP/CFO 2515 Tunnel Road Estes Park,CO $051 1 Persons and addresses to which notices are to be sent may be changed by the same method. 17.Governmental Immunity.Nothing in this Subcontract shall be construed to waive the Town’s protection from liability or the limitations on its liability due to its sovereign EXHIBIT A Colorado-Big Thompson Subcontract YMCA and Estes Park Page 5 immunity under the Colorado Governmental Immunity Act or otherwise. 18.Governing Law.This Agreement shall be governed by and construed in accordance with the Jaws of the State of Colorado.In the event of litigation over this Agreement,jurisdiction and venue shall be proper and exclusive in the District Court in and for Larimer County,State of Colorado.The Parties recognize that Northern Water will not arbitrate any disputes,if such occur,between YMCA and the Town with respect to the Parties’rights and obligations under this Subcontract. 19.Complete Agreement and Modifications.This Subcontract constitutes the entire agreement between the Parties concerning the temporary provision of the 32 C-BT Units to the Town.No supplement,modification,or amendment of this Subcontract shall be binding unless executed in writing by the Parties.No waiver of any of the provisions of this Subcontract shall be deemed or shall constitute a waiver of any other provision.No waiver shall be binding unless executed in writing by the Party making the waiver. 20.Assignment.The Town shall not assign,transfer,or sublet this Subcontract or the water yielded by the 32 C-BT Units without first receiving the prior written consent of YMCA and Northern Water’s approval. 21.Counteiprts.This Subcontract may be executed in any number of counterparts, each of which shall be deemed an original,and all of which shall constitute one and the same Subcontract.Facsimile and electronic signatures shall be acceptable and binding upon all Parties. 22.Headints.All paragraph headings used herein are for the convenience of the Parties and shall have no meaning in the interpretation or effect of this Subcontract. 23.Authority.The Parties warrant that they have taken all actions necessary or required by their own procedures,bylaws,or applicable law,to authorize their respective signatories to sign this Subcontract for them and to bind them to its terms. YMCA of the Rockies: Title: State of CO)oYqc) ss County of Lcj’cne r - EXHIBIT A Colorado-Big Thompson Subcontract YMCA and Estes Park Page 6 The foregoing instrument was acknowledged before me by i -,as zLJCO of the YMCA of the Rockies,a Colorado nonprofit corporation, on behalf of the corporation,this I day of NrNe rn\rr ,2021. AracelyThomasWitnessmyhandandofficialSeal.NOTARY PUBLIC STATE OF COLOflADO My Commission expires JI)j13.2L 2I MY OMtSON E1RES 10/13/2024 Notary Public / Town of Estes Park: By: Date Title:Utilities Director ColoradoStateof ss County of The foregoing instrument was acknowledged before me by QLk)-Qr\as of the Town of Estes Park,a Colorado municipal corporation,on behalf of the corporation,this %(day of I’JYL_,2021. Witness my hand and official Seal. My Commission expires \O1J1(1O25 KIMBERLy DISNEyNOTARYPUBLICStateofColoradoNotatyID#20174043232MCommissionExpires10117/2025 EXHIBIT A ATTEST VL APPROVED AS TO FORM: Town Attorney Colorado-Big Thompson Subcontract YMCA and Estes Park Page 7 EXHIBIT A Exhibit A Rule Governing the Subcontracting of Beneficial Use of Colorado-Big Thompson Project Allotment Contracts Effective Date:August 11,2016) Historical Background Since 1938 the Northern Colorado Water Conservancy District (Northern Water)has issued Allotment Contracts to provide for the beneficial use of water yielded from the Colorado-Big Thompson (C-BT)Project by water users located within Northern Water boundaries.Those beneficial uses include irrigation,domestic,municipal,and industrial uses.The Northern Water Board of Directors (Board)issues Allotment Contracts in accordance with Northern Water’s defined rules,regulations,policies and procedures.C-BT Project water is intended to supplement an Alloftee’s existing non-C-BT Project water supply portfolio. The finite water supply available to meet future water needs within Northern Water boundaries, when combined with the ever-increasing demands for water,requires that water users strive to accomplish the maximum beneficial use of all available water supplies in the region.These factors,coupled with the recognized ability to transfer C-BT Project water contribute to the functionality,utility,and value of C-BT Project water.As pressures on existing water supplies increase,various water users are entering into innovative water sharing agreements such as interruptible water supply contracts.These agreements,when entered into by an Allottee utilizing water yielded from a C-BT Project Allotment Contract,represent the subcontracting of beneficial use of the water yielded from that Allotment Contract. Ftirther complicating these transactions is Northern Water’s requirement that the beneficial use of water yielded from the C-BT Project be accomplished in full compliance with the terms and conditions of the Allotment Contract,the Water Conservancy Act,the terms and conditions of the contractual documents between Northern Water and the United States Bureau of Reclamation that govern the operation and administration of the C-BT Project,and Northern Water’s rules, regulations,policies,and procedures. It has become apparent to Northern Water that there are instances when the beneficial use of C-BT Project Allotment Contracts may be subcontracted by the Allottee to one or more water users.As such,it is the responsibility of the Board to assure that these Subcontracts result in C-BT Project water being used in accordance with all controlling rules,regulations,policies,procedures, statutes,and contractual requirements while also meeting the responsibilities,and obligations of Northern Water.To assure compliance with statutes,the terms and conditions of the contractual documents associated with the C-BT Project,and the terms and conditions of the involved Allotment Contract(s),and to assure the Board is meeting its obligations and responsibilities,the Subcontracting of the beneficial use of C-BT Project water yielded from the Allotment Contract by an Allottee must be done only with the full knowledge and approval of the Board. Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page 1 of9 EXHIBIT A This Rule is promulgated to clearly state the Board’s requirements associated with existing, currently proposed,and future Subcontracts for the beneficial use of C-BT Project water yielded from an Allotment Contract. Rule 1.0 Rule Purpose 1.1 This Rule defines the requirements of Northern Water pertaining to the Subcontracting of the beneficial use of water yielded by a C-BT Project Allotment Contract by the Allotment Contract owner (referred to herein as the Allottee)to another water user (referred to herein as the Subcontractor). 2.0 Rule Definitions 2.1 Account Entity -An Account Entity may be comprised of a single C-BT Project water user,or multiple C-BT Project water users.In most instances,one or more Allotment Contracts have been certified for delivery through an Account Entity’s respective quota account.An Account Entity may have multiple physical delivery points from the C-BT Project.F or some agricultural Water Users,a “C-BT carrier” may be synonymous with an Account Entity having the same name. 2.2 Acre foot Unit (AFU)-Unit of measurement used for the allocation of C-BT Project water to an Alloftee in an Allotment Contract.An AFU receives 1/310,000th of the water annually declared to be available from the C-BT Project by the Board.Historically,an AFU annually yields 0.5 to 1.0 acre feet per AFU. 2.3 Allotment Contract -The contract between the Allottee and Northern Water that allocates C-BT Project water to the Allottee for a specified beneficial use. Allotment Contracts are issued on an AFU basis. 2.4 Allottee -An entity (person,corporation,company,or otherwise)that owns one or more Allotment Contracts for C-BT Project Water as issued by Northern Water. F or purposes of this Rule,the Allottee is the entity subcontracting water to another water user (the Subcontractor). 2.5 Base Supply -Any permanent non-C-BT Project water supply held and/or controlled by a water user or an Allottee. 2.6 Board —Northern Colorado Water Conservancy District Board of Directors 2.7 C-BT -Colorado-Big Thompson 2.8 Forfeiture —As stated in 37-45-134 (c)C.R.S. Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page 2 of9 EXHIBIT A 2.9 Irrigation —The application of water for beneficial use,without waste for the primary purpose of growing and producing crops to be harvested,or consumed by livestock,including pasture lands,and for uses incidental to the primary production of such crops. 2.10 Northern Water -Northern Colorado Water Conservancy District 2.11 Quota Water -The amount of C-BT Project water declared available each year by the Board from the yield of the C-BT Project to an Allottee through the determination of the annual quota.The declared quota represents the percentage of an acre-foot of C-BT Project water made available for each AFU owned by the Allottee. 2.12 Rule 11 Charge -The payment due to Northern Water resulting from some Seasonal Transfers in accordance with Northern Water Rule 11. 2.13 Seasonal Transfer -The transfer of Quota Water through Northern Water’s administrative process.This transfer may be done electronically through Northern Water’s accounting system Allottee interface or through the use of a CD-4 card. 2.14 Subcontract —for purposes of this Rule,any type of agreement (contract,lease,or otherwise)or concurrent agreements that transfer the beneficial use of an Allottee’s C-BT Proj ect water to a Subcontractor for an aggregate time period of two years or longer.The Subsections to this Section provide additional definition concerning Subcontracts. 2.14.1 Bridge Supply Subcontract -This type of Subcontract provides the Subcontractor C-BT Project water for a predetermined and definite period of time.As an example,a Subcontractor might need the interim water supply in anticipation of a new water supply project becoming operational, as an emergency supply in response to failed infrastructure or water quality issues,or as a supply to meet a temporary demand. 2.14.2 Interruptible Supply Subcontract -This type of Subcontract provides the Subcontractor C-BT Project water under certain conditions for the duration of the Subcontract.As an example,an Interruptible Supply Subcontract may provide water to a municipal or industrial supplier during a drought period or during certain years following a drought.For the purposes of this Rule,an Interruptible Supply Subcontract is not to provide yield from the C-BT Project to the Subcontractor each and every year. 2.14.3 Other Subcontract -Any Subcontract that provides the Subcontractor C-BT Project water that is not either an Interruptible Supply or Bridge Supply Subcontract. Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page3 of9 EXHIBIT A 2.15 Subcontractor -An entity (person,corporation,company,partnership,limited liability company or other legally defined entity)that is Subcontracting for the beneficial use of C-BT Project water from an Allottee.The Subcontractor may or may not be an Allottee.However,a Subcontractor must have a defined beneficial use of C-BT Project water within the boundaries of Northern Water and comply with all applicable niles,regulations,guidelines,policies and procedures of Northern Water. 2.16 Tract -A unit of land identified by Northern Water in a Class D Allotment Contract. 3.0 Required Approval of Subcontracts 3.1 All Subcontracts,as defined in Section 2.14,entered into after the effective date of this Rule are prohibited without the approval of the Board pursuant to this Rule. Subcontracts representing internal trades of C-BT Project water for other water of similar value or arrangements where a water supplier provides treated water service in exchange for receiving C-BT Project water from an Allottee resulting in the beneficial use of C-BT Project water being primarily made by the Allottee will be exempt from this Rule subsequent to Northern Water making such a determination after its review of the Subcontract. 3.2 Subcontracts that are in existence as of the effective date of this Rule shall be exempt from this Rule if:(A)the Allottee provides a copy of the executed Subcontract to Northern Water within nine months of the effective date of this Rule,and (B)Northern Water determines the Subcontract does not contain terms or conditions that violate statutes,mles that existed at the time of the Subcontract,or applicable contract conditions associated with the beneficial use of C-BT Project water.Northern Water will take no enforcement action regarding a Subcontract that has been provided pursuant to this Rule until Northern Water’s review of the Subcontract is complete and Northern Water either:confirms in writing that the Subcontract is exempt from this Rule,or informs the Alloftee in writing of the violation(s).Northern Water will only consider a Subcontract exempt from this Rule if Northern Water has affirmatively stated so in writing.Once notified by Northern Water of a violation(s),the Allottee shall have six months to amend the Subcontract to correct the violation(s). 4.0 Request for Exemption From or Approval of a Subcontract(s) 4.1 An Allottee seeking exemption from or approval of a Subcontract(s)must follow the Procedures for this Rule.The administrative fee assessed by Northern Water to review a Subcontract shall be determined as described in the Procedures to this Rule. 5.0 Criteria Used for Subcontract Review and Approval 5.1 The Board’s review and approval of Subcontracts shall be limited and applicable only to those terms and conditions of the Subcontract which pertain to the Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page4of9 EXHIBIT A beneficial use of water yielded by an Allotment Contract,shall be on a specific case-by-case basis,and shall incorporate consideration of all rules,regulations, policies and procedures that govern,or are related to,the approval and issuance of an Allotment Contract. 5.2 The Board may approve or deny approval of any Subcontract for the beneficial use of water yielded by an Allotment Contract.In the event the Board of Directors denies approval of such a Subcontract,the Board shall state the bases for the denial. 5.3 The Board may approve a Bridge Supply Subcontract or Other Subcontract for a maximum term of five years except as provided below.The Board will consider requests to reapprove a Subcontract if its previous approval has expired or will expire.The Board is not obligated to reapprove a Subcontract.However,if a Subcontractor identifies a specific water supply project that is under development and will provide a future water supply for the Subcontractor,the Board may approve a Bridge Supply Subcontract for a term longer than five years.The term for any such Subcontract approved for longer than five years may be for:(A)a fixed term reasonably anticipated to coincide with the completion of the water supply project;or (B)an indefinite term to tenTlinate upon completion of the water supply project.In any event,a Subcontract shall not exceed five years following the denial of an indispensable permit approval for said water supply project,or the Subcontractor’s decision not to move forward with or continue its participation in the water supply project.Completion of a water supply project shall mean completion of project infrastructure and operation of the project as necessary to produce the anticipated water supply yield of the Project. 5.4 The Board will only consider approval of a Subcontract if the Subcontractor meets the following minimum requirements: 5.4.1 The C-BT Project water described in the Subcontract will be considered in calculations of Af U ownership limitations for the Subcontractor if water will be used for non-irrigation purposes.The Subcontractor cannot exceed its limitation for the ownership of Allotment contracted AFUs when considering both AFUs owned through its Allotment Contract(s)and the water represented by the Subcontract.In the case of a water supply emergency which temporarily affects the Subcontractors’base supply,the Board may choose to consider a proposed Subcontract of specified and limited duration disregarding AFU ownership limitations. 5.4.2 The Northern Water 1995 Interim Ownership Limitation Guidelines,or whatever then existing Northern Water ownership limitation policy or rule, will be used as the primary criteria in evaluating Subcontractor ownership limitations when the Subcontractor is using water for purposes other than irrigation.A simplified example of a C-BT ownership limitation calculation is included in Appendix A to this Rule.C-BT ownership limitations shall Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page 5 of9 EXHIBIT A not be applied when the beneficial use of the C-BT Project water by the Subcontractor is for irrigation. 5.4.3 The Subcontractor must be in compliance with the conditions in the Northern Water 1997 Base Water Supply Policy,or with whatever then existing Northern Water base water supply policy or nile that is in place. 5.5 A Subcontract will only be considered for approval if the Subcontract meets the following minimum requirements: 5.5.1 Requires C-BT Project water only be placed to beneficial use on land situated within the boundaries of Northern Water. 5.5.2 Assures use will be for a beneficial use(s)approved by Northern Water. 5.5.3 Requires that C-BT Project water not be reused,and any return flows resulting from its initial use,if and when they occur,must be returned within the boundaries of Northern Water. 5.5.4 The Subcontract is based on AfUs. 5.5.5 The AFUs associated with the proposed Subcontract plus the aggregated sum of AFUs associated with all previous Subcontracts associated with a specific Allotment Contract do not exceed the total number of AFUs associated with that Allotment Contract. 5.5.6 Does not create a joint or undivided interest or other form of concurrent property interest in a C-BT Project Allotment Contract beyond that which is provided in the Allotment Contract. 5.5.7 Does not include a provision requiring the Allotment Contract be transferred to the Subcontractor unless such transfer is contingent upon the review and approval by the Board. 5.5.8 Limits the sale of the Subcontractor’s base supply to a maximum of 15% during the pendency of the Subcontract and,furthermore,provides that no base supply be sold or transferred outside the bottndaries of Northern Water. 5.5.9 Recognizes Northern Water’s authority to prevent the annual certification of C-BT Project water to the Allottee’s designated Account Entity if an Allottee is not in good standing with the Allotment Contract or this Rule. 5.5.10 Recognizes Northern Water will not arbitrate any disputes,if such occur, between the Allottee and Subcontractor. Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page6of9 EXHIBIT A 5.5.11 Provides adequate terms and conditions needed to address existing or future encumbrances on the subject Allotment Contract and specifically eLiminates any and all liability to Northern Water resulting from the enforcement of those encumbrances by the Allottee,the Subcontractor,or other parties that may hold or have interest in such encumbrances. 5.5.12 Does not create liability for Northern Water. 5.5.13 Does not contain terms or conditions that violate rules,regulations,policies and procedures of Northern Water. 5.6 In addition,the Board will only consider an Interruptible Supply Subcontract that meets the following additional minimum requirements: 5.6.1 When the Allottee’s use is irrigation and the Subcontract use is non- irrigation,the Subcontract must limit the Subcontractor’s use of the associated C-BT Project water to a maximum of 3 out of 10 years (rolling 10-year period)except as provided for as follows:On a case by case basis, the Board may consider approval of a Subcontract that allows the Subcontractor’s use of the associated C-BT Project water more than a maximum of 3 out of 10 years if the Subcontract contains additional requirements prior to the Subcontractor’s usage more than a maximum of 3 otit of 10 years.These requirements may include,but are not limited to:(A) restrictions on lawn watering to less than 3 days per week;(B)a Governor- issued drought declaration for the water supplier’s geographical region;or C)a C-BT quota based upon supply limitations rather than anticipated demand.However,when the Allottee is using water for non-irrigation purposes and Subcontracting for irrigation purposes,there will not be a limit on the number of years water can be used for irrigation purposes. 5.6.2 Is the only Subcontract between the Allottee and Subcontractor associated with a specific tract of irrigated land. 5.6.3 Confirms that the Allottee issuing the Subcontract will not rent C-BT Project water to the Subcontractor otttside the terms of the proposed Subcontract or through previously entered Subcontracts. 6.0 Enforcement Action 6.1 In the event Northern Water learns of a Subcontract for the beneficial use of water yielded by an Allotment Contract that has not been previously exempted or approved by the Board in accordance with Section 3.1 or been exempted within the allowable period of time described in Section 3.2 of this Rule,Northern Water shall deny delivery of C-BT Project water to the Subcontractor or beneficiary of the Subcontract.Further,Northern Water will deny the transfer and delivery of C-BT Project water that would result in the Subcontractor receiving the benefits of the Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page 7 of9 EXHIBIT A Subcontract by any other means of transfer,including but not limited to,two-party or multiple-party transfers that may utilize the annual rental or lease program administered by Northern Water. 7.0 Other Considerations Associated with Subcontracts 7.1 The C-BT Project water associated with a Subcontract will not be considered a demand or commitment to serve in the calculations to determine the ownership limitations for C-BT Project water for the Alloftee. 7.2 Use of water by the Subcontractor shall be subject to a Northern Water Rule 11 Charge if applicable. 7.3 The Board will not approve transfer of an Allotment Contract or any of the associated AfUs of an Allotment Contract until any and all encumbrances represented by the Subcontract are either released,or the new Allottee accepts the encumbrances represented by the Subcontract. 7.4 Northern Water shall notify the Subcontractor of any Allotment Contract Transfer applications received ftom the Allottee that are connected to the Subcontract.In the event all or a portion of an Allotment Contract associated with a Subcontract is being considered for forfeiture by the Board,Northern Water shall notify the Subcontractor of the hearing and subsequent decision concerning forfeiture,but will not recognize the Subcontract as an encumbrance on the Allotment Contract when disposing of forfeited AFUs. 7.5 C-BT Project water seasonally transferred from an Allottee to a Subcontractor (as described by a Subcontract)must use the same administrative procedures as seasonally transferred “rental”water.The transfer request must be accompanied by adequate documentation indicating that the seasonal transfer is associated with the specified Subcontract.The Subcontract will be considered as having been fully operated even if only a portion of the water under a Subcontract is seasonally transferred. Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page8of9 EXHIBIT A EXHIBIT A Appendix A -Simplified Example of A C-BT Ownership Limitation Calculation For A Hypothetical Water Supplier Who Owns 200 Units and Has a Subcontract for 100 units 3 in 10 Years Water Supplier Information Average Firm Yield Yield (AF/YR)(AF/YR) Ditch A 100 40 Ditch B 200 100 Total 300 140 •Current C-BT Unit Ownership is 200 units. •Subcontract for 100 units 3 in 10 years.This results in 30 units available in average years and 100 units in dry years. •Total Water Demand is 500 AF/YR. Ownership Limitation Calculation Row Average Yield Method Formula A Total Water Demand X 2 1000 B Average Yield of Native Supplies -300 C Maximum Number of C-BT Units A-B 700 D Currently Owned C-BT Units -200 E Subcontracted C-BT Units Available on Average -30 F Additional C-BT Units C-D-E 470 Row Firm Yield Method Formula A Total Water Demand 500 B Firm Yield ofNative Supplies -140 C Maximum Volume of C-BT A-B 360 D Maximum Number of C-BT Units CX2 720 E Currently Owned C-BT Units -200 F Subcontracted C-BT Units Available During a Dry Year -100 G Additional C-BT Units D -E-F 420 Additional C-BT Units Available -Use the 420 Smaller of the Average and Firm Yield Method Rule Governing Subcontracting of Allotment Contracts August 11,2016 Page 9 of9 EXHIBIT B EXHIBIT B The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Report To: Honorable Mayor Hall & Board of Trustees From: Town Administrator Machalek Department: Town Administrator’s Office Date: September 22, 2026 Subject: Acceptance of Town Administrator Policy Governance Monitoring Report. The packet material for this item is included earlier in the packet under the Town Administrator’s report. The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Report To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Carlie Speedlin, Housing and Childcare Manager Department: Administration Date: Subject: September 22, 2026 Estes Park Housing Needs Assessment Addendum and Housing Action Plan - Continued by staff to October 13, 2026 Objective: Present the Estes Park Housing Action Plan and Needs Assessment Addendum in compliance with requirements of Proposition 123. Present Situation: The Town of Estes Park has completed a Housing Action Plan and Housing Needs Assessment Addendum to provide an updated, data-informed framework for addressing housing needs in the Estes Valley. The Town engaged Root Policy Research as its consultant to conduct the research, update housing needs data, facilitate community engagement, and develop the Housing Action Plan. The work builds upon the Town’s 2023 Housing Needs Assessment and Housing Strategy and incorporates updated demographic, economic, housing market, and community engagement information. The Housing Action Plan was developed in response to state housing planning requirements under SB 24-174 and includes the required analysis of housing needs, zoning and development barriers, displacement risk, housing strategies, and implementation measures. The planning effort was supported by a Colorado Department of Local Affairs (DOLA) planning grant. The Town has also completed the requirements necessary to participate in Colorado Proposition 123, with DOLA verifying compliance with the expedited review and unit commitment requirements in 2026. Continued by staff to October 13, 2026 The Housing Needs Assessment Addendum provides updated information regarding housing conditions and projected needs in the Estes Valley, while the Housing Action Plan translates those findings into objectives, strategies, actions, performance measures, and an implementation framework. The plan identifies four primary objectives focused on: • expanding and diversifying housing opportunities; • preserving existing workforce housing and improving housing stability; • aligning housing growth with community needs, infrastructure, and context; • and strengthening partnerships, community engagement, and accountability. Root Policy Research will present the key findings of the 2026 Housing Needs Assessment Addendum and Housing Action Plan to the Town Board. The presentation is intended to provide the Board and community with an overview of the updated housing data, key findings, recommended strategies, and proposed implementation framework. In accordance with the public engagement requirements associated with the DOLA planning grant, the draft documents were made available for public review and comment prior to finalization and tonight’s presentation to the Town Board. Proposal: Staff recommends that the Town Board receive the presentation from Root Policy Research on the 2026 Housing Needs Assessment Addendum and Housing Action Plan as written. The Housing Action Plan is intended to serve as a guiding framework for the Town’s future housing policies, investments, partnerships, and implementation efforts and will be used in coordination with existing planning efforts, including the Development Code update, Annual 6E Funding Plan, and other housing initiatives. No formal action is requested from the Town Board at this meeting. Following the presentation and consideration of public and Town Board feedback, staff and Root Policy Research will submit the documents to the State of Colorado. Advantages: • Provides the Town with an updated, data-informed framework to guide future housing policies, investments, and implementation efforts. • Compliance with state housing planning requirements under SB 24 -174. Disadvantages: None. Action Recommended: Staff recommends the Town Board receive the 2026 Housing Needs Assessment Addendum and Housing Action Plan. Finance/Resource Impact: N/A Level of Public Interest: Low. Attachments: 1. Estes Park Housing Action Plan 2. Appendix C: 2026 Housing Needs Assessment Addendum 3. Presentation Slides Root Policy Research 789 N Sherman St, Ste 360, Denver, CO 80203 www.rootpolicy.com | 970.880.1415 Town of Estes Park Housing Action Plan—2026 DRAFT REPORT August 22, 2026 Attachment 1 ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 1 INTRODUCTION Purpose of the Housing Action Plan. Housing Action Plans (HAPs) outline actionable steps to address housing needs identified through data and community engagement findings gathered for the Housing Needs Assessment. In accordance with SB 24-174, Estes Park is required to complete a HAP because the town’s population is above the 5,000-person threshold. The HAP builds on Estes Park’s existing Housing Strategy, which was most recently updated in 2023. The recommended strategies and actions offer a balanced approach for continuing current efforts to promote housing affordability and attainability within Estes Park. Relationship to the Housing Needs Assessment. The 2023 Housing Needs Assessment (HNA) and Housing Strategy, along with the 2026 HNA addendum, are foundational and guiding documents to this Action Plan. The HNA demonstrates current and future housing needs in Estes Park and the Estes Valley through data analysis and comprehensive community engagement findings from stakeholder focus groups and interviews, community meetings, community surveys, and resident focus groups with those whose experiences are typically underrepresented in meetings, surveys, and Census data. Strategies pursued in this HAP are rooted in findings from the HNA. The full HNA and Addendum are attached as Appendix C to the Housing Action Plan; key findings are summarized on pages 3-5. Table of Contents Introduction ................................................................ 1 Housing as a Town Priority … ................................. 2 Summary of Housing Needs .................................... 3 Housing Resources, Initiatives, Progress .............. 7 Public Engagement Summary ................................. 8 Progress on Previous Housing Strategies .......... 12 Strategy Framework/Public Sector Influence ... 18 HAP Objectives, Strategies and Actions ............. 20 Implementation and Monitoring Plans .............. 24 Appendices: A. SB-24-274 Baseline Components B. Affordability Strategies Crosswalk C. Town Housing Needs Assessment ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 2 HOUSING AS A TOWN PRIORITY Estes Forward, the Town’s 2022 Comprehensive Plan serves as an action-oriented road map for the Estes Valley for the next 10-20 years. The Plan provides a long-range vision and policy framework to guide land use, growth, transportation, conservation, community services, and development decisions while ensuring future projects and investments align with the community's goals for the Estes Valley. The Town’s vision is outlined below. Vision: Our community works together as responsible stewards of our irreplaceable mountain surroundings to support residents and welcome visitors by preserving and enhancing our quality of life, sense of community, economic vitality, and health of the natural environment. The Comprehensive Plan’s guiding housing principle and housing goals are integrated into the Housing Action Plan. Guiding principle: Housing opportunities [are] sufficient to support a multigenerational, year -round community. Comprehensive Plan Housing Goals 1. H1. Ensure new housing meets the needs of the workforce and families. 2. H2. Create new housing opportunities. 3. H3. Invest in housing. The Department of Local Affairs (DOLA) verified that the Town of Estes Park has met all statutory requirements of Proposition 123, specifically compliance with expedited review (March 27, 2026) and unit commitment (July 1, 2026). Defining Workforce and Attainable Housing. In 2023, the Town Board adopted Policy 227 which establishes definitions for Attainable and Workforce Housing, as well as articulating the Town’s workforce housing goals.  Workforce Housing is defined as housing within the Estes Park R- 3 School District for people who work within the boundaries of the school district.  Attainable Housing is defined as housing that is attainable for someone earning up to 150% AMI, adjusted for household size. Additionally: ➢ Attainable rental housing does not exceed 30% of household income, with household size based on 1.5 people per bedroom and utility allowances deducted when tenants pay utilities. ➢ Attainable owner-occupied housing does not exceed 40% of household income. *Area median income—or AMI: Housing programs rely on income limits published by the U.S. Department of Housing and Urban Development (HUD) that are represented as percentages of the area median family income (commonly abbreviated as “HUD AMI” or simply “AMI”). AMI is defined annually by HUD market studies; it varies geographically and by household size. Figure 1 (on the following page) shows 2026 AMI for the Larimer County MSA. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 3 SUMMARY OF HOUSING NEEDS Estes Park completed a Housing Needs Assessment (HNA) in 2023, as well as an addendum that includes legislative requirements not addressed elsewhere in the Estes Valley Housing Needs Assessment & Strategic Plan, in 2026. The HNA and Addendum provide a shared understanding of housing conditions, trends, and needs in the town and across the valley. This Housing Action Plan builds directly on that analysis. This section highlights the key existing conditions most relevant to implementation planning, summarizing and expanding upon the HNA. Defining Affordability and AMI. The HNA and HAP use both household income ranges and “Area Median Income (AMI).” AMI is a measure of income based on the median, or middle-income household. Housing programs base program eligibility on income limits that are represented as percentages of AMI (published by HUD by region and household size). Figure 1. Larimer County HUD Income Limits, 2026 Source: HUD Income Limits and Root Policy Research. The most common definition of housing affordability is linked to industry standards, which consider housing affordable when housing costs—rent or mortgage payment plus taxes and utilities—consumes 30% or less of a household’s gross income. Households paying more than 30% are “cost burdened” and have less money to spend on other essentials like healthcare, education, groceries, and transportation— adversely affecting their well-being, limiting economic growth potential, and constraining local spending. Housing Needs Assessment highlights. This section summarizes the key findings of the Town of Estes Park’s Housing Needs Assessment and HNA Addendum. Both the HNA and Addendum are included as an Appendix and offer a demographic and economic profile of the town and valley, housing market trends, a housing needs analysis, and full results from community engagement efforts. Key findings include:  DEMOGRAPHIC TRENDS: The Estes Valley’s population remained relatively stable from 2010 to 2020, but the community grew older, with more seniors and fewer children and families. Households are predominantly couples without children and single-person households, while families with children make up a relatively small share of residents.  ECONOMIC TRENDS: Household incomes in the Estes Valley increased substantially from 2010 to 2020, but growth was uneven, with gains concentrated among homeowners and residents outside the Town of Estes Park, while lower-income households were primarily single-person and nonfamily  EMPLOYMENT TRENDS: The Estes Valley economy is growing and remains heavily driven by tourism, with more than half of all jobs concentrated in lower-wage tourism-related industries. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 4 Economic activity is highly seasonal, with a significant share of sales and employment occurring during the summer months.  HOUSING STOCK & MARKET TRENDS: Recent housing development has added multifamily and single-family units, but rapidly rising rents and home prices have significantly reduced affordability, particularly for renters and prospective homebuyers. The gap between housing costs and local incomes has widened, with most homes now priced beyond the reach of median-income households.  HOUSING AFFORDABILITY & NEEDS: Housing prices and rents have increased substantially in recent years, reducing housing affordability for many local households. While housing needs vary by income level, affordability gaps remain significant for lower- and moderate-income renters and homebuyers, as evidence by high rates of cost burden, extensive affordable housing waitlists, and persistent shortages of workforce and affordable housing. ➢ Mismatches in supply and demand by price-point show existing affordability needs are concentrated below 50% AMI in the rental market; and below 120% AMI in the for-sale market. Affordability gaps can be addressed through new units at needed price-points and/or subsidies of existing units. ➢ At the baseline, production needs are 1,634 units over 10 years for the entire valley; however, additional demand is evident through the Housing Authority wait list data, up to 3,686 households. The market will likely deliver units over 90% AMI for rentals and over 150% AMI for ownership products, but public interventions are needed for lower AMIs. Figure 1 through 3 (on the following page) summarize affordability and production needs in both Estes Park and the Estes Valley.  DISPLACEMENT CONCERNS: Consistent with SB24-174, several populations in Estes Park may be vulnerable to displacement due to limited incomes, rising housing costs, housing quality challenges, and barriers to maintaining stable housing. Low-income households, renters, cost-burdened households, single-parent families, residents with disabilities, older adults, households of color, and overcrowded households face heightened risk of housing instability. Specifically: ➢ 1,313 low-income households (0-80% AMI) reside in Estes Park, including 67% of renters and 36% of homeowners. Among them, 360 households have extremely low incomes (0-30% AMI), including 23% of renters and 8% of homeowners. ➢ 597 households earning less than $75,000 annually are cost burdened (52% of households at that income level), including 64% of renters and 44% of homeowners. ➢ Households facing elevated displacement risk include 114 single-parent households (27% of families with children), 685 residents with disabilities, 2,010 residents older than 65 (17% of the population), and 253 households of color (9% of households). About 85 households (3%) experience overcrowding. ➢ One CEJST-designated disadvantaged census tract is located outside of municipal boundaries to the west of Estes Park, and is characterized by a concentration of low-income households and elevated natural hazard risk. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 5 Summary of total need. Figure 1 summarizes the estimated housing needs in the Estes Valley through 2035 by area median income (AMI), including needs related to rental affordability, housing availability, future population and employment growth, and workers who currently commute into the Valley due to limited local housing options. As noted above, an estimated 1,634 additional housing units are needed through 2035. Specifically: ➢ Housing availability remains constrained, with an estimated need for 133 additional units to address overcrowding and low vacancy rates; ➢ The Valley is expected to grow through 2035, requiring another 617 units to house future residents and workers; ➢ Many people who work in the Valley currently commute from elsewhere because they cannot find suitable housing locally. Meeting this unmet demand would require an estimated 712 units; and ➢ There is also a shortage of affordable rental housing for extremely low-income households, estimated at 172 units. In addition to these estimates, Figure 1 also includes the number of households currently on the Estes Park Housing Authority (EPHA) waitlist by AMI. Together, the estimated need and current waitlist demand illustrate a broader range of housing need in the Valley—from 1,634 to 3,686 units. Figure 2 provides a more detailed breakdown of EPHA waitlist applicants by AMI, illustrating the income levels at which unmet housing demand is most concentrated. Additional information on the methodology used to calculate these estimates, including the housing needs methodology required by DOLA, is provided in the Housing Needs Assessment Addendum (Appendix C). Figure 1. Summary of Needs Estimates, Estes Valley, through 2035 Source: 2024 1-year and 2024 5-year ACS, Colorado State Demographer, Longitudinal Employer- Household Dynamics (LEHD), Missouri Census Data Center GEOCORR 2022, EPHA, and Root Policy Research. Figure 2. Estes Park Housing Authority Waitlist Applicants by AMI, July 2026 Source: Estes Park Housing Authority ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 6 Zoning capacity and development barriers. This section evaluates zoning capacity and development barriers that impact delivery of units needed in Estes Park. Based on the production need calculated in the HNA, the Town needs to add roughly 160 units per year to keep up with projected growth. This total volume is above recent production trends and would be difficult to accommodate given the Town’s limited zoning capacity. Additionally, as discussed in the previous section, the market is unlikely to deliver the units that are needed at below-market prices/rents. Recent development activity. Figure 3 shows the number of housing units permitted by structure type in Estes Park over the last twenty-five years. Over the past six years, the Town has permitted 230 housing units, including 120 single-family units and 94 multifamily units in buildings with five or more units. Figure 3. Housing Units Permitted by Structure Type, Estes Park, 2000-2024 Note: Building permit data reported by HUD may reflect an undercount of actual permits issued. Source: HUD State of the Cities Data Systems (SOCDS) Building Permits Database. Barriers to development. Development costs remain a significant barrier. Rising construction costs, higher interest rates, topographical constraints, environmental limitations, utility extension challenges, seasonal construction conditions, and the premium required to attract skilled labor all increase the cost and complexity of housing development in Estes Park. Existing zoning and development capacity present additional constraints. Much of the town’s residential land is already developed, and only two vacant parcels larger than three acres are currently zoned Residential Multifamily. Given the estimated need for approximately 160 housing units annually, limited multifamily-zoned land and development capacity constrain the Town’s ability to accommodate projected housing demand. Local developers, planners, and community members also identified financing constraints, infrastructure capacity limitations, regulatory clarity, code enforcement, and public perception as ongoing challenges. Recent voter-approved land use requirements may present an additional barrier. Ordinance 11-25 (Ballot Measure 300) requires rezonings and Planned Unit Development (PUD) applications to receive written approval from the subject property owner(s) and two-thirds of surrounding property owners within 500 feet of the project site, potentially increasing development uncertainty and approval timelines. Despite recent state efforts to reduce regulatory barriers, restrictive zoning, limited development capacity, lengthy permitting processes, and limited incentives continue to constrain housing production. Combined with high demand, lagging supply, and elevated development costs, these factors make it difficult for the private market alone to address identified housing needs. The ongoing Development Code update is intended to expand housing choices, increase development feasibility, and streamline development processes to support housing production and affordability. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 7 Housing opportunities near transit. The Estes Park Visitor Center serves as the community’s primary transit hub, connecting regional bus service, local shuttle routes, and the seasonal Hiker Shuttle to Rocky Mountain National Park. However, unlike larger communities, the Town does not have a comprehensive transit system, and opportunities for higher-density and regulated affordable housing near transit are limited by constrained zoning capacity, a lack of vacant developable land near the transit hub, and broader development constraints. The Town will continue to prioritize housing opportunities in areas with access to transit, employment, community services, and existing infrastructure. HOUSING RESOURCES, INITIATIVES AND PROGRESS TOWARD MEETING NEEDS The section below highlights the primary financial resources, programs, and organizational partners that contribute to the Estes Valley’s housing and service delivery system. Financial resources. Approved by voters in November 2022, Ballot Issue 6E allowed the Town of Estes Park to increase the lodging tax throughout the Estes Valley by 3.5%, generating approximately $5- 6 million annually. This revenue is utilized by the Town of Estes Park and the Estes Park Housing Authority to address childcare and workforce housing issues. The Annual 6E Funding Plan determines specific allocations of 6E resources for investments that prioritize projects and programs that address housing gaps, create or preserve housing at identified affordability levels, and demonstrate measurable public benefit. In addition to the lodging tax, the Town also utilizes an impact fee associated with short-term rentals, the Town’s Workforce Housing reserve fund, and other grants and resources from the state and federal government to address workforce and attainable housing challenges throughout the Estes Valley. Housing Authority and other partners. The Estes Park Housing Authority (EPHA) is the primary organization responsible for developing, preserving, and administering affordable and workforce housing programs throughout the Estes Valley. EPHA serves a range of households, including low- to moderate-income residents, local workers, renters, and prospective homebuyers. The Authority manages approximately 330 workforce housing units and provides homeownership assistance, deed-restricted workforce housing programs, downpayment assistance, and workforce rental assistance for households struggling with housing costs in the private market. In addition to the Town and EPHA, other major organizations in the town also work to increase or support affordable housing development and housing services including, but not limited to, Habitat for Humanity of the St. Vrain Valley, Crossroads Ministry, Homeward Alliance, and the Northern Colorado Continuum of Care. Resources to address homelessness. The Regional Homelessness Strategy Across Larimer County provides a shared vision and framework for a more coordinated response across Larimer County and Northern Colorado. Because the Town has limited local homelessness infrastructure, the Town relies upon regional coordination, prevention, housing stability services, and partnerships with countywide providers. Current efforts focus on improving referrals, expanding supportive housing and rehousing opportunities, strengthening data collection, and connecting residents to housing and services throughout Larimer County.  ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 8 PUBLIC ENGAGEMENT SUMMARY Engagement for the Estes Park Housing Action Plan (HAP) built upon substantial outreach already conducted through the Development Code Update, which generated extensive community input on housing needs, barriers, and potential solutions. Additional engagement, coordinated with the Town’s 6E funding prioritization process, featured a variety of inclusive activities, including community meetings, a resident survey, stakeholder consultation, and virtual resident focus groups. A public comment period culminating in a public meeting (with virtual attendance options) will be held at the end of the 30-day comment period. Public outreach was maintained throughout the process and efforts included outreach to and engagement of communities at risk of displacement and consideration for participation by persons unable to attend meetings in person. A summary of resident and stakeholder perspectives specifically on housing solutions is included below as it has the most direct impact on the HAP. Key themes from community engagement related to housing priorities and policy/program recommendations are summarized in by source below. ENGAGEMENT DETAILS RECOMMENDATIONS RELATED TO HOUSING PRIORITIES, POLICIES, AND PROGRAMS Town of Estes Park Development Code Community Engagement (June – October 2025) Engagement included two community open houses, online questionnaire (303 responses), topical focus groups, Technical Advisory Committee and Planning Commission, and pop-up engagement activities  Expand the range of housing types available, particularly smaller and more attainable housing options such as duplexes, triplexes, cottage courts, townhomes, and ADUs.  Streamline the approval process for ADUs through pre -approved plans and faster review procedures.  Prioritize workforce and affordable housing over vacation-oriented housing and explore incentives for developments that include deed-restricted units.  Clarify and strengthen deed-restricted housing eligibility, financing, and long-term enforcement mechanisms.  Address zoning and regulatory barriers that increase housing costs, including parking requirements.  Strengthen regulation of short-term rentals and explore pathways to convert some units into long-term or workforce housing  Focus future growth through infill, redevelopment and adaptive reuse of underutilized properties rather than expansion into undeveloped areas.  Engage developers, lenders, and builders to ensure housing policies are feasible and implementable. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 9 Town of Estes Park Development Code Deliberative Meetings (October 2025) Engagement included two community meetings to gather and collect community perspectives on updates to the Town’s Development Code.  Reform zoning code to allow for an expansion of housing types that can be built to serve the workforce.  Encourage mixed-use and infill development in areas with existing infrastructure and services and support preserving open space around the periphery of the community.  Increase employer participation in addressing the Town’s housing challenges  Create seasonal worker housing options  Prioritize opportunities to preserve and repurpose existing structures  Identify and pursue programs and financial tools that improve housing affordability (e.g., public private partnerships, affordable housing set-asides, rent-to-own opportunities, creative financing mechanisms)  Analyze the impact of short-term rentals on housing affordability and availability and consider policies that preserve long-term housing opportunities for local workers and residents.  Improve housing definitions, align affordability targets with local incomes rather than broader county -level benchmarks, strengthen accountability, use data-driven decision-making, and increase community participation. 6E and Housing Action Plan Community Meeting (June 2026) Open to all community members, with participation from representatives of service providers, youth-serving organizations, affordable housing organizations, local government agencies, and real estate professionals.  Support for increasing housing and supportive services for vulnerable populations, including individuals experiencing homelessness, seniors on fixed incomes, and residents facing mental health or healthcare barriers affecting housing stability.  Reduce regulatory and operational barriers to temporary housing solutions by exploring partnerships with private property owners and addressing insurance and permitting constraints that limit implementation.  Expand emergency and transitional housing resources, including evaluating the effectiveness of the Town’s previous RV housing pilot program and identifying additional temporary housing options  Engage regional partners and peer mountain communities to identify effective approaches for addressing housing shortages, homelessness, and childcare affordability.  Align housing, childcare, and infrastructure investments with long-term demographic change. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 10 6E Community Survey Open to all community members, residents were asked to identify workforce housing and childcare priorities for 2027 (Survey was fielded online in both English and Spanish during the summer of 2026. There were 17 total respondents).  Expand rental assistance, downpayment assistance, and other programs that help local workers bridge the gap between wages and housing costs.  Explore rehabilitation, adaptive reuse, acquisition of existing properties, and strategies to fill or make existing vacant units affordable before pursuing development on undeveloped land.  Prioritize housing within convenient access of employment, schools, groceries, transportation, and other daily needs to reduce transportation barriers for workers.  Encourage major employers to provide, invest in, subsidize, or otherwise support workforce housing, particularly for seasonal and lower-wage employees.  Clearly report how housing funds are used, how projects and programs are performing, how housing demand and waitlists are changing, and whether investments are producing measurable affordability benefits. Stakeholder Consultation Included affordable housing and homeownership organizations, housing and human service providers, conservation organizations, business and development leaders, major employers, community advocacy groups, and workforce and young professional organizations.  Increase the supply of workforce, starter, and missing-middle housing, including apartments, townhomes, condominiums, ADUs, and attainable ownership opportunities that better serve local workers, young families, and first-time homebuyers.  Reduce barriers to housing development and ADU construction by evaluating building code requirements, utility connection fees, permitting processes, and other regulations.  Expand homeownership opportunities through downpayment assistance, shared-equity programs, homebuyer education, affordable financing, and workforce-oriented ownership housing.  Strengthen housing stability and homelessness prevention efforts through rental assistance, housing navigation, transitional housing, supportive services, and stronger coordination among housing providers, service organizations, and local government.  Invest in workforce and seasonal housing solutions to reduce commuting burdens and improve housing options for service workers, teachers, healthcare workers, and other essential employees.  Align housing growth with community character and conservation goals through promoting infill development, mixed-use projects, and development patterns that protect open space and natural resources  Improve access to housing information, resources, and community engagement opportunities ; and continue building partnerships among employers, EPHA, nonprofits, conservation organizations, educational institutions, and community service providers. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 11 Two (2) virtual focus groups with Housing Authority residents and waitlist applicants Nine participants currently living in housing units managed by EPHA and households on the waitlist participated in conversations on housing needs and how they would like to see those needs addressed.  Expand housing affordability programs to better serve residents who don’t income qualify for affordable housing and don’t make enough to afford market-rate housing.  Increase the supply and diversity of housing options, including workforce housing, senior housing, seasonal worker housing, homeownership opportunities, accessory dwelling units, tiny homes, and other flexible housing models.  Streamline housing programs, expand options for households of different sizes, and improve access to information and available housing opportunities. Residents identified long waitlists, mismatches between available units and household needs, complicated eligibility requirements, and reliance on informal networks to find housing.  Work to align housing policies and affordability standards to local economic conditions. Residents expressed frustration about using regional AMI metrics to guide affordability standards and wanted to see policies better account for local wages.  Expand workforce and seasonal housing opportunities to support the local economy and community.  Continue investing in housing assistance programs and community partnerships that help vulnerable reside nts remain housed. Board of Trustees’ Discussions & Public Review of Draft HAP Board of Trustees and the general public Note: This section will be updated following the 30-day public review period and public hearing. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 12 PROGRESS ON PREVIOUS HOUSING STRATEGIES The 2023 Housing Needs Assessment and Strategic Plan identified significant housing needs and established a roadmap for addressing workforce housing, attainable homeownership, housing preservation, and housing stability needs throughout the Estes Valley. Since its adoption, the Town and Housing Authority have made substantial progress by establishing dedicated housing funding through the 6E lodging tax, expanding organizational capacity, advancing workforce housing projects, preserving existing housing assets, and implementing housing assistance programs. The following summary (Figure 4) highlights the progress (or not) made on each strategy identified in the 2023 Housing Strategy and provides an update on current implementation efforts. Figure 4. Progress Update on 2023 Housing Strategies, Town of Estes Park 2023 Strategy Progress Update through 2026 Preservation 1 Existing property acquisition 2023-2027 goal: Preserve and enhance 100 units This strategy directed the Estes Park Housing Authority (EPHA) to proactively acquire and preserve housing occupied by local workers or at risk of conversion to non-residential uses, while maintaining the staffing capacity, funding resources, and organizational flexibility needed to respond quickly to market opportunities and address long-term property needs. As of August 2026, this strategy has been implemented. EPHA successfully acquired and preserved workforce housing through the purchase of Fall River Village and Beaver Brook, adding more than 100 workforce- dedicated homes. EPHA has expanded staffing capacity, leveraged local and state housing resources, and strengthened its ability to pursue future workforce housing preservation opportunities. 2 Review Housing Authority portfolio and recapitalize existing property 2023-2027 goal: Full asset management and capital needs assessments conducted on the EPHA portfolio, and at least 57 units preserved and enhanced This strategy directed EPHA to preserve and reinvest in its existing workforce and senior housing portfolio, while planning for long-term asset sustainability through capital improvements, recapitalization efforts, and strategic staffing investments. Additionally, it also encouraged EPHA to evaluate opportunities to add new housing units when redeveloping or improving existing properties. As of August 2026, this strategy is currently underway. EPHA has expanded its staff capacity, strengthened management of a growing housing portfolio, and integrated more than 100 additional workforce housing units through the acquisition of Fall River Village, Beaver Brook and Grand Estates. 3 Deed restrictions incentive and/or buy-down program 2023-2027 : 20-30 units preserved and enhanced This strategy directed EPHA to create a program that would provide financial incentives for homeowners to voluntarily place deed restrictions on existing homes, preserving workforce housing and long-term affordability through tools such as deed-restriction purchases and buy-down programs. As of August 2026, while no progress has been made on ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 13 this specific strategy, EPHA has strategically focused on the Workforce Rental Assistance and Trailhead Equity Shared Down Payment Assistance programs. 4 Renovation, rehabilitation, and weatherization 2023-2027 Goal: TBD through program development This strategy directed the Town to invest in and expand housing preservation programs, including weatherization assistance, low-interest rehabilitation loans, and health and safety improvements for lower-income homeowners and renters, while leveraging local funding to supplement state and federal resources. However, as of August 2026, no progress has been made on this strategy. Increase Housing Supply 5 Ensure success of current projects in the development pipeline 2023-2027 Goal: Current projects are constructed and occupied by 2028 This strategy aimed to support the completion of major housing developments in the pipeline, including the Prospector Apartments, the Fish Hatchery neighborhood, and Habitat for Humanity homeownership projects, as a means of expanding workforce and affordable housing opportunities in the Estes Valley. As of August 2026, substantial progress has been made: the Prospector Apartments have been completed and leased as workforce housing, Habitat for Humanity has advanced construction of affordable ownership homes on Raven Avenue with families moving into completed units, and development review for the Fish Hatchery neighborhood, which is currently proposed to include approximately 109 workforce and attainable housing units. 6 Public private partnerships for new development 2023-2027 Goal: Current 300-400 units This strategy directed the Town and EPHA to partner with private and nonprofit developers, leverage publicly owned land and funding resources, and maintain a pipeline of workforce housing projects to support ongoing housing production. As of August 2026, this strategy is currently underway: current housing development pipeline includes the Fish Hatchery neighborhood and Riverside property, pursued land acquisition and land banking opportunities, expanded partnerships with organizations like Habitat for Humanity, and leveraged local resources with state resources to support workforce housing development and preservation. EPHA is also currently under contract to purchase the Tiny Town cabins (830 Moraine Ave.) to provide mixed-use, low-income and workforce housing. 7 Land acquisition 2023-2027 Goal: Proceed with development feasibility on three current parcels, and acquire at least three additional parcels for future housing needs This strategy directed EPHA to acquire and secure developable land for future workforce and attainable housing, pursue development opportunities on publicly-owned sites, and maintain a pipeline of housing-ready properties that could be advanced as funding and market conditions allow. As of August 2026, substantial progress has been made: EPHA acquired and land banked the Castle Ridge site in 2019 for a future 28-30 unit ownership development, purchased the 2.62-acre Riverside property in 2023 using 6E-related funding for a planned workforce homeownership project, partnered with the Town to advance workforce housing on the Town-owned Fish Hatchery property, is currently under contract to purchase the Tiny Town cabins (830 Moraine Ave.) to provide mixed-use low-income and workforce housing, and helped support land banking efforts that included the acquisition of approximately 10 acres for future housing development through the 6E program. Development planning, feasibility analysis, and community engagement are ongoing for several of these sites. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 14 8 Employer housing forum and collaborative effort 2023-2027 Goal: Establish numeric goal in program development to bring new employee housing units to market and have robust coordination among employers on resources and best practices. This strategy directed the Town to formalize employer engagement in housing solutions by working with the Estes Park Economic Development Corporation, Chamber of Commerce, Housing Authority, School District, County and local employers to identify workforce housing needs, share best practices, and coordinate housing investments and development opportunities. As of August 2026, this strategy has been achieved. Currently, the Estes Park Economic Development & Workforce Council (EDWC) serves as the convening forum for these conversations. With both Town and EPHA representation on the board, housing will remain a central focus of community economic development discussions. 9 Incentives to construct accessory dwelling units (ADUs) 2023-2027 Goal: 50 units This strategy directed the Town to build on recent regulatory reforms that expanded opportunities for accessory dwelling units (ADUs) by providing financial incentives, low-interest loans, and other support mechanisms to help homeowners create long-term rental housing. The strategy also highlighted the possibility of implementing pre- approved ADU plans, modular construction partnerships, and coordinated development efforts among multiple homeowners. As of August 2026,this strategy is ongoing. The Town has already amended its development code to expand ADU opportunities and revise development standards; however, the community continues to explore ways to address the financial barriers that limit wider ADU construction and conversion. 10 Fee incentives for deed restricted housing 2023-2027 Goal: TBD; dependent upon on market activity This strategy directed the Town to reduce development costs for deed-restricted housing by updating fee structures, allowing eligible projects to receive incentives for land use, water, sewer, and building permit fees, and exploring fee amortization mechanisms supported through the Workforce Housing Fund. As of August 2026, no progress has been made on this strategy. Funding and Policy 11 Program development for local dedicated funding 2023-2027 Goal: Reliable, transparent, and predictable funding approach in place; strong taxpayer confidence and perception of fairness in how are invested. This strategy directed the Town to establish a transparent and accountable framework for deploying 6E revenue, including creating funding guidelines, governance structures, annual spending plans, and partnerships with EPHA to support workforce housing and childcare initiatives. As of August 2026, this strategy has been implemented. In 2025, highlights of how 6E funding was deployed included supporting the acquisition and preservation of workforce housing at Fall River Village and Beaver Brook, land banking for future housing development, advancement of major projects such as Fish Hatchery and 775 Riverside, expansion of the Workforce Rental Assistance Program, assistance to Habitat for Humanity homeownership efforts, and staffing/organizational capacity for EPHA to manage approximately 330 workforce housing units while continuing to expand the Valley’s workforce housing pipeline. 12 Use local funds to leverage investments from outside the community 2023-2027 Goal: Estes Park has attracted new LIHTC allocations, and significant investments from state, federal, and philanthropic agencies to support housing goals. This strategy directed the Town to actively pursue state, federal, and philanthropic funding sources to support workforce housing goals, while coordinating closely with the EPHA to maximize outside investment and preserve local ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 15 resources for unmet needs. As of August 2026, the Town has successfully attracted significant external housing investments, including, a $7 million CHFA investment commitment for Fall River Village through Prop 123 funding, and other state and local resources to support housing goals, including a predevelopment grant for EPHA’s Riverside property. Additionally, a private developer was successful in securing 4% LIHTC credits for the rehabilitation of the Park Ridge Apartments and Trail Ridge Apartments in 2024. 13 Development code updates 2023-2027 Goal: Complete a missing middle code update by 2024. This strategy directed the Town to update its land use regulations to better align with the Estes Forward Comprehensive Plan, expand opportunities for missing middle housing types, and ensure development regulations support housing affordability while preserving community character. As of August 2026, the Town is actively implementing this strategy through its comprehensive Development Code update, the first full revision since 2000. Guided by the Comprehensive Plan and extensive community engagement process, the update will evaluate zoning districts, development standards, and land use regulations to modernize the code, support housing and economic resilience goals, and streamline development processes. Community Engagement and Client Support 14 Home purchase assistance 2023-2027 Goal: Support 5-10 transactions per year. This strategy directed EPHA to expand home purchase assistance opportunities for local workforce households through down payment assistance, shared-equity programs, interest rate buy-downs, and other tools that improve access to homeownership while preserving long-term affordability. As of August 2026, EPHA has made significant progress on this strategy by researching best-practice homeownership models from Colorado and other Mountain West communities and developing the Trailhead Shared Equity Down Payment program. EPHA determined that a cash- buyer program and mortgage interest rate buy-downs would not provide the strongest long-term return on limited housing resources under current market conditions. 15 Rental assistance 2023-2027 Goal: Support 10-20 rentals annually. This strategy directed EPHA to create and administer rental assistance programs that help local workforce households secure and maintain long-term housing through lease assistance, rent subsidies, and upfront housing costs, while working with landlords to expand access to affordable rental opportunities. As of August 2026, EPHA has successfully transitioned the Workforce Rental Assistance (WRFA) program from a pilot effort to an ongoing housing assistance program. Since launching the program in 2024, the program has distributed more than $180,000 in rental assistance, served 32 households in 2025, and improved housing affordability by reducing rent-to-income ratios. Supported through 6E lodging tax revenues and administered in partnership with Crossroads Ministry, the program is now a permanent component of the community’s housing strategy and continues to provide direct assistance to eligible year- round workers in the Estes Valley. EPHA is on pace to serve more than 60 households in 2026. 16 Equity and inclusion 2023-2027 Goal: Staff time will vary depending on the initiative. Diversity and inclusion has increased within the leadership of housing efforts, community engagement processes, and in the households receiving rental and homeownership support through the initiatives of this plan. This strategy directed the Town to advance housing equity by prioritizing local workforce households most vulnerable to displacement, ensuring inclusive community engagement, providing information in both English and Spanish, ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 16 coordinating housing investments with transportation and childcare initiatives, and reducing barriers to housing opportunities for historically underserved populations. As of August 2026, the Town and EPHA continue to advance housing equity through the Development Code update, workforce housing planning, and coordinated investments in housing and childcare. Community engagement, seasonal workforce housing assessments, and 6E -funded programs are helping to inform future housing strategies, while EPHA continues to expand workforce housing opportunities, rental assistance, and seasonal housing options to support local workers and households facing housing instability and affordability challenges. 17 Community engagement, education, and outreach hub 2023-2027 Goal: Up-to-date and user friendly “one stop shop” is operational This strategy directed the Town to proactively share housing information, improve public access to housing resources, and create meaningful opportunities for community members to stay informed and engaged in housing discussions and decision-making. As of August 2026, efforts are on track for 2027. The Town and EPHA have expanded public access to housing information through dedicated housing websites, annual Housing Supply Plans, Annual Impact Reports, project-specific webpages, and regular public updates on housing programs and developments. Housing initiatives are also supported by extensive community engagement opportunities where residents can provide feedback. Organizational Capacity Building 18 Increase staffing at Town and EPHA 2023-2027 Goal: Hire at least three staff members in 2023. This strategy directed the Town and EPHA to build the staff capacity needed to implement the Housing Strategy, including housing program administration, funding management, housing development, asset management, and workforce housing initiatives. As of August 2026, housing goals have been met. EPHA added a Director of Real Estate Development and a Housing Program Manager, which has enabled major housing acquisitions, development planning efforts, and expansion of housing programs. EPHA reports that it has achieved its targeted staffing levels and now has the organizational capacity to manage and expand current efforts. 19 Systems development 2023-2027 Goal: Tracking and compliance systems are in place, creating confidence in the stewardship of local funding and fair access to the housing resources created. Systems are robust and able to withstand changes in staffing and political leadership. This strategy directed the Town and EPHA to establish the systems and administrative infrastructure needed to manage housing programs, dedicated funding, property portfolios, and long-term affordability requirements. As of August 2026, this strategy has been implemented, with the Town and EPHA establishing formal funding, reporting, compliance, and program administration systems to support a growing portfolio of workforce housing and housing assistance programs. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 17 Unhoused strategies. In addition to the progress summarized above, in 2025, the Town partnered with the Homeward Alliance, Larimer County, Fort Collins, Loveland, and the Northern Colorado Continuum of Care to develop The Regional Homelessness Strategy Across Larimer County, a strategic plan for the geographic region of Larimer County focused on expanding and enhancing the countywide homeless response system. Recommended next steps coming from the strategy specifically for the Town included: 1. Commit to ongoing engagement in the strategic plan implementation . 2. Enroll at least one local provider in HMIS to improve data collection and sharing. 3. Establish a formal protocol for Estes Park service providers referring clients to down -valley services. 4. Assess need for health services among people experiencing housing instability and homelessness . 5. Assess feasibility to provide rapid re-housing and scattered-site PSH in the Estes Valley. 6. Identify partnerships to provide wraparound care for emerging safe parking program. 7. Develop formal partnerships between Estes Park Housing Authority and local service providers ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 18 STRATEGY FRAMEWORK AND PUBLIC SECTOR SPHERE OF INFLUENCE There is no single strategy—or “silver bullet”—to resolve a community’s housing challenges. Instead, it is important to have a toolkit of strategies to effectively address needs and respond to changing market and policy conditions. Needs to address. The core housing concerns identified in the HNA are:  Supply: Focus on tools that increase housing production across the income spectrum to serve both current and future households;  Affordability: Explore tools that provide effective subsidies and incentives to deliver affordable housing specifically for renters below 60% AMI; and buyers below 120% AMI; and  Security: Concentrate on enhancing resources to keep people housed and provide housing security for vulnerable populations, precariously housed, and unhoused residents. Public sector role. Strategies are most effective when action items are tailored to the public sector’s sphere of influence and role in addressing housing needs. Counties and municipalities can, for example:  Tailor policy interventions to current and future needs and set goals for addressing housing needs,  Reduce zoning and development barriers to affordable and middle-income housing,  Mandate or incentivize affordable housing production,  Catalyze redevelopment of underutilized properties, and  Create local affordable housing funds. The graphic below illustrates policy concepts that are within the control of the public sector (and those that are outside of the public sector’s control). Source: CHFA and Root Policy Research Policy tools across the continuum. The graphic on the following page shows the full housing spectrum along with the types of policy approaches that can support housing at different points along the continuum. At the most affordable end (housing below 30% AMI), deep subsidies are needed to produce and operate housing. Not surprisingly, the farther up the income/price spectrum, the more likely it is that the private market can provide housing without any subsidy or intervention from public entities. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 19 Estes Park can leverage the market as a partner to develop needed housing at the middle and upper end of the housing spectrum by using tools to encourage buildable lot and housing unit supply. Zoning reform may work to encourage market delivery of more attainable housing. However, even with right-sized zoning regulations, the private market cannot produce affordable housing for lower income households due to the cost of new construction, land, and financing. Source: CHFA and Root Policy Research ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 20 OBJECTIVES, STRATEGIES AND ACTIONS Key objectives of the HAP are articulated below along with tailored strategies to accomplish those objectives. The table on the following page adds specific action items and timelines to each strategy. Objective 1: Expand and diversify housing opportunities. 1. Advance workforce housing development and land readiness. 2. Encourage redevelopment and diverse housing types. 3. Strengthen employer and seasonal partnerships. 4. Expand accessory dwelling unit opportunities. Objective 2: Preserve existing workforce housing and improve housing stability. 5. Preserve existing housing and long-term affordability. 6. Expand housing stability and support services. Objective 3: Align housing growth with community character, infrastructure, and environmental stewardship. 7. Support context-sensitive housing growth. 8. Coordinate housing with infrastructure and community services. Objective 4: Strengthen partnerships, community engagement, and accountability. 9. Maintain transparent communication and community engagement. 10. Strengthen housing partnerships and funding capacity. 11. Monitor housing outcomes and adapt strategies over time. Summary of Key Changes from 2023 Housing Strategy:  Reorganized strategies under key outcome-oriented objectives.  Continued most strategies from 2023 with updates to action items and some wording revisions to better reflect progress and direction.  Direct integration of the Regional Homelessness Strategy Across Larimer County to ensure connectivity between HAP and homelessness (see Strategy #6).  Added a new objective (see Objective 3) and strategies to address extensive community input about balancing housing growth with conservation goals and unique character of the Estes Valley. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 21 Objective – Strategy – Action Item Objective 1: Expand and diversify housing opportunities 1. Advance workforce housing development and land readiness • Continue advancing publicly supported housing developments (Fish Hatchery neighborhood, Riverside, and future sites). • Maintain a pipeline of shovel-ready workforce housing projects. • Continue strategic land acquisition for future workforce housing. • Continue pursuing public-private partnerships for workforce housing development 2. Encourage redevelopment and diverse housing types • Continue pursuing acquisition, redevelopment, and adaptive reuse of existing lodging, commercial, and mixed -use properties to expand workforce housing opportunities • Support implementation of the Development Code update reforms that enable a broader range of housing options (e.g., duplexes, triplexes, cottage courts) 3. Strengthen employer and seasonal housing partnerships • Continuing partnering with major employers, the Chamber of Commerce, and other economic development organizations to explore employer- assisted housing solutions (e.g., employer master leases, shared investments in workforce housing developments, employer-owned housing) • Support the implementation of housing models specifically designed for seasonal workers, including employer-sponsored housing, dormitory- style housing, and adaptive reuse of existing properties. • Maintain regular coordination among the Town, EPHA, employers, and other housing partners to share information, identify housing gaps, and coordinate housing investments. 4. Expand accessory dwelling unit opportunities • Develop a variety of pre-approved ADU designs and establish a streamlined review process for qualifying projects. • Evaluate opportunities to reduce development costs through impact fee reductions, permit fee waivers, tap fee assistance, or financing programs. Consider actions that could qualify the Town for DOLA’s ADU grant program and CHFA’s ADU finance programs. • Identify and address building code and other development barriers to ADU construction and property conversion. Objective 2: Preserve existing workforce housing and improve housing stability 5. Preserve existing housing and long-term affordability • Identify and acquire housing that serves local workers or can be converted to workforce housing before it is lost to second -home ownership, visitor accommodations, or other competing market pressures. • Continue implementing deed restrictions and shared equity programs that help maintain housing affordability for future generations of local workers and residents. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 22 • Support development of deed-restricted ownership housing and homeownership assistance programs that help local workers establish long - term stability in the Estes Valley. 6. Expand housing stability and support services • Maintain rental assistance programs that reduce housing cost burdens and prevent displacement for workforce households facing financia l challenges. • Continue implementing down-payment assistance and other homeownership support programs that improve access to homeownership for local workers. • Continue collaborating with regional partners to improve housing stability, homelessness prevention, housing navigation, referral systems, and supportive service coordination throughout the Estes Valley. • Assess opportunities for rapid re-housing, permanent supportive housing, and other housing stability interventions that address the needs of residents experiencing housing insecurity. Objective 3: Enable housing growth that aligns with community needs, capacity, and context 7. Align housing regulations to support context-sensitive housing growth • Use the Development Code update to increase the feasibility and diversity of housing production by evaluating base densities, density incentives, zoning applicability, parking requirements, development review procedures, and other regulatory requirements affecting housing cost and project feasibility. • Encourage early coordination between applicants and Community Development staff, including pre-application meetings, to identify development constraints, clarify regulatory requirements, and improve project feasibility. • Establish performance measures for the Development Code update to evaluate impacts on housing production, affordability, and development feasibility. 8. Coordinate housing with infrastructure and community services • Coordinate housing investments with infrastructure and capital planning, including transportation, utilities, broadband, water and sewer systems. Identify infrastructure constraints that limit housing production through annual funding priorities and prioritize development in areas where infrastructure already exists or can be extended efficiently. • Continue integrating housing investments with childcare, housing stability programs, workforce development efforts, and other c ommunity services. Objective 4: Strengthen partnerships, community engagement, and accountability 9. Maintain transparent communication and community engagement • Continue publishing annual housing reports, including Housing Supply Plans, Housing Action Plan progress reports, 6E funding plans, and impact reports that communicate progress and outcomes. • Continue to create opportunities for community engagement and education regarding housing issues. • Maintain transparent decision-making processes and regular communication with the Board of Trustees and the community about housing investments, priorities, and outcomes. • Continue seeking public input on 6E workforce housing and childcare funding priorities. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 23 10. Strengthen housing partnerships and funding capacity • Continue pursuing state, federal, and philanthropic funding opportunities to supplement local housing resources • Continue strengthening relationships with employers, nonprofit organizations, service providers, developers, regional agencies, and housing advocates. • Continue to evaluate funding needs associated with priority housing strategies, as well as coordinating with partners to leverage expertise, funding opportunities, and community resources. 11. Monitor housing outcomes and adapt strategies over time • Continue to monitor and evaluate housing outcomes, including housing production, preservation, affordability, development feasibility, program performance, and progress toward Proposition 123 goals. • Continue to provide annual reporting on housing investments, program outcomes, and community-level housing trends. • Monitor state legislation that impacts grant funding, housing access/affordability, land use, and housing development feasibility for applicability in Estes Park. • Use performance data, housing trends, and community feedback to refine housing priorities, funding strategies, and future investments. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 24 IMPLEMENTATION AND MONITORING PLANS Implementation plan. Consistent with SB24-174 requirements, the implementation plan (Figures 5-8) identifies the actions, timelines, responsible entities, partners, resources, performance measures and desired outcomes needed to address the housing needs identified in the Housing Needs Assessment. The plan is intended to guide implementation over the six-year planning period while providing a framework for monitoring progress, evaluating outcomes, and adapting strategies as housing conditions, funding opportunities, and community priorities evolve. Implementation will require coordination between the Town and Estes Park Housing Authority (EPHA). The Town’s primary responsibilities include housing policy, the Development Code update, public land decisions, infrastructure coordination, and 6E funding administration. EPHA’s primary responsibilities include housing development, property acquisition and management, deed-restricted housing programs, rental assistance, affordable homeownership programs, and long-term asset management. Implementation may require legislative, budgetary, or administrative actions by the Board of Trustees. Monitoring plan. The Town and EPHA will regularly monitor implementation progress, evaluate housing outcomes, and publicly report on housing investments and accomplishments. Monitoring will help ensure that Housing Action Plan strategies remain responsive to changing housing needs, market conditions, funding opportunities, and community priorities. Progress will be measured using the performance metrics identified in the implementation plan and reported through existing planning and reporting processes, including 6E annual impact report, annual housing supply plan, and Housing Action Plan progress updates. These reports will provide ongoing transparency regarding housing production, housing preservation, housing stability programs, funding investments, and implementation progress. The Town and EPHA will conduct a formal review of Housing Action Plan implementation at least every three years to evaluate progress, assess strategy effectiveness, identify emerging housing needs, and adjust priorities as needed. Findings will help guide future investments, partnerships, and policy decisions. Together, the implementation matrix and monitoring plan provide a framework for translating HAP strategies into measurable outcomes. Intergovernmental coordination. Addressing housing challenges in Estes Park will require continued coordination among local, regional, and state partners. The Town will continue partnering with EPHA to implement workforce housing, housing preservation, and housing assistance initiatives, including deployment of 6E Lodging Tax revenues and advancing housing development projects. The Town will also continue coordinating with Larimer County, DOLA, CHFA, and other local organizations, employers, and partners to pursue funding opportunities, align housing with infrastructure and community service investments, and support implementation of Housing Action Plan strategies. ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 25 Figure 5. Implementation Plan, Objectives 1 and 2 ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 26 Figure 6. Implementation Plan, Objectives 3 and 4 ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 27 Figure 7. Performance Metrics and Outcomes, Objectives 1 and 2 ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 28 Figure 8. Performance Metrics and Outcomes, Objectives 3 and 4 APPENDIX A. CROSSWALK FOR SB24-174 BASELINE COMPONENTS ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 29 APPENDIX A. CROSSWALK FOR SB 24-274 BASELINE COMPONENTS Baseline Components Where addressed in Estes Park HAP (page numbers) ★ A Housing Action Plan must include the following Housing Needs Assessment related baseline components (C.R.S. 24-32-3705(3)): • Summary report of the local government's progress toward addressing the findings of the applicable Housing Needs Assessment (C.R.S. 24-32-3705(3)(a)). Described under Section 2.3. 12-17 • Description of how the local government’s Housing Action Plan addresses regional housing needs allocations, if applicable (C.R.S. 24-32-3705(3)(b)). Described under Section 2.4. 3-6 • Assessment of the effects of the local government’s existing zoning and density on housing development (C.R.S. 24-32-3705(3)(c)). Described under Section 2.2. 5-6 • A plan to promote equitable and efficient development of housing identified in a Housing Needs Assessment to satisfy housing needs at different income levels (C.R.S. 24-32-3705(3)(d)). Described in Section 4.2 (i). 18-19, 20-23 • A narrative analysis of any area that the local government has identified as being at elevated risk of displacement (C.R.S. 24-32-3705(3)(f)). 4-5 ★ Additional baseline components include the following (C.R.S. 24-32-3705(3)): • Locally-appropriate goals, strategies, and actions for promoting the production and preservation of affordable housing development and regulated affordable housing, including at least two standard and one long-term affordability strategies (C.R.S. 24-32-3705(3)(e)). See Section 4.2(ii). Colorado Department of Local Affairs 1-4 20-23, Appendix B • A plan to mitigate displacement, including at least one displacement mitigation strategy (C.R.S. 24-32-3705(3)(f)). See Section 4.2(ii). 20-23, Appendix B • A plan for the legislative consideration for adoption of the affordability and displacement mitigation strategies identified (C.R.S. 24-32-3705(3)(g). Described in Section 4.2 (iii). 24-27 • Recommended modifications to local zoning to be conducted before the next Housing Action Plan (C.R.S. 24-32- 3705(3)(h). Described in Section 4.2 (iv). 21-22 ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 30 • Analysis of opportunities to achieve the development of higher-density and regulated affordable housing within a reasonable distance of major transit stops (C.R.S. 24-32-3705(3)(i). Described in Section 4.2(v). 7 • A narrative of the public outreach and engagement process for the Housing Action Plan (C.R.S. 24-32-3705(3)(j)). Described under Section 3.1. 8-11 • A description of opportunities for intergovernmental coordination to address local and regional housing needs (C.R.S. 24-32-3705(3)(k). Described in Section 5.2. – section on coordination opportunities 24-25 APPENDIX B. AFFORDABILITY STRATEGIES CROSSWALK ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 31 APPENDIX B: AFFORDABILITY STRATEGIES CROSSWALK Affordability Strategy Directory for SB 24-174 Strategies Included in Estes Park HAP 1. Standard Affordability Strategies (choose at least 2) A. Create a local inclusionary zoning ordinance B. Leverage publicly owned, sold, or managed land X C. Create or expand a program to subsidize or reduce impact fees D. Establish a density bonus program X E. Create a program to prioritize / expedite development approvals (Note: Not eligible if using Long-Term Affordability Strategy 2C) X F. Create or expand a program to subsidize or reduce permit fees other than impact fees G. Enact local laws that incentivize construction and preservation of accessible and visitable units and multi - bedroom units H. Reduce local parking requirements to one half space per unit of regulated affordable housing I. Enacting local laws that support housing for families J. Other strategies with a comparable impact on local housing affordability X 2. Long-Term Affordability Strategies (choose at least 1) A. Establish local revenue for affordable housing, e.g., linkage fee on market -rate housing X B. Regulate short-term rentals, second homes, and vacancies to increase local housing use X C. Commit to and stay eligible for Article 32 funding (Proposition 123, State Affordable Housing Fund) X D. Amend zoning to allow ADUs, duplexes, triplexes, quadplexes, and townhomes X E. Use administrative processes for housing approvals, eliminating public hearing requirements F. Incentivize or create programs for land banking or community land trusts X ESTES PARK HOUSING ACTION PLAN ROOT POLICY RESEARCH ESTES PARK HOUSING ACTION PLAN, PAGE 32 G. Establish an affordable homeownership strategy (e.g. right of first refusal program, affordable rent -to-own programs, etc.) X H. Other strategies with a comparable impact on local housing affordability 3. Displacement Mitigation Strategies (choose at least 1) A. Fund rental and mortgage assistance X B. Support legal representation to prevent eviction and foreclosure C. Establish a housing counseling and navigation program D. Create a property tax and down payment assistance program X E. Invest in community land trusts F. Preserve existing affordable housing X G. Require community benefits agreements for multifamily development H. Prioritize current residents in new multifamily development I. Stabilize lower income homeowners near Transit Centers J. Ensuring no net loss of affordable family-sized housing K. Establish a program for community or small local business investment (Note: Not eligible if investments do not include housing) L. Other strategies that provide displacement mitigation X APPENDIX C. 2026 ADDENDUM AND 2023 HNA/HOUSING STRATEGY Attachment 2 ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 1 Estes Park Housing Needs Assessment Addendum: SB 24-174 Requirements SB 24-174, enacted in 2024, requires Colorado local governments to conduct housing needs assessments conforming to statutory requirements and methodology prescribed by the Department of Local Affairs (DOLA). This addendum addresses legislative requirements that are not addressed elsewhere in the Estes Valley Housing Needs Assessment & Strategic Plan, which was originally published in 2023. It also provides a brief market update of key housing metrics for the Town of Estes Park. Housing Market Update: Key Metrics ............................................................................... 1 Cost Burden & Homelessness ........................................................................................... 6 Accessible and Supportive Housing ................................................................................. 7 Displacement Risk Assessment ........................................................................................ 8 Development Costs and Barriers ................................................................................... 14 Current and Future Housing Needs: Estes Park ........................................................... 18 Housing Market Update: Key Metrics This section provides data updates on select, important measures of the housing market in Estes Park. Updates to these metrics will be refreshed annually through the Larimer County Housing Needs Dashboard.1 The data updates below focus primarily on the Town of Estes Park (rather than the Estes Valley overall). Development activity. Recent development in the Town of Estes Park includes several multifamily projects (see unit spikes in 2021 and 2024) and relatively consistent single family development. Figure 1. Housing Units Permitted by Structure Type, Estes Park, 2000–2024 Source: HUD State of the Cities Data Systems (SOCDS) Building Permits Database. 1 https://www.larimer.gov/housing/partners/housing-assessment ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 2 Rental Market. Estes Park’s median gross rent (including income-restricted inventory) is $1,511 as of 2024, up 62% from $932 in 2018 but still lower than Larimer County overall ($1,716). Figure 2. Median Gross Rent, Estes Park and Larimer County Communities, 2010, 2018, and 2024 Source: 2010, 2018, and 2024 ACS. Figure 3 shows rising rent is impacting units across the rental distribution in Estes Park resulting in substantive declines in naturally occurring affordable rental stock—especially units priced below $1,000 per month. Figure 3. Rental Units by Gross Rent, Estes Park, 2010, 2018, and 2024 Source: 2010, 2018, and 2024 5-year ACS and Root Policy Research. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 3 Sale market. Figure 4 tracks average home sale prices in Estes Park and Larimer County, comparing these to the maximum price affordable to households at Larimer County’s Area Median Income. Estes Park’s average home price of $707,000 is more than double the maximum price affordable to the county’s median income household ($308,000). The gap between the average price and the affordable price (at 100% AMI) was much narrower before 2021, after which home prices rose rapidly and higher interest rates eroded purchasing power. Figure 4. Average Home Sale Prices and Maximum Price Affordable to Households at 100% AMI, Estes Park and Larimer County, 2010–2025 Note: Price affordable at 100% AMI assumes a 2-person household size and a 30-year mortgage at average annual interest rates with 10% down and 30% of the monthly housing payment to other costs such as utilities, insurance, and HOA fees. Price data reflect postal cities, not jurisdictional boundaries. Source: Larimer County Assessor, HUD AMI Limits, Federal Reserve of St. Louis, and Root Policy Research . Shifts in Estes Park’s home sales price distribution are shown in Figure 5. In 2024/25, just 23% of homes were sold for less than $500,000. while 40% were sold for more than $750,000. Figure 5. Home Sales Price Distribution, Estes Park Source: Larimer County Assessor. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 4 Cost Burden & Homelessness Housing is generally considered to be affordable to a household when monthly housing costs consume less than 30% of a household’s gross income. Households who pay more than 30% of income for housing costs are considered cost burdened, with “moderately” cost burdened households paying 30-49% of income for housing and “severely” cost burdened households paying 50% or more of income for housing. Severely cost burdened households face an elevated risk of eviction, foreclosure, and homelessness. As shown in Figure 6, approximately half (49%) of Estes Park renter households and 21% of Estes Park homeowner households pay more than they can afford for housing. Nearly a quarter of the town’s renters (24%) are severely cost burdened, compared to 6% of the town’s homeowners. Figure 6. Percent of Households Cost Burdened by Tenure, Estes Park, 2024 Source: 2024 5-year ACS and Root Policy Research. According to the Regional Homelessness Strategy Across Larimer County, homelessness in Estes Park often takes the form of “doubled up” living (sharing the housing of other people due to loss of housing or economic hardship) or temporary housing arrangements, particularly during peak tourist seasons. With no emergency shelter or formal supportive housing, residents in crisis often travel to Fort Collins or Loveland for services. Estes Park service providers are committed to supporting people experiencing homelessness in the community but are not currently enrolled in Larimer County’s Homeless Management Information System (HMIS), a central database that collects and stores data about housing services and people experiencing homelessness, making it difficult to accurately measure homelessness in Estes Park. The 2025 Point-in-Time (PIT) Count, an annual count of individuals experiencing sheltered and unsheltered homelessness on a single night in January, counted two individuals experiencing homelessness in Estes Park. Note that this count only includes individuals ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 5 whose living situation meets the federal definition of homelessness,2 which excludes individuals who lack a fixed residence and are doubled up or in a temporary and informal living arrangement. The McKinney-Vento Homeless Assistance Act governs the education of youth experiencing homelessness. It uses a broader definition of homelessness than the federal definition, considering children homeless when they “lack a fixed, regular, and adequate nighttime residence.” McKinney-Vento data provide counts of children experiencing homelessness in the Estes Park R-3 school district, enabling a more comprehensive discussion of homelessness in the Estes Park area.3 In the 2023-2024 academic year, 43 Estes Park R-3 students were experiencing homelessness (4% of the district’s 1,015 students). Most (27) of the students experiencing homelessness in 2023-2024 were in a doubled up living arrangement, eight students were staying in hotels or motels, and the remaining eight were either unsheltered or staying in emergency shelters or transitional housing.4 Four students experiencing homelessness were unaccompanied, meaning that they were not in the physical custody of a parent or guardian. Accessible and Supportive Housing Units Needed Accessible units needed. As data on the number of accessible housing units in Estes Park are not available, this discussion focuses on future needs for accessible units. According to HUD CHAS data, 710 households in Estes Park or 22% of the town’s households have at least one member with a disability. Based on this rate, 22% of new housing units should be accessible for residents with disabilities. Developing some intentionally accessible housing would also allow older seniors, who have high rates of disability, to filter into units that best meet their needs if preferred, potentially freeing up their units for other occupants. Accessibility needs vary by disability type. Figure 7 presents prevalence rates of disabilities by type among households in Estes Park. Housing needs of households containing a member with a disability vary by disability type. For example: 2 As defined by 24 CFR 578.3, “homeless” means “an individual or family who lacks a fixed, regular, and adequate nighttime residence.” This definition includes those with a primary nighttime residence in a “public or private place not designed for or ordinarily used as a regular sleeping accommodation for human beings” or in a “supervised publicly or privately operated shelter designated to provide temporary living arrangements”. It also includes individuals exiting an institution where they resided for 90 days or less provided that they resided in “an emergency shelter or place not meant for human habitation immediately before entering that institution.” More information available here: https://www.law.cornell.edu/cfr/text/24/578.3. 3 Estes Park R-3 serves students who live across southwest Larimer County, so data are not limited to students living within Estes Park municipal boundaries. 4 The exact counts of students who were unsheltered vs. staying in shelters or transitional housing is not disclosable. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 6  Households with hearing or vision difficulties may need smoke detectors with visual strobe lights or handrails and grab bars;  Households with ambulatory difficulties may need units without stairs, handrails and grab bars, and wheelchair accessible doors; and  Households with cognitive difficulties and self-care or independent living difficulty may need homes with built-in access to supportive services and proximity to community resources. Figure 7. Households Containing a Member with a Disability by Type of Disability, Estes Park, 2022 Note: Households may be counted in more than one disability category. Source: 2018-2022 HUD CHAS and Root Policy Research. Supportive units needed. In addition to supportive housing environments needed by some households with cognitive, self-care, or independent living difficulties, supportive housing units are needed by households experiencing homelessness. Estes Park currently does not have any formal shelter or supportive units. As discussed above, there were 43 students experiencing homelessness in the Estes Park R-3 school district in 2023-2024. Assuming that there are two students in Estes Park R-3 schools for every family experiencing homelessness, the town would need to add 22 shelter or transitional housing units in order to house the district’s families experiencing homelessness. Displacement Risk Assessment In alignment with SB24-174, this section assesses displacement risk for households in Estes Park based on an index of metrics from HUD, the American Community Survey, and CDC/ASTDR. Defining displacement. Informally, displacement means leaving one’s home or relocating one’s business due to redevelopment of property or inability to afford cost of living or cost of doing business due to price increases or loss of income. The formal definition of displacement according to SB24-174 is included below. Any Disability 710 22% Hearing or Vision Difficulty 390 12% Ambulatory Difficulty 390 12% Cognitive Difficulty 110 3% Self-Care or Independent Living Difficulty 260 8% Households Containing a Member with a Disability % of Households with a Disability ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 7 Figure 8. SB24-174’s Definition of Displacement Source: SB24-174 Displacement Risk Assessment Guidance. The SB 24-174 Displacement Risk Assessment Guidance requires that jurisdictions study 11 measures of displacement, summarized in Figure 9 and discussed individually below. Figure 9. Displacement Measures, Estes Park Note: “Root Policy Research” is cited as a source because a proprietary Root Policy Research model was used to distribute households by AMI level using ACS estimates and 2-person AMI limits (based on the average household size in Estes Park). Source: 2024 5-year ACS, 2018- 2022 HUD CHAS estimates, and Root Policy Research Displacement Measure Low Income Households 1,313 719 593 0-30% AMI Households 360 154 206 31-50% AMI Households 338 158 180 51-80% AMI Households 615 408 207 Renter Households 889 31% 579 52% 275 64% 304 44% Residents with no High School Diploma (Age 25+)105 2.1% Residents 5+ who Speak English "Less than Well"29 0.5% 114 4.0% Housing Stock Built Before 1970 691 17% Households of Color 253 9% Overcrowded Households 85 2.7% Civilian Noninst. Population with a Disability 685 12% Older Population (65+)2,010 17% Mobile Homes 0 0% Owner Renter Number % of Total Cost Burdened Households with Annual Income < $75,000 Cost Burdened Renter Households with Annual Income < $75,000 Cost Burdened Owner Households with Annual Income < $75,000 Single-parent Households with Children Under 18 Total ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 8 Low income households. Low income households lack sufficient income to afford market rate housing, as demonstrated by the rental affordability gaps analysis in Section III. There are 1,313 low income (0-80% AMI) households in Estes Park including 593 renter households (67% of renters) and 719 owner households (36% of owners). Among these households, those with the lowest incomes are most vulnerable to displacement. An estimated 360 households including 8% of owner households and 23% of renter households have extremely low incomes (0-30% AMI). Note that the category “low income households” includes many types of households with different support needs such as single parent households, elderly households, and households of students. Renter households. Renter households are more likely to experience displacement than owner households because they do not own their homes and are subject to market changes and rent increases. There are 889 renter households in Estes Park. Two thirds of these renters have low incomes and are vulnerable to displacement. Approximately 22% of the town’s renters have higher incomes (greater than 120% AMI) and “rent down,” occupying units that are less expensive than they can afford. Renters with incomes greater than 120% AMI are less vulnerable to displacement than renters with lower incomes. Cost burdened renter households with annual income <$75,000. Cost burdened households have less disposable income to pay for other needed expenses such as healthcare, childcare, and food and are at increased risk of being outpriced as housing costs increase. According to 2024 5-year ACS estimates, 579 households with incomes below $75,000 are cost burdened. This is equivalent to 52% of households with incomes below $75,000 and includes 64% of renter households at that income level (275 renter households) and 44% of owner households at that income level (304 owner households). Cost burdened renter households tend to be at a greater risk of displacement than owner households because owner households’ housing payments contribute to building equity. Residents without a high school degree (age 25+). Adults without high school degrees face limited access to higher paying jobs, which makes them more vulnerable to job insecurity. Without stable employment, these residents may miss rent payments and face eviction. According to 2024 5-year ACS estimates, 105 Estes Park residents age 25 and older (2.1% of residents in this age group) do not have a high school degree. Residents who speak English “less than well” (age 5+). Populations with limited English proficiency may have difficulty navigating housing, jobs, transportation, and assistance due to language barriers and discrimination. The American Community Survey estimates that as of 2024, 29 Estes Park residents age five and older speak English “less than well.” Single parent households with children under 18. There are 426 families with children in Estes Park according to ACS estimates. Of these, 114 families (equivalent to 27% of families with children and 4% of households overall) are single parent households with ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 9 children. Single parent households must manage rising childcare and housing costs on one income, while two parent households often benefit from two earners’ incomes, making single parents more vulnerable to housing instability and displacement. Housing stock built before 1970. An estimated 691 of the 3,953 housing units in Estes Park were built in 1969 or earlier. Units built before 1970 are more likely than new units to contain lead-based paint—a health hazard—and to need repairs due to their age. Low income households occupying these units may be destabilized by the high costs of making repairs. Households of color. According to ACS estimates, there are 253 households of color in Estes Park (9% of households). Historical and ongoing employment and housing discrimination has limited these households’ housing choices and general opportunity to build stabilizing wealth, leaving them vulnerable to displacement. Overcrowded households. Households containing more than one person per room are overcrowded. Households may choose to live in overcrowded conditions due to an inability to afford units of suitable sizes, so these households are likely to struggle to manage unexpected emergency costs or rent increases. According to CHAS estimates from the U.S. Department of Housing and Urban Development, approximately 3% of households in Estes Park (85 households) are overcrowded, with a higher overcrowding rate for renters (6%) than for owners (<1%). This count of overcrowded households likely includes homes where individuals who would be considered homeless under the McKinney-Vento definition of homelessness (see discussion of homelessness earlier in this section) are “doubling up” and sharing the housing of others. These residents are especially vulnerable to displacement. Population with a disability. There are 685 residents with disabilities in Estes Park. Residents with disabilities tend to have lower incomes due to limited employment options and may live on fixed incomes. Their lower incomes limit the units they can afford, but units with needed accessibility features tend to be higher priced. Older population (65+ years). Approximately 17% of Estes Park residents (2,010 residents) are age 65 or older. Older residents are likely to need accessibility modifications to age in their homes. Such modifications can be expensive and difficult to manage for elderly residents who are likely to be retired and living on fixed incomes. Other older residents may need supportive living environments such as skilled nursing facilities. Mobile and manufactured homes. The American Community Survey estimates that there are no mobile homes in Estes Park, and the Colorado Mobile Home Park Oversight Program records no mobile home parks in Estes Park. Disadvantaged areas. SB24-174 requires local governments to identify areas that qualify as disadvantaged using the Climate and Economic Justice Screening Tool (CEJST) from the Council on Environmental Quality in the Office of the President of the United ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 10 States. While the CEJST is no longer available on the White House website, this report makes use of an unofficial copy of the CEJST Tool.5 Census tracts that are marginalized by underinvestment and overburdened by pollution are highlighted as being disadvantaged in Figure 10. Federally Recognized Tribes, including Alaska Native Villages, are considered disadvantaged communities. One Census tract in the Estes Park area—lying almost entirely in Rocky Mountain National Park and outside of Estes Park’s municipal boundaries—qualifies as disadvantaged because:  The share of its households who have low incomes ranks above the 65th percentile for U.S. Census tracts,  Its poverty rate is above the 90th percentile for U.S. Census tracts, and  Its expected number of fatalities and injuries from natural hazards ranks above the 90th percentile for U.S. Census tracts. Figure 10. CEJST Disadvantaged Areas, Estes Park Area Note: Census tracts that are marginalized by underinvestment and overburdened by pollution are highlighted as being disadvantaged on the map. Federally Recognized Tribes, including Alaska Native Villages, are considered disadvantaged communities. Source: Climate and Economic Justice Screening Tool (CEJST). 5 Source: https://edgi-govdata-archiving.github.io/j40-cejst-2/en/#3.55/36.43/-102.69 ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 11 Development Costs and Barriers Understanding both market limitations and policy barriers helps identify challenges and opportunities for expanding housing options. This section provides context for housing solutions by evaluating trends in construction costs and stakeholder perceptions of development barriers. Development costs. Construction costs increased steadily across the 2010s and rose rapidly in the early 2020s, driven by a variety of factors including commodity pricing and labor shortages. In recent years, a rise in interest rates has contributed to cost inflation by driving up financing and debt repayment. Figure 11 presents the Census Bureau’s New Construction Cost Index for multifamily homes in the United States to show that that the cost index for multifamily construction increased by 23% since 2020 and by 78% since 2010. Figure 11. Census New Multifamily Construction Price Index, United States, 2005-2025 (Q3) Source: Census Bureau. According to data from the Colorado Housing and Finance Authority (CHFA), the average development cost of affordable multifamily rental housing in Colorado was $497,900 per unit in 2024 (up from $325,000 per unit in 2021). The five-year average (2020-2025) for Northern Colorado (Larimer and Weld counties) is $374,000 per unit—just under the statewide five-year average. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 12 Figure 12. Affordable Rental Housing Construction Costs Notes: Includes both 4% and 9% LIHTC deals. Annual cost data are not available by region. Source: CHFA Affordable Housing Development Cost Dashboard. Though these costs are derived from affordable projects, they provide context as a baseline on market-rate multifamily development and trends in construction cost escalation more broadly. Single family construction costs have also risen dramatically, as shown by the Census Bureau’s New Construction Cost Index for single family homes in Figure 13. In the West Region, which includes Colorado, the single family construction cost index increased by 111% since 2010 and by 36% since 2020. Figure 13. Census New Single Family Construction Price Index, United States, 2005-2025 Source: Census Bureau. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 13 The National Association of Home Builders (NAHB) provides the most comprehensive data on all components of single-family residential development, though estimates are national, as opposed to regional/local. As shown in Figure 14, the biggest driver in the upward shift in development costs is construction hard costs including both labor and materials. The most recent survey (2024 data) show the average cost of new construction (before sales commission and builder profit) to be nearly $573,000 in the U.S. (nationwide). Figure 14. NAHB Construction Cost Survey, United States, 2002–2024 Source: National Association of Home Builders (NAHB) and Root Policy Research. Stakeholder perceptions of barriers to affordable development. As part of the Larimer County Regional Housing Needs Assessment (HNA), Root conducted a focus group with developers and real estate professionals to identify countywide barriers to development (including Estes Park). Developers and planners emphasized that while state policy reforms like the removal of parking requirements for multifamily residential (HB24-1304) and allowance of ADUs anywhere single-family homes are zoned (HB24-1152) have eased some regulatory barriers, financing and public perception remain obstacles. Additional engagement in Estes Park, conducted as part of the Development Code update (in 2025) highlighted infrastructure capacity as a barrier to development and identified a need for clarity and enforcement in any updated development code. Market barriers. Land cost, labor, and availability/cost of water are significant contributors to development costs in Northern Colorado. Rising interest rates also pose a challenge—high development costs were somewhat manageable when the cost of capital was low (2020 and 2021), but as the cost of debt increases, it becomes much more challenging to get development projects to pencil. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 14 High demand, coupled with lagging housing production and the high cost of delivering housing makes it difficult for the market alone to address the community’s housing challenges. Policy barriers. Many Larimer County jurisdictions—including Estes Park—have taken steps to evaluate zoning barriers that restrict development and are working to increase housing diversity and streamline approvals for affordable development. Recent state legislation allowing ADUs and revising occupancy limits has also increased housing choice and options. Even so, developers identified process delays, fees, and zoning constraints in some areas of the County. In Loveland, density allowances in the comprehensive plan are extremely low (generally under 4 units per acre) which limits product diversity and smaller lots. Other barriers include the complexity of the Unified Development Code (UDC), lot dimensional standards, and infrastructure requirements that do not align with small lot market trends. Standards for lots, such as width, setbacks, and lot sizes are currently being addressed with adjustments for Prop 123 and small lot infrastructure standards are also under review. In unincorporated areas, infrastructure constraints are also a barrier to development. In Estes Park, engagement conducted for the Development Code update identified restrictive zoning, high parking minimums, lengthy permitting processes, and a lack of incentives as barriers to producing lower-cost housing. Community opposition. Another recurring barrier is community opposition to affordable housing. Stakeholders in both Loveland and Fort Collins reported persistent NIMBY (“Not in My Backyard”) resistance driven by fears about traffic, property values, neighborhood character, and loss of open space. Several stakeholders reported that even modest infill or multifamily proposals trigger strong backlash, often delaying or derailing projects. ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 15 Current and Future Housing Needs: Estes Park and the Estes Valley This section quantifies current and future housing units needed in Estes Park. The analysis of housing needs in Section III of the original HNA quantifies needs for the Estes Valley as a whole, while SB24-174 requires a jurisdictional analysis. This section also provides updates to quantified needs for the Valley (defined as the geographic area corresponding to Estes Park School District R-3) with the most current data available. Affordability needs. Affordability needs are quantified through a rental gaps analysis that identifies mismatches in rental prices and affordability for current residents as well as through an analysis of Estes Park Housing Authority (EPHA) data demonstrating unmet demand for affordable units. Rental affordability gap. The rental gaps analysis compares the number of renter households by income level and the maximum monthly housing payment they can afford with the number of affordable housing units in the market, including income-restricted affordable units. The rental affordability gaps analysis shows that collectively, there is a shortage of 157 units for renters with incomes below 50% AMI in Estes Park: 386 renters fall within this income range, yet only 229 rental units are priced below $713 and affordable to them (a gap of 139 rental units). Renter households with incomes at or below 50% AMI who cannot find units affordable to them due to supply shortages are “renting up” into higher priced units, facing cost burden and constraining supply for renters up to 80% AMI. Similar shortages are evident for the Estes Valley as a whole with a 172-unit shortage for households earning less than 30% AMI and a 157-unit shortage for households earning less than 50% AMI. Figure 15 shows the cumulative rental affordability gap by AMI (based on AMI ranges published by HUD for a 2-person household, in line with the average household size) in Larimer County). Note that the figure shows cumulative supply and demand, meaning each bar builds upon (and includes) the preceding affordability category (e.g., the 0 to 50% bar includes inventory from the 0 to 30% bar as well). Note that the gaps analysis is intended to evaluate affordability needs among current residents not the need for additional housing to accommodate future or potential residents. Gaps identified in these analyses could be addressed through the production of new housing units at affordable price points or with subsidies on existing units (e.g., Housing Choice Vouchers for rental units or downpayment assistance for ownership units). ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 16 Figure 15. Gaps in Rental Market, Estes Park and Estes Valley, 2024 Source: 2024 5-year ACS, and Root Policy Research. Comparing the results of this analysis with the gaps analysis of the 2023 HNA (Figure III-19), affordability shortages affect renter households at higher income levels in the Estes Valley in 2024 than they did in 2020. Affordability gaps in 2024 are concentrated below 50% AMI in Estes Park (and below 30% AMI in the Valley overall) but cumulative shortages limit supply for renters up to 80% AMI. Estes Valley’s shortage of affordable rental units at 0-30% AMI decreased from approximately 240 units in 2020 to 172 units in 2024 primarily due to a decline in the number of renter—including extremely low income renters—across this time. ACS data show a 20% decline in the number of renter households in the Valley between 2022 and ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 17 2024 and a 2% decline in owner households (for a 6% decline in total occupied households). EPHA waitlist and vacancy rates. The analysis above offers a rough approximation of cumulative need by income but does not represent the full picture of renter demand by AMI, as it does not account for households that may be doubled up or in housing units that do not suit their needs, nor does it account for residents who desire to live in Estes Park to be nearer to their jobs or family but cannot find a unit. Data from EPHA adds additional insight on demand for affordable units:  3,686 households are on the waitlist for affordable and workforce housing; 92% of which have incomes below 60% AMI.  Households with income between 30% and 60% AMI account for 28% of all households on the waiting list.  Vacancy rates for affordable units are incredibly low: 4.3% for the region’s entire income restricted inventory and just 3.9% for EPHA’s portfolio. Figure 16. Deed Restricted Housing Occupancy Figure 17. Waitlist Applicants by AMI Source: EPHA Source: EPHA Housing production needs. The rental affordability gaps explained in the previous section indicate affordability needs, which may be addressed by constructing new units at affordable price points or by providing subsidies—such as vouchers for renter households or downpayment assistance for home purchases—to households at affected income levels. This production needs analysis estimates new housing units needed based on overcrowding and low vacancy rates—challenges which cannot be addressed by providing subsidies for existing units—and future growth. It also includes an Estes Park specific adjustment for in-commuters wishing to live in the Valley. Property Category Total Units Vacant Units Vacancy Rate EPHA Income Qualified 183 6 97% EPHA Workforce - Stabilized Properties 61 1 99% EPHA Workforce - Fall River Village 89 6 93% Private Income Qualified 69 0 100% Workforce - Private 90 7 92% Workforce - Prospector 94 8 92% Deed Restricted Ownership 51 0 100% Total 637 28 4.3% ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 18 Regional needs allocations. Production needs, referred to here as “catch-up needs” and “keep-up needs,” are estimated with methodology designed by Colorado’s Department of Local Affairs to estimate current and future housing units needed to ensure housing availability and stability through 2035. Keeping with DOLA guidance, catch-up and keep-up needs are calculated first at the county level, then distributed among jurisdictions and unincorporated areas. Results are presented in Figure 18 and discussed below. Please refer to the 2026 Larimer County Regional Housing Needs Assessment for a complete methodological explanation of county-level production needs, as well as production needs for other Larimer County communities. The analysis is summarized below. The “Current Need” column identifies “catch-up” units needed: the number of units by income level that are needed to ensure housing availability and stability for current resident households. Specifically, catch-up units needed are the additional housing units needed to: 1) alleviate low vacancy rates (adding units to reach a rental vacancy rate of 5% and a homeowner vacancy rate of 2%); and 2) alleviate overcrowding (defined by HUD as more than one person per room). Households that are currently overcrowded often include potential households who would prefer to live in their own units but are sharing the housing of others to manage costs on low incomes. Units needed to alleviate overcrowding are therefore assumed to be most needed at income levels where the rental market currently under-provides units. The rental affordability gaps analysis shows that renter households face the greatest shortage of units at 0-30% AMI, so all units needed to alleviate overcrowding are needed as rental units at 0-30% AMI. The “Projected Need” column identifies “keep-up” units needed: the number of units by income level that are needed to ensure housing availability and stability for future growth (including both household and economic growth), based on DOLA’s projection of household and job growth over the next ten years. Estimates by tenure and income assume a current homeownership rate and AMI distribution. The total projected rental and ownership units needed in Larimer County are distributed to local jurisdictions according to a weighted measure which equally reflects the share of the county’s current jobs that are located in that jurisdiction, the proportion of the county’s job growth since 2018 that occurred in that jurisdiction, and the share of the county’s current households that live in in that jurisdiction. Estes Valley adjustment for in-commuters. As discussed in the original HNA’s Housing Needs Section, the Estes Valley has a high proportion (62%) of in-commuters who would prefer to live in the Valley but aren’t able to find the housing they need. Applying this rate to the total in-commuters to the Valley (with an adjustment for employees per household) suggests that approximately 172 households would relocate to the Estes Valley to be closer to their job if they could find an appropriately sized and priced home. The data ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 19 are insufficient to determine the proportion of those households that would be needed in the Town of Estes Park relative to the Valley overall. As such, this in-commuter demand adjustment is included only in the Estes Valley needs projections, though in reality, units delivered in Estes Park could help accommodate such demand. Production needs in Estes Park. Using the methodology described above, and building on the regional (countywide) needs calculated for Larimer County (in the Larimer county RHNA), production needs for the Town of Estes Park are estimated as follows:  To alleviate overcrowding and low residential vacancy for its current resident households Estes Park needs to add 92 housing units (including 25 owner occupied units and 68 renter occupied units).  To accommodate projected household and employment growth by 2035, Estes Park needs to add 514 new housing units (including 322 owner occupied units and 192 renter occupied units).  In-commuter demand for housing does impact Estes Park, though there is insufficient data to determine how many of the Estes Valley in-commuters would prefer to live in the Town of Estes Park. As such, the Estes Park data focuses on current and projected needs, though in reality valley wide in-commuter demand could also be accommodated through production in the Town of Estes Park. Production needs in Estes Valley. Production needs were also estimated for Estes Valley, defined as the geographic area corresponding to Estes Park School District R-3. Production needs for Estes Valley were calculated using the same approach as production needs for Estes Park, with an additional adjustment to account for the 5% of Estes Valley’s population that lives outside of Larimer County according to 2020 Decennial Census data.  To address overcrowding and low vacancy rates and meet the housing supply needs of current residents, the Estes Valley needs to add 133 new housing units, including 58 for ownership and 76 for rent.  The Estes Valley needs to add an additional 617 units (including 387 owner occupied units and 230 renter occupied units) to accommodate projected household and economic growth by 2035.  To accommodate in-commuter demand for housing, the Estes Valley needs to add 712 new housing units (422 ownership units and 290 renter units). ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 20 Figure 18. Current and Projected Units Needed, Larimer County, Estes Park, and Estes Valley through 2035 Note: Estes Valley is defined as the geographic area of Estes Park School District R -3. Projected units needed reflect projected units needed through 2035. AMI limits assume a household size of two . Source: 2024 1-year and 2024 5-year ACS, Colorado State Demographer, Longitudinal Employer-Household Dynamics (LEHD), Missouri Census Data Center GEOCORR 2022, and Root Policy Research. AMI Category Total Units 3,394 14,502 17,897 92 514 606 133 617 712 1,462 Ownership Units 0-30% AMI 102 720 822 2 26 27 4 31 33 68 31-50% AMI 94 668 763 2 24 26 3 28 30 62 51-60% AMI 59 416 474 2 15 16 3 18 20 40 61-80% AMI 121 854 974 3 30 34 7 36 41 84 81-100% AMI 114 807 920 3 29 31 8 34 40 82 101-120% AMI 100 708 808 2 25 27 5 30 34 69 121-140% AMI 95 674 769 2 24 26 4 29 31 64 141-150% AMI 48 337 384 1 12 13 2 14 16 32 151% AMI +553 3,911 4,464 8 139 146 21 166 177 364 Total Needed 1,285 9,093 10,378 25 322 347 58 387 422 866 Rental Units 0-30% AMI 1,250 1,186 2,436 55 42 97 60 50 105 215 31-50% AMI 151 740 891 3 26 30 4 31 33 69 51-60% AMI 93 456 549 1 16 18 2 19 20 41 61-80% AMI 201 987 1,188 2 35 37 3 42 43 88 81-100% AMI 111 546 657 1 19 20 2 23 24 49 101-120% AMI 75 370 446 1 13 14 1 16 16 33 121-140% AMI 63 309 372 1 11 12 1 13 13 27 141-150% AMI 31 155 186 0 5 6 0 7 7 14 151% AMI +134 659 793 3 23 26 3 28 29 60 Total Needed 2,109 5,409 7,518 68 192 259 76 230 290 596 Projected Need Total Need In- Commuter Larimer County Estes Park Estes Valley Current Need Projected Need Total Need Current Need Projected Need Total Need Current Need ROOT POLICY RESEARCH ESTES PARK HNA ADDENDUM, PAGE 21 Summary of total housing need. The following figure combines and summarizes the needs analyses for the Estes Valley, including the rental affordability gap, and the production needs to address vacancy, overcrowding, and future growth. EPHA waitlist data are also shown (in green), though these could include some double-counting of other needs/production estimates. The baseline need is 1,634 units (rental gap plus production needs, including in-commuter demand); however additional demand is evident through the EPHA waitlist data, up to 3,686 households. Figure 19. Summary of Needs Estimates, Estes Valley, through 2035 Source: 2024 1-year and 2024 5-year ACS, Colorado State Demographer, Longitudinal Employer-Household Dynamics (LEHD), Missouri Census Data Center GEOCORR 2022, EPHA,and Root Policy Research. Root Policy Research 6741 E Colfax Ave, Denver, CO 80220 www.rootpolicy.com 970.880.1415 PREPARED FOR: PREPARED BY: Town of Estes Park Root Policy Research Estes Park Housing Authority OPS Strategies Williford, LLC CREATED: January 2023 Estes Valley Housing Needs Assessment & Strategic Plan Table of Contents ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES i Housing Strategic Plan Introduction .......................................................................................................................... 1 Housing Vision, Goals, Objectives, and Values ................................................................ 2 Framework for Implementation ........................................................................................ 3 Priority Actions ..................................................................................................................... 4 Housing Needs Assessment I. Demographic Profile Key Findings ....................................................................................................................... I–2 Population .......................................................................................................................... I–2 Households ........................................................................................................................ I–6 Income and Poverty ......................................................................................................... I–8 II. Employment Profile Key Findings ...................................................................................................................... II–1 Jobs .................................................................................................................................... II–1 Employees ......................................................................................................................... II–7 III. Housing Profile and Affordability Analysis Key Findings ..................................................................................................................... III–1 Housing Stock .................................................................................................................. III–2 Rental Market .................................................................................................................. III–9 Ownership Market ........................................................................................................III–11 Income Restricted and Workforce Housing Inventory ............................................III–13 Affordability ...................................................................................................................III–14 Housing Need ................................................................................................................III–19 IV. Community Engagement Findings Community Engagement Elements .............................................................................. IV–1 Key Findings ..................................................................................................................... IV–2 Resident and In-Commuter Survey Respondents ...................................................... IV–4 Seasonal Worker Survey Respondents ..................................................................... IV–15 Second Homeowner Survey Respondents ............................................................... IV–18 Estes Valley Stakeholder Perspectives ...................................................................... IV–21 Appendix A: Update on 2016 Recommendations HOUSING STRATEGIC PLAN ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 1 Estes Valley Housing Strategic Plan Introduction The recommendations of this Action Plan were informed by the findings of the Housing Needs Assessment update (Sections I-IV of this document), local stakeholder guidance, and emerging best practices from other rural and resort communities in Colorado. Most housing challenged communities select a blend of tools and strategies from across these categories to address their housing needs:  Incentives;  Regulations;  Programs and local initiatives;  Housing preservation;  New housing development; and/or  Funding. The successful passage of recent lodging tax ballot initiative will bring an estimated $5million annually to support workforce housing and childcare. This important local funding source provides the resources that will enable new and more extensive housing solutions. Process. This Housing Action Plan builds upon the work of the Estes Park Housing Authority (EPHA), Town of Estes Park, Lodging Tax Exploration Committee, The Housing Needs Assessment, and the consultant team’s research and observations. It provides a starting place from which local decision makers can modify and apply strategies to address housing issues, creating clear roles and responsibilities for implementation. The Estes Park Housing Authority and Town of Estes Park should jointly solicit feedback from the community on an ongoing basis to refine the action plan as proposed based on real-time circumstances and opportunities, ensure that partner agencies are able and willing to participate in proposed roles, and that the plan is widely understood and generally supported in the community. The Housing Action Plan will likely need to be updated every 3-5 years, as tasks are completed and local conditions evolve. Relationship to other strategic documents. In the hierarchy of local policy documents, this Housing Action Plan is intended to reside below the Comprehensive Plan, which sets the big picture, long term vision for the community. This document takes guidance from the Comprehensive Plan, and makes it more specific and actionable. This document then in turn can be used to inform budgets and workplans for the Town of Estes Park and EPHA, specific to housing. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 2 Housing Vision, Goals, Objectives, and Values Vision. Working age households have stable, desirable housing in the Estes Valley, enabling them to support our local economy, provide essential services, and thrive as vital members of our community. Goals. Create and preserve 550 to 700 dwelling units affordable to the local workforce over the next five to seven years. Objectives:  Increase the preservation and creation of workforce housing, so that the Estes Valley begins to improve availability and affordability of housing to the workforce.  Match housing investments with areas of greatest need in the workforce community.  Create neighborhoods that are desirable, compatible and affordable for the long term. Values. The following core values emerged during the strategic planning process.  Collaboration. No single entity can solve the complex problem of our workforce housing shortage. A strong collaborative approach is needed between the two lead agencies and across the broader community. The EPHA and Town of Estes Park will use a collaborative framework to advance workforce housing solutions, engaging partners, residents, funders, and other key stakeholders as appropriate.  Equity and Inclusion. All efforts to develop and preserve housing that is affordable to the local workforce will be inclusive, and take particular care to support the populations most negatively impacted by rising housing costs. Each project and initiative that comes out of this strategic plan should proactively include and recruit members from the most vulnerable populations to ensure that housing is being built and marketed equitably.  Accountability and Stewardship. As stewards of taxpayer funds and the below market housing inventory, Town of Estes Park and EPHA will create transparent processes for allocating resources, prioritizing investments, ensuring fair access to the housing created, and managing the housing resources for the long term. The Estes Valley will bring the talent and resources of the local and regional community together to address the financial gap that is a barrier to housing our workforce. Use State and Federal resources strategically, when their requirements align with the local market and community need. Leverage the expertise of the public and private sectors, to manage risk and use limited resources efficiently. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 3 Framework for Implementation Roles and Responsibilities. Clear roles and responsibilities, within a collaborative framework, will help to create efficiency, transparency, and accountability. Recommended roles are described within each strategy, and a summary is provided here. Town of Estes Park Estes Park Housing Authority Oversight of local housing funding Development partnerships Land Use Policy, Land Use Review Process, Building Permits and Inspections Property management and Deed Restriction Compliance Code Enforcement Land and Property Acquisition; Affordable Development ADU Incentive Policy Deed Restriction Purchase Program Land Use Code Updates and Missing Middle Strategy Reinvestment in existing affordable housing inventory ADU Incentive Program Private sector and non-profit partners also bring knowledge, skills, and resources that are vital to the success of this housing strategy. Private sector partners are anticipated to be integral to design and construction of new housing. And non-profit partners are anticipated to be engaged in service provision, funding, and development (e.g., Habitat for Humanity). Market Indicators. The following market indicators can be helpful tools for understanding long-term trends and their impacts on the local workforce. We recommend that EPHA and the Town of Estes Park periodically check these indicators to understand the evolving challenges and opportunities in the community. Some goals and objectives are easy to quantify, such as number of workforce housing units created. Others may take more time and study, and can be updated less frequently. For example, several measures of success would be that 10 years from now the community has reversed key trend areas that have been losing ground the past two decades.  Homes Occupied Year-Round—currently 56% (see Section III, page 3).  Number of Unfilled Jobs—currently 737 (see Section II, page 6).  People commuting for work—currently 33% (see Section II, page 7).  The number of households paying more than 30% of their income—currently 58% for renters and 19% for owners (see Section III, page 15).  Rental Vacancy Rate—functional rental markets are typically 5-10%; current vacancy is approaching zero (see Section III, page 6).  Rental and Ownership Affordability Gaps—cumulative rental gap currently 241 units; cumulative purchase gap currently 34 percentage points (Section III pages 16 and 18). ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 4 Priority Actions This housing action plan is intended to set out the actions and strategies that will achieve the communities’ housing goals. Strategies are organized under preservation, new supply, funding and policy, community outreach and client support, and capacity building and can be applied to rental, owner, and seasonal workforce housing. Here is an at-a-glance summary of proposed strategies, leadership, and timing. Detailed descriptions of each strategy and action follow the table. The following chart creates a general outline of how the tasks of this action plan might be sequenced over the next five years. The specific sequencing can be refined through the annual work plan processes for the Town of Estes Park and EPHA. Strategies Summary and Timeline Strategy and Action Lead Year Agency 2023 2024 2025 2026 2027 Preservation 1 Property acquisition EPHA 2 Asset Plan Housing Authority Portfolio EPHA 3 Deed restriction buy down EPHA 4 Renovation, Rehab, Weatherization Energy Resource Ctr. New Supply 5 Current Project Success TOEP/EPHA 6 Partnerships EPHA 7 Land Acquisition EPHA 8 Employer Collaboration TBD 9 ADU incentives TOEP/EPHA 10 Fee Incentives TOEP Funding and Policy 11 Program Development for Local Sources TOEP 12 Leverage Outside Sources TOEP/EPHA 13 Development Code Updates TOEP Community Engagement and Client Support 14 Home Purchase Assistance EPHA 15 Rent Assistance EPHA 16 Equity and Inclusion TOEP/EPHA 17 Education, outreach, and housing hub TOEP/EPHA Organizational Capacity Building 18 Increase staff TOEP/EPHA 19 Systems development TOEP/EPHA ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 5 Preservation Strategies. For the overall community housing strategy to be successful, retaining and improving the current inventory of housing that supports the local workforce must go hand in hand with creating new opportunities. Four preservation strategies are recommended for the Estes Valley: property acquisition, deed restriction purchase, recapitalizing current affordable properties, and increasing weatherization and renovation of individual homes and apartments. 1. Existing Property Acquisition. Purchase existing structures to house the local workforce. Preserving housing resources that are currently occupied by the local workforce but might be at risk of converting to a different use should be a top priority. Some of these properties may be in need of significant maintenance and capital improvements, which can be addressed immediately or over time, depending on the situation. This strategy can be implemented by committing staff time to understanding what properties are on the market, and approaching owners of properties that may not be listed at this time. It also requires ability to move quickly through due diligence and have access to the necessary funding sources to close on a purchase. Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park (funding) Local Funding Needed Varies, depending on acquisition opportunities; estimated to be 10-50% of acquisition price. Staff Time Needed about .25 FTE Five Year Goal 100 units preserved and enhanced 2. Review Housing Authority Portfolio and Recapitalize Existing Property. Estes Park Housing Authority currently has 209 rental units under management, most of which are over 20 years old. These are vital workforce and senior housing assets, some of which need to be considered for capital improvements and/or repositioning in the market. Lone Tree Village, which was built 23 years ago through the Low Income Housing Tax Credit (LIHTC) program, is particularly in need of capital improvement. Positioning the EPHA portfolio for long term sustainability will be a time and resource intensive process, and has the potential to pull EPHA staff away from other central strategies of this plan. For EPHA to serve as a primary implementor of this Housing Action Plan, staffing resources for the current portfolio and these new initiatives will be essential. Also consider adding new housing as part of recapitalization efforts, if sites have underutilized land within or adjacent. Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park (funding), CHFA (funding), CDOH (funding), Renovation construction (private sector) Local Funding Needed Early estimate for recapitalization of Lone Tree Village estimated $6.2 million; it is likely a significant portion of this could be raised from sources outside the local community such as debt and tax credits. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 6 Staff Time Needed about 1 FTE, depending on the level of temporary resident relocation and how much work is done in house versus contracted out Five Year Goal Full asset management and capital needs assessments conducted on the EPHA portfolio, and at least 57 units preserved and enhanced 3. Deed Restrictions Incentive and/or Buy Down Program. 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. Some communities have also used this tool to preserve inventory that is currently owned or leased by local workforce in place (in other words, only the deed restriction is purchased, the property remains with the current owner). Vail InDeed in Vail, Housing Helps in Summit, and Good Deed in the Gunnison Valley are examples. Another variation of this tool is a “buy down,” where a public or non-profit entity purchases homes and resells them at a lower price with a deed restriction in place. A specific formula for limiting appreciation could create a balance between wealth building, housing stability, and being attainable in the long term for future workforce households. Eligibility could be based on local employment, and income and asset tests of the buyer. Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park (funding), private property owners Local Funding Needed Estimated to be 15-20% the property value based on other communities' experience. Staff Time Needed about .5 FTE Five Year Goal 20-30 units preserved and enhanced 4. Renovation, Rehabilitation, and Weatherization. The housing inventory in the Estes Valley is old (over half of homes built before 1980). Escalating maintenance and utility costs can erode affordability, and put housing further out of reach for the local workforce. Investing in and enhancing the programs such as weatherization and revolving loans for health and safety improvements that support lower income renters and owners is another important housing preservation tactic. A deed restriction or an income qualification can help to preserve the public investment. Using local funding sources can make state and federal dollars go further, provide a higher level of improvement to the home, and/or serve a more diverse range of workforce households, extending support beyond federal eligibility standards (typically 200% of federal poverty). ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 7 Lead Agency Energy Resource Center, Northern Colorado Office Partner Agencies Town of Estes Park (funding), Colorado Division of Housing (funding), local utility providers Local Funding Needed Can range from $10,000-$80,000+ per home, depending on level of improvements needed Staff Time Needed TBD – depends on level of program enrichment. 1 FTE can typically support improvements to about 8-10 homes per year. Five Year Goal Goal for units preserved and enhanced to be determined through program development Increase Housing Supply. Housing production has not kept up with job growth in the region, with particularly severe impacts to working age households. The Needs Assessment establishes that more housing is needed across a wide range of price points, tenure, size, and type (duplex, triplex, apartments, small houses, etc.). Increasing the variety of housing choices will enable households across different life phases to thrive in the Estes Valley. This includes young singles and couples, mid-career households, households with children, multigenerational households, seasonal employees, and elders who have retired from the local workforce. Housing choices and ability to move within the local market are hallmarks of a healthy housing market, and will support attracting and retaining the diverse range of employees needed in the community. Strategies for creating additional supply include: 5. Ensure Success of Current Projects in the Development Pipeline. Three projects are in the development pipeline: Prospector, Fish Hatchery, and Habitat for Humanity. These projects face strong headwinds in light of high construction costs, labor shortages and rising interest rates. The development teams working on them have invested significant time and funding to get to where they are now, but their success is not yet assured. If successful, these projects will do much to support community housing needs. Lead Agency Estes Park Housing Authority and Town of Estes Park Partner Agencies Current project development teams Funding Needed One-time gap filling funds and/or support in the form of property tax exemption Staff Time Needed Minimal Five Year Goal Current projects are constructed and occupied by 2028 6. Public Private Partnerships for New Development. The Town of Estes Park and/or Estes Park Housing Authority can partner with developers from the private or non-profit sector to construct new workforce housing in the Estes Valley. Property owned by local government or institutional employers and local funding could be leveraged for this purpose. Other incentives could include support with extending water, sewer and streets, density bonuses, fee waivers associated with the ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 8 development review process, tap fee amortization, property management, and/or other subsidies. A goal of this strategy would be to have a well-planned development pipeline that would support bringing a new development online each year. A typical development takes several years from concept to construction completion. Lead Agency Estes Park Housing Authority and Town of Estes Park Partner Agencies Private sector developers, Habitat for Humanity, other non- profit developers Funding Needed Varies, depending on development opportunities Housing created Varies, depending on development opportunities, and ability to increase production over historic levels. The five-year goal would require 60-80 new units per year. Staff Time Needed 1 FTE to support up to three projects at a time Five Year Goal 300-400 units 7. Land Acquisition. Pursue use of existing government and institutionally owned land to support housing goals, and purchase of land where workforce housing could be developed in the future. Site control of developable land is one of the most critical strategies for addressing the housing challenge in the long term. By giving a public entity site control, this strategy can help do set the strategic direction for developable land, prioritize housing as a community use, ensure good community engagement and transparent public process are part of land use decisions, and (when the land is brought to the project at low or now cost) begin to fill the gap between project costs and what local workforce households can afford. Current sites that are already under consideration for housing include Town owned parcels at Dry Gulch and Stanley Circle, and EPHA owned land at Castle Ridge. Both entities should continue to pursue development feasibility analysis and planning for these sites, in the hopes that some or all of them could be shovel ready in three-five years. Non-profit and mission driven developers such as Habitat for Humanity need additional developable lots to continue their work in the community. Estes Park Housing Authority is in a good position to act as a buyer. Land could be held by EPHA or a subsidiary of EPHA such as an LLC or Community Land Trust. Additional strategies related to land acquisition include creating an inventory of institutional and government owned land, considering land swaps between entities, and coordinating closely between government agencies with regard to where and when various streets and utilities have the opportunity to be extended. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 9 Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park Funding Needed TBD, depending on land costs and ability to leverage outside funding sources Staff Time Needed .25-.5 FTE Five Year Goal Proceed with development feasibility on three current parcels, and acquire at least three additional parcels for future housing needs. 8. Employer Housing Forum and Collaborative Effort Employers are already, of necessity, engaging in housing solutions in the community, purchasing properties and supporting employees as they search for housing. We recommend that the community increase and formalize employer engagement on housing solutions. This could take the form of an employer forum and implementation plan hosted and coordinated through the Town in close partnership the Economic Development Corporation and the Chamber of Commerce. Employers have resources that can make housing feasible: staff expertise, land, and access to funding. They also have acute needs for housing, and can benefit from dedicated housing resources for their employees. The employer forum could be an opportunity for employers to collaborate on specific sites and initiatives, and share best practices for master leasing and owning employee units. Two of the primary barriers to employers entering the employee housing arena are (1) cost and (2) reluctance to become overly involved in their employees’ lives as landlords. The Town could assist in mitigating costs, by making employers eligible for local funding or purchase of deed restricted units. The Housing Authority could mitigate landlord concerns by providing property management to employer owned or master leased homes and apartments. Lead agency Town of Estes Park Partner Agencies Estes Park Economic Development Corporation, Chamber of Commerce, EPHA, School District, County, local employers Funding Needed Approximately $20,000 for coordination role annually; employers could bring additional funding to secure housing for their employees as part of rental or purchase inventory Staff Time Needed Some time to coordinate and facilitate an employer forum and pursue the opportunities that emerge; same tasks may be employer or consultant driven, others could be supported by Town, EPHA or EPEDC. We recommend EPEDC as the convening group, with support from employers and government partners. Five Year Goal Establish numeric goal in program development to bring new employee housing units to market and have robust coordination among employers on resources and best practices. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 10 9. Incentives to Construct Accessory Dwelling Units (ADUs). The Town of Estes Park has done good work recently to allow accessory dwelling units in all zone districts. Because the cost of construction is currently prohibitive for many owners to add accessory dwelling units, the recent regulatory updates could be supported with a financial incentive program to help construction of ADUs make financial sense for homeowners. This incentive could be in the form of a direct subsidy, forgivable loan, or must-pay loan that is subordinate to the home mortgage. 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 ADU on the owner’s property. In exchange, the owner would lease the ADU to an eligible household. Short-term rentals are already disallowed in ADUs, which is a best practice for workforce housing. Limits could be placed on the amount of rent charged, and/or a local work requirement could be included, depending on how the agreement was structured. Other approaches that peer communities have explored for incentivizing ADUs include (1) providing pre-approved architectural drawings to limit design costs and make the building permit process more efficient, (2) working with offsite construction companies to create modular ADUs, and (3) working with interested homeowners to “bundle” eligible projects, so that a single contractor could create efficiencies by building several ADUs in the same neighborhood during the same building season. Lead Agency Town of Estes Park and Estes Park Housing Authority Partner Agencies Private owners, local contractors, local architect, Colorado modular factories Funding Needed: A first step will be to determine the financial gap that is prohibiting creation of ADUs, and what other tactics the community wants to deploy Staff Time Needed .25-.5 FTE Five Year Goal 50 units 10. Fee Incentives for Deed Restricted Housing. Town of Estes Park is in the process of updating fee structures, to help make all development of deed restricted housing more economically feasible by providing an incentive to cover the cost of land use, sewer, water, and building permit fees. The current staff recommendation that all deed restricted housing is eligible for this incentive, and that fees can be amortized over 10 years with support from Town is a strong signal of Town’s policy priority for workforce housing. To support the integrity of the fee enterprises, these costs will need to be covered by the Workforce Housing Fund. The strategy recommendation is to move forward with workforce housing fund updates and adoption of the revised recommendations in 2023. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 11 Lead Agency Town of Estes Park Partner Agencies n/a Funding Needed Will vary depending upon developer interest, cost to construct, type of units, and desired affordability for sale or rent. Many communities are experiencing the need to bring over $100,000/unit to achieve attainable prices for local workers. Staff Time Needed Less than .25 FTE for initial program creation and ongoing support; may be co-located with land use related tasks. Five Year Goal Unknown – will depend on market activity Funding and Policy. The Town of Estes Park will typically be the lead agency with regard to policy and funding initiatives. The following three strategies are recommended to commence in 2023. 11. Program Development for Local Dedicated Funding. In recent years, Estes Park has had limited local funding to invest in workforce housing. However, the recent successful ballot measure for 3.5% lodging tax increment means the community will have an estimated $5 million annually to invest in workforce housing and childcare. This substantial increase in local dedicated funding sets the stage for a new era of investment in some of the community’s most pressing issues. This funding is essential to many of the strategies in this document. Setting up predictable and transparent processes now for how the funding will be deployed will help to create effective processes going forward, building confidence for tax payers and implementation partners. Town staff are in the process of creating an operating plan for the new funding source, and amending the workforce and affordable housing guidelines to scale to these new opportunities. As this work continues, considerations should include:  How often and how much funding will be available in a competitive format for local housing projects and programs? What are the criteria to be eligible for local housing funds (incomes served, percentage of deed restricted units, etc.)?  Who will make decisions regarding funding priorities and amounts? An approach that includes decision-makers from the Town and Housing Authority with input from local stakeholders and community members may be helpful.  What funding is set aside for EPHA on an annual basis, and what agreements are needed to ensure funds are used as intended while still giving EPHA enough autonomy to move quickly and adapt to changing market conditions? Can a block of funds be provided that allows EPHA to act quickly, without returning to Town Board for specific approval, provided the use of funds aligns with Town policy? Town’s current procurement threshold is $100,000, which is quite limited in the realm of real estate transactions, partnerships, and land acquisitions. The ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 12 consultant team recommends setting higher limits, with clear guidelines and accountability.  How does the funding process and program oversight integrate into existing financial systems and protocols at the Town, such as annual budget process, audit, and day to day bookkeeping? Town leadership should conduct program development to move forward with clear intention, structure, and accountability with the new dedicated funding for housing. Lead Agency Town of Estes Park Partner Agencies Estes Park Housing Authority Funding Needed staff time only Staff Time Needed .25 FTE to support administration of the housing fund; additional support from Town leadership for review and decision of funding requests Five Year Goal Reliable, transparent, and predictable funding approach in place; strong taxpayer confidence and perception of fairness in how are invested 12. Use Local Funds to Leverage Investments from Outside the Community. We are in a time of abundance in funding for housing in Colorado. Estes Park has the opportunity to draw in resources from outside sources including the state, federal government, and philanthropy to support the community’s housing goals. These funding sources can be used strategically to preserve local funding for where it is most needed. Close coordination between Town of Estes Park and EPHA will ensure that funding opportunities are coordinated, and the most appropriate entity takes the lead. Lead Agency Town of Estes Park and EPHA, depending on the nature of the funding and project specifics Partner Agencies Colorado Division of Housing and Dept of Local Affairs, Colorado Office of Economic Development and International Trade, Colorado Housing and Finance Authority, banks, Community Development Financial Institutions, foundations Funding Needed Local match or leverage amount will vary Staff Time Needed This duty could be included within the job description of Town of Estes Park Housing Manager, and one staff member at EPHA (likely a Development Project Manager, Deputy Director, or Executive Director) Five Year Goal Estes Park has attracted new LIHTC allocations, and significant investments from state, federal, and philanthropic agencies to support housing goals. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 13 13. Development Code Updates. Town of Estes Park is in the process of adopting a new Comprehensive Plan, Estes Forward, that provides an action-oriented road map for the valley for the next 10-20 years, including a framework for the built environment and housing (in addition to other policy areas).1 To align with the Comp Plan and achieve the goals of this Housing Strategy, the community needs more land that is zoned appropriately. The Town is embarking on a land use code to create better alignment with the Comp Plan goals. The ways in which code supports or detracts from housing affordability should be considered at each step in this process. For example, more land that is zoned to accommodate “missing middle” forms of housing such as duplexes, triplexes, small cottages, shared living, townhouses, and attached housing with 4-16 residences in a building. Opportunities for using land more efficiently, and doing compact, higher intensity residential development are imperative for meeting the Estes Valley long-term housing needs and preventing rural sprawl. Having these zoning options in place will align with the community vision and make attainable housing more feasible, both for rent and for sale. A missing middle strategy that honors the community character and historic development patterns could be created, for example allowing duplexes, triplexes and cabin clusters in some areas, and higher intensity multi-family in others. This strategy should look at solutions that are informed by the history and context of the community, so the community can achieve density that is efficient and in scale with nearby uses. Town of Estes Park should embark on a missing middle code update as soon as possible. Vacation rentals have been studied extensively in the Town of Estes Park. The consultant team supports continuing to cap vacation rental licenses, disallow them in ADUs and deed restricted housing. Lead Agency Town of Estes Park Partner Agencies Community stakeholders TBD Staff Time Needed Task of current Community Development staff, with outside consultant Funding Needed Approximately $50,000 for consultant; staff time will be needed too, and may be extensive, depending on outreach strategies Five Year Goal Complete a missing middle code update by 2024 1 https://estespark.colorado.gov/comprehensiveplan ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 14 Community Engagement and Client Support. Four strategies are recommended to support local workforce in a direct, immediate way, and one strategy is offered as a long-term investment community engagement and understanding of housing efforts. While these investments do not contribute to the long-term inventory of workforce housing, they can provide vital assistance in near term, helping to bridge the gap between the current housing crunch and strategies that take years to implement. 14. Home Purchase Assistance. As interest rates rise, household’s purchasing power is being eroded. Downpayment assistance, assistance with closing costs, and access to competitive (or below market) interest rate loans is increasingly important. Existing down payment assistance programs offered through EPHA and Larimer County could be bolstered and better funded. Interest rate buy-down programs are another option for home purchase assistance and typically provide discounted interest rates for the first year or two of ownership for qualified buyers. 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 a public entity to act as a cash buyer on behalf of an eligible household or in its own interest to acquire a property, which would then be resold to the eligible (conventionally financed) household, repaying the cash outlay made by the public entity. In exchange, a deed restriction would be placed on the property to preserve the investment for workforce households in the long term. This strategy is closely linked with a Deed Restriction Buy-down, described in the Preservation section, and the two strategies should be developed and administered in parallel. Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park Staff Time Needed .5 FTE, or more, depending on scale of the program Annual Funding Needed $400,000 - $1,200,000 Five Year Goal Support 5-10 transactions per year 15. Rental Assistance. 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. 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 (for qualified renters) through direct subsidies to landlords. A deed- or income-restriction may be appropriate for program participation. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 15 Winter Park’s Short Term Fix program provides an example of matching employers and employees with willing owners of previously vacant or short term rented homes and incentivizing long term leases. Lead Agency Estes Park Housing Authority Partner Agencies Town of Estes Park Staff Time Needed .25 FTE, or more, depending on scale of the program Annual Funding Needed $100,000-$200,000 Five Year Goal Support 10-20 rentals annually 16. Equity and Inclusion. Keep support for Hispanic community and other groups disproportionately impacted by residential displacement and affordability challenges at the forefront of each housing effort. These households are experiencing long-term stress, reduced health outcomes, and negative impacts across all life indicators related to lack of access to stable housing. Correcting these inequities not only supports the households impacted but strengthens the overall community and economy. Key strategies to promoting equity in housing include:  Make zoning and land use decisions in a way that supports local workforce and minimizes residential displacement of permanent residents.  Ensure that new housing prioritizes people within the community who may be displaced by redevelopment or rising costs.  Invite and educate diverse populations on new initiatives, developments, and other engagement events. Listen and incorporate the feedback provided from these groups.  Ensure that all materials and information is available in English and Spanish, and that inclusive language is being used.  Seek opportunities to make housing accessible to households where members have documentation challenges. This can include how eligibility is defined for rental housing and advocating for alternative mortgage finance solutions on for- sale housing. Some below market housing has requirements for lawful presence tied to the way it was funded. Be strategic in the using housing inventory and unrestricted funds to create opportunities for households where some members may not be documented. These households are often long-time, vital contributors to the local economy, and have faced some of the greatest housing instability including frequent moves, poor quality, overcrowding, and rapidly rising rents.  Make housing investments in coordination with transportation, childcare, and other community infrastructure that positively impacts cost of living and households’ ability to thrive. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 16 Lead Agency Town of Estes Park and EPHA should take joint responsibility Partner Agencies Resident advocacy groups, local non-profits, County Human Services Funding Needed TBD Staff Time Needed Staff time will vary depending on the initiative. Five Year Goal Diversity and inclusion has increased within the leadership of housing efforts, community engagement processes, and in the households receiving rental and homeownership support through the initiatives of this plan 17. Community Engagement, Education, and Outreach Hub. A common refrain in high cost, mountain communities is “nobody is doing anything on housing” when in fact, many efforts are underway. We recommend that Estes Park be proactive in sharing success stories, progress, and project updates, and creating touch points for members of the community to stay informed, engaged, and provide feedback. Housing is a complex topic, and growing community engagement and increasing the diversity of people who understand the issues and strategies will strengthen the community’s ability to be successful over time. A basic first step is a “one stop shop” website with housing resources and information for people seeking housing and interested in understanding current programs and opportunities, and an online portal for housing applications. Valley Home Store in Eagle County has a strong example of an online portal for applications. Other community engagement and outreach efforts include open houses, working groups and advisory boards, design workshops, engagement with school age children, listening tours and presentations to civic groups. These actions don’t have to happen immediately but should be woven into the development and feedback loop for all projects and programs proposed in this action plan. Lead Agency Town of Estes Park and EPHA for their respective projects and initiatives, and in close coordination with each other Partner Agencies TBD Funding Needed TBD Staff Time Needed .25. Tasks such as a one stop shop website would have a single point of contact. Other tasks could be led by staff members responsible for specific programs or initiatives. Some communities, such as Leadville, have a dedicated staff person in this role. Five Year Goal Up to date and user friendly “one stop shop” is operational ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 17 Organizational Capacity Building. This housing action plan and the new funding provided through the lodging tax increment represent a tremendous opportunity and set ambitious goals for improving Estes Park’s community and economy through new housing. For the community to move from status quo to proactively addressing housing needs and gaps, a significant increase in staff capacity and organizational systems will be needed. 18. Increase Staffing at Town and EPHA. Current strengths for Town of Estes Park are its land use and planning team, transparent governance, and strong executive leadership. To implement the housing initiatives of this action plan, a full-time staff person dedicated to workforce and affordable housing is needed. The primary tasks for this position would include managing the program development and allocation of local funding sources, applying for and managing grants and loans from outside funders, acting as a collaborative partner and liaison to the housing authority, and supporting the land use team on incentives for below market housing and missing middle housing strategy. Similarly, EPHA has strengths in the areas of Board expertise, property management, and a recent internal promotion of a knowledgeable and experienced Executive Director. To implement this housing action plan, EPHA will need to add at least two staff positions. The consultant team recommends funding and hiring a real estate development director position and an asset and eligibility manager position. Some of the programs and responsibilities of this plan could be housed with either position, depending on the qualifications and capacity of the candidates, but an initial recommendation is depicted here. EPHA should ensure that someone on staff has a real estate brokers license, to support managing deed restricted purchase and sale transactions. This could be the Asset and Eligibility Manager position, or other. Over the next five years, as programs, projects, and resources grow, additional staff in supporting roles may also be needed. Lead Agency Town of Estes Park and EPHA for their respective hires Partner Agencies TBD Funding Needed $320,000 - $400,000 Staff Time Needed Creating job descriptions, requisitions, and conducting the hiring process can be covered by current Town and HA staff. Both agencies should act in an advisory role on the hiring for the other agency’s staff, as these staff members will need to work very closely together and have complimentary skills. Goal Hire at least three staff members in 2023 19. Systems Development. Taking the time to put good systems in place now will help ease management and increase public confidence going forward. Program development for the dedicated funding is covered above. Other important areas of ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES STRATEGIC PLAN, PAGE 18 systems development are a good database for property management, a comprehensive, centralized system for deed restriction tracking and compliance. Lead Agency Town of Estes Park and EPHA for their respective system areas Partner Agencies TBD Funding Needed TBD Staff Time Needed Will vary over time, assign within duties of recommended new hires and current leadership Five Year Goal Tracking and compliance systems are in place, creating confidence in the stewardship of local funding and fair access to the housing resources created. Systems are robust and able to withstand changes in staffing and political leadership. HOUSING NEEDS ASSESSMENT SECTION I. DEMOGRAPHIC PROFILE ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 1 SECTION I. Demographic Profile This section provides an overview of the Estes Valley demographic environment to set the context for the housing needs assessment and strategic plan. The section includes discussion of population, households, and income trends. This report focuses on the Estes Valley and Town of Estes Park. Wherever possible, data for the Estes Park School District is used to represent the Estes Valley. For context, some Estes Valley trends are compared to those from the surrounding Poudre (Ft. Collins), St. Vrain Valley (Longmont), and Thompson (Loveland) school districts where the bulk of the commuters into the Estes Valley live. The Estes Park School District is also the geographic area that has been used in past housing needs assessments. Figure I-1. Geographic Area of Analysis Source: Root Policy Research. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 2 Key findings  The population of the Estes Valley was about the same in 2020 as it was in 2010, but the Valley was not without change. According to the population estimates from the Colorado State Demography Office, the population in the Town of Estes Park grew from 5,865 in 2010 to 6,777 in 2016; but then fell back to 5,886 in 2020. The pandemic years since the 2020 Census have been dynamic and the long-term impact has yet to settle out. However, the most recent available data, such as school district enrollment, supports the trends identified by the Census and indicates that the Census still provides a strong foundation for understanding the needs of the community.  While the overall population did not change much from 2010 to 2020, there was a significant shift toward an older demographic. The portion of the population age 65 or older grew from 25% in 2010 to 31% in 2020. At the same time, the portion of the population age 17 or younger shrunk from 15% to 11%.  Only about 13% of Estes Valley households have children under the age of 18— substantially lower than the broader region and other communities in Larimer County. Meanwhile 45% of Estes Valley households are married couples without children living in the household and another 32% are single person households.  Households with children tend to be lower income ($35,000-$50,000) or higher income ($100,000 or more) with few households in the very low- or middle-income ranges. Population The Estes population was about the same in 2020 as it was in 2010. However, estimated population has not been flat. The community experienced relatively rapid growth from 2010 to 2016 followed by a mirrored decline from 2016 to 2020. At the peak of the mid-decade growth, the Town of Estes Park had grown 16% in 6 years from 5,865 in 2010 to 6,777 in 2016. By 2020, the population had returned to 5,886 – essentially where it was in 2010. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 3 Figure I-2. Population, Estes Valley, 2000-2030 Source: Colorado DOLA State Demography Office, ACS 5-year estimates, and OPS Strategies. The Town of Estes accounts for about half of the Estes Valley population. Long-term growth trends project that the Estes Valley will have a population of about 12,600 in 2030, up from about 11,900 in 2020. For context, while the Estes Valley grew 2% from 2010 to 2020, the Estes Valley’s neighbors all grew at a rate of about 2% per year over the past decade. Figure I-3. Population and Population Change by Jurisdiction, 2010- 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 2010 and 2020 Census. Age. The Estes Valley has one of the oldest populations in the state. Over 30% of the residents of the Estes Valley and over 40% of the residents of the Town of Estes Park are age 65 or older. At the same time, less than 3% of the Estes Valley population is under the age of 5 and only 8% of the population is school aged. The share of the population aged 18- 34 years is also well below state and regional proportions. That the Estes Valley School District as a whole has more children and fewer residents age 65 and older indicates that families are more likely to live in the unincorporated areas of the Estes Valley than in Town. Jurisdication 2010 2020 % Change Estes Valley 11,493 11,761 2.3% Town of Estes Park 5,858 5,904 0.8% Share of Valley 51% 50% -0.8% Fort Collins 184,648 221,002 20% Longmont 151,981 191,402 26% Loveland 104,236 127,220 22% Larimer County 299,630 359,066 20% ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 4 Figure I-4. Age Distribution by Jurisdiction, 2020. Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts Source: 2020 ACS 5-year estimates. Not only is the 65 and older cohort especially large, it is also growing especially fast. Meanwhile the number of children is shrinking. The 15% decrease in the estimated population age 5 to 17 years is corroborated by the 12% decrease in school district enrollment seen over the past 10 years. Figure I-5 indicates that while the overall population is about the same as it was in 2010 there has been a significant shift within the population toward an older demographic. Figure I-5. Age Trends, Estes Valley, 2010 and 2020. Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts Source: 2010 Census, 2020 ACS 5-year estimate, OPS Strategies. Race and Ethnicity. The Estes Valley population is 84% non-Hispanic white. Another 10% of the population is Hispanic. The Town of Estes Park has a greater proportion of Hispanic population (15%) than the unincorporated areas of the Estes Valley (5%). Age Cohort Number Number Under 5 years 462 4% 385 3% -17% 5 to 17 years 1,311 11% 1,116 8% -15% 18 to 34 years 1,637 14% 1,990 15% 22% 35 to 64 years 5,226 45% 5,854 43% 12% 65 years and older 2,857 25% 4,255 31% 49% 2010 2020 % Change 2010-2020Percent Percent ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 5 Figure I-6. Distribution of Race/Ethnicity by Jurisdiction, 2020. Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts Source: Census. While the Town of Estes Park has racial/ethnic diversity consistent with the region, the unincorporated areas of the Estes Valley are disproportionately non-Hispanic white compared to the region as a whole. Education Attainment. Over half of the residents of the Estes Valley have at least a bachelor’s degree. This level of education attainment is similar to that of the college town of Fort Collins and significantly greater than the other neighboring communities. Figure I-7. Distribution of Educational Attainment by Jurisdiction, 2020. Note: For population 25 years and older. Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts Source: 2020 ACS 5-year estimates. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 6 Households In 2020 there were 5,359 households in the Estes Valley, of which 2,791 lived in the Town of Estes Park. Household Composition. The most common household type in the Estes Valley is a married couple without children, which accounts for 45% of households. The next most common household type is a person living alone, which accounts for another 32% of households. Households with children account for 13% of households. Figure I-8. Household Type, Estes Valley, 2010 and 2020. Note: 2020 household numbers are a function of ACS percentages applied to Census household count Source: 2010 and 2020 Census, 2020 ACS 5-year estimates, OPS Strategies. Consistent with the demographic trends, the significant shifts in household type from 2010 to 2020 are a decrease in the share of households with children and an increase in the share of households that are single person age 65 or older living alone. However, these shifts are slight and the overall household type distribution has not changed significantly in the past ten years. Number Number Total households 5,365 5,359 Married Couples 3,031 56% 2,999 56% With children under 18 708 13% 579 11% Without children under 18 2,323 43% 2,420 45% Male householder, no spouse 127 2% 163 3% With children under 18 72 1% 31 1% Without children under 18 55 1% 132 2% Female householder, no spouse 245 5% 187 3% With children under 18 136 3% 99 2% Without children under 18 109 2% 89 2% Non-family households 1,962 37% 2,009 37% Householder living alone less than 65 992 18% 911 17% Householder living alone 65 and over 693 13% 782 15% Other non-family households 277 5% 316 6% 2010 2020 % Total Households % Total Households ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 7 Figure I-9. Household Composition, by Jurisdiction, 2020. Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts Source: 2020 ACS 5-year estimates. Compared to the region, the small proportion of married couples with children and large proportion of single person households in the Estes Valley jump off of the page. Especially within the Town of Estes Park there is a very small percentage of units occupied by families. While 32% of Estes Valley households are a person living alone (36% in the Town of Estes Park), the regional average is only 24%. Household Size. The household composition of the Estes Valley results in a small household size—2.0 people per household on average. The average household size in the Town of Estes Park is slightly smaller than it is in unincorporated Estes Valley, and Estes Valley households are smaller than the region as a whole because of the greater number of one and two person households in the Estes Valley. Figure I-10. Household Size, by Jurisdiction and Tenure, 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 2020 ACS 5-year estimates. Owner households are slightly larger than renter households in the Estes Valley and the region. The average household size in the Estes Valley has changed very little since 2010. Jurisdication Estes Valley 2.0 2.1 1.9 Town of Estes Park 1.9 2.0 1.7 Fort Collins 2.6 2.7 2.4 Longmont 2.8 2.8 2.6 Loveland 2.6 2.7 2.4 Renter Households Tenure Overall Owner Households ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 8 Income and Poverty This section examines household and family income in the Estes Valley, as well as the prevalence of poverty among area residents. Household income. As shown in Figure I-11, the median household income in the Estes Valley grew 27%, or about $15,600 from 2010 to 2020. This growth was more rapid in the last half of the decade than the first. However, income grew more for owners than renters and more for residents of unincorporated Estes Valley than the Town of Estes Park. Figure I-11. Median Household Income, by Jurisdiction and Tenure, 2010-2020. Note: Nominal dollars. Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 2010 and 2020 ACS 5- year estimates, OPS Strategies. The median income of Estes Valley owners grew $23,300 from 2010 to 2020 compared to an increase of just $664 for Estes Valley renters. Median income for renters in the Town of Estes Park grew more than for the renters in unincorporated Estes Valley, but overall Town of Estes Park incomes grew only $2,150 compared to $15,600 for the Estes Valley as a whole. The difference in median income between the Town of Estes Park and the rest of the Estes Valley appears to have occurred in the past five years. While median incomes in the Estes Jurisdiction 2010 2020 Overall Estes Valley $58,522 $74,119 $15,597 27% Town of Estes Park $52,778 $54,925 $2,147 4% Fort Collins $52,791 $73,881 $21,090 40% Longmont $67,271 $90,307 $23,036 34% Loveland $61,212 $80,688 $19,476 32% Owners Estes Valley $68,750 $92,050 $23,300 34% Town of Estes Park $69,866 $82,222 $12,356 18% Fort Collins $75,032 $97,972 $22,940 31% Longmont $82,071 $105,651 $23,580 29% Loveland $73,473 $91,217 $17,744 24% Renters Estes Valley $32,476 $33,140 $664 2% Town of Estes Park $27,350 $30,766 $3,416 12% Fort Collins $28,731 $44,386 $15,655 54% Longmont $37,065 $55,428 $18,363 50% Loveland $35,157 $50,957 $15,800 45% Growth Number Percent ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 9 Valley and region were growing rapidly from 2015 to 2020, incomes in the Town of Estes Park remained at the same levels they have been since 2010. Income distribution. Figure I-12 shows the income thresholds typically used to evaluate income qualifications for various housing programs, based on the Larimer County area median income (AMI). AMI is defined annually by HUD market studies. The figure provides AMI ranges for a 4-person household and the housing types that typically serve the households in the AMI range. Figure I-12. Income Thresholds and Target Housing Note: MFI = HUD Median Family Income, 2-person household. Source: OPS Strategies and HUD income limits. The income limits for HUD programming are calculated for Larimer County and therefore driven by Fort Collins data. Still, the HUD data remains useful in the Estes Valley because the income distribution of the Estes Valley is quite like that of Fort Collins. Longmont is the outlier in the region with the highest median income in the region, and also the fewest households in the lower income ranges. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 10 Figure I-13. Income Distribution by Jurisdiction, 2020. Source: 2020 ACS 5-year estimates, OPS Strategies While the income limits for HUD programming is calculated based on a family of four, not all households are families of four. As discussed above, 37% of Estes Valley households are not families, and the average size of an Estes Valley household is only 2.0 people. Figure I- 13 shows the distribution of income by household type. Figure I-14. Income Distribution by Household Composition, Estes Valley, 2020. Source: 2020 ACS 5-year estimates, OPS Strategies The lowest income households tend to be those without children; there are no families with children in either of the two lowest income ranges representing “extremely low” and ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION I, PAGE 11 “very low” income. Families with children (which account for less than 20% of Estes Valley households) tend to fall in either the $35,000-$50,000 “low income” range or the higher income ranges above 120% AMI. The majority (56%) of lower income households are nonfamily households. We know that about 85% of nonfamily households are single occupant households, which explains the lower incomes. Married couples with no children are the household type with the greatest proportion of middle income households and they make up 64% of all middle income households. Married couples with no children also make up 55% of higher income households. Poverty. According to 2020 ACS data, 7.5% of the Estes Valley population lives below poverty level.1 1 Poverty lines vary by size of household. For 2020 the poverty line is $12,760 for a 1-person household, $17,240 for a 2- person household, $21,720 for a 3-person household, and $26,200 for a 4-person household. HOUSING NEEDS ASSESSMENT SECTION II. EMPLOYMENT PROFILE ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 1 SECTION II. Employment Profile This section describes the economic conditions of the Estes Valley, through the lens of jobs and workers. This analysis provides additional context for the housing needs of workers in the Valley. Key findings  Unlike population growth, job growth in the Estes Valley has kept up with job growth in the larger region. Jobs grew at 2.1% annually from 2015-2019 are projected to resume a 1.4% annual growth rate post-pandemic.  The three lowest paying sectors of the economy (accommodation and food service; arts, entertainment, and recreation; and retail sales), which are all tourism driven industries, account for 54% of jobs in the Estes Valley. By contrast, the three highest paying sectors account for just 6% of jobs.  51% of annual taxable sales occur in just 4 months—June through September. Sales are growing faster in the off months than the peak months but in the summer only about half of jobs are year-round jobs. Jobs There were about 7,940 jobs in the Estes Valley in 2021,1 a 370 job increase over the 7,570 job projection calculated for the 2016 Housing Needs Assessment. From 2015 to 2019, jobs in the Estes Valley grew at about 2.1% annually, which was at the low end of the 1.9%-3.2% job growth rate projected in the 2016 Housing Needs Assessment. The COVID-19 pandemic interrupted that growth but jobs rebounded to nearly 2019 levels in 2021. Figure II-1 shows job trends in Estes Park and the Estes Valley from 2010 to 2021 along with projections through 2030. 1 Jobs were estimated by looking at a combination of the US Census Bureau’s Longitudinal Employer-Household Dynamics (LEHD) and the US Bureau of Economic Analysis (BEA) ratio of proprietors. The LEHD count of all jobs in the Estes Valley was divided by 0.88 which is a typical LEHD adjustment needed in communities with seasonal service economies and then divided by 0.73 which is the portion of the Larimer County job count attributable to non- proprietors. This estimate approximates the estimate in the 2016 Housing Needs Assessment that was based on zip code level Bureau of Labor Statistics data that was not available. To estimate the 2020 and 2021 job counts, Rocky Mountain National Park visitation trends were applied to the 2019 jobs estimate. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 2 Figure II-1. Jobs, Estes Valley, 2010-2030 Source: LEHD, QCEW, BEA, Rocky Mountain National Park, Colorado DOLA State Demography Office, OPS Strategies. The job growth that occurred from 2010 to 2019 happened primarily in the Town of Estes Park. In the unincorporated Estes Valley job counts were about the same in 2019 as they were in 2010. As a result, about 71% of jobs in the Estes Valley are in the Town of Estes Park. Figure II-2. Job Growth, by Jurisdiction, 2015-2019 Note: Projected 1.4% growth rate is applied to 2019 job estimate to adjust for pandemic effects. Source: LEHD, QCEW, BEA, OPS Strategies The Colorado State Demography Office projects 1.4% job growth for Larimer County. That level of growth would result in about 9,720 jobs in the Estes Valley in 2030 – an increase of about 1,790 jobs over what is currently estimated to exist. Unlike population growth, job growth in the Estes Valley has kept up with job growth in the larger region. The Estes Valley’s visitor-based economy is accessible to the entire region and therefore its economic growth is somewhat independent from local population and housing growth. Annual Growth Rate Jurisdication 2015 2019 2030 2015-2019 Estes Valley 7,701 8,359 9,723 2.1% 1.4% Town of Estes Park 5,266 5,962 6,935 3.2% Larimer County 189,894 213,271 248,062 2.9% 1.4% 2019-2030 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 3 Wages and Jobs by Sector. Over 35% of Estes Valley jobs are in accommodations and food service—the lowest paying sector in Larimer County in 2021. In addition, 8% of jobs are in arts, entertainment, and recreation—the second lowest paying sector; and 11% of jobs are in retail—the third lowest paying sector in Larimer County. Combined, the three lowest paying sectors of the economy, which are all tourism driven industries, account for 54% of jobs in the Estes Valley. The three highest paying sectors—management of companies, professional services, and finance and insurance—account for just 6% of jobs. Figure II-3. Job Distribution and Wages, by Sector, Estes Valley, 2010-2030 Note: Only industries with over a 1% job share in the Estes Valley are shown. Wages by industry are for Larimer County. Source: LEHD, QCEW, BEA, OPS Strategies. By comparison, accommodations and food service account for just 10% of jobs in the Fort Collins area, 9% in Longmont, and 11% in Loveland. Similarly, arts, entertainment, and recreation account for 2%, 1%, and 2% of jobs respectively in the neighboring areas. The high concentration of jobs in the lowest paying sectors is a common characteristic of a tourism-based economy like that found in Estes Park. The Estes Valley economy also has a large gap between the management occupations and other occupations within the sectors. Figure II-4 shows the occupational distribution and median earnings by jurisdiction, based on 2020 ACS estimates. While the Estes Valley occupational distribution is similar to those in neighboring districts, the Estes Valley management earnings are 176% of the overall median, compared to 136%- 148% in Loveland and Fort Collins. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 4 Figure II-4. Job Distribution and Wages, by Sector, Estes Valley, 2010-2030 Note: Civilian employed population over 16 years with earnings Source: 2020 5-year ACS, OPS Strategies. Seasonality. Also characteristic of a tourism-based economy is seasonality. About 51% of taxable sales in Estes Park in 2021 occurred in June through December. This concentration of economic activity in the summer months is about the same as it was in 2016. Figure II-5. Taxable Sales, Town of Estes Park, 2016 - 2021 Note: Taxable sales excludes food sales not for immediate consumption and other items. Gray lines show years between 2016 and 2021 Source: Town of Estes Park, OPS Strategies. Occupational Distribution 45% 37% 48% 45% 41% Service 17% 24% 18% 15% 15% Sales and office 22% 25% 19% 20% 22% Natural resources, construction and maintence 9% 6% 7% 8% 10% Production, transportation, and material moving 6% 7% 8% 11% 12% Median Earnings $41,239 $33,301 $36,491 $46,029 $42,752 $72,650 $73,774 $53,949 $70,147 $58,307 Service $21,540 $17,784 $17,880 $22,047 $21,582 Sales and office $32,965 $25,179 $28,213 $36,350 $34,480 Natural resources, construction and maintence $26,780 $42,083 $39,521 $42,483 $47,192 Production, transportation, and material moving $33,214 $26,755 $29,268 $32,847 $40,486 Management, business, and financial Management, business, and financial Estes Valley Town of Estes Park Fort Collins Longmont Loveland ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 5 The 2016 Housing Needs Assessment found that about 52% of jobs in in the summer are seasonal. Because of the similarity in the seasonality of the economic activity and because some of the data available in 2016 was not available in 2022, Figure II-6 carries forward that relationship to estimate the year-round and seasonal jobs in the Estes Valley. Only about 60% of jobs in the Estes Valley are year-round. However, the taxable sales data does indicate movement toward a more year-round economy. Taxable sales grew 7-8% per year for the months of June through September. For the other eight months annual growth was between 11% and 13%. The peak months are still far ahead of the off months, but if recent trends hold a greater percentage of job growth will be in year-round jobs, which will have impacts on the types of housing needed. Figure II-6. Jobs by Seasonality, Estes Valley, 2015 and 2021 Source: 2016 Housing Needs Assessment, OPS Strategies. Rocky Mountain National Park Visitation and Unfilled Jobs. Rocky Mountain National Park saw extreme growth in visitation from 3.4 million visitors in 2014 to 4.4 million visitors in 2017. Figure II-7. Rocky Mountain National Park Visitation, 2000 to 2021 Source: Rocky Mountain National Park, OPS Strategies. Number 2020 Annual Average 7,570 7,940 Summer 9,640 127% 10,110 Yearround jobs 4,630 61% 4,860 Summer seasonal jobs 5,010 66% 5,250 Winter 5,510 73% 5,780 Yearround jobs 4,630 61% 4,860 Winter seasonal jobs 880 12% 920 % of Annual Average 2015 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 6 In periods of more stable visitation numbers, the ratio of Rocky Mountain National Park visits to Estes Valley jobs is remarkably consistent. However, in periods of rapid visitation job growth lags as it takes longer for employers and employees to respond to the increased demand. This lag was reported as 480 unfilled jobs in the 2016 Housing Needs Assessment. While visitation growth stabilized after 2017, the COVID-19 pandemic and other national factors have made it harder for jobs to stabilize back to the baseline ratio. Figure II-8. RMNP Visitation and Estes Valley Jobs, 2000 to 2021 Note: 2015 Employer Survey estimated 480 unfilled jobs in 2015. Source: Rocky Mountain National Park, OPS Strategies. By comparing the ratio of Rocky Mountain National Park visitation to jobs for a given year to the baseline expected ratio we can estimate the number of unfilled jobs in the economy. The 2015 ratio indicated about 560 unfilled jobs, similar enough to the 480 unfilled jobs identified in the 2015 employer survey that the methodology can be used to understand any changes since 2015. In 2021, the ratio indicates there are 740 unfilled jobs in the Estes Valley, a 30% increase. The unfilled jobs estimate could also be read at the extent of the post-pandemic shift in jobs per visitor indicative of an overall shift in the service economy. The long-term recovery of the service sector on a national scale remains to be seen, but if it does trend back toward where it was in 2010 it will mean even greater job growth that projected. Rocky Mountain National Park Visitation 3,185,392 2,955,821 4,155,916 4,434,848 Estes Valley Jobs 6,499 6,042 7,571 7,938 Jobs to Visitation Ratio 0.0020403 0.00204 0.00182 0.00179 Unfilled Jobs Estimate 558 737 2000 2010 2015 2021 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 7 Employees While jobs are the common unit of economic measurement and projection, converting job projections housing need requires understanding who is working those jobs. Jobs per Employee. Employees in seasonal service economies often hold multiple jobs. Available data on year-round employees in the Estes Valley indicates that jobs per year-round employee have been consistent at 1.13 jobs per employee. Seasonal employees typically have more jobs, such that the overall average jobs per employee is 1.2 (according to Estes Valley survey data). Employees per Household. In addition to employees working multiple jobs, working households typically have more than one worker. Data from the Census Bureau 2 indicates that the number of wage earners per household with earnings has remained about the same from 2010 (1.58 workers per household) to 2020 (1.54 workers per household). Median earnings and median household income data from the 2020 ACS 5- year estimates indicate that there are 1.80 earners per household and show the same stability over the recent past. Commuting. While the population of the Estes Valley is similar to what it was in 2010, jobs have grown 30%. Filling those jobs are commuters from surrounding areas. In 2019, 33% of year-round Estes employees commuted from outside of the area, an all-time high commuter percentage based on Census Bureau data. The 33% commuter percentage in 2019 is part of a long-term trend of slowly increasing commuting. Figure II-9. Percent of Workers Commuting, Estes Valley, 2005 to 2019 Source: LEHD, BEA, 2016 Housing Needs Assessment, OPS Strategies. 2 2020 ACS 5-year estimates of the percentage of the population in the labor force and percentage of household with earnings were adjusted by 2020 Census counts of population and households. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION II, PAGE 8 The most common homes for commuters are Loveland and Fort Collins, which provide about 5% of the Estes Valley workforce. The Longmont area is home to another 4% of Estes Valley workers. Closer to Estes Park, about 2% of workers live in Drake or Glen Haven. Figure II-10. Commuter Origin and Annual Cost to Commute to Estes Park Note: Assumes 5 days of commuting per week 50 weeks per year at the 2nd half 2022 milage rate of $0.625. Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: LEHD, OPS Strategies. The $11,000 annual commuting cost is about 15% of the median household income in the Estes Valley. If housing is affordable in the community where the commuter lives, and only one of multiple earners is commuting, a 15% commute cost can make financial sense. For the 35% of workers in the accommodation and food service industry, $11,000 equates to almost 45% of the average wage. In the lowest paying industries (also including retail, arts, entertainment, and recreation) that account for half of all jobs, wages do not cover the commute cost. Which means that these industries at the heart of the Estes economy need local employees. Retiring Employees. The age of the Estes Valley population also appears in its workforce numbers. About 27% of the Estes Valley labor force (1,870 people) is age 60 or older and can be expected to retire (or shift to limited work hours) in the next 5-10 years. This is up from about 1,200 employees age 60 or older in 2015.3 These older Estes Valley employees pose a challenge to the Estes Valley economy as older employees tend to have more housing security in areas of increasing home prices. When an older employee retires the person that replaces them in the workforce will be less likely to be able to afford to live in Estes Park and will have fewer housing choices if the retiring employees decide to age in place in Estes. 3 The 2015 employer survey estimated a similar 1,150 employees likely to retire in the next 5 years. Estes Valley 67% n/a n/a Loveland 5% 30 9,380$ Fort Collins 5% 41 12,810$ Longmont 4% 32 10,000$ Boulder 2% 38 11,880$ Drake/Glen Haven 2% 7-13 4,060$ Other 15% n/a n/a % of Workforce One-way Miles Annual Cost of Commute HOUSING NEEDS ASSESSMENT SECTION III. HOUSING PROFILE AND AFFORDABILITY ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 1 SECTION III. Housing Profile & Affordability Analysis This section provides an analysis of the Estes Valley’s housing market and housing needs. It examines housing supply and availability, development trends, affordability of rental and ownership housing, and housing demand. The section begins with an inventory of existing housing and its occupancy, followed by an inventory of planned housing in the pipeline. That is followed by a definition of affordability and how affordability is typically measured with a discussion of price trends and affordability in both the rental and ownership markets. The price trends are combined with renter and owner profiles to present a gaps analysis, which evaluates mismatches in supply and demand in the housing market. The section concludes with summation of future housing needs that adds household growth projections to the gaps analysis. Key Findings  The pace of housing unit growth in the past decade is the slowest since the 1960s. The number of units built since 2010 is only 42% of the average number of units built per decade in the 70s, 80s, 90s, and 00s.  The median home sale in the past 12 months in the Town of Estes Park rose from $392,000 in March 2020 to $585,000 in September 2022—a 50% increase in two and a half years over the course of the pandemic. Over the same time purchasing power has dropped 23% as rising interest rates decrease the home price affordable to a household.  Affordability has also declined in the rental market as rent hikes outpaced income growth and levels of cost burden for renters rose to 63% in Estes Park and 58% in the Estes Valley as a whole.  2,720 units will be needed by 2030 to address the current shortage of workforce housing and forecasted employment demand. Two thirds of these units are needed at price-points affordable to households earning less than 120% AMI; 21% are needed for households earning less than 30% AMI. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 2 Housing Stock There are about 9,510 housing units in the Estes Valley, of which 4,380 are located in the Town of Estes Park. Age of Units. Based on Larimer County Assessor data, about a quarter of the units in the Town of Estes Park were built in 1970 or before, meaning they are at least 50 years old. Another quarter of the units in the Town of Estes Park were built in a single decade between 1991 and 2000. Figure III-1. Age of Units by Jurisdiction Note: Estes Valley ratios are derived from Assessor data for the Town of Estes Park and ACS data for the school district. Source: Larimer County Assessor (2022), 2020 5-year ACS, OPS Strategies. Only 7% of the units in the Town of Estes Park have been built since 2010. The pace of housing unit growth in the past decade, is the slowest since the 1960s. The number of units built since 2010 is only 42% of the average number of units build per decade in the 70s, 80s, 90s, and 00s. In the unincorporated areas of the Estes Valley, the units are even older due to a less pronounced housing boom from 1990-2010 and an earlier stop to new unit construction. The number of units built since 2010 was about 56% of the number of units built each decade from 1970-2010. However, it matched the number of units built from 2001-2010 indicating that new unit construction slowed in the unincorporated areas before it slowed in the Town of Estes Park. Occupancy. About 44% of units in the Estes Valley are vacant (primarily for seasonal/recreational use, including second homes and short-term rentals), 43% are owner occupied and 13% are renter occupied. (This translates to a homeownership rate among occupied households of 77% owners and 23% renters). ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 3 Figure III-2. Occupancy of Housing Units, 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: Census, 2020 5-year ACS, OPS Strategies. Owner-occupied units are more prevalent in the unincorporated Estes Valley than the Town of Estes Park. The same is true of vacant units. The result is that 87% of all rental units in the Estes Valley are located within the Town of Estes Park and just 2% of occupied units in unincorporated Estes Valley are rentals. When compared to the surrounding region, the Estes valley has far more vacant units and fewer owner and renter occupied units. The Estes Valley ownership rate of 77% of occupied units is higher than neighboring areas (74% in Longmont, 71% in Loveland), but the Town of Estes Park ownership rate of 62% of occupied units is in line with the Fort Collins ownership rate of 63%. A rental rate of 23% of occupied units in the Estes Valley represents a very low rental inventory. Type of Units. Most of the housing type diversity in the Estes Valley is in the Town of Estes Park. In fact, in unincorporated Estes Valley 88% of occupied housing units are owner-occupied, detached single-family homes. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 4 Figure III-3. Occupied Housing by Tenure and Type, Estes Park and Estes Valley, 2020 Note: Data are for occupied housing units. Larimer County Assessor data for the Town of Estes Park corroborates the ACS data. Source: 2020 5-year ACS. In the Town of Estes Park, about half of the units are detached single-family and another quarter are townhomes or in buildings with 2-4 attached units. While about 22% of units are in multi-unit buildings with 5 or more units, those buildings account for less than 5% of the residential floor area in the Town. Meanwhile, the half of units that are detached single family homes use about 65% of the residential floor area, because they tend to have a larger square footage. Multifamily units are also far more likely to be occupied by renters than single family homes. Number of bedrooms. In the Estes Valley about 34% of units have 2 bedrooms and another 34% have 3 bedrooms according to Assessor data. Only about 9% of units have 4 or more bedrooms which is significantly less than surrounding areas where 31-36% of units have 4 or more bedrooms. The remaining 22% of units in the Estes Valley are studios or have 1 bedroom. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 5 Figure III-4. Number of Bedrooms, by Jurisdiction, 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: Larimer County Assessor, 2020 5-year ACS, OPS Strategies. The smaller units (studio and 1 and 2 bedroom) in Estes Park are typically found in multi- unit buildings, but there are a number of studio/1-bedroom units that are detached units or townhomes. However, there are relatively few detached, 2-bedroom units compared to the overall mix of unit sizes. Vacancy. Estes Valley vacancy was about the same in 2020 (44%) as it was in 2010 (43%). The slight growth was the result of the Town of Estes Park seeing a continued increase in vacancy from 24% in 2000, to 32% in 2010, to 36% in 2020. And yet vacancy is still far more prevalent in the unincorporated areas of the Estes Valley where over half of all units are vacant. The prevalence of second homes and vacation homes in the Estes Valley is evident when the vacancy rate is compared to the neighboring school districts. Looking more closely at the tenure and vacancy status evolution in the Town of Estes Park from 2010 to 2020 it appears that the vacancy increase is being driven by the transition of formerly owner-occupied units into season, recreational, or occasional use. Figure III-5. Vacancy, by Jurisdiction, 2010 to 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: Census, OPS Strategies. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 6 Figure III-6. Occupancy and Vacancy Status of Housing Units, Town of Estes Park, 2010 to 2020 Source: DOLA, 5-Year ACS, Root Policy Research, OPS Strategies. Short-term rentals. As of the drafting of this report, there were 480 registered short term rentals (STRs) in Estes Park: 322 in residential zone districts and 158 in commercial districts. As shown in Figure II-7, STRs have increased in both residential and commercial zone districts, particularly over the past six years. Figure III-7. Registered STRs by Zone, 2010-2021 Source: Town of Estes Park. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 7 Data from AirDNA (an online aggregator of STR listings) shows similar increases in the number of active STR listings in Estes Park over the past five years (regardless of registration status), despite a slight dampening of activity during COVID (2020-2021).1 Figure III-8. Active STR Listings by Zone, 2017-2021 Note: Active Commercial Listings excludes listings in A (Accommodation) Zone Districts but includes A-1 zones. Source: AirDNA and Root Policy Research. On average, Estes Park STRs have 2 bedrooms and 2 bathrooms with a guest capacity of six people. The average daily rate is $328 per night. STRs in residential zones tend to be larger on average than those in commercial zones and, as such, command higher average daily rates than STRs in commercial zones. Figure II-9. Estes Park STR Characteristics Source: AirDNA and Root Policy Research. The typical STR in Estes Park is rented 167 days per year and generates $53,684 in revenue annually. Development activity. Building permit activity has increased over the last couple years with notable activity in the multifamily market. The permit data alone do not indicate whether developments will be occupied by local workforce or if they are primarily marketed as second home condo opportunities. However, specific multifamily projects in the planning and development pipeline are discussed following Figure III-10. 1 For the purposes of this analysis, “active” means a property listed on AirBNB, VRBO, or other HomeAway site at least once per month in at least six months of a given year. The analysis focuses on “entire home” listings in order to exclude residents who may rent out a room in their home on occasion. Bedrooms Bathrooms Guest Capacity Average Daily Rate All Active STRs 2.2 1.9 6.1 $328 in Residential zones 2.7 2.1 6.7 $366 in Accommodation zones 1.8 1.9 5.9 $314 in Other Commercial zones 2.0 1.9 5.7 $315 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 8 Figure III-10. Building Permits by Type Source: Town of Estes Park. The proposed “Homes at Fish Hatchery” development, currently in the planning process, is a notable potential addition to the Town of Estes Park’s housing stock. The site is Town- owned land and as such, the Town plans to enter into a development agreement with a private developer to create approximately 190 units of workforce housing serving households in which at least one household member is employed within the boundary of the Estes Park School District for at least 30 hours per week year-round. The preliminary plan indicates that the development is intended to serve households earning 70% to 120% of area median income (AMI).2 At least one other workforce housing development that could create about 90 new units is in the development pipeline. 2 https://estespark.colorado.gov/fishhatchery ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 9 Rental Market Average asking rent in Estes Park is about $1,845 per month (according to an analysis of recent listings on apartment sites, including Craigslist). This reflects a 32% increase in average rent since 2015, when the same analysis showed average rents at $1,395. Residents surveyed as part of the engagement efforts for this study (see Section IV for details) reported similar rents with an average of $1,762 (and a median of $1,550) before utilities. Figure III-11 shows the distribution of all rents (including those currently occupied and not on the open market) in 2010, 2015, and 2020 as reported in the ACS. By that measure, the median rent paid by Estes Park households in 2020 was estimated at $888 per month. This rental rate is substantially lower than the market-rate asking rent because it reflects rental payments of residents in income-restricted housing (e.g.,EPHA units, LIHTC units, and housing choice voucher holders) and rental payments among residents who may be renting from friends/family or a long-term rental agreement (with lower rates). According to the ACS, rent in the Town of Estes Park has increased at a rate of 1.2% per year since 2010, which the same rate at which the median income of renters has increased. Figure III-11. Median Gross Rent, by Jurisdiction, 2010 to 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 5-year ACS, OPS Strategies. Rents in the Estes Valley are significantly lower than in surrounding areas, but there are also significantly fewer rentals in Estes than in the surrounding area. Fort Collins, with its student population, showed the most consistent rent growth. Loveland, Longmont, and Estes Valley all saw slow growth in rents from 2010-2015 as the economy recovered from the Great Recession, followed by rapid rent growth in the past five years. Rent increases from 2015 to 2020 were double the rent increases from 2010 to 2015 in those jurisdictions. Given the relatively few rentals in unincorporated Estes Valley and the limited growth in Estes Park rents, this means that most, if not all rentals in unincorporated Estes Valley are 2010 2015 2020 2010-2020 2015-2020 Estes Valley $791 $857 $1,015 28% 18% Town of Estes Park $789 $882 $888 13% 1% Fort Collins $857 $1,064 $1,356 58% 27% Longmont $924 $1,056 $1,474 60% 40% Loveland $832 $995 $1,344 62% 35% Growth ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 10 at the top end of the rent distribution. In fact, there are only an estimated 24 units in unincorporated Estes Valley that have rents below the median rent for the entire Valley. Figure III-12. Gross Rent Distribution, by Jurisdiction, 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 2020 5-year ACS, OPS Strategies. The higher rents in surrounding areas are partly explained by the larger units in surrounding areas. More bedrooms accommodate larger households and larger households tend to have larger incomes. Renters in surrounding areas also have incomes that are 45%-80% higher than renters in Estes Park. The stability of the lower rents and lower wages for renters in Estes Park is notable. This is often indicative of a “company town” housing dynamic where there is a limited supply of rental housing and the rentals that do exist are controlled by the same employers that set wages and are reserved to ensure those employers can fill jobs. This is typical in seasonal economies. It also speaks to the success of the Estes Park Housing Authority, which has been able to consistently offer below-market rents to income-qualified households. Even so, the demand for affordable rentals far exceeds the supply (as will be discussed in the subsequent affordability section. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 11 Ownership Market In September 2022, the median home sale in the Town of Estes Park in the past 12 months was $585,000 according the Larimer County Assessor. In March 2020, the median home sale in the Town of Estes Park was $392,000 – which means Estes home values rose 50% in two and a half years during the pandemic. Figure III-13. Median Sales Price in the Past 12 Months, Town of Estes Park, 2000-2022 Source: Larimer County Assessor, OPS Strategies Prior to the pandemic, home sales had recovered from the housing bubble and Great Recession to reestablish the long-term trendline. The two and a half-year home value growth of 49% during the pandemic is unprecedented and dwarfs the growth seen during the housing bubble, where home values grew 23% over the two and a half months from February 2006 to August 2008. Figure III-14. Median Home Value, by Jurisdiction, 2010 to 2020 Note: Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: Larimer County Assessor, 1-year ACS, OPS Strategies. 2010 2015 2020 2021 2015-2020 2020-2021 Town of Estes Park $297,500 $279,950 $392,000 $456,000 8% 16% Fort Collins $246,800 $310,900 $430,900 $497,400 8% 15% Longmont $259,500 $317,400 $461,700 $498,000 9% 8% Loveland $239,500 $280,300 $392,300 $462,500 8% 18% Annual Growth ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 12 The median home value for the Estes Valley as a whole is about the same as the median home value for the Town of Estes Park. The 1-year ACS estimates for the surrounding areas would indicate that Fort Collins and Loveland are seeing similar home value growth during the pandemic, while Longmont is not. The regional data also indicates the Estes home values are keeping pace with neighboring home values while the incomes of Estes renters are not. This means that Estes renters, who already had few opportunities to move into the market are seeing the situation worsen and the low paying service workers at the core of the Estes economy will need rental housing, price restricted housing, or have to commute. Figure III-15. Home Value Distribution, by Jurisdiction, 2020 Note: Estes Valley, Fort Collins, Longmont, and Loveland data are for their respective school districts. Source: 2020 5-year ACS, OPS Strategies. Across the region, fewer than 10% of units had a value under $200,000 in 2020 – the price affordable to a household making 80% of median income in 2020. In the Estes Valley only 3% of units were valued under $200,000. Across the region about half of units are priced between $300,000 and $500,000 around the median value. This concentration of home values around the median value is not matched by incomes which have a much more uniform distribution from the extremes through the median. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 13 Income Restricted and Workforce Housing Inventory There are currently 288 income-restricted housing units in the Estes Valley most of which are rental units and affordable to households earning less than 60% AMI. There are another 61 workforce housing units in the Valley, which do not have an income requirement but do require that at least one household member is employed in the Estes Valley at least 30 hours per week. Figure III-16 shows the current income-restricted and workforce inventory in the Estes Valley by AMI and tenure. In addition to the units shown in the figure, there are another 88 ownership workforce units and 94 rental workforce units in the pipeline and 190 workforce units proposed across three different developments in the Estes Valley, at the time this report was drafted. Figure III-16. Income-Restricted and Workforce Housing Units, Estes Valley Source: Estes Park Housing Authority and Root Policy Research. According to applicant data from EPHA, 42% of applicants for housing services are households that include children under 18—this compares to 17% of households valley- wide that include children. In other words, EPHA services are particularly important in helping stabilize households with children. About 13% of EPHA applicants are seniors living alone—the same proportion as in the Estes Valley overall. Type of Unit and AMI Maximum Rental Units Ownership Units Total Units Income-Restricted Units 250 48 288 55% AMI 57 0 57 60% AMI 192 0 182 80% AMI 1 31 32 125% AMI 0 17 17 Workforce (no AMI max) 47 4 61 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 14 Affordability The most common definition of affordability is linked to the idea that households should not be cost burdened by housing. A cost burdened household is one in which housing costs—the rent or mortgage payment, plus taxes and utilities—consumes more than 30% of monthly gross income. Figure III-17. Affordability Definitions Cost Burden. The 30% proportion is derived from historically typical mortgage lending requirements.3 Thirty percent allows flexibility for households to manage other expenses (e.g., childcare, health care, transportation, food costs, etc.). Spending more than 50% of income on housing costs is characterized as severe cost burden and puts households at high risk of homelessness—it also restricts the extent to which households can contribute to the local economy. Over half (58%) of renters in the Estes Valley are cost burdened, and 63% of renters in the Town of Estes Park are cost burdened. Most households that are cost burdened and all 280 of the households that are severely cost burdened are in the Town of Estes Park. 3 In the recent past, the 30% threshold has been questioned as possibly being lower than what a household could reasonably bear. Indeed, the U.S. Department of Housing and Urban Development has considered raising the contribution expected of Housing Choice (“Section 8”) Voucher holders to 35% of monthly income. However, most policymakers maintained that the 30% threshold was appropriate after considering increases in other household expenses such as health care, and especially now that interest rates are rising again. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 15 Figure III-18. Cost Burden, by Jurisdiction and Tenure, 2010 and 2020 Source: 2010 and 2020 5-year ACS, OPS Strategies. The percentage of cost burdened renters grew significantly from 2010 to 2020, while the percentage of cost burdened owners with a mortgage shrank. The increase in cost burdened renters indicates that rents grew faster than wages. The decrease in the percentage of owners with mortgages who are cost burdened owners with mortgages is likely due in part to refinancing as interest rates fell. It is also an indicator that the available housing was purchased by households from outside of the Estes Valley with more income. Rental affordability gap. To examine how well the Estes Valley’s current housing market meets the needs of its residents Root Policy Research conducted a modeling effort called a “gaps analysis.” The analysis compares the supply of housing at various price points to the number of households who can afford such housing. If there are more housing units than households, the market is “oversupplying” housing at that price range. Conversely, if there are too few units, the market is “undersupplying” housing. The gaps analysis conducted for the Estes Valley addresses both rental affordability and ownership opportunities for renters who want to buy (see below). Figure III-19 compares the number of renter households, their income levels, the maximum monthly rent they could afford without being cost burdened, and the number of units in the market that were affordable to them. The “Gap” column shows the difference between the number of renter households and the number of rental units affordable to them. Negative numbers (in parentheses and red font) indicate a shortage of units at the specific income level; positive units indicate an excess of ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 16 units. The rental supply data does account for publicly assisted units so gaps are above and beyond currently provided income-restricted units.4 Renter households who face a rental gap are not homeless; they are cost burdened, occupying units that are more expensive than they can afford. Those who struggle to pay rent include working residents earning low wages, residents who are unemployed, and residents who are disabled and cannot work. Figure III-19. Gaps in Rental Market, Estes Valley, 2020 Note: Approximate AMIs shown for a 2-person household size. Source: 2020 5-year ACS, Root Policy Research, OPS Strategies. The gaps analysis in Figure III-19 shows that:  About one third of renters in the Estes Valley are extremely low-income households making less than $25,000 per year (about 30% AMI for a 2-person household). These households need units that rent for $625 a month or less to avoid being cost burdened. Just 16% of the rental supply meets that need – 241 units short of demand.  The cumulative gap column indicates that the overall affordability shortage is not fully resolved until households are earning more than $35,000 per year (about 40% of AMI for a 2-person household size).  The market is over supplying units in the $875-$1,275/month rent range. As a result, lower income renters are having to reach into this range and pay double what they can afford. The “shortage” shown for higher income renters (earning more than $75,000 per year) suggests those renters are spending less than 30% of their income on housing. This points 4 Publicly supported housing means housing that received public funding and has an income restriction (e.g., Public Housing units, project-based Section 8, Low Income Housing Tax Credits, etc.). Renter Incomes Less than $25,000 (≈30% AMI)$625 491 32% 250 16%(241) (241) $25,000 - $35,000 (≈40% AMI)$875 331 22% 447 9% 116 (125) $35,000 - $50,000 (≈60% AMI)$1,250 100 7% 435 9% 335 210 $50,000 - 100,000 (≈120% AMI)$2,500 360 24% 368 7% 8 218 $100,000 - 150,000 (≈200% AMI)$3,700 169 11% 41 1%(128)90 $150,000 or more 65 4% 0 0%(65)25 Percent Cumulative Rental GapNumber Maximum Affordable Gross Rent Rental Demand (Current Renters) Rental Supply (Current Units)Rental GapPercent Number ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 17 to an income mismatch in the market in which higher income households are occupying homes affordable to lower income households. Overcrowding. The “shortage” at higher incomes can also be the result of overcrowding that gives the indication of higher income because there are actually multiple families living as a single household. The US Department of Housing and Urban Development (HUD) defines overcrowding as more than one person per room and ACS estimates indicate very little overcrowding in Estes. However, the 2016 Housing Needs Assessment, which defined overcrowding as more than 2 people per bedroom (which the ACS does not estimate) found 12% of households of Estes employees to be overcrowded, indicating a need for 160 units to address overcrowding. For reference, the gaps analysis for 2015 indicated a high income “shortage” of 130 units. Interviews and public comment indicate that overcrowding continues to be a critical issue, especially among the immigrant community. Whether the rental shortage is estimated based on low income need or a survey of overcrowding, additional low rent housing is needed to accommodate the growth in low wage jobs. Figure III-20. Gaps in Rental Market, Estes Valley, 2015 and 2020 Source: 5-year ACS, OPS Strategies. The shortage of low-income rentals and the “shortage” of high-income rentals both grew from 2015 to 2020.With wages and rents increasing at about the same rate, the increasing shortage is largely a function of lack of supply. Ownership affordability gap. The gap between interest in buying and available product is demonstrated by the for-sale gaps analysis shown in Figure III-21. Similar to the rental gaps analysis, the model compares renters, renter income levels, the maximum monthly housing payment they could afford, and the proportion of units in the market that were affordable to them. The maximum affordable home prices used for the analysis assume a 30-year mortgage with a 10% down payment and an interest rate of 5.22%5. The estimates also incorporate property taxes, insurance, HOA payments and utilities (assumed to collectively account for 25% of the monthly payment). 5 This is the Freddie Mac rate for August 2022. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 18 In addition to the rapidly increasing home prices discussed above, rising interest rates are decreasing the purchasing power of lower- and middle-income households at the same time housing prices are running away from them. At 5.22% interest a household can afford 77% of what it could afford at 3.10% interest, which was the average Freddie Mac interest rate in 2020. The “Gap” column shows the difference between the proportion of renter households and the proportion of homes sold between August 2021 and July 2022 that were affordable to them. Negative numbers indicate a shortage of units at the specific income level; positive units indicate an excess of units. It is important to note that the gaps column accounts only for units that fall precisely within the affordability range of the household. The for-sale gaps analysis shows the Estes Valley market to be affordable for renter households earning more than $100,000 per year. At that level, the proportion of homes for sale exceeds the proportion of renters who may be in the market to purchase. Figure III-21. Options for Renters Wanting to Buy, Estes Park, 2022 Note: Home sales are for the Town of Estes Park only. Approximate AMIs shown for a 2-person household size. Source: 2020 5-year ACS, Larimer County Assessor, Freddie Mac, OPS Strategies. Renters earning less than $100,000 per year (about 120% of median income) can afford a maximum home price of about $374,800. While such renters represent 85% of potential new home owners, only about 20% of Estes Valley’s homes sold last year were affordable to them (56 homes). By comparison, renters making 80-120% of median income in 2015 could still afford market housing and there were 82 homes sold at prices affordable to households making less than 80% of median income. Renter Incomes Less than $25,000 (≈30% AMI)$93,700 491 32% 5 2%-30%n/a $25,000 - $35,000 (≈40% AMI)$131,200 331 22% 2 1%-21% -21% $35,000 - $50,000 (≈60% AMI)$187,400 100 7% 5 2%-5% -25% $50,000 - 100,000 (≈120% AMI)$374,800 360 24% 44 15%-9% -34% $100,000 - 150,000 (≈200% AMI)$562,100 169 11% 81 28% 17%-17% $150,000 or more 65 4% 150 52% 48% 31% Maximum Affordable Home Price Potential Demand (Current Renters) For-Sale Supply (Home Sales 8/1/21- 8/1/22) Cumulative Purchase Gap (excl. <$25K)Number Percent Number Percent Purchase Gap ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 19 Housing Need About 2,720 new housing units are needed by 2030 to address the existing shortage and account for forecasted employment trends. Figure III-22 illustrates the current housing need and shows how needs have grown since 2016 (the 2016 HNA identified a 1,530 unit housing need). The lack of housing construction and decreasing affordability of housing have increased the existing shortage of units – the “catch up” need. At the same time, retirement of current employees coupled with projected job growth continue to forecast additional need. Figure III-22. Housing Need, Estes Valley, 2016 and 2022 Note: The 2016 HNA miscalculated the housing need of commuters as 290 by applying the jobs/employee factor twice. Source: 2016 Housing Needs Assessment, LEHD, ACS 5-year estimates, Larimer County Assessor, DOLA job forecast, RMNP, OPS Strategies. Components of housing needs. The individual components of needs outlined in the previous figures are discussed in more detail below.  Rental shortage. As discussed in the rental affordability gap and overcrowding sections above, there is a shortage of about 240 low-income rentals in Estes Park. That shortage of low-income rentals is likely contributing the overcrowding issues facing Estes Valley households and is comparable to the 160-unit rental shortage identified in the 2016 Housing Needs Assessment as a result of overcrowding. The increased need is the result of increases in low wage jobs without a commensurate increase in low rent housing. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 20  Commuters. The percentage of the workforce commuting has increased from 2015 as has the size of the overall workforce. The compound effect is that a modest increase in the commuter rate represents nearly a doubling in the number of units needed to accommodate those commuters who want to live in Estes Park. Figure III-23. Units Needed for Commuters, Estes Valley, 2016 to 2022 Note: The 2022 commuter rate was reduced by 4% to account for residents of Drake and Glen Haven who were not counted as commuters in 2016. Source: 2016 Housing Needs Assessment, LEHD, BEA, RMNP, OPS Strategies.  Unfilled jobs. As discussed above in the section on Rocky Mountain National Park visitation and unfilled jobs there are an estimated 737 unfilled jobs in the Estes economy compared to historical ratios. At 1.2 jobs per employee and 1.84 employees per household that equates to a need for about 330 housing units. As discussed in Section II, about 60% of jobs in the Estes Valley are year-round. Applying this percentage to the unfilled jobs estimate yields a need for 198 units to accommodate permanent workforce and 132 units to accommodate seasonal workforce.  Retiring workforce. As discussed above in the employment profile for the retiring workforce, there are about 1,870 Estes Valley residents with earnings who are age 60 or older and can be expected to retire by 2030. This equates to a housing need for about 690 units because if the employees retire in place, their homes will not be available to their replacements in the workforce and if they sell their homes, they will no longer be affordable to the workforce. 2022 Jobs 7,571 7,938 Jobs per Employee 1.2 1.2 Employees 6,309 6,615 In-commuters 1,020 1,925 Commuter rate 16% 29% Commuters that want to move to Estes 62% 62% Employees per household 1.84 1.84 Commuter housing need 340 650 2015 Figure III-24. Units Needed to Replace Retiring Workforce, Estes Valley, 2016 to 2022 Source: 2016 Housing Needs Assessment, ACS 5-year estimates, OPS Strategies. 2022 2016 estimated employee to retire 1,150 ACS residents over 60 with earnings 1,205 1,867 2015 survey to ACS adjustment 0.95 0.95 Jobs per employee 1.2 1.2 Employees per household 1.84 1.84 Commuter housing need 520 810 2015 ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 21  The 2016 vs 2022 data gap. With actual job growth of only 367 jobs equating to about 140 units of housing demand and 360 units having been built since 2015, the existing need in 2022 is about 200 units higher than expected. However, we know that not all of the 360 new units were affordable to the workforce and it is likely that some of the projected retirees are still in the workforce. While the 2016 and 2022 numbers do not align perfectly they corroborate the story of what has happened on the ground since the last housing needs assessment and emphasize the growing need for affordable housing in the Estes Valley.  Forecasted job growth. Based on the DOLA forecast for Larimer County, the Estes Valley will add 1,785 jobs by 2030. At 1.2 jobs per employee and 1.84 employees per household, if Estes houses 85% of the job growth locally the job forecast represents a housing demand of 690 units. The assumption that 85% of the employees will be housed locally is carried forward from the 2016 Housing Needs Assessment. Applying the seasonality proportion to the 690 units for job growth yields a need for 414 permanent household units and 276 seasonal workforce units. Housing needs by income, tenure, and price-point. The number of bedrooms and affordability for the future housing units will be a function of all the household characteristics discussed in Section I. Demographic Profile. Those characteristics are summarized below and then applied to the catch-up and keep-up housing needs. Profile of renters and owners. Figure III-25 summarizes characteristics of renters and owners in the Estes Valley that inform the types of housing that will be needed. The figure displays the number and distribution of renter and owner households by demographic characteristics and provides the homeownership rate by income, age group, household type and race/ethnicity. Homeownership rates that are highlighted indicate rates that are 5 or more percentage points lower than the overall homeownership rate of 77%.  As expected, owners tend to be older and earn higher incomes than renters. Median income for renters is about a third (36%) of the median income for owners.  Renters are more likely than owners to be living in non-family households (e.g. living alone, living with roommates, or living with as unmarried partners). These renters have a greater variety in needed housing types due to their varying size.  The vast majority (92%) of householders in the Estes Valley are non-Hispanic whites. Hispanic households are significantly more likely to be renters than owners, with a homeownership rate of 37%. Households held by other races/ethnicities are few, but are more likely to be owners. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 22 Figure III-25. Profile of Households by Tenure, Estes Valley, 2020 Note: *Due to the small sample size of Native American householders in the ACS data, the available information on homeownership may reflect a substantive margin of error. Source: 2020 5-year ACS, OPS Strategies Figure III-26 shows the income distribution and rental/ownership need of the 2,720 units. With the market not currently providing any ownership product under 120% of median income and no rental product at the extremely low income levels, many of these units will have to be deed restricted in some way. Based on the seasonality of unfilled and Number Percent Number Percent Total Households 1,516 100% 4,954 100%77% Median Income Income Distribution Less than $25,000 491 32% 337 7% 41% $25,000 - $35,000 331 22% 80 2% 19% $35,000 - $50,000 100 7% 849 17% 89% $50,000 - 100,000 360 24% 1,322 27% 79% $100,000 or more 234 15% 2,366 48% 91% Age of Householder Younger households (15-24)156 10% 0 0% 0% All householders 25 and over 1,360 90% 4,954 100% 78% Ages 25-34 184 12% 151 3% 45% Ages 35-44 176 12% 590 12% 77% Ages 45-64 537 35% 2,015 41% 79% Ages 65 and older 463 31% 2,198 44% 83% Household Type Family without children 471 31% 2,717 55% 85% Family with children 149 10% 707 14% 83% Living alone 770 51% 1,273 26% 62% Other nonfamily 126 8% 257 5% 67% Race/Ethnicity of Householder Non-Hispanic White 1,221 81% 4,730 95% 79% Hispanic 295 19% 173 3% 37% Native American*0 0% 19 0% 100% OwnersRenters $33,140 $92,050 Ownership Rate ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION III, PAGE 23 forecasted jobs, up to 408 of these units could be needed to accommodate seasonal worker households. Figure III-26. Projected New Households by 2030, Estes Valley, Based on Job Growth Note: Assumes current income and tenure distributions remain constant. Source: ACS 5-year estimates, OPS Strategies Figure III-22 shows how 2,720 new housing units would need to be designed to accommodate their likely households, assuming the same household distribution as is currently reflected in the community. If, however, the community wants to pursue a more diverse demographic with more families with children, as discussed in the Comprehensive Plan, the types of households needed would shift. Figure III-27. Projected New Households by 2030, Estes Valley, Based on Job Growth Note: Assumes current household type distribution and homeownership rates remain constant. Source: ACS 5-year estimates, OPS Strategies. Renter Incomes Rental Owner Rental Owner Rental Owner 0-30% AMI 315 52 115 80 430 132 562 30-50% AMI 48 11 73 17 121 28 149 50-80% AMI 16 131 25 200 41 331 372 80-120% AMI 54 201 82 308 136 509 645 120-200% AMI 25 181 39 276 65 456 521 Over 200% AMI 10 176 15 270 25 447 471 Total 468 752 349 1,151 818 1,903 2,720 Total Gap (Catch Up) Projected (Keep Up) Total HOUSING NEEDS ASSESSMENT SECTION IV. COMMUNITY ENGAGEMENT FINDINGS ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 1 SECTION IV. Community Engagement Findings This section of the report presents the findings from community engagement processes conducted to support the Housing Needs Assessment. Data explored in this section was gathered from the Estes Valley 2022 Housing Survey which assessed the housing needs and experiences of different groups in the Estes Valley. For this reason, the section is broken down into three subsections—year-round Estes residents and in-commuters, seasonal residents and second homeowners, and lastly, seasonal workers. This divided approach to survey analysis allowed for a greater understanding of each group’s needs and preferences. Survey findings are then followed by a summary of insights gathered from stakeholder engagement. Community Engagement Elements The community engagement process included:  A survey available in English and Spanish (882 total responses, 190 Spanish speakers) with tailored questions to local permanent residents, in-commuters, seasonal homeowners, and the seasonal (summer) workforce.  Stakeholder interviews from varying sections including developers, economic development organizations, social service providers, and employers. Survey sampling and respondents. The survey was open to anyone interested in participating (as long as they identified as an Estes Valley resident, worker, or seasonal homeowner), meaning the results are based on non-probability sampling methods. Responses were specifically derived from convenience sampling and snowball sampling methods. Convenience sampling refers to promoting the survey to known individuals or organizations through direct contact (e.g., email invitation) or public relations and social media. Snowball sampling is when a respondent to the survey promotes the survey to their peers or social networks (e.g., sharing the survey link by email or social media). Root monitored the survey as it progressed and compared demographic and socioeconomic indicators of resident respondents with the overall population and continually worked to adjust outreach efforts as necessary to make sure we were reaching all segments of the population. A total of 882 residents, workers, and seasonal owners participated in the survey. The demographic characteristics of resident respondents mirrored the Town’s demographic characteristics, as discussed in the Resident and In- commuter Survey Respondent portion of this section of the report. Surveys were available online and in paper form in both English and Spanish and participation was promoted through the Town and Housing Authority’s various outreach ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 2 channels (namely email blasts and social media), as well as though both local newspapers, stakeholder groups, the school district, and the Chamber of Commerce. Key Findings Conclusions and findings derived from survey respondents and stakeholder engagement are summarized below. Residents and In-commuters:  Cost was the most important factor in choosing a current home for both residents and in-commuters, followed by liking the type of home, safety (low crime), and proximity to parks and open space. Most current in-commuters did consider living in the Estes Valley (83%) but chose to live elsewhere, most commonly due to affordability, availability, or quality of housing.  Housing challenges in Estes Park have a disproportionate impact on renters, residents of Hispanic descent, lower/middle income and younger residents. 70% of renters are worried about the rent going up more than they can afford and nearly half are worried their landlord will sell the home. Only half of owners reported any housing challenges, most commonly size of home (not big enough to accommodate their family) and affordability (struggling to pay property taxes or mortgage).  Displacement is also a concern, with 26% of all residents/in-commuters reporting they have had to move from their home in the past five years when they did not want to—a higher proportion than the 20% who said they had been displaced in the 2016 housing needs survey. Again, renters (along with minority and low-income residents) are disproportionately impacted with 43% saying they had to move then they didn’t want to in the past five years. The most common reasons for displacement include inability to pay rent/mortgage due to job or income loss, landlords selling the rental unit, rent/property tax increases, and change in household size.  Most renters (60%) who responded to the survey want to buy a home in the Estes Valley but are unsure if they will be able to due to expected challenges in finding an affordable home (84%), affording down payments (56%), and not being able to compete with other buyers in the market (43%). Seasonal workers:  On average, seasonal workers typically find their housing from online listings (30%) or through their employer (27%). Of those who live in employer-provided housing, 48% live in Estes rent-free during employment, 17% are on a 6-month lease and 20% have shorter (month-to-month or 3-month) leases.  Nearly three in four seasonal workers (72%) have considered living in Estes year-round but have not done so because they have family or friends elsewhere (49%), cannot find a permanent job in the area (40%), or cannot find year-round housing (27%). ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 3 Seasonal/Second Homeowners:  Nearly half (46%) of second homeowners bought their property in the Estes Valley primarily because they plan to retire in Estes. Over half (56%) or current second homeowners indicated that they have plans to live in Estes full-time in the future.  Seasonal/second homeowners are most likely to use their property for personal reasons in the summer and fall, with about one-third living in their home for the duration of the season.  Half of second homeowner respondents choose not to lease their property when they are not using it, 27% lease as a short-term rental, and the remaining 33% lease as a month-to-month or three-month rental (most commonly in the winter months.  Among those that do not currently lease, most (76%) say they would not consider leasing, citing reasons such as desire for flexible/personal use, HOA/Town restrictions on renting, or concerns about property damage. Stakeholders:  Gaps in housing and social service needs have become increasingly burdensome on year-round residents and workers in the Estes Valley. Rising housing and rental prices, low vacancy rates, and underfunded social service programs have exacerbated these needs—specifically vulnerable populations struggling to find market rate housing.  Overcrowding of existing housing units was identified as a key concern among housing and service providers. They attribute such overcrowding to a lack of both availability and affordability of units and note that this trend disproportionately impacts service workers, Hispanic residents, and households with undocumented members.  Economic development representatives and business owners in the Valley are acutely concerned about housing for workers which created material barriers to employee recruitment and retention. A number of employers have even purchased homes/apartments to rent to their employees, and others provide rental assistance and/or rent their personal homes to their employees.  Stakeholders emphasized the importance of Estes establishing a year-round economy (independent of visitation) but also acknowledge that housing solutions in the Valley will have to address housing needs for seasonal workforce in addition to long-term housing for permanent residents/workers.  Residential developers highlighted infrastructure costs and land availability as barriers to attainable housing development and encouraged the Town to pursue public-private partnerships for affordable and workforce development (e.g., incentives, subsidies, etc. for affordable production). ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 4 Resident and In-commuter Survey Respondents This section reports survey results from respondents who identified as year-round residents of the Estes Valley (i.e., residents) or non-seasonal workers who are employed in the Estes Valley but live elsewhere (i.e., in-commuters). Respondent profile. As shown in Figure IV-1, the demographic profile of resident survey respondents is similar to resident demographics overall (discussed in detail in Section I of this report). Renters, racial/ethnic minority groups, and households with children have slightly higher representation in the survey results than in the Valley overall. Compared to resident respondents, in-commuters in the Estes Valley are younger, more likely to be employed full-time, and less likely to be homeowners. The majority of in- commuters live in Loveland (26%) and Windsor (19%). Fort Collins, Longmont, and Boulder are also popular locations among in-commuters in the Estes Valley. Figure IV-1. Respondent Profile Note: N=602 Source: Root Policy Research from the Eses Valley 2022 Housing Survey. Residents In- Commuters Total Respondents/Population 543 59 11,761 Household income $0 up to $50,000 29% 24% 41% $50,000 up to $75,000 23% 27% 15% $75,000 up to $150,000 36% 39% 31% $150,000 or more 12% 10% 13% Age 18 to 35 years 20% 30% 15% 35 to 64 years 49% 63% 43% 65 years or older 31% 7% 31% Tenure Homeowner 63% 47% 77% Renter 31% 21% 23% Staying with friends or family 6% 17%n/a Camping or living in RV 0% 8%n/a Property caretaker 0% 8%n/a Race/Ethnicity Non-Hispanic White 72% 53% 84% Hispanic/Latino 22% 32% 10% Non-Hispanic Minority 5% 15% 5% Household composition With Children under 18 33% 40% 13% Without Children under 18 67% 60% 87% Survey Respondents Estes Valley Demographics (Report Section I) ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 5 Housing choice. This section explores year-round residents’ and in-commuters’ housing preferences, choices, and experience with the housing market in the Estes Valley. Where applicable, survey data are reported by respondent and household characteristics (e.g., income, demographics, age). Most important factors in choosing current home. Figure IV-2 shows the importance of various factors respondents considered when choosing their current home or apartment. Respondents rated the importance of each factor on a scale of 1 to 9, where 1 means “not at all important” and 9 means “extremely important.” Figure IV-2. How important are the following factors when choosing your current home or apartment? Note: n=598. Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 6 Cost was the most important factor for both residents and in-commuters, followed by liking the type of home, safety (low crime), and proximity to parks and open space. In-commuters appear to place a higher priority on proximity to work than residents; in actuality this simply reflects the fact that in-commuters are more likely to be working-age than residents as a whole. Working age residents place a similar level of importance on proximity to work (6.7). Figure IV-3 shows responses to the same question by various resident characteristics (tenure, income, age, and race/ethnicity). Each group’s top three factors are highlighted in green.  Respondents from almost all groups prioritized cost/affordability, liking the type of home/apartment, and low crime as a top factors when choosing their home.  Residents under the age of 35 prioritized proximity to work or job opportunities higher than other groups. Those aged 35 years to 55 years also indicated a preference for job proximity, while those older than 55 years prioritized proximity to health care services and facilities. This is likely due to higher retirement rates among those 55 years and older and a greater need for health care services.  Hispanic respondents’ average ratings placed housing factors in a similar order but with less differentiation than non-Hispanic white respondents: average ratings ranged from 5.0 to 6.8 from bottom to top for Hispanic residents but from 2.3 to 8.0 for non- Hispanic white respondents.  Lower income groups place a lower value housing type and on proximity to amenities (open space, grocery, entertainment and healthcare) than higher income groups. This likely signals a tolerance for finding an available, affordable option even if it doesn’t meet their other preferences. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 7 Figure IV-3. How important are the following factors when choosing your current home or apartment? By Respondent Characteristics Note: Data are represented as average importance rating. N=542. Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Housing factors Owners Renters Under 35 years 35 to 54 years 55 or older $0 up to $50,000 $50,000 up to $75,000 $75,000 or more Non- Hispanic White Hispanic or Latino Cost/I can afford it 7.5 7.7 7.8 7.3 7.4 7.9 7.8 7.1 7.6 8.0 6.7 Like the type of home or apartment 7.1 7.6 6.4 6.6 6.9 7.5 6.6 6.8 7.5 7.3 6.8 Low crime/safe 6.9 7.2 6.4 6.3 7.0 7.1 6.8 6.8 6.9 7.0 6.8 Close to parks, open space, or outdoor rec.6.5 7.0 5.7 6.5 6.1 6.5 6.2 5.9 6.8 6.6 6.5 Close to grocery or pharmacy 5.7 6.1 5.0 5.8 5.9 5.9 5.6 5.3 5.7 5.6 6.1 Allows pets 5.7 5.6 6.0 6.0 6.7 5.3 6.1 6.0 5.5 5.8 5.7 Close to health care facilities and services 5.6 5.9 4.8 5.5 5.5 5.9 5.4 5.2 5.6 5.4 6.1 Close to work or job opportunities 5.5 5.1 6.1 6.8 6.7 4.6 6.1 5.7 5.3 5.4 6.4 Close to restaurants, entertainment, shopping 5.2 5.5 4.6 5.5 5.4 5.3 5.0 4.7 5.4 4.9 6.0 Close to family/friends 4.6 4.6 4.2 5.5 5.2 3.9 4.5 4.3 4.6 4.2 5.5 Has accessibility improvements 3.8 3.9 3.4 4.4 4.4 3.4 3.9 3.9 3.7 3.4 5.0 Landlord takes Section 8 3.1 2.7 3.3 4.4 4.2 2.0 3.5 3.3 2.8 2.3 5.5 Tenure Age Household Income Race/Ethnicity All Residents ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 8 In-commuter housing choice. Estes Valley in-commuters were asked to share their if they had considered living in the Estes Valley when looking for their current housing. Most in-commuters did consider the Estes Valley (83%) but chose to live elsewhere for a variety of reasons, most commonly affordability, availability, or quality of housing (see Figure IV-4). Figure IV-4. When you were looking for your current housing, did you consider living in the Estes Valley? Note: N = 54. Source: Root Policy Research from the Estes Valley 2022 Housing Survey. The 17% of in-commuters who did not consider living in Estes indicated a preference for an urban environment, having family or friends elsewhere, or the lack of affordable options in the Estes Valley. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 9 Housing challenges. Year-round residents and in-commuters reviewed a list of common housing challenges and were asked to indicate if they have or are experiencing these challenges. Overall, 31% survey respondents indicated that they have not experienced any common housing challenge—homeowners and residents over the age of 75 were the most likely groups to indicate they had no housing challenges (50% and 58%, respectively). Nearly one in four respondents (24%) noted that their greatest housing challenge was concern over rent increases. Struggling to pay current rent and/or mortgage payments (18%) was also a top concern. Responses from residents and in-commuters are presented in Figure IV-5; other groups are shown in Figure IV-6. Figure IV-5. Do you face any of these challenges in your housing situation? Note: n=437 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 10 Primary findings from cross tabulation analyses (shown in Figure IV-6) include:  Homeowners are less likely to experience housing challenges in Estes. For owners who did report housing challenges, the most common concerns were size of home (not big enough and affordability (struggling to pay property taxes or mortgage).  Most renters (70%) are concerned about rent increases and nearly half of renter respondents (47%) worry that their landlord will either sell their home or convert it to a short-term rental (40%).  Racial and ethnic minority groups are much more likely than non-Hispanic White respondents to experience housing challenges. Top concerns among Hispanic respondents were rent increases and landlords selling or converting the home to short-term rentals.  Hispanic respondents and low income respondents were more likely than any other group to want to move in order to live with fewer people. Other engagement efforts also indicate these groups are “overcrowding” in order to afford housing.  Hispanic/Latino residents (33%) and non-Hispanic minorities (28%) disproportionately experience challenges in finding/keeping housing that meets their family’s needs. Only 10% of non-Hispanic residents reported that their home is not big enough for their family members. Open ended responses by residents shed additional light on specific concerns:  “I worry if we ever had to move we couldn’t find housing in Estes and I would be forced to quit my job and uproot my family to live elsewhere.”  “I am OK now but worry that as taxes & insurance rise (increasing my mortgage payment) & cost of living increases I may not be able to afford to continue to live in Estes Park.”  “I have issues covering the costs of keeping my house in good repair and finding craftsmen to do the work.”  “Worried they might prefer renting to someone making more but doesn’t work in Estes (remote work).” ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 11 Figure IV-6. Do you face any of these challenges in your housing situation? Note: N=510 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Housing challenges Owners Renters Under 35 years 35 to 54 years 55 years or older $0 up to $50,000 $50,000 up to $75,000 $75,000 or more Non- Hispanic White Hispanic or Latino None of the challenges listed 32% 50% 7% 5% 17% 58% 14% 25% 44% 43% 8% At least one housing challenge: 68% 50% 93% 95% 83% 42% 86% 75% 56% 57% 92% I worry about my rent going up to an amount I can't afford 24% 3% 70% 40% 32% 13% 47% 22% 12% 21% 35% I struggle to pay my rent/mortgage 18% 11% 33% 24% 28% 9% 30% 16% 12% 17% 25% I worry about my landlord selling the home 18% 2% 47% 31% 25% 8% 33% 17% 8% 15% 34% I struggle to pay my utilities 16% 9% 27% 16% 23% 12% 24% 14% 11% 17% 15% I worry about my landlord converting the home to a short term rental 16% 3% 40% 27% 19% 8% 29% 16% 7% 12% 29% My home isn't big enough for my family members 16% 13% 18% 21% 26% 5% 12% 18% 16% 10% 30% Other housing challenge 14% 12% 18% 10% 15% 18% 22% 16% 10% 18% 9% I want to get my own place/live with fewer people, but I can't afford it 13% 2% 35% 30% 16% 6% 25% 13% 6% 11% 23% I need help taking care of myself/my home and can't find or afford to hire someone 11% 11% 6% 15% 14% 7% 9% 15% 11% 7% 20% I struggle to pay my property taxes 9% 12% 2% 7% 13% 5% 8% 9% 8% 8% 5% I worry that if I request a repair my rent will go up 9% 1% 25% 11% 12% 7% 21% 8% 3% 7% 13% I am afraid I may get evicted or kicked out 9% 2% 19% 15% 11% 5% 14% 10% 4% 5% 21% I'm worried about my home going into foreclosure 5% 4% 4% 8% 7% 3% 7% 5% 4% 3% 6% I struggle to pay my HOA dues 5% 6% 1% 5% 3% 5% 5% 6% 4% 3% 8% I have a disability and can't find an accessible place to live 3% 1% 3% 6% 3% 1% 5% 5% 2% 2% 9% Tenure Age Household Income Race/Ethnicity All Residents ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 12 Displacement and experience looking for housing. This section explores recent experiences with displacement (having to move when you did not want to move) and experiencing looking for housing in Estes Park.. Displacement. In the past five years, 26% of year-round residents and in-commuters have had to move from their home or apartment in the past five years when they did not want to—a higher proportion than the 20% who said they were displaced in the 2016 Housing Needs Survey.1 Respondents who are younger (under 35), identify as a racial/ethnic minority, have low incomes (less than $50,000) are the most likely groups to have been displaced. Renters are much more likely to be displaced than owners. Figure IV-7. Percent of Respondents Displaced in the Past Five Years Note: N=130 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Older residents in the Estes Valley are significantly more likely to have not moved in the past five years—66% of residents aged 55 to 74 years and three in four respondents (75%) over the age of 75 have not moved in five years. These trends provide important insight on town and city planning for young residents looking to start families in the Estes Valley and seniors hoping to age in place. This is similar to displacement among renters and owners. Only 12% of owners responded that they had moved when they did not want to compared to 43% of renters—a difference 1 According to the 2016 HNA, 20% of residents overall (32% of renters and 9% of owners) were evicted or forced to move from their home or apartment when they did not want to. Top reasons for displacement in 2016 included rental conversations (e.g., short-term and vacation rentals), owners moving into previously rented homes, and flood damage. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 13 of thirty-one percentage points. Reasons for displacement among owners and renters vary as well. Most owners cited inability to pay rent/mortgage due to job or income loss (34%), change in household size (29%), and an increase in property taxes (23%) as reasons for displacement. Renters, on the other hand, identified reasons related to landlords such as the unit being sold (38%), rental unit conversions from long-term to short-term rentals (22%), owners not committing to a long-term lease (21%). Difficulty finding housing. Survey respondents were also asked about their experience finding affordable housing that meets their household’s needs in the Estes Valley. Note that existing owners are excluded from this analysis as most have been in their current home for an extended period and their experience may not reflect current market conditions. Two-thirds of Estes Valley renters and half of Estes-Valley in-commuters said it was “very difficult” to find housing that meets their needs in the Estes Valley. Fewer than one in ten said it was either “somewhat easy” or “very easy” to find housing meeting their needs. Figure IV-8. What is your experience with finding housing that meets your needs in the Estes Valley? Note: N=555 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Renter desire to own. Most year-round Estes renters (60%) want to buy a home but are unsure if they will be able to, primarily due to affordability and availability concerns in the for-sale market:  86% of renters said finding a home in their price range is the greatest challenge they will likely face in buying a home in the Estes Valley;  Over half (56%) anticipate not being able to afford a down payment; and  43% of respondents believe that homes are selling too fast in Estes and worry that they won’t be able to compete with other buyers. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 14 Figure IV-9. Renter Desire to Purchase a Home Note: n=146 and n=111 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. For renters who anticipate challenges not provided on the survey, important comments include:  “Straight up availability!!!”  “The quality of homes in an affordable price range are highly lacking.”  “There’s also not a very strong guarantee of a secure job which would allow me to maintain a mortgage.” ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 15 Seasonal Worker Survey Respondents This section of the report analyzes survey responses collected from seasonal workers in the Estes Valley, their housing situations during employment, experience with finding housing, and plans to transition to full-time residence. Respondent profile. Seasonal workers in the Estes Valley are often young (half of respondents are under the age of 35), from lower to middle-income households, and rent seasonally when they are working in Estes. Seasonal workers were also more likely than permanent resident respondents to identify as a racial/ethnic minority group (58% identified as Hispanic and 23% identified as a non-Hispanic minority). Most seasonal workers in Estes Park work in the area for six months or less during the year and live in other parts of Colorado when they are not working/living in the Estes Valley. Figure IV-10. Respondent Profile Note: N=112 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Finding housing. Seasonal workers are most likely to find their housing online (30%) or through their employers (27%). Brokers and realtors also play a significant role in finding seasonal housing. Three percent of seasonal workers indicated living in their car, camper, or RV. Seasonal Worker Respondents Seasonal workers 112 Household income $0 up to $50,000 47% $50,000 up to $75,000 24% $75,000 up to $150,000 28% $150,000 or more 1% Age Under 35 years 51% 35 to 54 years 41% 55 years or older 8% Race/Ethnicity Non-Hispanic White 20% Hispanic/Latino 58% Non-Hispanic Minority 23% Months per year in Estes 1 to 4 months 23% 5 or 6 months 39% 7 to 9 months 31% 10 or 11 months 8% ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 16 Figure IV-11. How do you find your housing in the Estes Valley? Note: N=107 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Of those who find housing from their employers, nearly half (48%) live in the Estes Valley rent-free during employment and 17% sign a 6-month lease. Another 20% have shorter leases (month-to-month or 3 months). Figure IV-12. If housing is provided by your employer, what is your lease type? Note: N=29 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Only 4% think finding housing in Estes is “very difficult,” compared to 69% of permanent resident renters in the Estes Valley. This is driven in part, by employer provided housing, but also the seasonality of the rental market in the Valley. Figure IV-13. What is your experience finding housing that meets your seasonal needs in the Estes Valley? Note: N=106 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 17 Full-time residence. Most seasonal workers (72%) have considered living in the Estes Valley full time, as shown in Figure IV-14. About half chose not to live in the Estes Valley due to relationships elsewhere and 40% said they could not find a permanent job in the are. Housing availability is also a driver—27% said they chose not to live in the Valley because they could not find year-round housing. Figure IV-14. Have you considered living in the Estes Valley year-round? Note: N=70 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 18 Second Homeowner Survey Respondents This section focuses on seasonal homeowners in the Estes Valley—those who own a home in the valley but do not live there full-time. Respondent profile. Seasonal and second homeowners in Estes tend to be older (between 55 and 74 years old), higher income, and non-Hispanic White. On average, seasonal owners have had their second/seasonal home for 14 years. Figure IV-15. Respondent profile Note: N=161 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. Motivation for purchase. Nearly half of seasonal respondents (46%) indicated that primary motivation for buying their house in Estes was they “plan to retire and live full-time in Estes.” This is followed by 35% of seasonal residents who bought to have a place to get away/vacation. Only 12% bought their second home specifically as an investment property. Seasonal & 2nd Homeowners Seasonal/second homeowners 161 Household income $0 up to $50,000 18% $50,000 up to $75,000 14% $75,000 up to $150,000 40% $150,000 or more 29% Age Under 35 years 14% 35 to 54 years 25% 55 years or older 61% Race/Ethnicity Non-Hispanic White 58% Hispanic or Latino 30% Non-Hispanic Minority 12% Households Composition With Children under 18 44% Without Children under 18 56% Figure IV-16. What was your primary motivation for buying in the Estes Valley? Note: N=151. Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 19 Property usage. Seasonal and second homeowners were asked how often and during which seasons they use their home in the Estes Valley and if they lease their property when they are not in Estes. Blue and green bars in the figure represent variations on personal use; gray bars show variations of non-personal use. All types of use—particularly personal use—are highest in the summer and fall months while winter has the lowest use. About one-third of seasonal homeowners live in their Estes Park home for the entire season in summer and fall. Figure IV-17. About how often do you or your family use your property in each season? Note: n=92 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. As shown in Figure IV-18 (on the following page), half of seasonal owners do not lease their home when not using it, about 27% lease as a short-term rental, and another 33% lease it as a month-to-month or three-month rental (most commonly in the winter months). Among those who do not currently lease, most (76%) say they are not interested in leasing citing reasons such as desire for flexible personal use, HOA/Town restrictions, or concerns about property damage. Comments included:  “We want to be able to use our home spontaneously whenever we want, not be limited to when renters are using it.”  “I would like to do short-term rentals but aren’t allowed due to my zoning district and lack of permit.” ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 20  “Too many horror stories about lease outs or rentals. Just not worth the trouble for a home we love.” Figure IV-18. When you are not using your home in Estes, do you lease it out? Note: N=150. Source: Root Policy Research from the 2022 Housing Survey. Respondents who do not currently (but have considered) leasing their residence also provided insight on why they would lease. Frequently cited reasons include addressing Estes’ affordable housing shortage and earning a second income while avoiding home idle time. Future plans. As noted previously, nearly half of respondents (46%) indicated that their primary motivation in buying their Estes Valley home was they “plan to retire and live full- time in Estes.” When asked specifically about their future plans, more than half of all seasonal owners (regardless of their original purchase motivation), plan to transition from seasonal residence to full-time residence in the future. Only 17% do not have plans to live in Estes full-time while one in four second homeowners are unsure. (27%). Figure IV-19. Do you have future plans to live in Estes Park full-time? Note: N=149 Source: Root Policy Research from the Estes Valley 2022 Housing Survey. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 21 Estes Valley Stakeholder Perspectives Community engagement for the Estes Valley Housing Needs Assessment included extensive outreach efforts to community stakeholders. A list of stakeholder participants was consolidated by Town staff and contacted by email to participate in virtual interviews on housing needs, workforce needs, development, and housing market trends in the Estes Valley. Interviews were conducted in September and October 2022. Participants represented a wide range of groups and stakeholders with experience in economic development, housing and social services, and housing development. The following section summarizes the main findings from engagement efforts. Housing and Social Service Needs. Gaps in housing and social service needs have become increasingly burdensome on year-round residents and workers in the Estes Valley. Rising housing and rental prices, low vacancy rates, and underfunded social service programs have exacerbated these needs—specifically vulnerable populations struggling to find market rate housing. Housing supply. The greatest housing need in Estes is increasing the Valley’s inventory of reasonably priced housing. Stakeholders believe that housing inventory has progressively worsened in the past five years and many perceive affording housing in the Estes Valley as nearly impossible for year-round residents and families to attain. Housing supply trends and challenges noted by stakeholders include:  Supply of housing—specifically rentals—is lowest in the spring and beginning of summer. Stakeholder perception is that in recent years, landlords and property owners have changed lease terms from 12 months to 6 months. In peak seasons, many landlords increase rent by 20% to 30%.  Strong demand for vacation homes and retirement homes puts significant pressure on the housing market and prices making it difficult for young families and workers to access homeownership. Stakeholders indicate there is substantial unmet demand for homes priced around (and below) $300,000, which is well-below current market prices. Workforce housing needs. Stakeholders provided in-depth information on year-round and seasonal workforce needs. Nearly all stakeholders agree that preserving and retaining the Estes Valley’s young workforce is vital to the Estes Valley’s long-term success. Without meaning full action to address workforce housing and needs, Estes will continue to lose its young population and fail to meet the needs of its older population. Overall sentiments shared by stakeholders include:  There is high demand for rentals among year-round and seasonal workers, especially in the spring and summer. Housing is easier to find in the fall and early winter when visitation decreases, however, many seasonal workers leave Estes during this time. General consensus among industry groups seems to be that Estes needs to improve ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 22 its inventory of seasonal worker housing such that workers have housing in peak season that does not displace permanent residents..  Wages do not match housing and rental prices in Estes. Housing prices have risen faster than wage and many workers do not make enough money to enter homeownership. In fact, it is hardest to house early- and mid-career professionals as they are less likely to have accumulated wealth and equity.  Stakeholders recommend that the Town address seasonal worker housing needs through employer partnerships and seasonal housing. Recommendations for addressing non-seasonal workforce included deed restrictions, rental assistance, and innovative solutions to match supply and demand. Undocumented residents. Stakeholders indicated that households with undocumented residents (and those in the process of documentation) are particularly vulnerable to housing challenges. Many property owners and management companies require documentation for application approval and often the options available to residents without documentation are underserviced, overcrowded, or in poor condition. Residents lacking documentation are particularly vulnerable when properties are sold (if that results in a change in rental requirements) and typically do not seek public assistance or publicly supported housing options. Persons experiencing homelessness. There is a general perception that housing for persons experiencing homeless has progressively worsened, especially for those who struggle and/or are hesitant to access Estes’ resources and services. Many stakeholders attributed this trend to the lack of attention and priority the Town has placed on homeless people and capacity constraints. In fact, ”hidden homeless” has increased in recent years, with more residents couch surfing or living in their cars. Residents with a criminal or eviction history may be at higher risk of homelessness as they are often excluded from rental opportunities. Mental health services. Social service providers in Estes Park highlighted a need for additional mental health services to improve household stability. Stakeholders highlighted mental health service needs specifically for people experiencing homelessness and housing instability, children in overcrowded households, and low-income families. Displacement mitigation. Year-round residents have increasingly faced challenges of residential displacement, especially undocumented residents and low-income residents that cannot keep up with rising housing and rental costs. Many stakeholders emphasized the importance of prioritizing young workers as essential to the Estes Valley. Specific displacement challenges highlighted by stakeholders include: ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 23 Barriers to Economic Development. Economic development in the Estes Valley is largely reliant on its seasonal economy and visitation. Estes Valley stakeholders spoke to the importance of establishing a year-round economy independent of visitation. Barriers to becoming a year-round economy include rental prices and inventory which have a significant impact on employers’ ability to recruit and retain employees, as well as consistent loss of workforce being priced out of the community. In recent years, employers have struggled to recruit and retain employees due to the housing market in Estes and the lack of available and affordable apartments. These challenges have been exacerbated by the increase in retirees and second homeowners, the COVID-19 pandemic, and business closures. To ensure their business is not understaffed during peak seasons, some employers have begun buying apartment complexes/units or renting their home to their employees who cannot find housing. Employers have also engaged in alternative housing solutions such as offering direct rental assistance/aid. Many employers have anecdotes of potential employees rejecting job offers because they were unable to find housing or childcare. For employees who do decide to relocate to the Estes Valley for work, employers often struggle to keep their workers longer than 3 to 5 years, especially young employees looking to settle down, start families, and/or transition to homeownership. Barriers to residential development. Stakeholders identified various barriers to development of both affordable units and workforce housing in the Estes Valley:  Infrastructure uncertainties. Infrastructure can be extremely costly in mountain communities and the uncertainty associated with both cost and implementation can create delays in housing production increase risk for developers.  Land limitations. The Estes Valley’s lack of developable land has also slowed housing production and made it more difficult to identify affordable housing solutions. Despite the aforementioned barriers, stakeholders did commend the Town for addressing some previous barriers including prohibitive zoning codes and incentives for affordable development. Stakeholder recommendations. Stakeholder provided numerous recommendations and solutions for housing, workforce, and social service needs. Stakeholder recommendations to address social service needs (that could increase housing stability) include: ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 24  Provide increased funding to non-profit organizations and service providers that work with people experiencing housing instability, residents with a mental illness, and homeless residents.  Establish social service programs and outreach/advocacy positions. Stakeholders mentioned that Estes needs to increase its services and capacity. Increased capacity would allow for more programs such as providing transportation to shelters or agencies providing on-site case management.  Follow Evergreen’s model and approach to homelessness: consider establishing overnight shelters during cold weather seasons and programs that provide temporary housing while residents pursue workforce development training.  Expand the circle of care from day-to-day services to programs and services that address long-term challenges, specifically mental health and addiction treatment. This is especially important for residents who will likely face challenges when they leave shelters or temporary housing situations. Stakeholder recommendations to address affordable housing gaps and barriers to residential development include:  Support income-restricted workforce housing to prevent displacement and ensure that housing is affordable and attainable for low-income families and workers.  Use lodging tax revenue to expand workforce housing and repurpose older buildings into dorms for workers and seasonal renters.  Increase rental assistance/aid while working towards achieving realistic housing price points.  Focus on public-private partnerships and developer incentives to increase the supply of workforce housing. Specific suggestions include building partnerships with developers, donating land, tax/fees forgiveness, and other incentives. Developers also noted that subsidizing infrastructure is more valuable than a land donation (both reduce cost but infrastructure provision would also reduce uncertainty).  Identify displacement prevention policies including potential incentivizes for property owners to preserve existing naturally occurring affordable housing.  Determine incentives for year-round residents and/or second homeowners to build and lease Accessory Dwelling Units (ADUs). Incentives could include waiving fees for individual developments or incentives for property owners to lease their homes as long-term rentals rather than seasonal rentals. ROOT POLICY RESEARCH, WILLIFORD LLC, AND OPS STRATEGIES SECTION IV, PAGE 25  Begin a “Mortgage Matching” program that provides temporary housing to young working adults while saving up for down payments for a home. This program would help individuals build equity while saving money to transition into homeownership without worrying about housing costs.  Funding for housing needs to focus on deed restrictions, converting old buildings and units, purchasing properties outright, water subsidizes and more rental assistance.  Work towards building a self-sufficient, independent community and economy reliant on year-round residents and workers rather than the seasonal workforce and in- commuters. Stakeholder recommendations related to implementation and oversight include:  Consider a housing board or task force to monitor housing investments and strategies.  Ensure transparency by tracking affordable/workforce housing goals, progress, and investments and clearly communicating milestones with residents. APPENDIX A. UPDATE ON 2016 RECOMMENDATIONS ROOT POLICY RESEARCH, WILLIFORD, AND OPS STRATEGIES APPENDIX A, PAGE 1 APPENDIX A. Update on 2016 Recommendations Since the 2016 Housing Needs Assessment, the Town of Estes Park and the Estes Park Housing Authority have made good progress implementing several of the recommendations of that report. Many of these strategies have been implemented relatively recently and are ongoing. The table below provides a status update, and links those actions to the recommendations of this plan. 2016 Housing Needs Assessment Recommendations Current Status Forward Looking Recommendations - Crosswalk to 2023 Action Plan Allocate the resources needed to make workforce housing a priority with a commitment to figure out “how” to build homes, not “if” workforce housing should be built. Community now focused on “how.” Continue community engagement – focused on implementation specifics. (2023 Action #17) Immediately initiate work on the development of additional rental units that are scattered throughout neighborhoods in the community (accessory units), on site as part of commercial/institutional developments, and in apartment complexes. Create diversity in the rental inventory in unit type, location and income targeting. Code updates regarding accessory complete. Ensure the success of rental projects that are in the predevelopment stages (2023 Action #5) Add additional incentives that support creating accessory dwelling units. (2023 Action #9) Seek new development and preservation of buildings to serve a broader range of local workforce households. (2023 Action #1-10) Pursue the development of additional ownership housing immediately, though only consider condominiums in unique situations like the downtown area and provided that mortgage financing is approved for the units. Townhomes, duplexes and single-family homes in neighborhoods with the amenities desirable by families should be a high priority. Wildfire in process. Cultivate additional new homeownership development opportunities. (2023 Action #5,6) Pursue Missing Middle Strategic Plan. (2023 Action #13) Provide gap funding for homeownership affordable to local workforce. (2023 Action #14) ROOT POLICY RESEARCH, WILLIFORD, AND OPS STRATEGIES APPENDIX A, PAGE 2 Create opportunities to effectively use limited land and financial resources for workforce housing. Several land use code updates have been implemented that address this recommendation including linkage, ADUs, STRs, and density bonus in RM zone. Ensure the success of a local dedicated funding source, and build capacity and program guidelines to deploy it quickly and effectively. (2023 Action #11) Seek additional opportunities to zone for affordability. Very little land in Estes allows for efficient construction of apartments and townhouses. (2023 Action #13) EPHA to lead land acquisition efforts. (2023 Action #7) Work with employers on use of land and buildings for employee housing. (2023 Action #8) Develop deed restrictions that can be applied uniformly to ownership housing for the workforce and that include employment requirements. Some deed restrictions put in place through new density bonus. Develop a comprehensive set of guidelines to create consistent expectations for community members, developers, funders, and compliance staff. Create a database for compliance and online portal for applications. (2023 Action #19) Engage the community, build momentum and develop capacity to implement strategies over the long term. Current community engagement is focused on Comp Plan update, Housing Needs Assessment Update, and Lodging Tax Ballot Initiative. Continue community engagement, education, and outreach on broad housing topics and specific project and policy initiatives. (2023 Action #17) Additional staff capacity will be needed at the Town, Housing Authority, and/or partner non-profits if the community desires to increase workforce housing production over historic levels. (2023 Action #18) Learn from other communities Ongoing. EPHA has recently done a listening tour on best practices for compliance management. Ongoing. Complete deed restriction compliance survey with CAST members. Continue to learn from peer communities. (2023 Action #18-19) Estes Park Housing Action Plan—DRAFT PRESENTED BY Mollie Fitzpatrick, Managing Director Frankie Lewington, Senior Associate Attachment 3 Housing as a Town Priority 2 •Estes Forward Comprehensive Plan •Guiding principle and housing goals: Guiding principle:Housing opportunities [are] sufficient to support a multigenerational, year-round community. Goals: Ensure new housing meets the needs of the workforce and families Create new housing opportunities Invest in housing •6E lodging tax revenue State HAP Requirements: 2 standard affordability strategies; 1 long- term affordability strategy, and 1 displacement mitigation strategy 3 HNA Draft Report: Housing Needs Assessment Resources, Barriers, and Policy Recs Current and Projected Housing Needs Housing Problems, Displacement Risk Demographic, Economic, and Housing Inventory/ Market Trends Resident and Stakeholder Engagement HAP Draft Report: Housing Action Plan Implement ation and Monitoring Goals and Actions Progress on Addressing Housing Issues HNA Findings: Top Needs Today: Draft Housing Action Plan Housing Needs Recap & Strategy Framework 4 Rental Market Trends Source: 2010, 2018, and 2024 5-year ACS and Root Policy Research 5 Rental Units by Gross Rent, Estes ParkMedian Gross Rent, Estes Park and Larimer County Communities Home Purchase Market: Typical Sale Price vs Affordable Home Price at 100% AMI Source: Larimer County Assessor, HUD AMI Limits, Federal Reserve of St. Louis, and Root Policy Research. 6 Housing Stability •Approximately 730 households are cost burdened. •Approximately 270 of those households are severely cost burdened. 7Cost Burden, 2024 |source: ACS and Root Policy Research Housing Needs Summary Affordability Gaps and Production Needs in Estes Park 8 Engagement Summary for HAP •Development code and housing policy engagement emphasized expanding housing choice through zoning reform, additional housing types, streamlined approvals, reduced regulatory barriers, and incentives for workforce and deed- restricted housing. Participants generally supported infill, redevelopment, and adaptive reuse while preserving community character and open space. •Stakeholders, employers, housing partners, and developers prioritized workforce and attainable homeownership opportunities, reduced development barriers, stronger employer involvement, expanded housing assistance and financing tools, and continued collaboration among housing, business, nonprofit, and public-sector partners. •Service providers, housing organizations, and community partners focused on housing stability and support for vulnerable populations through rental assistance, housing navigation, emergency and transitional housing, supportive services, homelessness prevention, regional coordination, and integrated housing and childcare solutions. •Resident and community engagement demonstrated support for increasing housing affordability, expanding workforce and attainable housing options, preserving and improving existing housing, and locating housing near jobs and services. Residents also emphasized greater transparency, improved access to housing resources, locally relevant affordability standards, and investments that help households remain stably housed. 9 Strategy Framework Needs to address Public sector role Policy tools across the continuum 10 2. 1. 3. The core housing needs identified in the HNA are: •Supply:Focus on tools that increase housing production across the income spectrum to serve both current and future households; •Affordability:Explore tools that provide effective subsidies and incentives to deliver affordable housing specifically for renters below 60% AMI; and buyers below 120% AMI; and •Security: Concentrate on enhancing resources to keep people housed and provide housing security for vulnerable populations, precariously housed, and unhoused residents. Public Sector Tools Along the Continuum 11 Discussion Check-In •Any questions about current needs? •What reactions do you have to the general strategy framework? •What recent progress are you most proud of? 12 HAP Strategy Discussion 13 14 1.Advance workforce housing development and land readiness. 2.Encourage redevelopment and diverse housing types. 3.Strengthen employer and seasonal housing partnerships. 4.Expand accessory dwelling opportunities. Objective 1: Expand and diversify housing options 5.Preserve existing housing and long-term affordability. 6.Expand housing stability and support services. Objective 2:Preserve existing workforce housing and improve housing stability. 7.Align housing regulations to support context-sensitive housing growth. 8.Coordinate housing with infrastructure and community services. Objective 3:Align housing growth with community character, infrastructure, and environmental stewardship 9.Maintain transparent communication and community engagement. 10.Strengthen housing partnerships and funding capacity. 11.Monitor housing outcomes and adapt strategies over time. Objective 4: Strengthen partnerships, community engagement, and accountability. Council Discussion •How would you prioritize each strategy/action item (high, medium, low)? •Are there any strategies or actions you want to add? •Are there any strategy or actions you want to substantively change or remove? 15 Next steps •After incorporating feedback (from today and/or public comment), HAP will come back to City council for approval at an upcoming meeting. •Final HAP submitted to state (DOLA review) 16 THANK YOU! 17 SUPPORT OUR FIREFIGHTERS THIS NOVEMBER What YES on 6D Means for the Community YES on 6D provides funding from a ½-cent sales tax (50c on each $100) dedicated to firefighting, to ensure we can maintain and continue the same great service we get now. Research shows that over 80% of the sales tax is paid by visitors and tourists. (Groceries, medicine and other items are exempt from the sales tax.) VOTE YES ON 6D WILDLAND FIREFIGHTING Wildfires are a growing threat to lives and property. YES on 6D creates permanent funding that will allow the district to maintain and improve wildland firefighting capabilities to protect us with both new specialized equipment and wildland firefighter training. 1 YES on 6D will support firefighters with communication systems that can maintain volunteer firefighter response times; and to maintain and replace — as necessary — the Fire District’s aging trucks and firefighting equipment. 3FIREFIGHTER SUPPORT YES on 6D provides dedicated, permanent funding that enables the District to ensure excellent training and sufficient support for our professional volunteer firefighters. 2 RESPONSE TIME AND APPARATUS Paid for by Estes Valley Fire & Safety Coalition, Scott Thompson, Registered Agent – Not paid for with public funds VOLUNTEERS SAVE US MONEY www.YESon6D.com Since all the Estes Valley Fire District firefighters are volunteers, local taxpayers save approximately $12 million a year by not having to pay firefighter salaries or benefits. This means any new sales tax revenue can be used very efficiently to expand and strengthen our force; and on needed equipment and training to keep Estes Valley Fire District effective in its firefighting mission. Fire District Facts • Estes Valley is one of the few fire districts without a permanent, guaranteed funding source dedicated to firefighting. • Today, we cannot fund a Capital Reserve to replace trucks and apparatus; and the town’s sales tax support is not sustainable. • Over 80% of our neighbors surveyed said that Estes Valley needs and deserves a permanent funding source to support our Professional Volunteer Firefighters to protect our community. Please consider a donation to Estes Valley Fire & Safety Coalition c/o P.O. Box4294, Estes Park, CO 80517 https://stock.adobe.com/images/fire-icon-vector-set/108348484?prev_url=detail https://stock.adobe.com/images/firefighter-maltese-cross-emblem-icons-featuring-a-fire-department-badge- saint-florian-symbol-emergency-rescue-public-safety-fire-protection-classic-firefighting-insignia-first-responder- identit/2102844474?prev_url=detail https://stock.adobe.com/images/ribbon-banner-set-simple-ribbons-vector/339278490?prev_url=detail Support our Firefighters – VOTE Yes on 6D Estes Valley Fire Protection District WHAT’s THE ISSUE? • Estes Valley is one of the few fire districts without a permanent guaranteed funding source dedicated to firefighting. • Today we cannot fund a Capital Reserve to replace trucks and apparatus; and the town’s sales tax support is not sustainable. • Over 80% of our neighbors surveyed said that Estes Valley needs and deserves a permanent funding source to support our Professional Volunteer Firefighters to protect our community. THE DISTRICT’s NEEDS ✓ WILDLAND FIREFIGHTING - With wildfires a growing threat to lives and property, YES on 6D creates permanent funding that allows the district to maintain and improve wildland firefighting capabilities to protect us with both new specialized equipment and firefighter training. ✓ FIREFIGHTER SUPPORT – YES on 6D provides dedicated, permanent funding that enables the District to ensure excellent training and sufficient support for our PROFESSIONAL VOLUNTEER firefighters. ✓ RESPONSE TIME AND APPARATUS – YES on 6D will support firefighters with communication systems that can maintain volunteer firefighter response times; and to maintain and replace -- as necessary -- the Fire District’s aging trucks and firefighting equipment YES on 6D Saves Us Money VOLUNTEERS SAVE US MONEY - Since all the Estes Valley Fire District firefighters are volunteers, local taxpayers save approximately $12 million a year by not having to pay firefighter salaries or benefits. This means any new sales tax revenue can be used very efficiently on needed equipment and training to keep Estes Valley Fire District effective in its firefighting mission. VISITORS PAY – Research (Dean Runyan Associates, 2025) shows that visitors to the Estes Valley pay over 80% of the sales tax collected while helping keep our community safe. Groceries, medicine and other items are exempt from the sales tax. We can achieve all of this with a modest ½ cent sales tax (50 cents on each $100) Support our Firefighters 0.5% Sales Tax ESTES VALLEY FIRE PROTECTION DISTRICT BALLOT QUESTION 6D Estes Valley Fire Protection District Priorities Wildland Firefighting Firefighter Support Timely Response and Reliable Apparatuses Wildland Firefighting Wildfires are a growing threat to lives and property A “YES” vote on 6D creates permanent funding Frist priority is to maintain current capabilities Secondarily, improve capabilities to protect the Estes Valley Update equipment Wildland firefighter training Firefighter Support EVFPD is staffed by professional volunteers A “YES” on 6D provides dedicated, permanent funding Sustainable and sufficient support for our professional volunteer firefighters Adequate funding will enable the District to ensure high-quality training Replace aging equipment & gear EVFPD Staffing Paid staff (10) Chief Executive Assistant Administrative Assistant Prevention Division Chief Inspectors (2) Public Education PM/Grant Manager Operations Chief Training Captain Volunteers (44) 35 Firefighters 9 Auxiliary members Apparatus & Response Times A “YES” vote will support communication systems and a capital replacement fund Communication systems that maintain rapid response times for volunteer firefighters Funding for depreciation/replacement costs for capital equipment Vehicles Self Contained Breathing Apparatus (SCBA) SCBA Fill stations Property Tax Comparisons EVFPD property tax is 2.069 mills Area agencies Lyons 15 mills Grand Lake 13 mills Allenspark 7.5 mills Pinewood Springs 6.2 mills Loveland Rural 8 mills Sales Tax Comparisons Fire Protection District Sales Tax Property Tax (mill levy) Aspen 0.50%2.199 Berthoud 1.00%13.878 Carbondale & Rural 1.50%11.346 Cimarron Hills 1.00%16.621 Clifton 1.00%11.552 Cortez 0.54%11.25 Eagle River 0.79%8.263 Evans 1.00%15.5 Frederick-Firestone 0.50%13.90 La Veta 0.50%5.432 Lake City Area 1.25%3.431 South Adams County 0.50%14.75 EVFPD proposing a 0.5% sales tax (50 cents on $100.00) Sales Tax vs Property Tax Property Tax Stable & predictable Does not account for seasonal variation in calls Non-profit accommodations properties do not pay property tax Sales tax 80% tourism-related in the Estes Valley Visitation drives calls for service Visitation and Fire Calls 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% January February March April May June July August September October November December Fire Calls & Traffic Counts* 2025 (Monthly portion of annual count) Traffic Count Calls for Service *Traffic counts on highway 34 and highway 36 Please, Support Our Firefighters… Vote YES on 6D The Estes Valley Fire & Safety Coalition Thanks You! Questions or Comments? The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Paul Hornbeck, Senior Planner Department: Community Development Date: September 22, 2026 Subject: Resolution 98-26, Amended Plat of Lots 12 and 13 of the Amended Plat of Lots 12, 13, and 14, Block 1, Amended Plat of Lots 12 through 16 and 23 through 35, Block 1, Fall River Estates, Schuele Family Revocable Trust/Owner, Van Horn Engineering/Applicant Type: Public Hearing, Land Use, Resolution, Quasi-Judicial Objective: Conduct a public hearing to consider a proposed amended subdivision plat, which would combine two lots in the E-1 (Estate) Zoning District to a single lot, review the application for compliance with the Estes Park Development Code (EPDC), and approve, deny, or continue the application. Present Situation: The subject properties include a single-family house on a 1.2 acre lot and an adjoining undeveloped 1.5-acre lot under unified ownership. The owners desire to combine the two lots into a single 2.7 acre lot. The subject properties are accessed from Fall River Court and also abut Fall River Drive, although steep topography limits access. The subject properties are zoned E-1 (Estate), and are surrounded by E-1 (Estate) properties on three sides, which are all developed as single-family residential use. Properties to the north, across Fall River Drive, are zoned A (Accommodations/Highway Corridor Zoning District) and A-1 (Accommodations/Low-Intensity Zoning District) and developed with accommodations uses. Vicinity Map Zoning Map RM A-1 A E-1 Subject Property Subject Property Proposal: The applicants request approval of an amended subdivision plat (Attachment 4) to combine a 1.2-acre lot and 1.5-acre lot into a single a single 2.7 acre lot. Amended Subdivision Plat - (Enlarged) Review Criteria In accordance with EPDC § 3.9.E. “Standards for Review”, all subdivision applications shall demonstrate compliance with the standards and criteria set forth in Chapter 10, "Subdivision Standards," and all other applicable provisions of the Code. Key review criteria are listed below, followed by staff analysis: 1. Lots. The proposed lot meets applicable dimensional standards for the E-1 (Estate) Zoning District, including minimum lot size (one acre) and lot width. 2. Density. Proposed density will decrease and is in conformance with the maximum one (1) unit per acre for the E-1 (Estate) Zoning District. 3. Relationship to Comprehensive Plan. The proposed subdivision is consistent with the recommendations of the Estes Forward Comprehensive Plan. 4. Geologic and Wildfire Hazard Areas. The area is within a mapped steep slope geologic hazard area. However, as no development is proposed, the hazard area is not relevant to the application. Similarly, wildfire hazards are not a consideration with the application. 5. Utilities and Services. A 20’ wide utility easement, centered upon the lot line which is proposed to be dissolved with this application, would be vacated with the subdivision. Such easements are typically included around the perimeter of lots to allow future utility access; however, no utilities are known to be present and utility easements would remain in place around the perimeter of the new lot. The Water Division, Power and Communications, Upper Thompson Sanitation District, and Estes Valley Fire Protection District have reviewed and expressed no objections to the proposed amended subdivision plat. 6. Orientation of Land Uses. The existing single-family residential use will be unchanged, consistent with surrounding uses. No new single-family development is proposed or would be permitted upon subdivision approval. 7. Improvements. No public improvements are required with the application. 8. Streets and Access. No changes to the existing access from Fall River Court is proposed. 9. Sidewalks, Pedestrian Connections and Trails. Not applicable. Sidewalks and/or trails are not required with the amended subdivision application. 10. Grading and Site Disturbance. Not applicable. No development is proposed with the amended subdivision application. 11. Open Space Area. Not applicable. § 4.3.D. of the EPDC only requires residential subdivisions containing five (5) or more lots to set aside a percentage of the gross land area for open areas. 12. Stormwater Drainage. No applicable. Public Works expressed no concerns regarding drainage. 13. Public Right-Of-Way. Not applicable. There is no dedication of public right-of-way associated with this subdivision plat Advantages: • This proposal is consistent with the standards of the EPDC, specifically § 3.9 “Subdivisions” and Chapter 10 “Subdivision Standards.” Disadvantages: • None identified. Action Recommended: Staff recommends Town Board approve the amended subdivision plat. Finance/Resource Impact: None. Level of Public Interest: Low. As of the time of writing this report, no public comment has been received. In accordance with the notice requirements in the Code, notice of this hearing was published in the Estes Park Trail-Gazette, on September 4, 2026. Notice was mailed to all required adjacent property owners on September 4, 2026. A sign was posted on the property by the applicant. Sample Motion: 1. I move to approve/deny Resolution 98-26. Attachments: 1. Resolution 98-26 2. Application 3. Statement of Intent 4. Final Plat RESOLUTION 98-26 A RESOLUTION APPROVING AN AMENDED PLAT OF LOTS 12 & 13 OF THE AMENDED PLAT OF LOTS 12, 13 AND 14, BLOCK 1, AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35, BLOCK 1, FALL RIVER ESTATES WHEREAS, an application for an amended subdivision plat for 1260 Fall River Court, formally known as the Amended Plat of Lots 12 & 13 of the Amended Plat of Lots 12, 13 And 14, Block 1, Amended Plat of Lots 12 Through 16 And 23 Through 35, Block 1, Fall River Estates was filed by the owner, Schuele Family Revocable Trust; and WHEREAS, the Amended Plat proposes combining a 1.2-acre lot and a 1.5-acre lot into a single 2.7-acre lot in the E-1 (Estate) Zoning District; and WHEREAS, the Amended Plat proposes vacating a utility easement, and so must be treated as a final plat under the Estes Park Development Code and receive Town Board approval; and WHEREAS, a public hearing, preceded by proper public notice, was held by the Board of Trustees on September 22, 2026, and at said hearing all those who desired to be heard were heard and their testimony recorded; and WHEREAS, the Board of Trustees finds the applicants have complied with the applicable requirements of the Estes Park Development Code. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: The Amended Plat of Lots 12 & 13 of the Amended Plat of Lots 12, 13 And 14, Block 1, Amended Plat of Lots 12 Through 16 And 23 Through 35, Block 1, Fall River Estates is hereby approved. DATED this day of , 2026. TOWN OF ESTES PARK Mayor ATTEST: Town Clerk APPROVED AS TO FORM: Town Attorney Attachment 1 Land Use Application Project Information Lot Size 1-46 &1.18 ac Zoning E-1 (estate) Existing Land Use Residential Proposed Land Use Residential Is property located in the Floodplain?yes no Is property part of a Condominium Association?yes Utility Services Water Service (Existing) Town Well Water Service (Proposed) Town Well I Sanitary Sewer Service (Existing) EPSD [7]UTSD Sanitary Sewer Service (Proposed) EPSD Attachments Required: Statement of Intent,Digital Copy of Plat/Plans Attachment 2 DEVELOPMENT REVIEW APPLICATIONS IMPORTANT INFORMATION REGARDING DEADLINES AND FEES •Applicant is responsible for ensuring their deadlines are met. •A resubmittal fee may be charged when deadlines prior to review by the Decision-Making Body are not met,and the application may be delayed by a month or more. •Requests for time extensions after approval by the Decision-Making Body must be made in writing prior to the deadline.Request must state the reasons supporting the requested extension and the requested deadline. Failure to meet deadlines without written acceptance of a new deadline from planning staff will result in the approval becoming null and void. •Full fees will be charged for the resubmittal of an application that is null and void. •Per EPDC §3.2.C,"No changes to the development application or any accompanying plans or information shall be permitted after submittal, except for any changes or additional information request by staff during their review." 1043 Fish Creek Road  Estes Park, Colorado 80517  970-586-9388  fax 970-586-8101  E-mail: office@vanhornengineering.com 12th August 2026 Project Description for an Amended Plat at 1260 Fall River Schueler Family Revocable Trust: Amended Plat of Lots 12 & 13 of the Amended Plat of Lots 12, 13 and 14, Block 1, Amended Plat of Lots 12 through 16 and 23 through 35, Block 1, Fall River Estate. With response to Comments Planner, The intent of this letter is to detail the requested amended plat at 1260 Fall River Ct (south lot 13) and the neighboring property (with common ownership) listed by its deed as TBD Fall River Ct (north lot 12). Currently, the area of this amended plat consists of two separate lots (Assessor’s Parcel No’s. 3522213013 and 3522213012) The two lots, according to our measurements are 1.18 and 1.46 acres, respectively. It is the desire of the owners to dissolve the shared lot line of lots 12 and 13 to create one lot. No new easements are proposed, and the easements along the common lot line are to be dissolved. No development is planed in the foreseeable future. Water is currently provided by the town of Estes Park. No change is proposed to water service. Sewer is provided by the Upper Thompson sewer district. No change is proposed to sewer service. It should be noted this will be the third amended plat involving these lot  The original plat of Fall River Estates was filled in 1972 (Book 1500 Pg 36)  The first amendment to these lots was field in 1976 -Amended Plat of Lots 12 through 16 and 23 through 35, Block 1, Fall River Estate. (Book 1707 Pg 721) VAN HORN ENGINEERING AND SURVEYING LAND SURVEYS SUBDIVISIONS DEVELOPMENT PLANNING IMPROVEMENT PLATS STRUCTURAL ENGINEERING SANITARY ENGINEERING MUNICIPAL ENGINEERING Attachment 3 1043 Fish Creek Road  Estes Park, Colorado 80517  970-586-9388  fax 970-586-8101  E-mail: office@vanhornengineering.com  The second amendment to these lots was field in 1999- Amended Plat of Lots 12, 13 and 14, Block 1, Amended Plat of Lots 12 through 16 and 23 through 35, Block 1, Fall River Estate (reception #19990008092) Review Agency comments with responses in Italics Planning: 1. Per EPDC Sec. 3.9.D.1.b(1) if amended plat seeks to vacate easements it must be treated as a final plat (meaning Town Board review). Assuming you’d like to proceed accordingly, please replace the Com Dev Certificate with the Board of Trustees Certificate. This is reflected on the plat, the difference in submittal fee between a staff lever and town board amended plat has also been paid. 2. Please add the following to the plat “Approval of this Plan creates a vested property right pursuant to Article 68 of Title 24, C.R.S., as amended." This is reflected on the plat. 3. Please add adjacent lot/block/subdivision names This is reflected on the plat. 4. After approval, an attorney certificate will be required: A certificate by an attorney duly licensed to practice law in the State that all persons and/or entities having any record interest in the land to be subdivided have signed the dedication certificate. The attorney certificate must be dated as of the date that the respective Board is to consider the final map or plat on the final reading of resolution of approval. Such a letter will be produced by Carl Robicheaux on the day town board approves this amended plat. Upper Thompson Sanitation District: The District is not opposed to the requested lot consolidation. However, during a recent field investigation of the private service lateral stubout for Lot 12, the District found that the service lateral is broken. Damaged private service laterals allow groundwater infiltration into the sanitary sewer system and introduce debris, both of which can cause downstream blockages and operational issues. The stubout for Lot 12 must be properly capped at the “wye” connection where it ties into the private service lateral serving 1260 Fall River Court (Lot 13). The lateral sewer line has been caped at the wye. Van Horn changes Final plat formatting- two drawings were submitted. A preliminary plat comparable to the 05/11/2026 draft amended plat which shows improvements. a plat in final format was also submitted with improvements removed from the plat. Monumentation of dissolved property line- The property corner at the north end of the lot line to be dissolved which was shown as to be set on the 05/11/2026 draft has been removed as it is unnecessary 1043 Fish Creek Road  Estes Park, Colorado 80517  970-586-9388  fax 970-586-8101  E-mail: office@vanhornengineering.com Sincerely, J. Andy Schaffner, Project Manager Lonnie Sheldon, CO. P.E. & P.L.S. 26974 For Van Horn Engineering and Surveying, Inc. AMENDED PLAT OF LOTS 12 &13 OF THE AMENDED PLAT OF LOTS 12 13 AND 14 BLOCK 1 AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35 BLOCK 1 FALL RIVER ESTA TES THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 SECTION 22WITHIN: TOWNSHIP 5 NORTH,RANGE 73 WEST OF THE 6TH P.M. LA RIMER CO UNT Y,COLORADO PREVIOUS LEGAL DESCRIPTIONS -10'UTIUTY EASEMENT ' #4 REBAR, S89'00'00"W 361.21' =N56'19'55"W DRIVEWAY C=N56'24'50"W 82.46' UTILITIES:60.00' CER TIFICA TION OF 0 WNERSHIP AND DEDICA TION: 2026. NOTARIAL CERTIFICA TE:VICINITY MAP ALAN R SCHUELE TRUSTEE FOR SCHUELE FAMILY REVOCABLE TRUST STATE OF COLORAECOUNTYOFLARIMER) LEGEND 1,200'NOTARY PUBLIC 2026EASEMENT MAYOR (0.00')PLATTED DIMENSIONS TOWN CLERK 0.00'MEASURED DIMENSIONS TO WN ENGINEER APPROVAL: COLORADO THIS DAY OF 2026 (SIGNATURE),TOWN ENGINEER (PRINTED NAME),TOWN ENGINEER SURVEYOR'S NOTES:SURVEYOR'S CERTIFICATE: 23-001771 DATED 05/22/2023 WERE THE ONLY SOURCE USED FOR OWNERSHIP AND EASEMENT RESEARCH EXCEPT AS NOTED.2.THE BASIS OF BEARINGS FOR THIS AMENDED PLAT CONSIDERS THAT THE SOUTH LINE OF LOT 13 IS ASSUMED TO BEAR N89'00'00"E BEING MONUMENTED TO BOTH ENDS BY A #4 REBAR.SAID MONUMENTS AND LINES ARE SHOWN HEREON AND ALLBEARINGSCONTAINEDHEREONARERELATIVETHERETO.3.THESE LOTS ARE ZONED E-1 (ESTATE).THE PRESCRIBED BUILDING SETBACKS FOR THESE LOTS ARE,25'ALONG ALL PROPERTY LINES,HOWEVER PLATTED BUILDING "SETBACKS"ARE SHOWN ON THE AMENDED PLAT OF LOTS 12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES (SECOND AMENDED PLAT)WHICH ARE SHOWN HEREON.4.AERIAL IMAGERY FROM PICTOMETRY WAS USED TO AID IN DRAWING SOME FEATURES,SUCH AS ROADS.THE LOCATIONS SHOWN FOR THESE FEATURES MAY NOT BE REFLECTIVE OF THEIR TRUE LOCATION.5.THE LEGAL DESCRIPTION OF LOT 12 STATES IT COMES FROM THE AMENDED PLAT OF LOTS 12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES (WHICH WILL BE REFERRED TO ASTHE"SECOND AMENDED PLAT"),HOWEVER LOT 13 STATES ITS LEGAL COMES FROM AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES (WHICH WILL BE REFERRED TO AS THE "FIRST AMENDED PLAT"),GIVEN THELATERAMENDEDPLATINCLUDESLOT13ITSLEGALDESCRIPTIONSHOULDREFERTOTHESECONDAMENDEDPLAT,A CORRECTION DEED IS RECOMMENDED PRIOR TO THE FINALIZATION OF THIS AMENDED PLAT.NOTE THE OUTER BOUNDARY MORE OR LESSMATCHESBETWEENTHEAMENDEDPLATSHOWEVERTHELATERAMENDEDPLATDESIGNATESBUILDING"SETBACKS".6.THE AMENDED PLAT OF LOTS 12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES (SECOND AMENDED PLAT)CALLS OUT THE SOUTHERN BOUNDARY OF LOT 12 AS HAVING ACENTRALANGLEOF11'39'49"WHICH DOES NOT WORK MATHEMATICALLY HOWEVER THE AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES (FIRST AMENDED PLAT)CALLS THIS ANGLE OUT AS 110'39'49"WHICHMOREORLESSFITSWITHTHEGIVENGEOMETRYOFTHISCURVE.7.REGARDING THE SOUTHERNMOST CORNER,THE 60.00'DISTANCE ALONG THE EAST LINE OF LOT 12 WAS HELD AND WAS CALCULATED FROM DISTANCES SHOWN ON THE FIRST AMENDED PLAT AND DOES NOT APPEAR ON THE SECOND AMENDED PLAT.8.THE LINEAR UNIT FOR THIS SURVEY IS THE U.S.SURVEY FOOT.9.ACCORDING TO COLORADO LAW YOU MUST COMMENCE ANY LEGAL ACTION BASED UPON ANY DEFECT IN THIS SURVEY WITHIN THREE YEARS OF THE DATE YOU FIRST DISCOVER SUCH DEFECT.IN NO EVENT MAY ANY ACTION BASED UPON ANY DEFECT INTHISSURVEYBECOMMENCEDMORETHANTENYEARSFROMTHECERTIFICATIONDATESHOWNHEREON. NOTICE OF APPROVAL: AMENDED PLAT PROJECT SCHUELE FAMILY TRUST 1260 FALL RIVER COURT BASIS OF BEARINGS(N89'00'00"E 361.99') ROCKY MOUNTAINNATIONALPARK PLASTIC CAP\PLS 15760 1ON#4 REBAR LOT 5 REPLAT OFLOT26BLOCK1FALLRIVERESTATES 10'UTILITY EASEMENTTOBEVACATED LOT 3 BLOCK 3FALLRIVERESTATES CONTAINING 2.65 ACRES,MORE OR LESS,HAVE BY THESE PRESENTS CAUSEDTHESAMETOBESURVEYEDANDAMENDEDINTOONELOTTOBEKNOWNASLOT1OFTHEAMENDEDPLATOFLOTS12&13 OF THE AMENDED PLAT OFLOTS12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16AND23THROUGH35,BLOCK 1,FALL RIVER ESTATES,WITNESS OUR HANDSANDSEALS.THIS ILLEGIBLE PLASTIC CAPON#4 REBAR — THE FOREGOING DEDICATION WAS ACKNOWLEDGED BEFORE ME THIS DAY OF2026BYALANRSCHUELE,SCHUELE FAMILY REVOCABLE TRUST. PRIVATE ACCESS EASEMENTFORLOTS13&14 PLASTIC CAP PLS 6499ON#4 REBAR 15'BUILDING "SETBACK"(SEE NOTE 3) SUBJECT . PROPERTIES 10'UTIUTY EASEMENT &I-PLATTED BUILDING "SETBACK"(SEE NOTE 3) 25'PLATTED BUILDING ."SETBACK"(SEE NOTE 3)' 10'UTILITY EASEMENT TO BE VACATED&PLATTED BUILDING "SETBACK"(SEE NOTE 3) 25'PLATTED BUILDING "SETBACK"(SEE NOTE 3) 25'PLATTED BUILDING "SETBACK"(SEE NOTE 3) LOT 13,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16AND23THROUGH35,BLOCK 1,FALL RIVER ESTATES,COUNTYLARIMER,STATE OF COLORADO KNOW ALL MEN BY THESE PRESENTS THAT THE SCHUELE FAMILY REVOCABLETRUST,BEING THE OWNER OF THAT PART OF SECTION 22,TOWNSHIP 5 NORTH,RANGE 73 WEST,OF THE 6TH P.M.,LARIMER COUNTY,COLORADO,BEING MOREPARTICULARLYDESCRIBEDASFOLLOWS,TO-WIT: APPROVAL OF THIS PLAT CREATES A VESTED PROPERTY RIGHT PURSUANTTOARTICLE68OFTITLE24,C.R.S.AS AMENDED .PRIVATE ACCESS &PUBLIC UTILITY EASEMENTOUTLOTA:REPLAT OF LOT 26 BLOCKFALLRIVERESTATES' LOT 14 BLOCK 1AMENDEDPLATOFLOTS12,13 &14,BLOCK 1,AMENDED PLAT OF LOTS 12-16 &23-35 BLOCK 1FALLRIVERESTATES CREEKSIDE CONDOMINIUMS ON FALL RIVERLOT4BLOCK3FALLRIVERESTATES LOT 12,AMENDED PLAT OF LOTS 12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES,COUNTY OF LARIMER,STATE OFCOLORADO I,LONNIE A SHELDON,BEING FIRST DULY SWORN ON HIS OATH,DEPOSES ANDSAYS:THAT HE IS A REGISTERED LAND SURVEYOR UNDER THE LAWS OF THESTATEOFCOLORADO:THAT AMENDED PLAT OF LOTS 12 &13 OF THE AMENDEDPLATOFLOTS12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH16AND23THROUGH35,BLOCK 1,FALL RIVER ESTATES WAS MADE BY HIM ORUNDERHISDIRECTSUPERVISION:THAT THE SURVEY WAS ACCURATELYREPRESENTEDONTHISLOTCONSOLIDATIONPLAT,ALSO THAT THE STATEMENTSCONTAINEDHEREONWEREREADBYHIMANDTHESAMEARETRUEOFHISOWNKNOWLEDGE. LOT 12 (NO ASSIGNED ADDRESS)PER FIDELITY NATIONAL TITLE GROUP FILE NO.23-001838:LOT 12,AMENDED PLAT OF LOTS 12,13 AND 14,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES,COUNTY OF LARIMER,STATE OF COLORADO WITNESS MY HAND AND OFFICIAL SEAL.MY COMMISSION EXPIRES WATER-TOWN OF ESTES PARKSEWER-UPPER THOMPSON SANITATION DISTRICTELECTRICITY-ESTES PARK POWER AND COMMUNICATIONSINTERNET-TRAILBLAZER (LUMEN)GAS-ON SITE PROPANE ILLEGIBLE PLASTIC CAPON#4 REBAR ILLEGIBLE PLASTIC CARON#4 REBAR ' ILLEGIBLE PLASTIC CAPQON#4 REBAR LOT 11 BLOCK 1FALLRIVERESTATES LOT 13 BLOCK 1AMENDEDPLATOFLOTS12-16 &23-35 BLOCK 1FALLRIVERESTATES(SEE NOTE 5)±1.18 ACRES(1.186 ACRES) ^¥ebar VAN HORN ENGINEERING AND SURVEYING1043FISHCREEKRD.*ESTES PARK,COLORADO 80517PHONE:(970)586-9388 *eMail:vhe@airbits.com 25'PLATTED BUILDING "SETBACK"(SEE NOTE 3) LOT 12 BLOCK 1AMENDEDPLATOFLOTS12,13 &14,BLOCK 1,AMENDED PLAT OF LOTS 12-16 &23-35 BLOCK 1FALLRIVERESTATES±1.46 ACRES(1.457 ACRES) .2/65/^ckES SET PLASTIC CAP PLS 26974 ON #4 REBARFOUNDMONUMENTATION(AS DESCRIBED) LOT 13 (1260 FALL RIVER CT)PER FIDELITY NATIONAL TITLE GROUP FILE NO.23-001771:LOT 13,BLOCK 1,AMENDED PLAT OF LOTS 12 THROUGH 16 AND 23 THROUGH 35,BLOCK 1,FALL RIVER ESTATES,COUNTY LARIMER,STATE OF COLORADO <'PLASTIC CAPPLS26974ON#4 REBAR LONNIE A.SHELDONREG.LAND SURVEYOR #26974FORANDONBEHALFOFVAN HORN ENGINEERING AND SURVEYING INC. BOARD OF TRUSTEES CERTIFICA TE:APPROVED AND ACCEPTED BY THE BOARD OF TRUSTEES OF THE TOWN OFESTESPARK,COLORADO THIS (C=N26'29'55"W 154.98')\(1=51'00'01"1=160.22'R=180.00')C=N26'27'02"W (§5.226'1=51'05'55"L=160.53'R=180.00' DATE REVISION BY 07/20/2026 PER PLANNING COMMENTS JAS Attachment 4 We are committed to providing equitable access to our services. If you need any assistance, please email digitalaccessibility@estes.org. Amended Plat of Lots 12 & 13 of the Amended Plat of Lots 12, 13 And 14, Block 1, Amended Plat of Lots 12 Through 16 And 23 Through 35, Block 1, Fall River Estates We are committed to providing equitable access to our services. If you need any assistance, please email digitalaccessibility@estes.org. Schuele Family Revocable Trust, owner/ Van Horn Engineering, Applicant Presentation Provided at Meeting 2026-09-22 2 3 RM A A-1 E-1 Subject Properties 4 Review Criteria 1.Lots. Minimum standards, including lot size (one acre) and width met. 2.Density. Proposed density will decrease and is less than maximum 1 unit/ acre 3.Relationship to Comprehensive Plan. Consistent with Comp Plan recommendations 4.Geologic and Wildfire Hazard Areas. Steep slope geologic hazard area. However, as no development is proposed, the hazard area is not relevant to the application. Similarly, wildfire hazards are not a consideration with the application. 5.Utilities and Services. A 20’ wide utility easement, centered upon the lot line which is proposed to be dissolved with this application, would be vacated with the subdivision. 5 Review Criteria 6.Orientation of Land Uses. No changes 7.Streets, Sidewalks, and Other Improvements. None required 8.Grading and Site Disturbance. Not applicable. 9.Open Space Area. Not required. 10.Stormwater Drainage. No applicable. 6 Advantages / Disadvantages •Advantages: proposal is consistent with Development Code requirements •Disadvantages: none identified 7 Action Recommended •Staff recommends Town Board approve the amended subdivision plat. 8 Finance/ Resource Impact •None 9 Public Interest •Low Public Interest •Notice mailed to surrounding property owners on 9/4/26 •Legal ad published in Trail-Gazette on 9/4/26 •Sign posted on property by applicant 10 Sample Motion •I move to approve/deny Resolution 98-26. 11 The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees From: Town Administrator Machalek Department: Town Administrator’s Office Date: September 22, 2026 Subject: Resolution 99-26 Supporting Estes Valley Fire Protection District Ballot Issue 6D Type: Resolution Objective: Consider a Resolution in support of Estes Valley Fire Protection District Ballot Issue 6D. Present Situation: The Town of Estes Park supported the formation of the Estes Valley Fire Protection District (District) in 2009 in order to more efficiently, fairly, and effectively provide firefighting capabilities in the Estes Valley. State law did not permit fire districts to levy sales taxes at the time, so the Town committed to providing the District with 7% of the Town’s 4% sales tax. This ongoing contribution of Town sales tax to the newly formed District allows visitor spending to help support fire protection and prevention services for local residents and businesses. The District has received tax revenue through this sales tax contribution, as well as its own mill levy, since 2010. The funding options available to the District changed with the passage of Senate Bill 24- 194 in May of 2024. This bill authorizes special districts that provide emergency services to levy a sales tax to generate additional revenue for district services. The District may now levy its own sales tax within District boundaries. The Town Board and Board of Directors for the District held a joint study session on July 15, 2025, to discuss the Town’s sales tax support for the District in light of Senate Bill 24-194, as well as the Town’s need for funding for a new facility for the Police Department. The District Board discussed the issue further and ultimately decided to pursue a 0.5% sales tax increase to achieve financial independence for the District and support ongoing investments in fire protection and prevention in the Estes Valley. Proposal: The Estes Valley Fire Protection District Board of Directors approved Resolution N o. 2026-07 on August 31 (attached). The Resolution calls for a November 3, 2026, special election on the question of levying a 0.5% sales tax and appoints a designated election official. The text of the question is as follows: SHALL ESTES VALLEY FIRE PROTECTION DISTRICT TAXES BE INCREASED THREE MILLON FIVE HUNDRED THOUSAND ($3,500,000.00) DOLLARS ANNUALLY IN THE FIRST FULL FISCAL YEAR, AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY THE IMPOSITION OF A SALES TAX BEGINNING JANUARY 1, 2027 NOT TO EXCEED 0.5% (50 CENTS ON EACH $ 100 DOLLARS), UPON EVERY TRANSACTION IN THE DISTRICT WHICH THE STATE IMPOSES A SALES TAX (EXCLUDING GROCERIES AND OTHER EXEMPT ITEMS); FUNDING FROM THE SALES TAX WILL BE USED FOR ANY LAWFUL PURPOSE INCLUDING, BUT NOT LIMITED TO: • MAINTAINING WILDLAND FIREFIGHTING CAPABILITIES TO INCLUDE SPECIALIZED AND/OR UPGRADED EQUIPMENT AND FIREFIGHTER TRAINING; • MAINTAINING FIRE APPARATUS AND EQUIPMENT TO EXTEND ITS USEFUL LIFE AND REPLACING AND/OR UPGRADING FIREFIGHTING VEHICLES, COMMUNICATION METHODS, SAFETY GEAR AND OTHER EQUIPMENT AND APPARATUS; • FUNDING VOLUNTEER FIREFIGHTING GENERAL AND SPECIALIZED TRAINING PROGRAMS, OPPORTUNITIES, AND OVERALL PROGRAM SUPPORT. AND SHALL ALL DISTRICT SALES TAX REVENUES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED, RETAINED, AND SPENT AS A VOTER APPROVED REVENUE CHANGE NOTWITHSTANDING ANY REVENUE LIMITS PROVIDED BY LAW? The Town’s current financial plan for the construction of the Public Safety Facility relies on the ability to repurpose the sales tax currently remitted to the Estes Valley Fire Protection District in order to help meet debt repayment obligations. The current Town Board has clearly stated that these funds will not be repurposed until and unless the District is able to secure alternative funding, such as its own sales tax. If Ballot Issue 6D is unsuccessful, the Town will need to evaluate other funding options in order to proceed forward with this critical project. Advantages: • Supports the Estes Valley Fire District’s efforts to become financially independent. • Supports continued investments in fire protection and fire prevention in the Estes Valley • Supports the Town’s efforts to build a new Public Safety Facility. Disadvantages: • The sales tax rate in the Estes Valley will increase by 0.5%. Action Recommended: N/A Finance/Resource Impact: There is no direct financial impact related to the Resolution of Support. If Ballot Issue 6D is successful, the Town anticipates repurposing the current contribution to the Estes Valley Fire District (7% of the 4% sales tax) to fund a portion of the debt service for the new Public Safety Facility. Level of Public Interest: High. Sample Motion: I move to approve/deny Resolution 99-26. Attachments: 1. Resolution 99-26 2. Estes Valley Fire Protection District Resolution No. 2026-07 RESOLUTION 99-26 A RESOLUTION SUPPORTING ESTES VALLEY FIRE PROTECTION DISTRICT BALLOT ISSUE 6D TO LEVY A 0.5% SALES TAX UPON EVERY TRANSACTION IN THE DISTRICT UPON WHICH THE STATE IMPOSES A SALES TAX (EXCLUDING GROCERIES AND OTHER EXEMPT ITEMS), WITH SUCH REVENUE TO BE USED FOR ANY LAWFUL PURPOSE INCLUDING, BUT NOT LIMITED TO: MAINTAINING WILDLAND FIREFIGHTING CAPABILITIES, MAINTAINING AND REPLACING/UPGRADING VEHICLES AND EQUIPMENT, AND FUNDING VOLUNTEER FIREFIGHTING TRAINING PROGRAMS WHEREAS, the Town of Estes Park (Town) supported the formation of the Estes Valley Fire District (District) in 2009 in order to more efficiently, fairly, and effectively provide firefighting capabilities in the Estes Valley; and WHEREAS, state law did not permit the District to levy a sales tax to support operations at the time of the District’s formation; and WHEREAS, the Town has contributed 7% of the Town’s 4% sales tax collections to the District through an intergovernmental agreement since the formation of the District in recognition of the District’s statutory inability to levy a sales tax; and WHEREAS, the Town Board of Trustees remains committed to ensuring continued funding for the District and does not intend to withdraw the Town’s sales tax contribution to the District unless and until the District successfully obtains an alternate source of funding; and WHEREAS, the Colorado General Assembly adopted Senate Bill 24-194 in 2024, authorizing special districts that provide emergency services to levy a sales tax to generate additional revenue for district services; and WHEREAS, the Board of Directors of the District has approved Resolution No. 2026-07 calling for a November 3, 2026, special election on the question of levying a sales tax (Ballot Issue 6D); and WHEREAS, Ballot Issue 6D would levy a 0.5% sales tax upon every transaction in the District upon which the State imposes a sales tax (excluding groceries and other exempt items), with such revenue to be used for any lawful purpose including, but not limited to: maintaining wildland firefighting capabilities to include specialized and/or upgraded equipment and firefighter training; maintaining fire apparatus and equipment to extend its useful life and replacing and/or upgrading firefighting vehicles, communications methods, safety gear and other equipment and apparatus; and funding volunteer firefighting general and specialized training programs, opportunities, and overall program support; and WHEREAS, a “Yes” vote on Ballot Issue 6D will establish financial independence for the District, ensure continued high-quality fire protection services for the Estes Valley, and allow the Town to finance a portion of the construction of a new public safety facility by repurposing of the current sales tax contribution to the District . NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO: The Board of Trustees hereby supports the passage of Estes Valley Fire Protection District Ballot Issue 6D and urges the registered voters of the Estes Valley Fire Protection District to vote yes on Estes Valley Fire Protection District Ballot Issue 6D. DATED this day of , 2026. Attachment 1 TOWN OF ESTES PARK Mayor ATTEST: Town Clerk APPROVED AS TO FORM: Town Attorney ESTES VALLEY FIRE PROTECTION DISTRICT RESOLUTION NO.2026-07 AMENDED RESOLUTION CALLING FOR A NOVEMBER 3,2026 SPECIAL ELECTION ON THE QUESTION OF LEVYING A SALES TAX AND APPOINTING A DESIGNATED ELECTION OFFICIAL WHEREAS,the Estes Valley Fire Protection District ("District")is a quasi¬ municipal corporation and political subdivision of the State of Colorado and a duly organized and existing special district pursuant to Title 32,Colorado Revised Statutes; and WHEREAS,the Board of Directors of the District have determined that the interests of the District and the public require a dedicated funding source to carry out the objectives and purposes of the District,and that it seeks to levy a sales tax for that purpose in which the District will collect,retain and spend all revenues generated from such sales tax,as an exemption to the provisions and restrictions set forth in Article X, Section 20 ofthe Colorado Constitution ("TABOR");and WHEREAS,it is necessary to submit to the eligible electors of the District the question of levying a sales tax and the Board hereby determines that such question should be presented to the District's eligible electors at the election to be conducted on November 3,2026 ("Election"),in accordance with the provisions of the Special District Act ("Act"),the Uniform Election Code of 1992 ("Code"),and TABOR (the Act,Code and TABOR being referred to jointly as the "Election Laws");and WHEREAS,the Election is required to be conducted as a coordinated election, and the Larimer County Clerk and Recorder ("County Clerk")is the Coordinated Election Official for the Election and shall be responsible for mailing the notice required pursuant to Article X,Section 20 of the Colorado Constitution ("TABOR Notice");and WHEREAS,the District is required to enter into an Intergovernmental Agreement with the County Clerk regarding the conduct of the Election and mailing of the TABOR Notice on or before August 25,2026,which action was completed;and WHEREAS,the District intends to cooperate with the County Clerk to provide all necessary ballot titles and notices and various agreements with the County Clerk for the conduct of the Election and mailing of the TABOR Notice. NOW,THEREFORE,be it resolved by the Board of Directors of the Estes Valley Fire Protection District in Larimer County,State of Colorado that: 1.A special election of the eligible electors of the District shall be held on Tuesday,November 3,2026,at which Election there shall be submitted to the eligible Attachment 2 electors of the District the question in substantially the form as stated in the ballot title attached as Exhibit A hereafter set forth. 2. The Board hereby designates Kara Winters as the Designated Election Official for the conduct of the Election on behalf of the District, who is hereby authorized and directed to proceed with any action necessary or appropriate to effectuate the provisions of this Resolution and of Election Laws or other applicable laws. The Election shall be conducted in accordance with the Election Laws, and other applicable laws. Among other matters, the Designated Election Official shall arrange for the required notices of election, including the TABOR Notice, and direct that all other appropriate actions be accomplished. 3. The Board hereby ratifies the execution of the Intergovernmental Agreement with the County Clerk on behalf of the District, regarding the conduct of the Election and the mailing of the TABOR Notice. The Election and mailing of the District's TABOR Notice shall be in accordance with the provisions of such Intergovernmental Agreements. 4. The Election shall be conducted in coordination with the County Clerk in accordance with all relevant provisions of the Code. The County Clerk is the Coordinated Election Official for the Election and shall be responsible for mailing the TABOR Notice. 5. Pursuant to Section 1-11-203.5, C.R.S., any election contest arising out of a ballot issue or ballot question election concerning the order of the ballot or the form or content of the ballot title shall be commenced by petition filed with the proper court within five (5) days after the title of the ballot issue or ballot question is set. 6. If any part or provision of this Resolution is adjudged to be unenforceable or invalid, such judgment shall not affect, impair, or invalidate the remaining provisions of this Resolution, it being the Board's intention that the various provisions hereof are severable. 7. Any and all actions previously taken by the Designated Election Official or the officers of the Board of Directors or any other persons acting on their behalf pursuant to the Election Laws or other applicable laws, are hereby ratified and confirmed. 8. All acts, orders, and resolutions, or parts thereof, of the Board which are inconsistent or in conflict with this Resolution are hereby repealed to the extent only of such inconsistency or conflict. 9. The provisions of this Resolution shall take effect immediately. ADOPTED this 31st day of August, 2026. 2 ATTEST: ESTES VALLEY FIRE PROTECTION DISTRICT w Sauda &Ge SandraSnith, Chair 3 EXHIBIT A TO ELECTION RESOLUTION SHALL ESTES VALLEY FIRE PROTECTION DISTRICT TAXES BE INCREASED THREE MILLON FIVE HUNDRED THOUSAND ($3,500,000.00) DOLLARS ANNUALLY IN THE FIRST FULL FISCAL YEAR, AND BY SUCH AMOUNTS AS ARE RAISED ANNUALLY THEREAFTER BY THE IMPOSITION OF A SALES TAX BEGINNING JANUARY 1, 2027 NOT TO EXCEED 0.5% (50 CENTS ON EACH $100 DOLLARS), UPON EVERY TRANSACTION IN THE DISTRICT WHICH THE STATE IMPOSES A SALES TAX (EXCLUDING GROCERIES AND OTHER EXEMPT ITEMS); FUNDING FROM THE SALES TAX WILL BE USED FOR ANY LAWFUL PURPOSE INCLUDING, BUT NOT LIMITED TO: • MAINTAINING WILDLAND FIREFIGHTING CAPABILITIES TO INCLUDE SPECIALIZED AND/OR UPGRADED EQUIPMENT AND FIREFIGHTER TR AINING; • MAINTAINING FIRE APPARATUS AND EQUIPMENT TO EXTEND ITS USEFUL LIFE AND REPLACING AND/OR UPGRADING FIREFIGHTING VEHICLES, COMMUNICATION METHODS, SAFETY GEAR AND OTHER EQUIPMENT AND APPARATUS; • FUNDING VOLUNTEER FIREFIGHTING GENERAL AND SPECIALIZED TRAINING PROGRAMS, OPPORTUNITIES, AND OVERALL PROGRAM SUPPORT. AND SHALL ALL DISTRICT SALES TAX REVENUES AND THE EARNINGS FROM THE INVESTMENT OF SUCH REVENUES BE COLLECTED, RETAINED, AND SPENT AS A VOTER APPROVED REVENUE CHANGE NOTWITHSTANDING ANY REVENUE LIMITS PROVIDED BYLAW? The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Jason Damweber, Deputy Town Administrator Department: Town Administrator’s Office Date: September 22, 2026 Subject: Ordinance 13-26 Third Amendment to 2016 Verizon Wireless Land Lease Agreement at the Moraine/Wiest Parking Lot Type: Ordinance Objective: Approve the amended lease agreement between the Town of Estes Park and Verizon, which granted the ability to install, and operate, cell phone communication equipment and antenna in the Moraine/Weist parking lot beginning in May 2016. Present Situation: An existing land lease agreement between the Town and Verizon was entered into in 2016. The agreement automatically renews every five years subject to certain provisions. The initial agreement was amended twice shortly after being executed: once in November 2016 to include exhibits reflecting a newly widened driveway on the parcel, and again in February 2027 to extend the length of the easement to include two utility poles needed to accommodate the communications facility. For the first five-year period, the Town received lease payments in the amount of $18,000 per year. This escalated 15% to $20,700 for the second five-year period. Verizon has requested a third amendment to extend the next renewal period to 10 years (instead of five) in order to provide them with assurance, prior to investing in improvements to the existing facility, that the Town will not terminate the agreement after what would have been only a five-year renewal period. After the 10-year period, the renewal periods would revert back to five years each. The 15% escalator would still apply every five years until the agreement is terminated. Proposal: Staff proposes that the Town Board approve the third amendment to the 2016 Verizon Wireless Land Lease Agreement. Advantages: • Improved cell phone service in the downtown area for visitors and businesses. • The lease generates revenue that could be used for maintenance of Town owned facilities. Disadvantages: • The visual impact of a cell phone tower in the downtown area could be considered a disadvantage, though there are currently cell phone antennas on top of privately owned buildings in the downtown area. Action Recommended: Staff recommends that the Town Board authorize the Mayor to sign the third amendment to the 2016 Verizon Wireless Land Lease Agreement. Finance/Resource Impact: If the amendment is approved, the Town would receive annual lease payments in the amount of $23,805 for the next five years. This would increase by 15% every five years until the lease is terminated. Level of Public Interest: Low Sample Motion: I move for the approval/denial of Ordinance 13-26. Attachments: 1. Ordinance 13-26 2. Third Amendment to 2016 Verizon Wireless Land Lease Agreement 3. Original Contract with First Two Amendments ORDINANCE NO. 13-26 AN ORDINANCE TO AMEND THE LEASE FOR THE VERIZON WIRELESS SITE AT THE MORAINE/WIEST PARKING LOT WHEREAS, the Verizon Wireless desires to amend and extend its existing lease from the Town at the Moraine/Wiest Parking Lot for its cell tower; and WHEREAS, the Town’s land is appropriate for this use; and WHEREAS, section 31-15-713, C.R.S., requires that all leases of municipal property for longer than one year be in the public interest and approved by ordinance; and WHEREAS, the Board of Trustees determines that leasing the property for the stated purposes is in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO AS FOLLOWS: Section 1: The Board approves, and authorizes the Mayor to sign, the amendment to the lease of Town property to the Cellco Partnership d/b/a Verizon Wireless in substantially the form now before the Board. Section 2: To the extent only that they conflict with this Ordinance, the Board repeals any conflicting ordinances or parts of ordinances. The provisions of this Ordinance are severable, and invalidity of any part shall not affect the validity or effectiveness of the rest of this Ordinance. Section 3: This Ordinance shall take effect and be enforced thirty (30) days after its adoption and publication. PASSED AND ADOPTED by the Board of Trustees of the Town of Estes Park, Colorado this ____ day of _______________, 2026. TOWN OF ESTES PARK, COLORADO By: Mayor ATTEST: Town Clerk I hereby certify that the above Ordinance was introduced at a regular meeting of the Board of Trustees on the day of ______, 2026 and published by title in a newspaper of general circulation in the Town of Estes Park, Colorado, on the _____ day of ________, 2026, all as required by the Statutes of the State of Colorado. Town Clerk Attachment 1 APPROVED AS TO FORM: Town Attorney Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 THIRD AMENDMENT TO LAND LEASE AGREEMENT THIS THIRD AMENDMENT TO LAND LEASE AGREEMENT (this "Amendment"), dated as of this day of ,20 (the "Effective Date"),by and between Town of Estes Park,a Colorado municipal corporation ("Lessor"),and Cellco Partnership d/b/a Verizon Wireless,("Lessee"),recites and provides: RECITALS WHEREAS,Lessor is the fee owner of certain real property located in Larimer County,Colorado, (the "Property"). WHEREAS,Lessee,by way of assignment,is the current tenant under that certain Land Lease Agreement with Lessor,dated May 25,20 1 6;as amended by that certain First Amendment to Land Lease Agreement,dated June 28,2016;and as amended by that certain Second Amendment to Land Lease Agreement,dated February 8,2017,(collectively the "Lease"). WHEREAS,Lessee owns,operates,and maintains one or more wireless communications towers, equipment,shelters,and other associated improvements on the Premises (collectively, "Improvements"). WHEREAS,Lessor and Lessee now desire to amend the Lease as more particularly provided below. AGREEMENT NOW,THEREFORE,in consideration of the mutual agreements set forth below and other good and valuable consideration,the receipt and sufficiency of which are hereby acknowledged,the parties agree as follows. 1.Defined Terms;Recitals.Capitalized terms used but not defined herein shall have the meanings given to such terms in the Lease.The recitals set forth here and above are true and correct in all respects and are incorporated herein by reference. 2.Renewal Terms.Notwithstanding anything to the contrary contained in the Lease, including without limitation Paragraph 4(c)of the Lease,the Lease shall automatically continue for two (2)consecutive additional five (5)year terms (each,a "Renewal Term"),for a total of ten (10)additional years.Each Renewal Term shall automatically commence upon the expiration of the immediately preceding term without any further action required by Lessee.For such ten (10)year period,Lessor shall have no right to terminate the Lease pursuant to Paragraph 4(c)of the Lease,and Paragraph 4(c)shall be suspended and of no force or effect.Regarding any fourth and future Renewal Terms,the parties agree that Paragraph 4(c)of the Lease shall automatically be reinstated and shall thereafter apply in accordance with its original terms and conditions as though the foregoing suspension had never occurred.Accordingly,Lessor may exercise its termination rights under Paragraph 4(c)at least six months prior tp_th^ai 1 Site Name:Retrum Site Number:US-CO-5271 147464532.5 Attachment 2 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 expiration of the third Renewal Term so as to be effective upon the expiration of the third Renewal Term,i.e.May 25,2036.Lessor may also exercise its termination rights under Paragraph 4(c)as subsequent Renewal Terms expire. Notices.All notices under the Lease shall be delivered by Federal Express,or US certified mail return receipt requested,and addressed to: If to Lessee: VB-SI Assets,LLC c/o Vertical Bridge,LLC 22 W Atlantic Ave,Suite 310 Delray Beach,Florida 33444 Attention:General Counsel Ref:US-CO-5271 If to Lessor: Town Of Estes Park 170 MacGregor Ave Estes Park,Colorado 80017 4.Counterparts/Digital Signatures.This Amendment may be executed in counterparts with the same effect as if both parties hereto had executed the same document.Both counterparts shall be construed together and shall constitute a single document. Delivery of a copy of this Amendment (or any notices pursuant to the Lease)bearing an original signature by facsimile transmission,by DocuSign,by electronic mail in portable document format”(“pdf”)form,or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document,will have the same effect as physical delivery of the paper document bearing the original signature. Ratification.Except as amended and modified in this Amendment,the terms and conditions of the Lease (in existence prior to this Amendment)are ratified and confirmed in all respects and shall continue in full force and effect.In the event of any dispute between the terms of the Lease (in existence prior to this Amendment)and this Amendment,the terms of this Amendment shall govern and supersede those set forth in the Lease (in existence prior to this Amendment). Lessor Statements.Lessor represents and warrants to Lessee that (1)Lessor is duly formed,validly existing,and in good standing in its jurisdiction of formation and authorized to do business where required;(11)Lessor has full authority to execute and perform this Amendment,and the signatory(ies)have authority to bind Lessor;(ii1)No consents or approvals are required for Lessor to execute and deliver this Amendment; Initial Site Name: ly Site Number:US-CO-5271 147464532.5 Dacusign Envelope ID:03570C5C-BD18-8E8D-812F-B1D133E71D03 iv)Lessor is the sole owner of the Premises and the Property.These representations and warranties shall survive the execution and delivery of this Amendment. The remainder of this page is intentionally blank;signature page follows.| Site Name:Redrum Site Number:US-CO-5271 147464532.5 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 IN WITNESS WHEREOF,the parties hereto have executed this Amendment as of the Effective Date. WITNESSES:Lessor: Town Of Estes Park, a Colorado municipal corporation By: Name:__ Title: Name: Date:__ ATTEST:APPROVED AS TO FORM: Town Clerk Town Attorney Lessor’s Signature Page to Amendment] Site Name:Redrum Site Number:US-CO-5271 147464532.5 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 WITNESSES:Lessee: Cellco Partnership d/b/a Verizon Wireless By:VB-S1 Assets,LLC,a Delaware limited liability company,successor in interest to VB Acquisitions,LLC,a Delaware limited liability company Its:Attorney in Fact Tim Tuck Name:___ Vice President -Lease Administration Title: Date: initial Lessee ’s Signature Page to Amendment]| I 147464532.5 Site Name:Redrum Site Number:US-CO-5271 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 Above 3”Space for Recorder’s Use Only) Prepared by and Upon Recording Return to: VB-S1I Assets,LLC 22 W Atlantic Ave,Suite 310 Delray Beach,Florida 33444 Attn:Allison Cannella —-SVP &General Counsel Cross Reference: Site Name:Redrum Instrument #:20160035514 Site Number:US-CO-5271 FIRST AMENDMENT TO MEMORANDUM OF LAND LEASE AGREEMENT This First Amendment to Memorandum of Land Lease Agreement (“Amendment”)is entered into and made effective as of day of 20 and is by and between Town Of Estes Park,a Colorado municipal corporation,(“Lessor”),whose address is 170 MacGregor Ave,Estes Park,Colorado 80017,and Cellco Partnership d/b/a Verizon Wireless,whose mailing address is 22 W Atlantic Ave,Suite 310,Delray Beach,Florida 33444 (“Lessee”).Lessor and Lessee may be referred to herein as “Party”or jointly as “Parties”. WITNESSETH: WHEREAS,Lessor and Lessee,or their predecessors and interest,entered into that certain Land Lease Agreement dated May 25,2016;as amended by that certain First Amendment to Land Lease Agreement,dated June 28,2016;and as amended by that certain Second Amendment to Land Lease Agreement,dated February 8,2017 (collectively “Lease’’)as entered into record via that certain Memorandum of Land Lease Agreement dated May 25,2016,as recorded on June 06,2016 as Instrument 20160035514,in the Public Records Office of Larimer County,State of CO (“Memorandum”).The Lease and Memorandum may be referred to herein collectively as the “Agreement”. WHEREAS,Lessor and Lessee desire to amend the Agreement as set forth below in this Amendment. NOW,THEREFORE,in consideration of Ten Dollars ($10.00)and other good and valuable consideration,the receipt and sufficiency whereof are hereby acknowledged,the Lessor and Lessee agree as follows: Site Name:Redrum Site Number:US-CO-5271 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 1.Recitals,Definitions.The recitals set forth above are accurate and hereby incorporated into the Agreement by reference thereto.All capitalized terms not defined herein shall have the same meaning set forth in the Agreement. 2.Amendment.The Agreement is amended to add two (2)additional five (5)year renewal periods (each an “Additional Renewal Term”).Each such Additional Renewal Term shall be deemed automatically exercised by Lessee unless Lessee provides written notice to Lessor of non-renewal at least thirty (30)days prior to expiration of the then current term. 3.Ratification.Except as amended herein,all of the terms and conditions of the Agreement are hereby ratified and confirmed in all respects and shall remain unchanged and continue in full force and effect. 4.Conflict.In the event of any conflict between the terms of this Amendment and the Agreement,the terms of this Amendment shall govern and supersede those set forth in the Agreement. 5.Successors and Assigns.This Amendment shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. 6.Binding Effect.This Amendment shall be binding upon the heirs,legal representatives, successors and assigns of the parties.The parties shall execute and deliver such further and additional instruments,agreements and other documents as may be necessary to evidence or carry out the provisions of this Amendment. 7.Representations and Warranties.To the extent applicable,each party hereby represents and warrants to the other party that such party:(a)is a duly authorized and existing entity;(b)is qualified to do business in the state in which the Property is located;and (c)has full right and authority to execute and enter into this Amendment and to perform the obligations imposed upon such party without the consent of any other party or person.Further,each of the persons executing this Amendment on behalf of such party hereby represents and warrants that such person is authorized to do so. 8.Entire Agreement.This and any attachments,which are hereby incorporated into and made a part of this Amendment,set forth the entire agreement between the parties with respect to the matters set forth herein.There have been no additional oral or written representations or agreements. 9.Authority to Sign.Each signatory of this Amendment represents hereby that he or she has the authority to execute and deliver the same on behalf of the party hereto for which such signatory is acting. 10.Counterparts.This Amendment may be executed in two (2)or more counterparts,each of which shall be deemed an original,but all of which together shall constitute but one and the same instrument. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK,SIGNATURES BEGIN ON NEXT PAGE] Site Name:Redrum Site Number:US-CO-5271 Docusign Envelope ID:0357DC5C-BD18-8E8D-812F-B1D133E71D03 IN WITNESS WHEREOF,the parties hereto have executed this AMENDMENT as of the date last signed by a party hereto. WITNESSES:Lessor: Town Of Estes Park a Colorado municipal corporation STATE OF COUNTY OF The foregoing instrument was acknowledged before me this ___dayof_ 20 by name of signatory), title of signatory)of Town Of Estes Park,a(n)Colorado municipal corporation,on behalf of the company. Notary Public Print Name: My Commission Expires: Site Name:Redrum Site Number:US-CO-5271 Docusign Envelope ID:0357DC5C-BO18-8E8D-812F-B1D133E71D03 [Lessee's Signature Page to Amendment] WITNESSES: Name: Lessee: Cellco Partnership d/b/a Verizon WirelessBy:VB-S1 Assets,LLC,a Delaware limited liabilitycompany,successor in interest to VB Acquisitions,LLC,a Delaware limited liability company Its:Attorney in Fact By:=-^^~<^ Tim TuckName: Vice President -Lease AdministrationTitle:Date:1/2/20 2^ Name: STATE OF FLORIDA COUNTY OF PALM BEACH The foregoing instrument was acknowledged before me this,20 2^,by viol pre^ JP (name of signatory), (title of signatory)of VB-S1 Assets,LLC,a Delaware limited liability company,,on behalf of the company,as attorney in fact. My Commission Expires: Notary Public Print Name:**CommlWonIHH 367267 ^Exptee February 27,2027 Site Name:Redrum Site Number:US-CO-5271 Attachment 3 The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Jennifer Waters, Floodplain Administrator Department: Public Works Date: September 22, 2026 Subject: Ordinance 14-26 Amending Chapter 18.04 of the Municipal Code Regarding Floodplain Regulations Type: Ordinance Objective: Amend the Town’s floodplain regulations as required by FEMA in order to reference a new Flood Insurance Study (FIS) and new Flood Insurance Rate Maps (FIRMs). Present Situation: After the 2013 flood, the Colorado Hazard Mapping Project (CHAMP) was established by the state legislature to rework floodplain data and maps. Draft CHAMP results for an updated Special Flood Hazard Area (SFHA) in Larimer County were incorporated in Estes Park Municipal Code Floodplain Regulations in 2019. On January 26, 2021, the Colorado Water Conservation Board (CWCB) submitted FEMA’s Preliminary FIRM and Flood Insurance Study (FIS) based on the CHAMP results. During 2021 and 2022, Estes Park fulfilled the Adoption Timeline process required by FEMA which included meetings, public outreach, publication of notices, and the 90 -Day Appeal Period. Over the last four years, complex flood mapping issues elsewhere in Larimer County were resolved. On May 27, 2026, FEMA issued the Letter of Final Determination which triggers the 6-Month Adoption Period for jurisdictions in the Larimer County FIS. The Town of Estes Park may now recognize the finalized status of the SFHA established in 2019 by updating the Floodplain Regulations. Proposal: Amend Section 18.04.040 – Basis for establishing the Special Flood Hazard Area as presented in the attached Ordinance. Advantages: The update is required as a condition of the Town’s continued eligibility in the National Flood Insurance Program (NFIP). Disadvantages: Communities that fail to enact the necessary floodplain management regulation will be suspended from participation in the NFIP. Action Recommended: Approval of the proposed amendment so that the revised ordinance may be submitted to FEMA as required prior to the effective date of November 27, 2026. Finance/Resource Impact: Floodplain map layers in the Town’s ArcGIG platform will require updates using files submitted to the Town by Colorado Water Conservation Board (CWCB). Level of Public Interest: Level of public interest varies based on perceived risk of flooding or land use impacts. Sample Motion: I move for the approval of Ordinance 14-26. Attachments: 1. Ordinance 14-26 2. FEMA Letter of Final Determination dated May 27, 2026 ORDINANCE NO. 14-26 AMENDING CHAPTER 18.04 OF THE MUNICIPAL CODE OF THE TOWN OF ESTES PARK RELATING TO FLOODPLAIN REGULATIONS WHEREAS, the Town of Estes Park participates in the National Flood Insurance Program (NFIP) and is required, pursuant to federal and state regulations, to incorporate certain floodplain regulations in its municipal ordinance; and WHEREAS, the Board of Trustees previously adopted a floodplain regulation s ordinance which establishes the minimum area of applicability of the Special Flood Hazard Area; and WHEREAS, the Federal Emergency Management Agency (FEMA) has issued a final determination adopting an updated countywide Flood Insurance Study (FIS) and attendant Flood Insurance Rate Maps (FIRMs) for Larimer County with an effective date of November 27, 2026; and WHEREAS, the Board of Trustees desires to comply with FEMA’s requirement to amend the Town’s floodplain regulations ordinance to incorporate the new FIS and FIRMs as a condition of continued eligibility in the NFIP. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO AS FOLLOWS: Section 1: Section 18.04.040 of the Municipal Code is hereby repealed and reenacted to read as follows: The Special Flood Hazard Areas identified by the Federal Emergency Management Agency (FEMA) in a scientific and engineering report entitled "Flood Insurance Study, Larimer County, Colorado and Incorporated Areas" (FIS) effective November 27, 2026, with accompanying Flood Insurance Rate Maps (FIRMs) and any revisions thereto are hereby adopted by reference and declared to be a part of this ordinance. These Special Flood Hazard Areas identified by the FIS and attendant mapping are the minimum area of applicability of this ordinance and may be further supplemented by studies designated and approved by the Town Board by ordinance. The Floodplain Administrator shall keep a copy of the FIS and FIRMs on file and available for public inspection. Section 2: This amendment to the Estes Park Municipal Code shall take effect and be enforced thirty (30) days after its adoption and publication . PASSED AND ADOPTED by the Board of Trustees of the Town of Estes Park, Colorado this ____ day of _______________, 2026. TOWN OF ESTES PARK, COLORADO By: Mayor ATTEST: Town Clerk Attachment 1 I hereby certify that the above Ordinance was introduced at a regular meeting of the Board of Trustees on the day of , 2026 and published by title in a newspaper of general circulation in the Town of Estes Park, Colorado, on the day of , 2026, all as required by the Statutes of the State of Colorado. Town Clerk APPROVED AS TO FORM: Town Attorney U.S. Department of Homeland Security Washington, DC 20472 www.fema.gov May 27, 2026 CERTIFIED MAIL RETURN RECEIPT REQUESTED IN REPLY REFER TO: 19P The Honorable Gary Hall Mayor, Town of Estes Park P.O. Box 1200 Estes Park, CO 80517 Community Name: Town of Estes Park, Larimer County Colorado Community No.: Map Panels Affected: 080193 See FIRM Index Dear Mayor Hall: This is to notify you of the final flood hazard determination for Larimer County, Colorado and Incorporated Areas, in compliance with Title 44, Chapter I, Part 67, Section 67.11, Code of Federal Regulations (CFR). This section requires that notice of final flood hazards shall be sent to the Chief Executive Officer of the community, all individual appellants, and the State Coordinating Agency, and shall be published in the Federal Register. The statutory 90-day appeal period that was initiated for your community when the Department of Homeland Security’s Federal Emergency Management Agency (FEMA) published a notice of proposed flood hazard determinations for your community in the local newspaper has elapsed. FEMA received a submittal regarding the Revised Preliminary Flood Insurance Study (FIS) report and Flood Insurance Rate Map (FIRM) during that time. Please note that only those submittals that satisfy the data requirements defined in 44 CFR Part 67 and submitted during the 90-day appeal period are considered appeals. However, we determined that changes were warranted based on the submitted data and have incorporated the applicable changes into final copies of the FIS and FIRM. Accordingly, the flood hazard determinations for your community are considered final. The final notice for flood hazard determinations will be published in the Federal Register as soon as possible. The FIS report and FIRM for your community will become effective on November 27, 2026. Before the effective date, we will send your community final printed copies of the FIS report and FIRM. For insurance purposes, the community number and new suffix code for the panels being revised are indicated on the FIRM and must be used for all new policies and renewals. Because the FIS report for your community has been completed, certain additional requirements must be met under Section 1361 of the National Flood Insurance Act of 1968, as amended, within 6 months from the date of this letter. Attachment 2 It must be emphasized that all the standards specified in 44 CFR Part 60.3(d) of the National Flood Insurance Program (NFIP) regulations must be enacted in a legally enforceable document. This includes adoption of the current effective FIS report and FIRM to which the regulations apply and other modifications made by this map revision. Some of the standards should already have been enacted by your community in order to establish initial eligibility in the NFIP. Your community can meet any additional requirements by taking one of the following actions in this Paragraph of the NFIP regulations: 1. Amending existing regulations to incorporate any additional requirements of 44 CFR Part 60.3(d); 2. Adopting all the standards of 44 CFR Part 60.3(d) into one new, comprehensive set of regulations; or 3. Showing evidence that regulations have previously been adopted that meet or exceed the minimum requirements of 44 CFR Part 60.3(d). Also, prior to the effective date, your community is required, as a condition of continued eligibility in the NFIP, to adopt or show evidence of adoption of the floodplain management regulations that meet the standards of 44 CFR Part 60.3(d) of the NFIP regulations by the effective date of the FIRM. These standards are the minimum requirements and do not supersede any State or local requirements of a more stringent nature. Many states and communities have adopted building codes based on the International Codes (I- Codes); the model I-Codes (2009 and more recent editions) contain flood provisions that either meet or exceed the minimum requirements of the NFIP for buildings and structures. The model codes also contain provisions, currently found in an appendix to the International Building Code, that apply to other types of development and NFIP requirements. In these cases, communities should request review by the NFIP State Coordinator to ensure that local floodplain management regulations are coordinated (not duplicative or inconsistent) with the State or Local building code. FEMA’s resource, Reducing Flood Losses through the International Code: Coordinating Building Codes and Floodplain Management Regulations, 5th Edition (2019), provides some guidance on this subject and is available at https://www.fema.gov/emergency-managers/risk-management/building- science/building-codes/flood. Communities that fail to enact the necessary floodplain management regulations will be suspended from participation in the NFIP and subject to the prohibitions contained in Section 202(a) of the Flood Disaster Protection Act of 1973 (Public Law 93-234) as amended, and 44 CFR Part 59.24. To assist your community in maintaining the FIRM, we have enclosed a Summary of Map Actions (SOMA) to document previous Letters of Map Change (LOMC) actions (i.e., Letters of Map Amendment, Letters of Map Revision) that will be affected when the revised FIRM panels referenced above become effective. If no LOMCs were issued previously for your community, you are receiving a SOMA for informational purposes only. Once the FIS report and FIRM are printed and distributed, the digital files containing the flood hazard data for the entire county can be provided for use in a computer mapping system. These files can be used in conjunction with other thematic data for floodplain management purposes, insurance requirements, and many other planning applications. Copies of the digital files of the FIRM panels may be obtained by calling our FEMA Mapping and Insurance eXchange (FMIX), toll free, at (877) 336-2627 (877-FEMA MAP) or by visiting the Map Service Center at https://www.msc.fema.gov. In addition, your community may be eligible for additional credits under our Community Rating System if you implement your activities using digital mapping files. For assistance with your floodplain management ordinance or enacting the floodplain management regulations, please contact Doug Mahan, CFM, NFIP State Coordinator for Colorado by telephone at (303) 866-3441 ext. 3221. If you should require any additional information, we suggest that you contact the Director, Mitigation Division of FEMA, Region 8 at (303) 235-4975 for assistance. If you have any questions concerning mapping issues in general or the enclosed SOMA, please call our FMIX at the telephone number shown above. Additional information and resources you may find helpful regarding the NFIP and floodplain management can be found on our website at https://www.fema.gov/flood-maps. Sincerely, David N. Bascom, Acting Director Engineering and Modeling Division Federal Insurance Directorate, Resilience Enclosure: Final SOMA cc: Community Map Repository Jennifer Waters, Development Review Engineer, Town of Estes Park The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Jacqueline Wesley P.E., Utilities Project Manger Tammy Zimmerman, Finance Director Reuben Bergsten, Utilities Director Department: Town Administrator’s Office Date: September 22, 2026 Subject: Ordinance 15-26 Prospect Mountain Water Project Repayment Surcharge Type: Ordinance Objective: To set a new water rate class and establish a preliminary monthly surcharge of $1 50.00 for the benefitted properties in the former Prospect Mountain Water Company service area, so the Town can begin repayment of the Prospect Mountain water system reconstruction costs. Present Situation: The Prospect Mountain Water Company (PMWC) was a water utility incorporated in 1969. PMWC filed for Chapter 7 bankruptcy on April 22, 2015. The system was failing and could not reliably meet modern water quality, pressure, fire flow, and operational standards. At the request of the Bankruptcy Trustee, the Town entered into an operating agreement to maintain and operate the system while options for a long-term solution were developed. The Town and the PMWC bankruptcy trustee later entered into a Voluntary Water System Transfer Agreement. The Colorado Public Utilities Commission (Decision Cl9- 0440) and U.S. Bankruptcy Court (Case:15-14286-TBM Doc#:185 Filed:05/24/19) approved the transfer. The agreement established that all project costs would be repaid by the Benefitted PMWC properties, rather than by existing Town water customers. As a municipal utility, the Town was able to secure United States Department of Agriculture Rural Development (USDA-RD) funding to reconstruct the infrastructure to current day standards. The project included a 180,000 -gallon water storage tank, booster pump, over 5 miles of ductile iron pipe, and 43 fire hydrants for fire protection. The rebuilt system now provides drinking water that meets state and federal standards and provides fire hydrant coverage in the former PMWC service area. While the Voluntary Water System Transfer Agreement originally anticipated issuing a final revenue bond upon project completion, the project was instead funded through a USDA-Rural Development (USDA-RD) package. This provided approximately $15.3 million in combined grant and low-interest loan funding. Given the highly favorable terms of the USDA-RD loan of 2.375% interest over a 40-year term, this financing is significantly more cost-effective than refinancing through the bond market. With the USDA-RD loan officially closed as of August 13, 2026, debt repayment must now commence. Although the reconstructed infrastructure is operational and actively delivering potable water, a few construction related items remain incomplete. Consequently, the proposed $150.00 monthly charge remains preliminary and may be adjusted once all final project elements are fully closed out. Upon final cost determination, customers will have the option to pay their share of the project costs in a single payment; otherwise, the repayment remains with the property regardless of ownership until the loan repayment is complete. The original Voluntary Transfer Agreement envisioned a definitive project closeout to establish a clear transition date for future utility customers. Under the agreement framework, properties connected before project closeout contribute to the project's repayment, as they directly Benefitted from PMWC's system as it was being reconstructed. Properties connecting after final closeout will be treated as standard new Town water customers, subject only to the existing tap fees and water rates in effect at the time of connection. Proposal: Staff propose that a monthly surcharge of $150.00 be added to the utility bills of the 134 benefitted properties served by the reconstructed PMWC system. The charge will begin with October 2026 service, appearing on bills mailed in November 2026. The surcharge is intended to cover the current USDA-RD loan payment, required debt service and short-lived asset reserves, unreimbursed project costs, and administrative costs associated with repayment of the project obligations. Once final project costs are determined, staff will bring a revised repayment surcharge to the Town Board. Property owners will receive written notice of the final repayment amount and the option to pay their allocated share in full. A lump-sum payment would settle the repayment obligation for that property and end the monthly surcharge for that property. Staff also proposes that connections to the project infrastructure after the effective date of the attached ordinance be classified as “new customers” for purposes of Section 5.4.4 of the Voluntary Water System Transfer Agreement. Because there is no date certain for the formal project closeout, staff recommend using the effective date of the attached Ordinance as the new administrative trigger for this classification. This approach provides a clear date for determining whether a water service is subject to the project repayment surcharge. Advantages: •Existing Town water customers will not subsidize reconstruction of the former private PMWC water system; repayment is assigned to the benefitted properties. •Retaining the 40-year USDA-RD loan preserves favorable long-term financing and helps keep the monthly repayment amount lower than it would likely be under replacement financing. •The surcharge creates a clear, separate billing line item so the benefitted property owners can see the repayment obligation apart from regular water usage charges. Disadvantages: •Benefitted property owners will incur a new $150.00 monthly surcharge on their water bills for the 40-year repayment term; however, they can later choose to pay the final allocated debt in full. •The preliminary amount may change after the remaining construction issues are finalized; however, the funding allows us to make the USDA-RD loan payments while closing out the remaining construction issues. Action Recommended: Staff recommend approving Ordinance 15-26 to establish the PMWC user class, authorize the preliminary $150.00 monthly surcharge for the 134 benefitted properties, and classify post-effective-date connections as new customers for purposes of the Voluntary Water System Transfer Agreement. Finance/Resource Impact: Estimated revenue from the preliminary surcharge is $241,200 annually, based on 134 benefitted properties at $150.00 per month. Revenue will be recorded in the Water Fund and applied to the USDA-RD loan payment, required reserve accounts, unreimbursed project costs, and administrative costs associated with the Prospect Mountain reconstruction project. Relevant project accounts include PMLOAN, PMIMPV, and PMWCON. Level of Public Interest: High for the 134 benefitted properties in the former PMWC service area because the ordinance creates a new monthly bill surcharge. Interest is also expected from Town water customers because the transfer agreement and proposed ordinance are intended to prevent existing Town water customers from subsidizing the reconstruction costs of the former private system. Sample Motion: I move for the approval of Ordinance 15-26. Attachments: 1.Ordinance 15-26 2.Voluntary Water System Transfer Agreement 3.Property owner repayment letter ORDINANCE NO. 15-26 AN ORDINANCE AMENDING THE WATER RATE SCHEDULES OF THE TOWN OF ESTES PARK WATER ACTIVITY ENTERPRISE WHEREAS, the Town of Estes Park, through its Water Activity Enterprise, owns and operates its municipal water system; and WHEREAS, on April 22, 2015, Prospect Mountain Water Company (PMWC) filed a Chapter 7 Bankruptcy petition under the United States Bankruptcy Code with the United States Bankruptcy Court for the District of Colorado, and a trustee (the “Bankruptcy Trustee”) was appointed to manage the Company; and WHEREAS, on March 8, 2016, the Town and the Bankruptcy Trustee, acting for the PMWC, entered into an agreement for the Town to maintain and operate the Prospect Mountain System; and WHEREAS, the Prospect Mountain System had exceeded its useful life and needed to be replaced to provide improved water quality, improved water pressure and fire flow volume, and to meet Town standards and requirements for water distribution systems; and WHEREAS, on February 26, 2019, the Town, acting by and through the Enterprise, and the Bankruptcy Trustee, acting for the PMWC, entered into a Voluntary Water System Transfer Agreement for the transfer of the Prospect Mountain System to the Town in order for the Town, acting by and through the Enterprise, to undertake the rebuilding and improvement of the Prospect Mountain System to Town standards (the “Project”); and WHEREAS, the Agreement requires that, upon completion of the Project, the Town’s project costs and ongoing debt service costs shall be apportioned to former PMWC customers, amortized over forty years, and charged to the applicable customers on a monthly basis; and WHEREAS, to provide funds to pay a portion of the costs of the Project, the Town passed ordinance No. 07-26 for a United States Department of Agriculture Rural Development (USDA-RD) loan; and WHEREAS, the USDA-RD loan was closed on August 13, 2026; and WHEREAS, the water rate schedule is adapted to include a new PMWC user class which will be used to repay the PMWC construction project related costs including the USDA-RD loan payments; and WHEREAS, the Voluntary Transfer Agreement anticipated a final Revenue Bond to be issued to cover all project costs; and WHEREAS, the USDA-RD loan provided favorable terms, and it is in the best financial interest to forgo another revenue bond issuance that would cover all project costs including early payoff of the USDA-RD loan; and WHEREAS, the Town Board desires to adopt the new PMWC user class and associated charge attached hereto as Exhibit A and incorporated herein by reference ; and WHEREAS, the Town by this ordinance does not adopt a final surcharge as described in the Voluntary Transfer Agreement, but only an interim charge to cover ongoing costs, including interest payments, to prevent interest capitalization while the final costs are determined, in order to keep the ultimate surcharge as low as possible for the benefit of its payers; and Attachment 1 WHEREAS, the Town will calculate the true and final system reconstruction surcharge as soon as practicable once final costs are known, and set that surcharge to replace this interim charge. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE TOWN OF ESTES PARK, COLORADO AS FOLLOWS: Section 1: The favorable USDA-RD loan will be retained, and a revised and final surcharge will be based on final project costs. Section 2: Connections to the project's infrastructure after the date this ordinance takes effect are hereby classified as "new customers" as applicable to section 5.4.4 of the Voluntary Transfer Agreement, and will not be subject to the charge. Section 3: In this ordinance, ellipses indicate material not reproduced as the Board intends to leave that material in effect as it now reads. Section 4: Section 13.32.010 of the Estes Park Municipal Code is hereby amended by the addition of subsection 13.32.010(b)(2)(b), to read as follows: 13.32.010 - Water rate schedule. … (b) Rates. . . . (2)Surcharges for repayment of USDA loans. . . . . (b) Prospect Mountain Water Project Repayment Surcharge a.Customers of properties described in Exhibit 2 of the ordinance from which this subsection derives shall pay a monthly surcharge of $150.00 as a part of their monthly water bill. Owners of such properties shall pay the monthly surcharge regardless of whether they actually receive water service for that month. b.A property may be removed from this monthly payment obligation by the payment to the Town of a lump sum calculated by the Finance Director to cover the remaining obligations attributable to the property over the life of the applicable USDA-RD loan. Upon payment of the lump sum, and written confirmation by the Finance Director of such payment, customers of such property shall no longer be required to pay the surcharge. No payment of a lesser amount shall be effective to decrease the surcharge. c.The surcharge shall apply beginning with monthly water bills for October 2026 water services, as billed and mailed in November 2026. d.This surcharge shall be in effect until the loan is paid off and terminated, in the written termination of the Finance Director, after which it shall be expired. Section 4: The Estes Park Municipal Code is hereby amended by the addition of Exhibit 2 of Exhibit A of this ordinance as Exhibit 2 of section 13.32.010. Section 5: The new Water Rate Schedule set forth on Exhibit A is hereby adopted and shall amend and replace the existing Water Rate Schedule in section 13.32.010(b)(1) of the Municipal Code. Section 6: This Ordinance shall take effect and be enforced thirty (30) days after its adoption and publication. PASSED AND ADOPTED by the Board of Trustees of the Town of Estes Park, Colorado this ____ day of _______________, 2026. TOWN OF ESTES PARK, COLORADO By: Mayor ATTEST: Town Clerk I hereby certify that the above Ordinance was introduced at a regular meeting of the Board of Trustees on the day of , 2026 and published by title in a newspaper of general circulation in the Town of Estes Park, Colorado, on the day of , 2026, all as required by the Statutes of the State of Colorado. Town Clerk APPROVED AS TO FORM: Town Attorney EXHIBIT A of Ordinance 15-26 Revised Sept 2026 Town of Estes Park, CO Water Rate Schedule 2020-2022 TO CALCULATE YOUR MONTHLY WATER BILL: Follow the formulas below using the charts for Base Fee and Volume Charge Residential: Base Fee + ( [ (Gallons Used divided by 1,000) - 2] x Volume Charge) = Monthly Water Bill Non-Residential: Base Fee + [ (Gallons Used divided by 1,000) x Volume Charge] = Monthly Water Bill RESIDENTIAL BASE FEE, Includes the first 2,000 gallons per billing period Residential Customers 2020 2021 2022 Urban Rural Urban Rural Urban Rural $42.33 $65.61 $44.44 $66.67 $46.67 $67.67 Park Entrance Mutual Pipeline and Water Company Loan Repayment Surcharge Monthly $115.89 Part of the Monthly Water Bill. In addition to the Residential Base Fee and Volume Charge. Applies to properties described in Exhibit 1 Prospect Mountain Water Company Project Repayment Preliminary Surcharge Monthly $150.00 Will be revised once the final Surcharge is calculated. Part of the Monthly Water Bill. In addition to the Residential Base Fee and Volume Charge. Applies to properties described in Exhibit 2 NON-RESIDENTIAL BASE FEE BY METER SIZE METER SIZE 2020 2021 2022 Urban Rural Urban Rural Urban Rural 5/8" $36.47 $58.35 $40.84 $65.35 $44.93 $71.88 3/4" $36.47 $58.35 $40.84 $65.35 $44.93 $71.88 1" $60.89 $97.43 $68.20 $109.12 $75.02 $120.04 1-1/2"$121.42 $194.27 $135.99 $217.58 $149.59 $239.34 2" $194.34 $310.95 $217.66 $348.26 $239.43 $383.09 3" $364.64 $583.42 $408.40 $653.43 $449.23 $718.78 4" $607.85 $972.55 $680.79 $1,089.26 $748.87 $1,198.19 6" $837.16 $1,339.45 $937.61 $1,500.18 $1,031.38 $1,650.20 8" $1,944.61 $3,111.38 $2,177.96 $3,484.74 $2,395.76 $3,833.22 10" $2,795.68 $4,473.08 $3,131.16 $5,009.85 $3,444.27 $5,510.84 Volume Charge By Rate Class Per 1000 Gallons Rate Class 2020 2021 2022 Urban Rural Urban Rural Urban Rural Residential $6.58 $10.20 $6.91 $10.37 $7.26 $10.53 Non-Residential $5.51 $8.82 $5.62 $8.99 $5.73 $9.17 Pumped Flow $9.21 $14.74 $9.67 $15.48 $10.16 $16.26 Bulk Water $6.31 $12.19 $6.75 $13.04 $7.09 $13.69 Water Dispenser $8.98 $9.54 $10.01 EXHIBIT 2 RECEPTION #20190076460, 12/4/2019 9:01:30 AM, 1 of 39, £203.00 Angela Myers, Clerk & Recorder, Larimer County, CO VOLUNTARY WATER SYSTEM TRANSFER AGREEMENT This VOLUNTARY WATER SYSTEM TRANSFER AGREEMENT (“Agreement”) is entered into this Z f r r iJav of ^ k J 0 t Z l^ Z U 2019 between the Town of Estes Park, by and through its Water Enterprise^ftberTown") and the Prospect Mountain Water Company, Inc., debtor in Chapter 7 bankruptcy Case No. 15-14286 TBM (“Prospect Mountain"), by and through its Bankruptcy Trustee, Daniel A. Hepner (“Trustee"); collectively (the “Parties"). RECITALS A. The Town, through its Water Enterprise, operates and maintains a municipal water utility distribution system (the "Town’s System”) within the Town of Estes Park and surrounding areas. B. Prospect Mountain is a privately-owned Colorado public water utility providing service in its designated service territory within unincorporated Larimer County, Colorado. Prospect Mountain provides water service to its service territory (“Service Territory”) pursuant to a Certificate of Public Convenience and Necessity (“CPCN") issued by the Public Utilities Commission of the State of Colorado (the "Commission’*). Prospect Mountain currently serves approximately 130 customers. C. Prospect Mountain wishes to transfer its water distribution system •infrastructure owned and used by Prospect Mountain (the “Prospect Mountain System") to the Town along with all of its property and its tangible and intangible assets; and the Town wishes to acquire the Prospect Mountain System and Prospect Mountain’s real property and its tangible and intangible assets and incorporate the same into the Town’s System. D. Prospect Mountain and the Town entered into that certain Water Service Agreement dated August 13, 2012, in order for the Town to provide bulk water to Prospect Mountain. E. On April 22,2015, Prospect Mountain filed a Chapter 7 Bankruptcy Petition under the United States Bankruptcy Code (the “Bankruptcy Code”) with the United States Bankruptcy Court for the District of Colorado (“Bankruptcy Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 1 of 37 Attachment 2 Court"). Daniel A. Hepner was appointed Trustee in the Chapter 7 Bankruptcy Court proceeding and has managed Prospect Mountain since that time. F. On March 8, 2016, Prospect Mountain and the Town entered into an Agreement to Operate Water System (the “Operating Agreement”). Since that time, the Town has been maintaining and operating the Prospect Mountain System pursuant to the terms of the Operating Agreement. G. The Parties have determined the need to replace the Prospect Mountain System, which infrastructure has been in place for approximately 45 years and has exceeded its useful life, in order to provide improved water quality, water pressure and fire flow volume, and to meet the Town’s System standards and requirements. H. Preliminary engineering and environmental reports have been completed and approved by the Town for the demolition, redesign, and reconstruction of the Prospect Mountain System, including all infrastructure elements of the water distribution system below and above ground that is owned by Prospect Mountain (the “Project”). The Town Board determined that the Town would undertake the Project on the condition that existing customers of the Town would not incur costs related to the Project. I. The Town has incurred unreimbursed expenses owed by Prospect Mountain in operating the Prospect Mountain System pursuant to the Operating Agreement to date and will continue to incur expenses until the transfer of the Prospect Mountain System to the Town. J. To finance the cost of the Project, Prospect Mountain and the Town agreed that the Town would apply for Federal assistance. K. The Town applied for and received approval of both a loan and a grant administered by the Rural Utility Service (“RUS") of the United States Department of Agriculture (the “Agency") dated September 28, 2018 (the “Letter”) which is attached hereto as Exhibit A. The Letter describes the Project, the Project funding, the Project budget, and other requirements and conditions for the Project. L. In order for the Town to obtain interim financing and enter into final design and construction contracts for the Project, Prospect Mountain has agreed to transfer the Prospect Mountain System, its tangible and intangible assets and Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 2 of 37 real property to the Town pursuant to the terms of this Agreement. M. Following the transfer of Prospect Mountain System to the Town, most of the Town’s expenses for the development and execution of the Project including administration, legal, construction, contingencies, engineering fees, lab services, and interest will be paid as set forth in Section II of the Letter. These costs will be solely due to the Project and attributable to customers located in the Prospect Mountain Service Territory. N. Following transfer, Prospect Mountain shall not be liable to the Town or any third party for the Prospect Mountain System or for any expenses for the development and execution of the Project. O. Following transfer, the Trustee shall take those steps necessary under the Bankruptcy Code to complete administration of the bankruptcy estate, including but not limited to, the payment of allowed claims and the distribution of any remaining funds in which the bankruptcy estate has an interest whether held in an estate account or in the Prospect Mountain Capital Improvement Fund (the “CIF") established at the direction of the Commission as approved by the Bankruptcy Court and the Commission. P. The Parties contemplate that, after payment of all allowed claims authorized to be paid by the Bankruptcy Court, including all administrative expenses, any remaining funds held by the bankruptcy estate as well as any remaining funds in the CIF Account will be paid to the Town to be used for the benefit of the Prospect Mountain System for interim repairs prior to the Project construction, or for the Project if such interim expenses are not incurred. Q. Time is of the essence to conclude the Bankruptcy Court proceeding, to transfer the Prospect Mountain assets to the Town, and to commence and complete reconstruction of the Prospect Mountain System. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein and the above Recitals, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 3 of 37 Section 1. Project Financing. Construction, and Costs 1.1 The terms and conditions of the Letter have been deemed acceptable by the Parties and form the basis for this Agreement. 1.2 Unless this Agreement is terminated as set forth herein, the Town shall be solely responsible for the terms and conditions, tasks and responsibilities as set forth in the Letter. Section 2. Prospect Mountain Transfer 2.1 Subject to the terms and conditions herein, Prospect Mountain agrees to transfer to the Town and the Town agrees to accept, the following from Prospect Mountain (the “Assets"): a. All tangible and intangible assets of Prospect Mountain, including, but not limited to, the water distribution infrastructure, storage tanks, pump stations, personal and real property, customer accounts, and all appurtenances thereto. b. A sum to be determined as set forth in Section 2.7, below, representing all unpaid accounts receivable for customers of Prospect Mountain, if any, which remain after payment of all allowed claims and administrative expenses in the Bankruptcy Court. c. By Trustee’s Deed, the form of which is attached hereto as Exhibit C, any real property owned by Prospect Mountain. To the best of the Trustee’s knowledge, information and belief, Prospect Mountain owns two parcels of real property which are set forth on Exhibit B attached hereto and incorporated herein by reference. d. By Trustee’s Deed, the form of which is attached hereto as Exhibit C, all easement rights of Prospect Mountain whether held in fee, by prescription, or by plat dedication, including but not limited to all utility easements and rights-of-way. e. All funds held by the bankruptcy estate in the CIF that remain after the Trustee’s payment of all allowed claims and administrative expenses authorized by the Bankruptcy Court to be paid as set forth in Section 2.7, below. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 4 of 37 f. The Town acknowledges and agrees that the amounts of any funds available for transfer to the Town listed in this section are not known at this time. The Parties agree that this Agreement is not contingent in any way on the receipt by the Town of any specific amount of funds that may or may not exist in the C1F or in the bankruptcy estate at the conclusion of the bankruptcy proceeding. 2.2 Transfer of Prospect Mountain assets other than real property shall be by good and sufficient bill of sale, free and clear of all liens and encumbrances of record. 2.3 Transfer of uncollected accounts receivable, if any, shall be made by good and sufficient assignment without recourse pursuant to the True-Up Provisions in Section 2.7, below. 2.4 Transfer of remaining funds in the CIF or other funds in the bankruptcy estate shall be pursuant to the True-Up Provisions in Section 2.7, below. 2.5 Date of Transfer. The Date of Transfer shall consist of an initial closing in the items listed in Sections 2.1, but prior to the fulfillment of the True-Up Provisions discussed in Section 2.7, below. The Date of Transfer shall mark the date of termination of the Operating Agreement and Water Service Agreement and shall mark the point after which the Town will assume full and total control of Prospect Mountain and its assets. Following the initial closing on the Date of Transfer, Prospect Mountain shall have no further obligation or liability with respect to the maintenance or operation of the Prospect Mountain System and shall have no further control of its assets. 2.6 The Date of Transfer of Prospect Mountain and its assets shall occur on or before May 1,2019 or as scheduled upon the fulfillment of the contingencies set forth in Section 3, below. 2.7 True-Up Provisions for Transfer of Funds. After entry of an Order of the Bankruptcy Court approving the Trustee’s Final Report and Applications for Compensation, and after disbursement of all funds necessary to pay the allowed claims and administrative expenses set forth in the Trustee’s Final Report, the Trustee and the Town shall perform the following tasks, referred to as the “True- Up Provisions”: 2.7.1. The Trustee shall prepare a full accounting which shall identify all unused Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 5 of 37 funds remaining in the control of Prospect Mountain, including all funds held in all bankruptcy estate accounts and the CIF and a list of all uncollected accounts receivable; 2.7.2. The Trustee will provide such accounting to the Town for its review; 2.7.3. The Trustee will cause any available and remaining funds shown in such final accounting to be transferred to the Town by check; 2.7.4. The Trustee shall provide the Town with copies of all invoices for uncollected accounts receivable and shall assign such uncollected accounts by good and sufficient assignment as set forth in Section 2.3, above; 2.7.5. The Town shall accept the final accounting, subject to its determination that there are no calculation errors set forth in such accounting, but the Town agrees that it shall not have any recourse to challenge the amount of funds to be transferred to the Town other than as agreed to by the Trustee in his sole discretion as a calculation error in the accounting; 2.7.6. The Town agrees that no specific amount of funds has been represented or promised by Prospect Mountain to the Town under this section and no specific amount of funds for transfer is contemplated or required under the conditions precedent in Section 3, below. 2.8 Subsequent to the Date of Transfer and the fulfillment of the True-Up Provisions, the transaction shall be completed and this Agreement shall be of no further force or effect. The Town acknowledges and agrees that, at that time, the Trustee shall take those steps necessary for the Bankruptcy Court to close the bankruptcy proceeding, Prospect Mountain will cease to exist, and there shall be no liability or recourse available from Prospect Mountain to the Town or to any third party in any form or fashion whatsoever. 2.9 No representations or warranties. The Town acknowledges that the Trustee is unable to make, shall not be required to make, and shall not be deemed to have made, any representation or warranty whatsoever as to the physical condition of the Prospect Mountain System or its assets. The acquisition of the Prospect Mountain System by the Town is based solely on the basis of the Town's own review of the physical condition of the Prospect Mountain System, and documents relating to Prospect Mountain, including but not limited to the Preliminary Engineering Report and Environmental Assessment. The Trustee Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and tbe Town of Estes Park Page 6 of 37 cannot and shall not assume the risk that adverse matters may not have been disclosed to the Town by the Town’s investigation. 2.10 As a standard matter of practice involving assets conveyed from bankruptcy estates through court appointed administrators, Trustee’s limited knowledge of the Prospect Mountain System as the Trustee of a bankruptcy estate does not permit Trustee to convey the Prospect Mountain System and its other assets which are the subject of this Agreement other than in their present “AS IS" condition, subject to all faults. Accordingly, the Prospect Mountain System which is the subject of this Agreement is being conveyed “AS IS, AND WITH ALL FAULTS WITH NO REPRESENTATIONS MADE BY THE TRUSTEE.” Section 3. Conditions Precedent for Closing 3.1 Regulatory and Bankruptcy Court approvals. This Agreement shall be submitted for approval by the Commission and the Bankruptcy Court. Both the Commission and the Bankruptcy Court shall be advised by the Parties that this Agreement represents a package of compromises and necessary steps to implement the Letter and transfer the Prospect Mountain System. If the Commission or the Bankruptcy Court imposes conditions or modifications that materially alter this Agreement and are unacceptable to either party, then the Parties shall provide a good faith alternative for approval under rehearing procedures. If either the Commission or the Bankruptcy Court does not approve the alternative proposal of the Parties, and if the Town, after consultation with Prospect Mountain, determines that the material conditions or modifications render the Town unable to perform its obligations under the Letter, then either Party may terminate this Agreement for good cause upon thirty days written notice to the other Party. 3.1.1. Bankruptcy Court Approval. This Agreement is subject to, and shall not become effective until approved by, the written Order of the Bankruptcy Court upon such notice as may be required. Trustee shall apply to the Bankruptcy Court for an Order approving this Agreement. 3.1.2. Commission Approval. This Agreement is subject to, and shall not become effective until approved by, the final written decision of the Commission, upon such notice as may be required. Trustee and the Town shall jointly apply to the Commission for an order approving this Agreement. It is the intent of the Parties to request an affirmative determination from the Commission that, as a result of approving the Agreement transferring the Prospect Mountain System and all of Prospect Mountain’s assets to the Town, and approval of the System Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 7 of 37 Reconstruction Surcharge, discussed below, the Commission will not exercise continuing jurisdiction over the Town or the Town's Water Enterprise with respect to the Prospect Mountain Service Territory. 3.2 Prospect Mountain shall make reasonable, good faith efforts to provide the necessary documentation to include all Prospect Mountain customers’ property within the Northern Colorado Water Conservancy District and Municipal Subdistrict (“Northern”). 3.3 New individual meters have been installed for all Prospect Mountain customers. 3.4 Prospect Mountain shall provide a list of all active and pending Prospect Mountain customers, property descriptions of all identified customers, and a listing of any property owners who have requested connection to the Prospect Mountain System but have not initiated connection procedures under Prospect Mountain’s existing tariffs. 3.5 There have been no material changes in the terms and conditions of the Letter as of the Date of Transfer. Section 4. Parties1 Responsibilities Prior to Transfer 4.1 The Town shall continue to operate and maintain the Prospect Mountain System pursuant to the terms and conditions of the Operating Agreement including, but not limited to, operation and ordinary maintenance of the Prospect Mountain System, and the provision of bulk water. 4.2 The Town shall cooperate and provide any necessary information to Prospect Mountain in order for Prospect Mountain to obtain approvals from the Commission and the Bankruptcy Court for transfer of the Prospect Mountain System to the Town pursuant to the terms of this Agreement. 4.3 Prospect Mountain shall continue to perform its responsibilities pursuant to the terms and conditions of the Operating Agreement. 4.4 Operating Agreement Authorized Improvements. Pursuant to provisions of the Operating Agreement and as approved by the Commission in Decision No. CIS- 0380, the Trustee has transferred $261,000 to the Town to be used by the Town for interim capital improvements to the Prospect Mountain System deemed necessary by the Town to operate the Prospect Mountain System (the Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 8 of 37 “Authorized Improvements”). The Authorized Improvements include, but are not limited to, a new booster pump, SCADA system upgrades, tank demolition, and installation of individual water meters. The Town has determined that installation of the new booster pump should be postponed until reconstruction of the Prospect Mountain System as part of the Project. 4.4.1. Prospect Mountain agrees with the Town's position that the installation of the new booster pump is not consistent with the Project contemplated in the Letter and the Town’s obligations thereunder, and to construct the new booster pump would be a waste of resources. 4.4.2. The Town estimates that it will take approximately $135,000 to install all of the water meters, complete the tank demolition, and upgrade the SCADA system. Accordingly, the Town anticipates that approximately $125,000 will remain after those expenditures. 4.4.3. The Parties agree that, in the application to be made to the Commission for the Commission’s approval of this Agreement, Prospect Mountain shall request authorization from the Commission to amend or vacate Decision No. C18-0380 to allow the Town to use the remaining portion of the Operating Agreement authorized payments to the Town to pay unreimbursed operational costs incurred by the Town pursuant to the Operating Agreement. The Town acknowledges that this provision is subject to approval by the Commission given the Commission’s prior decision authorizing these expenditures for specific capital projects. The Parties agree that this section is a material condition of the Agreement because the Operating Agreement unreimbursed costs will not be paid to the Town within the scope of the Letter or the Project and that such costs have been legitimately incurred by the Town through its obligations under the Operating Agreement. 4.4.4. The Town agrees that any remaining portion of said funds retained by the Town shall be used by the Town to maintain and operate the Prospect Mountain System prior to construction of the Project. In the event the funds retained by the Town are not used by the Town to operate and maintain the Prospect Mountain System prior to construction of the Project, the remaining retained funds shall be used for the Project. The Parties agree that, other than the Agency approval attached as Exhibit A, no financing or financial approval is required by the Town as a condition precedent in Section 3, above. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 9 of 37 4.6 The Town acknowledges that, following approval of this Agreement, all Town approvals have been achieved and no further votes of the Town Board or any referendum are required to effectuate this Agreement. Section 5. Responsibilities of the Town Following Transfer 5.1 Upon the Date of Transfer, the Operating Agreement shall terminate. Prospect Mountain customers shall become Town water customers subject to the Town’s Water Enterprise rules and regulations. The Town shall assume full control of Prospect Mountain as the incumbent utility, including but not limited to billing responsibility. Each customer shall be billed individually by the Town for water service at the Town's applicable water rate. All former Prospect Mountain customers will become subject to all the rules and regulations of the Town’s Water Enterprise including, but not limited to, bill payment, termination of water service, and turn-on charges. 5.2 As part of the Project, each individual former customer of Prospect Mountain will be required to have a separate connection into the new water mains. As required in the Town’s Water Enterprise rules and regulations, each service line shall be required to be owned and maintained by the property owner including the physical connection into the water main. 5.3 System Development Fee. The Town has been providing bulk water to Prospect Mountain according to the terms of the Water Service Agreement and the Operating Agreement. The Town’s bulk water rate to Prospect Mountain includes the amortized cost of the Town’s System Development Fee and Water Right Fee (collectively the “System Development Fee”) for a property owner to obtain residential water service for a single-family residence from the Town over twenty (20) years. The following process represents the understanding of the Parties regarding the transition to the Town Water Enterprise and the process for implementing the charges required to repay the USDA loan. 5.3.1. The Town shall credit the pro-rata amount of the System Development Fee paid by Prospect Mountain from August 2012 to the Date of Transfer of the Assets for existing Prospect Mountain customers which the Town has determined to be 33% of the amortized System Development Fee for existing customers (the “Pro Rata Credit”); 5.3.2. Following the Date of Transfer and until completion of the Project, for Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 10 of 37 properties that are not connected to the Prospect Mountain System which are located within the Service Territory, the Town will allow such properties to connect to the Town’s System. Said properties shall pay the Pro Rata Credit prior to connection to the Town System. The new customers shall follow the Town’s rules and procedures for connection to the Town’s System; 5.3.3. For existing Prospect Mountain customers and new customers in the Service Territory that connect to the rebuilt system prior to completion of the Project, the remaining portion of the Town's System Development Fee will be paid through the Agency funding of the Project. System Reconstruction Surcharge. Upon completion of the Project and disbursal from the Agency of all Project funds, the Town shall determine the final cost of construction of the Project. The final cost shall include legal and administrative costs of the Town, engineering, and all out-of-pocket miscellaneous costs attributable to the construction and administration of the Project, as well as the remaining portion of the Prospect Mountain ratepayers’ System Development Fees (the “Town Costs”). The Letter includes an approved grant from the Agency that will be applied to reimburse the Town Costs. After accounting for 1) the grant portion of the Agency funding upon completion of the Project as a credit to the Town Costs, 2) any Town funds remaining from the transfer of the CIF and other accounts receivable under this Agreement as a credit to the Town Costs, 3) the amount owed per the terms of the Letter and the Agency Loan, 4) financing costs, and 5) any remaining unreimbursed Town Costs, the Town shall issue a Revenue Bond pursuant to Section II.5 of the Letter. The Revenue Bond will secure the Agency Loan part of the funding. 5.4.1 After the Town has issued the Revenue Bond, the Town shall calculate the System Reconstruction Surcharge (the “Surcharge"). The Surcharge will be solely applicable to former Prospect Mountain customers within the existing Service Territory that become customers of the Town, plus any new customers that connect to the Prospect Mountain System prior to the completion of the Project pursuant to section 5.3.2, above (the “Benefitted Town Customers”). 5.4.2 The Surcharge formula will be determined based upon the payment schedule under the Revenue Bond and no other costs. The Town shall create an amortization schedule over 40 years to repay the Revenue Bond exactly and in full. The Town will identify the final number of Benefitted Town Customers and will convert the annual amortization schedule requirements into a monthly amount divided pro-rata and exclusively payable by the Benefitted Town Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 11 of 37 Customers on a monthly basis. The Town will credit any overpayment of the Revenue Bond to the Benefitted Town Customers after the Revenue Bond has been repaid in full. 5.4.3 The Parties agree that the Benefitted Town Customers are the beneficiaries of the Letter and the Revenue Bond and that such costs are exclusively caused by the Benefitted Town Customers. The Town agrees that, aside from the Surcharge, there will be no other charges to the Benefitted Town Customers that are different than those charged to all customers of the Town’s Water Enterprise. The Surcharge formula and rate schedule shall not be modified by the Town until the Revenue Bond and Town Costs have been paid in full. At that time, the Surcharge will be eliminated. 5.4.4 Upon completion of the Project and the determination of the Surcharge as provided in Section 5.4 above, any new customers located within the former Service Territory shall be new customers of the Town and shall be responsible for paying the then current Town System Development Fee charges for connections to the Town’s System and payment of the Town’s water rates. Said new customers shall not be subject to the Surcharge. 5.5 Prospect Mountain shall have no responsibility or liability of any kind in connection with the requirements detailed in this section after the Date of Transfer. Section 6. Closing and Date of Transfer 6.1 The Parties agree that, unless extended by mutual agreement of the Parties, the Date of Transfer for this Agreement shall occur on May 1,2019. The Parties agree to make reasonable good faith efforts to achieve the contingencies listed in Section 3 by the Date of Transfer. However, if either Party believes an extension of the Date of Transfer is necessary to allow for the contingencies to be satisfied, then the Parties shall execute an extension of the Date of Transfer. Such extension shall be approved by both Parties and such approval shall not be withheld, shall not be unreasonable delayed, and shall not be unreasonably conditioned by the Parties in order to fulfill the contingencies. 6.2 The Parties agree that the Letter and Agency approval require that this Agreement be effectuated. With that understanding, this Agreement may be terminated only for good cause pursuant to Section 3.1, above. Specifically, a failure to achieve all closing conditions in Section 3, above, by the Date of Transfer shall not be a breach of this Agreement unless such conditions are not Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 12 of 37 achieved due to the negligent or willful and wanton conduct of the Trustee. Pursuant to Section 6.1, the Date of Transfer shall be extended as required by the Town in order to achieve the conditions precedent in Section 3, or the Town may, in its discretion, waive any condition precedent that is not fulfilled and notify the Trustee of its intention to schedule a Date of Transfer at any time. Section 7. Additional Terms and Conditions 7.1 Additional Documents or Action. The Parties agree to execute any additional documents and to take any additional action necessary to carry out this Agreement. 7.2 Integration and Amendment. This Agreement represents the entire agreement between the Parties and there are no oral or collateral agreements or understandings between the Parties with respect to the operation and maintenance of the System. Only an instrument in writing signed by all Parties may amend this Agreement. 7.3 Governing Law. The laws of the State of Colorado shall govern this Agreement. 7.4 Binding Effect. This Agreement shall inure to the benefit of, and be binding upon, the Parties, and their respective legal representatives, successors, and assigns; provided, however, nothing in this paragraph shall be construed to permit the assignment of this Agreement except as otherwise specifically authorized in this Agreement. 7.5 Liability. Prospect Mountain agrees to indemnify, hold harmless and defend the Town, its officers, agents and employees from and against all liability for any and all claims, liens, suits, demands or actions for damages, injuries to persons, including death, property damage, including loss of use, and expenses, including court costs and reasonable attorney's fees, arising out of or resulting from activities under this Agreement, except for any such liability resulting from the negligence of the Town, its officers, agents and employees. Prospect Mountain’s liability under this Section shall terminate on the Date of Transfer. 7.6 Governmental Immunity. The Town, its officers, and its employees, are relying on, and do not waive or intend to waive by any provision of this Agreement, the monetary limitations (presently three hundred fifty thousand dollars ($350,000) per person and nine hundred ninety thousand dollars ($990,000) per occurrence) or any other rights, immunities, and protections provided by the Colorado Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 13 of 37 Governmental Immunity Act, C.R.S. § 24 10 101, et seq., as amended, or otherwise available to the Town and its officers or employees. 7.7 No Waiver of Rights. The Town and Prospect Mountain understand and agree that neither Prospect Mountain nor the Town waive any rights they may have individually as entities to pursue any course of action deemed by Prospect Mountain or the Town to be in the best interest of the individual entity. 7.8 Waiver or Breach. The waiver by any party to a term of this Agreement or a breach of any term or provision of this Agreement shall not operate as or be construed as a waiver of any subsequent breach by any party. 7.9 Severability. If any clause, sentence, term, condition, covenant and/or provision of this Agreement is ruled to be illegal, null or void by a court of competent jurisdiction, then the remaining portions of this Agreement shall remain in full force and effect. 7.10 Assignment. Neither this Agreement nor any of the rights or obligations of the Parties hereto, shall be assigned by either party without the prior written consent of the other. 7.11 Counterparts. This Agreement and future amendments, if any, may be executed by facsimile or electronic signatures. All facsimile or electronic signatures shall be considered the original signatures for all purposes. This Agreement and future amendments, if any, may be executed in counterparts. All counterparts, when taken together, shall be deemed as an original. 7.12 No Third Party Beneficiary. The Parties understand and agree that this Agreement between Prospect Mountain and the Town shall not benefit nor accrue to the interest of any other third party beneficiary including, but not limited to, any individual customer of Prospect Mountain. 7.13 Time is of the Essence. The Parties acknowledge that time is of the essence, and agree to fully and promptly cooperate in order to secure funding. 7.14 Notice. Any and all notices or any other communication herein required or permitted shall be deemed to have been given when personally delivered or deposited in the United States postal service as regular mail, postage prepaid, and addressed as follows or to such other person or address as a party may designate in writing to the other party: Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 14 of 37 The Town: Town of Estes Park Attn: Town Administrator PO Box 1200 Estes Park, CO 80517 Prospect Mountain: PROSPECT MOUNTAIN WATER CO C/O DANIEL A. HEPNER CH 7 TRUSTEE 950 SPRUCE ST STE 1C LOUISVILLE, CO 80027-1977 Email: d.hepner@dah-law.com With Copy To: Mark Detsky, Esq. Dietze and Davis, P.C. 2060 Broadway, Suite 400 Boulder, CO 80303 Telephone: 303-447-1375 Email: MDetsky@DietzeDavis.com IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first set forth above. TOWN OF ESTES PARK BY AND PROSPECT MOUNTAIN WATER THROUGH ITS WATER ENTERPRISE COMPANY By: , 7Wu*______ Title: DAN IEL A. HEPNER, CH 7 TRUSTEE Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 15 of 38 EXHIBIT A USDA Letter of Conditions US DA Unktod S tall i Department of Agriculture R u ral O avalo pm a nt Colorado Stala Offica September 2R, 20! R Denver Federal Center P.O Box 25426 Denver CO 60225 Voice 000-424-6214 Fax 866*587*7607 I own ol Estes Park PO Box 1200 Estes Park, CU R05I7 SUBJECT: Recipient Name: Town of Estes Park Project Name Prospect Mountain Water Company Water Application CFDA NUMBER - 10.760 Loan $4,491,000 Grant: S6.547.000 Applicant: S45.000 Other Funding: S25.000 Dear Mr. Lancaster: This letter establishes conditions which must lie understood and agreed to by you before further consideration may be given to your application The loan and grnnl will be administered on behalf of the Rural Utilities Service (RUS) by the State and Aren staff of USDA Rural Development, both o f which are referred to throughout this letter as the Agency. Any changes in project cost, source of funds, scope of project, or any other significant changes in the project or applicant must be reported to and concurred with by the Agency by written amendment to this letter. If significant changes arc made without obtaining such concurrence, the Agency may discontinue processing of the application. All conditions set forth under Section III — Requirements Prior to Advertising for Bids must be met within 9 months of the dale o f this letter Ifyou have not tnel these conditions, the Agency reserves the right to discontinue the processing of your application. If you agree to meet the conditions set forth in this letter and desire further consideration be given to your application, please complete and return the following forms within 7 days: Form RD 1942-46, “Letter of Intent to Meet Conditions" Form RD 1940-1, “Request for Obligation of Funds’* RUS Bulletin 1780-12, "Water and Waste System Grant Agreement" The loan'grant will be considered approved on the dale form RD 1940-1,"Request for Obligation o f Funds,” is signed by the approving official, llius, this letter in USDA is an equal opportunity provider, employer, and lender. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 16 of 37 Town of Estes Park - Prospect Mountain Water Company Project 2 itself tines not constitute loan andor grant approval, nor does it ensure that funds are or will be available for the project. When funds arc available live Form 1940-1 will be provided to you for your signature. After you sign and return the form to the Agency, the request will be processed and loan.'grant funds will be approved and obligated. Fxiru copies ot this letter arc being prov ided for use by your engineer, attorney, bond counsel and accountant, All parties may access infomtation and regulations referenced in this letter at our website located at www.rd.usda.oov. The conditions are as follows: SECTION I - PROJECT DETAIL 1. Project Description Funds will be used to upgrade the PMWC w ater distribution system to meet the Town of Estes Park standards The system improvements will allow for disinfection und adequate lire Jlovv throughout the Prospect Mountain sen ice area, As a result, the T own of Estes Park will lake ownership and operation of the system. Facilities will be designed and constructed in accordance with sound engineering practices and must meet the requirements of Federal, State, and local agencies. T he proposed facility design must be based on the Preliminary Engineering Report (PER) as concurred with liy the Agency. 2. Project Funding- The Agency is offering the following funding for your project: Agency Loan - 54,493,000 Agency Grant - 50,547,000 I'hts offer is based upon the following additional funding being obtained. Applicant Contribution - S 45,000 DOLA Funding - 5 25,000 TOTAL PROJECT COST - S 11.110,000 1 his funding is offered based on the amounts stated above, Prior to loan closing, any increase in non-Agcney funding will be applied first as a reduction to Agency grant funds, up to the total amount of the grunt, and then as a reduction to Agency loan funds. Any changes in funding sources following obligation of Agency funds must he reported to the processing official. Project feasibility and limdmg wall be reassessed if there is n significant change in project costs after bids are received. If actual project costs exceed the project cost estimates, an additional contribution by the Owner may be necessary, Prior to advertisement for construction bids, you must provide evidence of applicant contributions and approval of other Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 17 of 37 Town of Estes Park - Prospect Mountain Water Company Project 3 funding sources. This evidence should include a copy of the commitment letter. Agency funds w ill not be used to pre-finance funds committed to the project from other sources. 3. Project Budget Tunding from all sources has been budgeted for the estimated expenditures as follows: Project Costs;Total Budgeted: Administration Construction Contingency engineering Tees Includes: Basic Sen ices Resident Project Representative Interest - Interim Land and Rights-of-Wav Easement Acquisition Testing Northern Water Inclusion $375,000 S6.378.000 SI ,150,000 SI, 198.000 $87,500 51.602.000 5200.000 SI 12,000 S7.500 5823.000 5375.000 TOTAL SI 1,110.000 Obligated loan or grant funds not needed to complete the proposed project will be deobligated pnor to start of construction. Any reduction will be applied to grant tunds first. An amended letter of conditions will be issued for any changes to the total project budget. SECTION II - LOAN AND GRANT TERMS 4. Repayment - The interest rate will be the lower of the rate in effect at the time of loan approval or the lime of loan closing, unless you request otherwise. Should the interest rate be reduced, the payment will be recalculated to the lower amount. Your loan will be scheduled for repayment over a period of 40 years. Payments will be equal annual amortized installments, beginning one year afler loan closing. For planning purposes-, use a 2.375°o interest rate and an amortization factor of 30.01, which provides for an annual payment of SI 75,272. The precise payment amount will he based on the interest rate at which the loan is closed, and may be different than the one above. The payment due date will be established as the day that the loan closes. Due dates falling on the 29lh, 30lh, and 31 si day of the month w ill be avoided. 5. Security The loan will be secured by a Revenue bond with 1st lien position in the amount of $4,493,000, 'Die bond will be fully registered as to both principal and interest in the Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 18 of 37 Town of Estes Park - Prospect Mountain Water Company Project 4 name of the United States of America, Acting through the United States Department of Agriculture. The bond and any ordinance or resolution relating thereto must not contain any pro\ ision in conflict with the Agency Loan Resolution, applicable regulations, or its authorizing law. In particular, there must be no defeasance or refinancing clause in conflict with the graduation requirements of 7 U.S.C. 198.3. Additional security requirements are contained in RUS Bulletin 1780-12, “Water and Waste System Grunt Agreement,” and RUS Bulletin 1780-27, “Loan Resolution (Public Bodies).” A draft of all security instruments, including draft bond resolution, must be re\ tewed and concurred in by the Agency prior to advertising for bids. The bond resolution and Loan Resolution must be duly adopted and executed prior to loan closing. The Grant Agreement must be fully executed prior to the first disbursement of grant funds. 6. Electronic Payments — Payments will be made on the day your payment is due through an electronic preaulhori2ed debit system. You will be required to complete Form RD 3550-28, “Authorization Agreement for Preauthorized Payments,” for all new and existing indebtedness to the Agency prior to loan closing. It will allow for your payment to be electronically debited from your account on the day your payment is due. 7. Construction Completion Timeframe - All projects must be completed and all funds disbursed within five years of obligation. If funds are not disbursed within five years of obligation, you must submit to the Agency a written request for extension of time w ith adequate justification of circumstances beyond your control. Requests for waivers beyond the initial extension w ill be submitted to the Assistant Administrator for concurrence decision. 8. Disbursement of Agency Funds - Agency funds w ill be disbursed into the borrow er’s depository' account through an electronic transfer system. SF 3881. “ACH Vendor Miscellaneous Payment Enrollment Form,” must be completed and submitted to the Agency prior to advertising for bids. Any applicant contribution will be the first funds expended, followed by other funding sources. Interim financing or Agency loan funds will be expended after all other funding sources unless a written agreement is reached with all other funding sources on how lunds are to be disbursed prior to start of construction or loan closing, w hichever occurs first. Interim financing funds or Agency loan funds must be used prior to the use of Agency grant funds. The Grant Agreement must not be closed and fluids must not be disbursed prior to loan funds except as specified in RUS Instruction 1780.45(d). In the unlikely event the Agency mistakenly disburses funds, the funds will be remitted back to the Agency electronically. Grant funds are to be deposited in an interest-bearing account (exception provided below) in accordance w ith 2 CFR Part 200 and interest in excess of S500 per year remitted to the Agency. The fluids should be disbursed by the recipient immediately upon receipt and there should be Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 19 of 37 Town of Estes Park - Prospect Mountain Water Company Project 5 little interest accrual on the Federal funds. Recipients shall maintain advances of Federal funds in interest-bearing accounts, unless: a. The recipient receives less than S120.000 in Federal awards per year. b. The best reasonably available interest-bearing account would not be expected to earn interest in excess of S500 per year on Federal cash balances. c. The depository would require an average or minimum balance so high that it would not be feasible within the expected Federal and non-Federal cash resources. d. A foreign government or banking system prohibits or precludes interest-bearing accounts. 9. Reserves - Reserves must be properly budgeted to maintain the financial viability and sustainability of any operation. Reserves are important to fluid unanticipated emergency maintenance and repairs, and assist with debt sen ice should the need arise. The following resen es are required to be established as a condition of this loan: a. Debt Service Reserve - As a part of this Agency loan proposal, you must establish a debt senice reserve fund equal to at least one annual loan installment that accumulates at the rate of 10"o of one annual payment per year for ten years or until the balance is equal to one annual loan payment. Ten percent of the proposed loan installment would equal SI,461 per month; this amount should be deposited monthly until n total of 5175,272 has accumulated. Prior written concurrence from the Agency must be obtained before funds may be withdrawn from this account during the life of the loan. When hinds are withdrawn during the life of the loan, deposits will continue as designated above until the ftilly-funded amount is reached. b. Short-Lived Asset Reserve - In addition to the debt service reserve fund, you must establish a short-lived asset reserve fund. Based on the preliminaiy engineering report, you must deposit at least $4,700 into the short-lived asset reserve fund annually for the life of the loan to pay for repairs and/or replacement of major system assets. It is your responsibility to assess your facility’s short-liv ed asset needs on a regular basis and adjust the amount deposited to meet those needs. Current assets con also be used to establish and maintain reserv es for expected expenses, including but not limited to operation and maintenance, deferred interest during the construction period, and an asset management program. SECTION n i -REQUIREMENTS PRIOR TO ADVERTISING FOR BIDS 10. Environmental Requirements - USDA Rural Development has applied the Nationwide Programmatic Agreement among the U.S. Department o f Agriculture Rural Development Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 20 of 37 Town of Estes Park - Prospect Mountain Water Company Project 6 Programs, National Conference of State Historic Preservation Officers and Hie AdrisotT Council on historic Preservation for Sequencing Section J06 (NPA) for this project to av old an impending pooling, interest rate change, or another linaneial deadline. USDA Rural Development has attached the RD Staff NPA Certification Checklist and NPA Applicant Awareness Certification forms to this agreement. These documents certify that USDA Rural Dc\ elopmcnt and the applicant are au arc of their roles and responsibilities under the NPA. l!SDA Rural Development is aware that using the NPA conditionally concludes the Section 106 process, 'Hie disbursement of funds or construction may not begin until the Section 106 process has been completed and verified by the Stale Environmental Coordinator, Any National Environmental Policy Act document (environmental report or assessment) will be supplemented to document the completion of Section 106. The project as proposed has been evaluated to be consistent with the National Environmental Policy Act, Other federal. Stale, tribal, and local laws, regulations tind or permits may apply or be required. If the project or any project element deviates from or is modified from the originally-approved project, additional environmental review may he required 11. Engineering Services You have been required to complete an Agreement lor Engineering Services, which should consist of the Engineers Joint Contract Documents Committee (EJCDC) documents ns indicated in RUS Bulletin 1780-26. '‘Guidance for the Use of EJCDC Documents on Water and Waste Projects with RUS Financial Assistance,” or other approved form of agreement. The Agency will provide concurrence prior to advertising for bids, and must approve any modifications to this agreement. 12. Contract Documents, Final Plans, and Specifications a. The contract documents must consist of the EJCDC construction contract documents as indicated in RUS Bulletin 1780-26 or other Agency-approved forms of agreement. b. The contract documents, final plans, and specifications must comply with RUS Instruction 1780, Subparl C Planning, Designing, Bidding. Contracting, Constructing and Inspections, and must be submitted to the Agency for concurrence prior to advertising for bids along with an updated cost estimate. the Agency may require another updated cost estimate if a significant amount of lime elapses bclvv ecu the original submission and advertising lorbuls. c. Hie use of any procurement method other than competitive sealed bids must he requested in writing and approved by the Agency. 13. Legal Services - You have been required to execute a legal services agreement with your attorney and bond counsel, if applicable, for any legal work needed in connection with this project. The agreement should stipulate an hourly rate for the work, with a “not to exceed" Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 21 of 37 Town of Estes Park - Prospect Mountain Water Company Project 7 amount tor the services, including reimbursable expenses. RUS Bulletin 1780-7. "Legal Services Agreement," or similar format may be used. The Agency will provide concurrence prior to advertising for bids. Any changes to the fees or services spelled out in the original agreement must be reflected in an amendment to the agreement and hate prior Agency concurrence. 14. Property Rights - Prior to advertising for bids, yon and your legal counsel must furnish satisfactory evidence that you have or can obtain adequate continuous and valid control over the lands and rights-of-way needed for the project. Acquisitions of necessary land and rights must be accomplished in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act. Such control over the lands and rights will be evidenced by the following: a.Right-Of-Way Map - Your engineerwill provide a map clearly showing the location of all lands and rights-of-way needed for the project. The map must designate public and private lands and rights and the appropriate legal ownership thereof. b. Form RD 442-20, “Right-of-Way Easement’' - This form may be used to obtain any necessary easements for the proposed project. c. Form RD 442-21, “Right-of-Way Certificate” - You will provide a certification on this form that all right-of-way requirements have been obtained for the proposed project, d. Form RD 442-22, “Opinion of Counsel Relative to Riglits-of-Wny” - Your attorney will provide a certification and legal opinion on this form addressing rights-of-way, easements, and title. e. Preliminary Title Work (Title Report) - When applicable, your attorney will provide a preliminary title opinion for any property related to the facility, currently owned and to be acquired, along witli copies of deeds, contracts or options tor purchasing said property. Form RD 1927-9, “Preliminary Title Opinion,” may be used. The approving official may waive title defects or restrictions, such as utility easements, that do not adversely affect the suitability, successful operation, security value, or transferability of the facility. Any such waivers must be provided by the approving oflicial in writing prior to closing or the start of construction, whichever occurs first. You are responsible for the acquisition of all property rights necessary for the project and for determining that prices paid are reasonable and fair. The Agency may require an appraisal by an independent appraiser or Agency employee in order to validate the price to be paid. 15. System Policies. Procedures. Contracts, and Agreements - The facility must be operated on a sound business plan. You must adopt policies, procedures, and/or ordinances outlining the conditions of service and use of the proposed system. Mandatory connection policies should be used where enforceable. The policies, procedures, and/or ordinances must contain an effective collection policy for accounts not paid in full within a specified number of days after the date of billing. They should include appropriate late fees, specified timeframes for disconnection of service, and reconnection fees. A draft of these policies, procedures, and/or Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 22 of 37 Town of Estes Park - Prospect Mountain Water Company Project 8 ordinances must be submitted lor Agency review and concurrence, along with the documents below, before closing instructions may be issued unless otherwise staled. a. Conflict of Interest Policy - Prior to obligation of funds, you must certify in writing that your organization has in place an up-to-date w ritten policy on conflict of interest. The policy will include, at a minimum (1) a requirement for those with a conflict or potential conflict to disclose (he conflict/potential conflict; (2) u clause that prohibits interested members of the applicant’s governing body from voting on any matter in which there is a conflict, and (3) a description of the specific process by which the governing body will manage identified or potential conflicts. You must also submit a disclosure of planned or potential transactions related to the use of Federal funds that may constitute or present the appearance of personal or organizational conflict of interest. Disclosure must be in the fomi of a w ritten letter signed and dated by the applicant’s official, A negative disclosure in the same format is required if no conflicts are anticipated. Sample conflict of interest policies may be found ai the National Council of Nonprofits website, httr>s'-/.'www.councilofnonnrofits.org.,ltools-resources.'conl1ict-of-interesl, or in Internal Revenue Service Form 1023, Appendix A, “Sample Conflict of Interest Policy,” at http://www.irs.cov. pub irs-pdfti 1023.pdf Though these examples reference non-profit corporations, the requirement applies to all types of Agency borrow ers, Assistance in developing a conflict of interest policy is available through Agency- contracted technical assistance providers if desired. b. Contrncts for O ther Services/Lense Agreement Drafts of any contracts or other forms of agreements for other services, including audit, management, operation, and maintenance, or lease agreements covering real properly essential to the successful operation of the facility, must be submitted to the Agency for review and concurrence prior to advertising for bids. Fully executed copies of any policies, procedures, ordinances, contracts, or agreements must be submitted prior to loan closing, with the exception of the conflict of interest policy, w hich must be in place prior to obligation of funds. 16. Closing Instructions - The Agency w ill prepare closing instructions as soon as the requirements of the previous paragraphs are complete, as well as a draft of the security instrument^). Closing instructions must be obtained prior to advertising for bids. 17. Interim Financing - For all loans exceeding S500.000, where loan funds can be borrowed at reasonable interest rates on an interim basis from commercial sources lor the construction period, such interim financing will be used to preclude the necessity for multiple advances of Agency loan funds. You must provide the Agency w ith a copy of the interim loan financing agreement for review prior to advertising for bids, The Agency approving official may Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 23 of 37 Town of Estes Park - Prospect Mountain Water Company Project 9 make an exception when interim financing is cost prohibitive or unavailable. Grant funds from the Agency will be disbursed by multiple advances through electronic transfer of funds after interim financing or Agency loan funds are expended, in accordance with RUS Instruction 1780.45. 18. Construction Account - You must establish a construction account for all funds related to the project. Construction funds will be deposited with an acceptable financial institution or depository that meets the requirements of a I CFR Part 202. A separate account will not be required for Federal funds and other funds: however, the recipient must be able to separately identify, report, and account for all Federal funds, including the receipt, obligation and expenditure of funds. Financial institutions or depositaries accepting deposits of public funds and providing other financial agency services to the Federal Government are required to pledge adequate, acceptable securities as collateral, in accordance with 31 CFR Part 202. All funds in the account will be secured by a collateral pledge equaling at least 100% of the highest amount of funds expected to be deposited in the construction account at any one time. Your financial institution can provide additional guidance on collateral pledge requirements. Agency funds will be disbursed into the borrower’s depository account through an electronic transfer system. SF 3881, “ACH Vendor-Miscellaneous Payment Enrollment Form,” must be completed and submitted to the Agency prior to advertising for bids. 19. System Users - This letter of conditions is based upon your indication at application that there will be at least 128 residential users on the existing system when construction is completed. Before the Agency can agree to the project being advertised for construction bids, you must certify that the number of users indicated at application are currently using the system or signed up to use the system once it is operational. If the actual number of existing and/or proposed users that have signed up for serv ice is less than the number indicated at the time of application, you must provide the Agency with a written plan on how you will obtain the necessary revenue to adequately cash flow the expected operation, maintenance, debt service, and reserve requirements of the proposed project (e.g., increase user rales, sign up an adequate number of other users, reduce projecl scope, etc.). Similar action is required if there is cause to modify the anticipated flows or volumes presented following approval. If you are relying on mandatory connection requirements, you must provide evidence of the authorizing ordinance or statute along with your user certification. 20. Other Funding — Pnor to advertising for bids, you must provide evidence of applicant contributions and approval of other funding sources. This evidence should include a copy of the commitment letter from each source. 21. Proposed Operating Budget - You must establish and/or maintain a rate schedule that provides adequate income to meet the minimum requirements for operation and maintenance Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 24 of 37 Town of Esles Park - Prospect Mountain Water Company Project 10 (O&M). debt service, and reserves. Prior to advertising for bids, you must submit a proposed annual operating budget to the Agency w hicli supports the operation, maintenance, debt service, and reserv es, as well as your proposed rate schedule. The operating budget shoutd be based on a typical year cash flow after completion of the construction phase and should be signed by tiic appropriate official of your organization, form KD 442-7, “Operating Budget," or similar format inny be utilized for this purpose. It is expected that OJiM will change over each successive year and user rates will need to be adjusted on a regular basis. Technical assistance is available at no cost to help you evaluate and complete a rate analysis on your system. Tliis assistance is available free to your organization. If you are interested please contact our office for information. 22. Permits — [he owner or responsible party wilt be required to obtain all applicable permits for the project, prior to advertising for bids. The consulting engineer must submit written evidence that all applicable permits required prior to construction have been obtained with submission to the Agency of the final plans, specifications, and bid documents. 23. Vulnerability Assessnient/Kmergencv Response Plan fY'A/KKPl - I he Agency requires all financed water and wastewater systems to have a VA/ERP in place. Borrowers with existing systems must provide u certification thul a VA/ERP has been completed prior to advertising for bids. The VA/ERP documents themselves are not submitted to the Agency. The VA/ERP must address potential impacts from natural disasters and other emergency events. In particular, it should include plans to address impacts of flush flooding in arcus w here sev ere drought or wildfires occur. The documents should be rev tewed and updated ev cry three years ul a minimum. Tor new systems, see Section V of this letter of conditions. For VA/ERP requirements llirougliout the life of the loan, see Section VII, Technical assistance nt no cost is available in preparing these documents. 24. Did Authorization - Once all the conditions outlined in Section III of this letter have been met, the Agency will authorize you to advertise the project for construction bids. Such advertisement must be in accordance with applicable State statutes. SECTION IV - REQUIREMENTS PRIOR TO START OF CONSTRI CTION 25. Bid Tabulation - Immediately after bid opening, you must provide the Agency with the hid tabulation and your engineer's evaluation of bids and recommendations for contract awards. If the Agency agrees that the construction bids received are acceptable, adequate funds arc available to cover the total project costs, and all the requirements of Section III of this letter have been satisfied, the Agency will authorize you to issue the Notice of Award. a. Cost Overruns. If bids arc higher than expected, or if unexpected construction problems are encountered, you must utilize all options to reduce cost overruns. Negotiations, redesign, use of bidding alternatives, rebidding or other means will be considered prior to Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 25 of 37 Town of Estes Park - Prospect Mountain Water Company Project 11 commitment of subsequent funding by the Agency. Any requests for subsequent fiinding to cover cost overruns will be contingent on the availability of funds. Cost o\ erruns exceeding 20° « of the development cost at time of loan or grant approt al or \\ here the scope of the original purpose has changed will compete for funds with all other applications on hand as of that date. b. Excess Funds. If bids are lower than anticipated at time of obligation, excess funds must be deobligated prior to start of construction except in the cases addressed in this paragraph. In cases where the original PER for the project included items that were not bid, or were bid as an alternate, the State Office official may modify the project to fully utilize obligated funds for those items. Amendments to the PER, ER, and letter of conditions may be needed for any work not included in the original project scope. In all cases, prior to start of construction, excess funds will be deobligated. with grant funds being deobligated first. Excess funds do not include contingency funds as described in this letter. 26. Contract Review - Your attorney will certify that the executed contract documents, including performance and payment, if required, are adequate and that the persons executing these documents have been properly authorized to do so in accordance w ith RUS Instruction 1780.61(b). Once your attorney has certified that they are acceptable, the contract documents will be submitted to the Agency for its concurrence. The Notice to Proceed cannot be issued until the Agency has concurred with the construction contracts, 27. Final Rights-of-Wav - If any of the rights-of-way forms listed previously in this letter contain exceptions that do not adversely affect the suitability, successful operation, security value, or transferability of the facility, the approving official must provide a written waiver prior to the issuance of the Notice to Proceed. For projects involving the acquisition of land, you must provide evidence that you have clear title to the land prior to the issuance of the Notice to Proceed. a. Final Title Work - Your attorney must furnish a separate final title opinion on all existing real property related to the facility, now owned and to be acquired for this project, as of the day of loan closing or start of construction, whichever occurs first. Form RD 1927- 10, “Final Title Opinion" may be used. 28. Insurance and Bonding Requirements - Prior to the start of construction or loan closing, whichever occurs first, you must acquire and submit to the Agency proof of the types of insurance and bond coverage for the borrower shown below. The use of deductibles may be allowed, providing you have the financial resources to cover potential claims requiring payment of the deductible. The Agency strongly recommends that you have your engineer, attorney, and insurance pro\ ider(s) review'proposed types and amounts of coverage, including any exclusions and deductible provisions. It is your responsibility and not that of the Agency to assure that adequate insurance and fidelity or employee dishonesty bond coverage is maintained. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 26 of 37 Town of Estes Park - Prospect Mountain W ater Company Project 12 a. General Liability Insurance - Include vehicular coverage. b. W orkers’ Compensation - In accordance with appropriate Slate laws. c. Fidelity or Employee Dishonesty Bonds - Include coverage for all persons who have access to funds, including persons working under a contract or management agreement. Coverage may be provided either for all individual positions or persons, or through blanket coverage providing protection for all appropriate workers. During construction, each position should be bonded in an amount equal to the maximum amount of funds to be under the control of that position at any one lime. The coverage may be increased during construction based on the anticipated monthly advances. After construction and throughout the life of the loan, the amount of cov erage must be for at least the total annual debt service o f all outstanding Agency loans. The Agency will Lie identified in the fidelity bond for receipt of notices. Form RD 440-24, “Position Fidelity Schedule Bond,” or similar formal may be used. d. Real Property Insurance - Fire and extended coverage will normally be maintained on all structures except reservoirs, pipelines and other structures if such structures are not normally insured, and subsurface lift stations except for the value of electrical and pumping equipment. The Agency will be listed as- mortgagee on the policy when the Agency has a lien on the property. Prior to the acceptance of the facility from the contructor(s), you must obtain real property insurance (fire and extended coverage) on all facilities identified above. Insurance types described above are required to be continued throughout the life of the loan. See Section VII. 29. Initial Comnliunce Review - The Agency will conduct an initial compliance review of the borrow er prior to loan closing or start of construction, whichever occurs first, in accordance with 7 CFR 1901, Subpart E. SECTION V - REQUIREMENTS PRIOR TO LOAN CLOSING 30. Interim Finnncing - Interim financing is being used. Loan closing will occur near the end of construction when interim funds are about to be completely disbursed. Documents detailed above from Sections II and III regarding security, electronic payments (Form 3550-28), and system policies, procedures, contracts, and agreements must be adopted and'or executed and submitted to the Agency prior to loan closing. In addition, the following items are required prior io closing: 31. O ther Requirements - All requirements contained in the Agency’s closing instructions, as well as any requirements of your bond counsel and'or attorney, must be met prior to loan closing. a. System for Award M anagement. You w7ill be required to maintain a Dun and Bradstreet Data Universal Numbering System (DUNS) number and maintain an active registration in the System for Award Management (SAM) database. Renewal ean be Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 27 of 37 Town of Estes Park - Prospect Mountain Water Company Project 13 done on-line at: httn://sam.gov. This registration must be renewed and revalidated every twelve (12) months for as long as there are Agency funds to be expended. See Appendix A. To ensure the information is current, accurate and complete, and to prevent the SAM account expiration, the review and updates must be perforated within 365 days of the activation date, commonly referred to as the expiration date. The registration process may take up to 10 business days. (See 2 CFR Part 25 and the “Help” section at htln://sam.Qov). b. Litigation. You are required to notify the Agency within 30 days of receiv ing notification of being involved in any type of litigation prior to loan closing or start of construction, whichever occurs first. Additional documentation regarding the situation and litigation may be requested by the Agency. c. Certified Operator. Evidence must be provided that your system has or will have, us defined by applicable Stale or Federal requirements, a certified operator available prior to the system becoming operational, or that a suitable supervisory agreement with a certified operator is in effect. SECTION VI - REQUIREMENTS DURING CONSTRUCTION AND POST CONSTRUCTION 32. Resident Insnector(s) - Full-time inspection is required unless you request an exception. Such requests must be made in writing and the Agency must concur with the request. Inspection services are to be provided by the consulting engineer unless other arrangements are requested in writing and concurred with by the Agency. A resume of qualifications of any resident inspectors) will he submitted to the owner and Agency for review and concurrence prior to the pre-construction conference. The resident tnspector(s) must attend the pre-construction conference. 33. Preconstruction Conference - A preconstruction conference will be held prior to the issuance of the Notice to Proceed. The consulting engineer will rev iew the planned development witli the Agency, owner, resident inspector, attorney, contractor, other funders, and other interested parties, and will provide minutes of this meeting to the owner and Agency. 34. Inspections - The Agency requires a pre-construction conference, pre-final and final inspections, and a warranty inspection. Your engineer will schedule a warranty inspection with the contractor and the Agency before the end of the one-year warranty period to address and/or resolve any warranty issues. The Agency will conduct an inspection w ith you of your records management system at the same time, and will continue to inspect the facility and your records system every three years for the life of the loan. See Section VII of this letter. 35. Change Orders - Prior Agency concurrence is required for all Change Orders. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 28 of 37 Town of Estes Park - Prospect Mountain Water Company Project 14 36. Payments - Prior Agency concurrence is required for all Invoices and Partial Payment Estimates before Agency funds will be released. Requests for payment related to a contract or service agreement will be signed by the owner, project engineer, and contractor or service provider prior to Agency concurrence. Invoices not related to a construction contract or service agreement will include the owner's written concurrence. 37. Use of Remaining Funds - Applicant contribution and connection or tap fees will be the first funds expended in the project, followed by non-Agency sources of funds. Remaining hinds may be considered in direct proportion to the amounts obtained from each source and handled as follows: a. Remaining funds may be used for eligible loan and gram purposes, provided the use will not result in ma jor changes to the original scope of work and the purpose of the loan and grant remains the same. b. Grant funds not expended for authorized puqioses will be cancelled (de-obligated) within 180 days of final completion of project. Prior to actual cancellation, you and your attorney and engineer will be notified of the Agency’s intent to cancel the remaining funds and given appropriate appeal rights. c. Loan funds that are not needed will be cancelled (de-obligated) prior to loan closing. 38. Technical, Managerial and Financial Capacity - It is required that members of the Board of Directors, City Council members, trustees, commissioners and other governing members possess the necessary technical, managerial, and financial capacity skills to consistently comply with pertinent Federal and State laws and requirements. It is recommended members receive training within one year of appointment or election to the governing board, and a refresher training for all governing members on a routine basis. Tile content and amount of training should be tailored to the needs of the particular individual and the utility system. Technical assistance providers are available to provide this training for your organization, often at no cost. Contact the Agency for information. 39. Reporting Requirements Related to Expenditure of Funds a. Financial Audit- An annual audit under the .Single Audit Act is required if you expend 5750,000 or more in Federal financial assistance per fiscal year. The total Federal funds expended from all sources shall be used to determine Federal financial assistance expended. Expenditures of interim financing are considered Federal expenditures. All audits are to be performed tn accordance with 2 CFR Part 200, as adopted by USDA through 2 CFR Part 400. Further guidance on preparing an acceptable audit can be obtained from the Agency. The audit must be prepared by an independent licensed Certified Public Accountant, or a State or Federal auditor if allowed by State law, and must be submitted within 9 months of your fiscal year end. If an audit is required, you must enter into a written agreement with the auditor and submit a copy to the Agency prior to the advertisement of bids. The audit agreement may Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 29 of 37 Town of Estes Park - Prospect Mountain W ater Company Project 15 include terms and conditions that the borrower and auditor deem appropriate: however, the agreement should include the type of audit to be completed, the time frame in which the audit will be completed, and how irregularities \vi 11 be reported. b. Subawards and Executive Compensation - You as a recipient of Federal funds and your first-tier contractors are required by 2 CFR Part 170 to report disbursements to subrecipients in accordance with Appendix B of this letter and w'ww'.fsrs.gov. Your Agency processing office can provide more information. SECTION VII - SERVICING REQUIREM ENTS D l RING THE TERM O F TH E LOAN 40. Prepaym ent anti Extra Payments - Prepayments of scheduled installments, or any portion thereof, may be made at any time at the option of borrower, w ith no penalty. Security instruments, including bonding documents, must contain the following language regarding extra payments, unless prohibited by State statute: Prepayment of scheduled installments, or any portion thereof, max be made at any rime at the option o f botrowcr. Refunds, extra payments and loan proceeds obtainedfrom outside sources fo r the purpose ofpaying down the Agency debt, shall, after payment of interest, be applied to the installments last to become due under this note and shall not affect the obligation o f borrower to pay the remaining installments as scheduled in your security instalments. 41. G raduation - By accepting this loan, you are also agreeing to refinance (graduate) the unpaid loan balance in whole, or in part, upon request of the Government. If at any time the Agency determines you are able to obtain a loan for such purposes from responsible cooperative or private sources at reasonable rates and terms, you will be requested to refinance. Your ability to refinance will be assessed every other year for those loans that are five years old or older. 42. Seciiritv/Qnerntionnl Inspections — The Agency will inspect the facility and conduct a review of your operations and records management system and conflict of interest policy every three years for the life of the loan. You must participate in these inspections and provide the required information, 43. Annual Finiincinl Reporting/Audit Requirem ents - You are required to submit an annual financial report at the end of each fiscal year. The annual report will be certified by the appropriate organization official, and will consist of financial information and a rate schedule. Financial statements must be prepared on the accrual basis of accounting in accordance with generally accepted accounting principles (GAAP), and must include at a minimum a balance sheet and income and expense statement. The annual report will include separate reporting for each water and waste disposal facility, and itemize cash accounts by type (debt service, short­ lived assets, etc,) under each facility. All records, books and supporting material are to be retained for three years after the issuance o f the annual report. Technical assistance is available at no cost with preparing financial reports. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 30 of 37 Town of Estes Park - Prospect Mountain W ater Company Project 16 The type of financial information that must be submitted is specified below: a. Audits - An annual audit under the Single Audit Act is required if you expend $750,000 or more in Federal financial assistance per fiscal year. The total Federal funds expended from all sources shall be used to determine Federal financial assistance expended. Expenditures of interim financing are considered Federal expenditures. All audits are to be performed in accordance with 2 CFR Part 200, as adopted by I'SDA through 2 CFR Part 400. Further guidance on preparing an acceptable audit can be obtained from the Agency. It is not intended that audits required by this part be separate and apart from audits performed in accordance with State and local laws. To the extent feasible, the audit work should be done in conjunction with those audits. The audit must be prepared by an independent licensed Certified Public Accountant, or a Stale or Federal auditor if allowed by State law, and must be submitted within 9 months of your fiscal year end. If an audit is required, you must enter into a written agreement with the auditor and submit a copy to the Agency prior to the advertisement of bids. The audit agreement may include terms and conditions that die borrower and auditor deem appropriate; however, the agreement should include the type of audit or financial .statements to be completed, the time frame in which the audit or financial statements will be completed, what type o f reports will be generated from the services provided, and how irregularities will be reported. b. Financial Statements - If you expend less than S750.000 in Federal financial assistance per fiscal year, you may submit financial statements in lieu of an audit which include at a minimum a balance sheet and an income and expense statement. You may use Form RD 442-2, “Statement of Budget. Income and Equity,” and 442-3, “Balance Sheet.” or similar format to provide the financial information. The financial statements must be signed by the appropriate borrower official and submitted within 60 days of your fiscal year end. c. Q uarterly Reports - Quarterly Income and Expense Statements will be required until the processing office waives this requirement. You may use Form RD 442-2 or similar format to provide this information, and the reports are to be signed by the appropriate borrower official and submitted within 30 days of each quarter’s end. The Agency will notify you in writing when the quarterly reports are no longer required. 44. Annual Budget and Projected Cash Flow - Thirty days prior to the beginning of each fiscal year, you will be required to submit an annual budget and projected cash flow to this office. With the submission of the annual budget, you will be required to provide a current rale schedule, and a current listing o f the Board or Council members and their terms. The budget must be signed by the appropriate borrower official. Form RD 442-2 or similar format may be used. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 31 of 37 Town of Estes Park - Prospect Mountain Water Company Project 17 Technical assistance is available at no cost to help you evaluate and complete a rate analysis on your system, as well as completing the annual budget, If you are interested, please contact our office for information. 45. Insurance. You will be required to maintain insurance on the facility and employees as previously described in this letter for the life of the loan. 46. Statutory and National Policy Requirements - As a recipient of Federal funding, you are required to comply with U.S. statutory and public policy requirements, including but not limited to: a. Section 504 of the Rehabilitation Act of 1973 - Under Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. 794), no handicapped individual in the United States shall, solely by reason of their handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Agency financial assistance. b. Civil Rights Act of 1964 - All borrowers are subject to, and facilities must be operated in accordance with. Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and 7 CFR 1901, Subpart E, particularly as it relates to conducting and reporting of compliance reviews. Instruments of conveyance for loans and.'or grants subject to the Act must contain the covenant required by Paragraph 1901.202(e) of this Title. c. The Americans with Disabilities Act (ADA) of 1990 - This Act (42 U.S.C. 12101 et seq.) prohibits discrimination on the basis of disability in employment. State and local government services, public transportation, public accommodations, facilities, and telecommunications. d Age Discrimination Act of 1975 This Act (42 U.S.C 6101 et seq.) provides that no person in the United Stales shall on the basis of age, be excluded from participation in. be denied the benefits o f or be subjected to discrimination under any program or activity receiving Federal financial assistance. e. Limited English Proficiency (LEP) under Executive O rder 13166 - LEP statutes and authorities prohibit exclusion from participation in, denial of benefits of, and discrimination under Federally-assisted and/or conducted programs on the ground of race, color, or national origin. Title VI of the Civi! Rights Act of 1964 cov ers program access for LEP persons LEP persons are individuals who do not speak English as their primary language and who have a limited ability to read, speak, write, or understand English. These individuals may be entitled to language assistance, free of charge. You must take reasonable steps to ensure that LEP persons receive the language assistance necessary to hav e meaningful access to USDA programs, serv ices, and information your organization provides. These protections are pursuant to Executiv e Order 13166 entitled, “Improving Access to Services by Persons with Limited English Proficiency” and further affirmed in the USDA Departmental Regulation 4330-005, “Prohibition Against National Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 32 of 37 Town of Estes Park - Prospect Mountain W ater Com pany Project 18 Origin Discrimination Affecting Persons with Limited English Proficiency in Programs and Activities Conducted by USDA." Agency financial programs must be extended without regard to race, color, religion, sex. national origin, marital status, age, or physical or mental handicap. You must display posters (provided by the Agency) informing users of these requirements, and the Agency will monitor your compliance with these requirements during regular compliance reviews. 47. Compliance Reviews and Data Collection - The Agency will conduct regular compliance reviews of die borrower and its operation in accordance with 7 CFR Part 1901, Subpart E, and 36 CFR 1191. Americans with Disabilities Act (ADA) Accessibility Guidelines for Buildings and Facilities; Architectural Barriers Act (ABA) Accessibility Guidelines. Compliance reviews will typically be conducted in conjunction with the security inspections described in this letter. If beneficiaries (users) are required to complete an application or screening for the use of the facility or service that you provide, you must request and collect data by race (American Indian or Alaska Native, Asian, Black or African American, White); ethnicity (Hispanic or Latino, Not Hispanic or Latino): and by sex. The Agency will utilize this data as part of the required compliance review. SECTION VIII - REMEDIES FOR NON-COMPLIANCE Non-compliance with the conditions in this letter or requirements of your security documents will be addressed under the provisions of 7 CFR 1782 and other applicable regulations, statutes, and policies. We look forward to working with you to complete this project. If you have any questions, please contact me at 720-544-2920 or by e-mail at Allison.truii11o@co.usda.gov. Sincerely, ALLISON TRUJILLO Area Loan Specialist Attachments cc: Reuben Bergsten, Utilities Director, Town of Estes Park Mandy Rasmussen, Project Engineer. JVA, Inc. Lillian Tolver. Project Engineer, JVA, Inc. Robert Scarpa, Engineer, USDA Rural Development April Dahlager, Community Programs Director, USDA Rural Development Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 33 of 37 EXHIBIT B Service Line Ownership and Responsibility Delineation 1. Owner name: Prospect Mountain Water CO, Inc. Parcel #35363-07-042 No site address, Prospect Mountain Drive 0.07 acres (Existing tank to be demolished and pump pit) Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 34 of 37 2. Owner name: Prospect Mountain Water Company, Inc. Parcel #35364-00-014 101 W. Peak View Drive 0.25 acres (PROSPECT MOUNTAIN treatment plant) Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 35 of 37 EXHIBIT C FORM OF TRUSTEE’S DEED Daniel A. Hepner whose address is 950 Spruce Street, Suite 1C, Louisville, Colorado, in his capacity as trustee (“Trustee”) of the bankruptcy estate o f Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District o f Colorado, pursuant to Order of the United States Bankruptcy Court for the District of Colorado entered o n __________, 2019 and for good and valuable consideration, the receipt and sufficiency o f which is hereby acknowledged, hereby sells and quitclaims to Town o f Estes Park, whose mailing address is P.O. Box 1200, Estes Park, Colorado 80517, any and all interests Trustee may have in the real property located in the County o f Larimer, State o f Colorado which property is legally described on Exhibit “A” attached hereto. Signed this ___day o f ____________, 2019. DANIEL A. HEPNER, TRUSTEE Daniel A. Hepner, Trustee o f the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM, United States Bankruptcy Court for the District o f Colorado STATE OF COLORADO ) ) ss. COUNTY OF ________ ) The foregoing instrument was acknowledged before me this ____day o f ________, 2019, by Daniel A. Hepner, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15- 14286 TBM, in the United States Bankruptcy Court for the District of Colorado. WITNESS my hand and official seal. My Commission expires:_________ Notary Public Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 36 of 37 EXHIBIT A to Trustee's Deed 1. Any real property owned by Prospect Mountain whether owned in fee, by prescription, or by plat dedication, including but not limited to the following parcels located in Larimer County, Colorado: a. Parcel #35363-07-042 No site address, Prospect Mountain Drive Consisting of 0.07 acres (Existing tank site) b. Parcel #35364-00-014 101 W. Peak View Drive Consisting of 0.25 acres (PROSPECT MOUNTAIN treatment plant) 2. All easement rights of Prospect Mountain whether held in fee, by prescription, or by plat dedication, including but not limited to all utility easements and rights-of-way. Voluntary Water System Transfer Agreement between Prospect Mountain Water Company and the Town of Estes Park Page 37 of 37 AMENDMENT TO VOLUNTARY WATER SYSTEM TRANSFER AGREEMENT This Amendment to the VOLUNTARY WATER SYSTEM TRANSFER AGREEMENT (“Agreement") dated February 26,2019 between the Town of Estes Park, by and through its Water Enterprise (the “Town") and the Prospect Mountain Water Company, Inc., debtor in Chapter 7 bankruptcy Case No. 15-14286 TBM (“Prospect Mountain”), by and through its Bankruptcy Trustee, Daniel A. Hepner (“Trustee"),collectively (the “Parties"), is entered into this 2 3 day of April, 2019, WHEREFORE, the Agreement, at Section 2.6, provided that the Date of Transfer of Prospect Mountain and its assets shall occur on or before May 1, 2019 or as scheduled upon the fulfillment of the contingencies set forth in Section 3 of the Agreement. WHEREFORE, pursuant to Section 6.1 of the Agreement, the Parties agreed that, unless extended by mutual agreement of the Parties, the Date of Transfer shall occur on May 1, 2019. They also agreed that, if either Party believes an extension of the Date of Transfer is necessary to allow for the contingencies to be satisfied, then the Parties shall execute an extension of the Date of Transfer. Such extension shall be approved by both Parties and such approval shall not be withheld, shall not be unreasonable delayed, and shall not be unreasonably conditioned by the Parties in order to fulfill the contingencies. WHEREFORE, the Parties have determined that an extension of the Date of Transfer is necessary in order to allow for the contingencies set forth in the Agreement to be satisfied. NOW, THEREFORE, in consideration of the mutual promises and covenants contained in the Agreement, herein, and the above Recitals, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: Section 2.7 of the Agreement is amended to provide: The Date of Transfer of Prospect Mountain and Its assets shall occur on or before June 14, 2019 or as scheduled upon the fulfillment of the contingencies set forth In Section 3, below. Section 6.1 of the Agreement Is amended to provide: The Parties agree that, unless extended by mutual agreement of the Parties, the Date of Transfer for this Agreement shall occur on or before June 14, 2019. The Parties agree to make reasonable good faith efforts to achieve the contingencies listed in Section 3 by the Date of Transfer. However, if either Party believes an extension of the Date of Transfer Is necessary to allow for the contingencies to be satisfied, then the Parties shall execute an extension of the Date of Transfer. Such extension shall be approved by both Parties and such approval shall not be withheld, shall not be unreasonably delayed, and shall not be unreasonably conditioned by the Parties in order to fulfill the contingencies. IN WITNESS WHEREOF, the Parties hereto have executed this Amendment to Voluntary Water System Transfer Agreement on the date first set forth above. TOWN OF ESTES PARK BY AND PROSPECT MOUNTAIN WATER THROUGH ITS WATER ENTERPRISE COMPANY Nam e: Todd Jirsa T R U S T E E RECEPTION #20190076461, 12/4/2019 9 01:30 AM, 1 of 3, $23.00 Angela Myers, Clerk & Recorder, Lanmer County, CO TRUSTEE’S DEED DANIEL A. HEPNER, whose address is 950 Spruce Street, Suite IC, Louisville, Colorado, in his capacity as trustee (“Trustee”) of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District of Colorado, pursuant to Order of the United States Bankruptcy Court for the District of Colorado entered on May 24, 2019, and for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby sells and quitclaims to the TOWN OF ESTES PARK, COLORADO, whose mailing address is P.O. Box 1200, Estes Park, Colorado 80517, any and all interests Trustee may have in the real property located in the County of Larimer, State of Colorado, described on Exhibit “A” attached hereto. The intent o f this Trustee’s Deed is to convey to the Town o f Estes Park, Colorado, any and all real property interests Prospect Mountain Water Company may have, o f whatever kind or nature, in any real property located in Larimer County, Colorado. NO DOCUMENTARY FEE REQUIRED PURSUANT TO C.R.S. SECTION 39-13-104mfa1 Signed this day of June, 2019, Hepner, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District of Colorado. WITNESS my hand and official seal. DANIEL A. HEPNER, TRUSTEE Daniel A. Hepner, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15­ 14286 TBM. United States Bankruptcy Court for the District of Colorado By: ......Yh*/U) STATE OF COLORADO ) ) ss. COUNTY OF J-e^T ) My Commission expires: *7/3 t / 3 . o a . |. CAROLS. CIAGLO NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20094022901 MY COMMISSION EXPIRES JULY 21,2021 Notary Public No. 1215. Rev. 1-06. TRUSTEE’S DEED (Page I of3) EXHIBIT A to Trustee’s Deed 1. Any and all real property located in Larimer County, Colorado, in which Prospect Mountain Water Company currently has an interest, whether by deed or otherwise, including but not limited to: A parcel of land in the Southwest corner of lot No. 19 in “Replat of the Portion of Venner Ranch Estates (2nd)”, a subdivision of a portion of Section 36, T5N, R73W of the 6th P.M., Larimer County, Colorado, more particularly described as follows: Commencing at the Southwest comer of said lot No. 19; thence N23°00'W a distance of 65 feet; thence N67°00'E a distance of 53.41 feet; thence S23°00'E a distance of 51.88 feet to a point of curvature on the South boundary of lot No. 19; thence in a Southwesterly direction along the curved boundary of said lot No. 19 for a distance of 55.02 feet to the point of beginning. The chord distance along said curved boundary between these two points is 55.00 feet and the bearing is S53D12'W. Said parcel of land contains 0.07 acres. Assessor Parcel #35363-07-042 No site address, Prospect Mountain Drive (Site of Prospect Mountain existing tank) AND An undivided two-thirds interest in a portion of the SE ’A of Section 36, Township 5 North, Range 73 West of the 6th Principal Meridian, described as commencing at a point which bears N01°08'29"E, a distance of 937.5 feet from the South Quarter Comer of Section 36, said point being the True Point of Beginning; thence N01°08'29"E a distance of 120.0 feet; thence East, a distance of 100.0 feet; thence South a distance of 96.86 feet; thence South 77°16'W a distance of 104.97 feet to the True Point of Beginning. Said parcel of land contains 0.25 acres. Larimer County Assessor Parcel #35364-00-014 101 W. Peak View Drive (Site of Prospect Mountain treatment plant) 2. Any and all rights in any easements and rights-of-way in which Prospect Mountain Water Company has an interest, whether by deed, plat dedication or otherwise, over, across and/or under real property located in Larimer County, Colorado. 3. Any and all water distribution infrastructure, storage tanks and/or pump stations (whether above or below ground) currently existing in the service territory of Prospect Mountain Water Company described below in which Prospect Mountain Water Company has any interest: BOUNDARY1 LEGAL DESCRIPTION; BEGINNING AT THE WEST 1 /4 CORNER OF SECTION 31, TOWNSHIP 5 NORTH, RANGE 72 WEST OF THE 6TH P,M, (ALSO BEING THE EAST 1 /4 CORNER OF SECTION 3B, TOWNSHIP 5 NORTH/ RANGE .73 WEST OF THE 6TH P.M.); THENCE NBSMZ’lT'W 'Zese.OA’. ALONG THE-SOOTH UNE OF THE NORTHEAST QUARTER OF SAID SECTION 38 .TO THE. CENTER QUARTER CORNER OF SAID SECTION 36: THENCE ALONG THE.EAST UNE OF THE:SOUTHWEST QUARTER OF SAID SECTION 36 SOIMO'W 1557.9’; THENCE LEAVING SAID EAST UNE EAST 100’j THENCE SOUTH'96.86’; THENCE STT’ IO’W 104.97’ TO THE EAST UNE OF THE SOUTHWEST QUARTER. OF SAID SECTION. 36; THENCE ALONG -THE EAST-UNE- OF THE SOUTHWEST QUARTER OF SAID SECTION 36 ■ SOVIO'W 937.5* TO THE SOUTH QUARTER CORNER'OF SAID .SECTION 3 6 ;'THENCE N88*49’W 2655.9’ ALONG THE SOUTH UNE OF THE SOUTHWEST QUARTER OF SAID SECTION 36 TO THE SOUTHWEST CORNER OF SAID SECTION 36; ■ . . . ' ~ 1 No. 1215. Rev. l-0fi. TRUSTEE’S DEED (Page2of3) THENCE SB9*36'W 62;0L,TO THE NORTHEAST CORNER OF LOT 3, SECTION 2, TOWNSHIP 4 NORTH, RANGE 73 WEST OF THE BTH P.V.; THENCE ALONG THE -EAST, LINE,'.OF SAID LOT 3 S0tT05<22ME 1101.42', MORE OR LESS; THENCE 579*17^ 10'17.BV.m 6 r Ej OR LESS; THENCE NOCQS'E-894.97’, MORE OR LESS, TO THE SOUTHWEST .CORNER;,OF PARCEL .034022-00-016; THENCE ALONG THE SOUTHERLY 'UNE OF SAID PARCEL N89,3fl*E-1.07.1, ) MORE OR LESS, TO THE SOUTHEAST CORNER OF SAID.PARCEL; THENCE i’ALONGl.THE-:EASTERLYlUNE, OF SAID PARCEL -NOffOB’E 130.00*, MORE OR I LESS; TO .tHE ’iNOf^E^^JCORNERVOF' SAiO;. PARCEL; ’ THENCE ALONG THE NORTHERLY 'LINE OF -SAID: PARC^V^9-36!W>;ie7;l^-TO'KTHE 'NORTHWECT ■ CORNER.OF.'SAID PARCEL; THENCE'jN00‘.06*E- 25Bl75v «MORE‘T)R \LESS;!JD‘THE NORTHERLY - UNE OF SAID LOT 3; THENCE ALONG SAJO ■ N0RTHERLY;>UNE;‘N89*38lEi;996.1MORE. OR.,LESS; * THENCE ,.N89,30*E 62.6' -TO THE SOUTHWEST- CORNER" 0F/SWD' SECT10N: 36; • .• . 1 THENOE NOVSS'E 1292.9* ALONG THE WEST. UNE '.OE’-THE■ SOUJHWEST^QUARTER’, OF SAID . SECTION 30. TO THE--SOUTH 1 /10TH ■ CORNER.COMMON^TO•SECTONS^S'ANb ‘36, T5N, R73W OF THE 0TH P.M.. THENCE SBffOB'E 1012.79.', MORE.lOR '.tESSi /ALONG -THE' NORTH .UNE, .OF ■ THE SOUTHWEST QUARTER OF THE SOUTHWEST -QUARTER;VTHENCE»'-LEAVING ■ SAID '‘NORTHERLY 1 UNE. N0V32'30’E 1298.90', MORE OR LESS, TO THE NORTHERLY'UND'OF'THE SOUTHWEST QUARTER OF',SAIOSSECnON\3P;;:THENCE SBQ'P.O’E 308.8' ALONG SAID NORTHERLY UNE 10 THE WEST 1/16* CORNEtrOF SAID SECTION 36; THENCE N01'25'E*2613.3’ ALONG THE WESTERLY UNE OF THE EAST^HALF OF THE NORTHWEST QUARTER OF SAID SECTION 36 TO. THE WEST 1/16 CORNER COMMON TO SECTIONS 28 AND 36, TOWNSHIP 5 .-NORTH, RANGE 73 WEST OF THE.6TH P.M.; THENCE N89'42'E 1295.3' ALONG THE NORTHERLY UNE OF SAID NORTHWEST QUARTER OF SAID SECTION 36. TO THE NORTH QUARTER-CORNER OF SAID SECTION 36;, THENCE N89’47'E 1298.4' TO THE EAST 1/16TH CORNER COMMON TO SAID, SECTIONS 28 AND 36;-* . ■ ■■ * ' THENCE N00*07'E 059.6’ ALONG THE WESTERLY UNE i OF ‘THEfSOUTHWEST, QUARTER OF THE SOUTHEAST QUARTER OF THE -SOUTHEAST QUARTERXOFt- SAID-,SECTION *25 :-*T0, .THE NORTHERLY UNE OF THE SOUTHWEST QUARTER. OF THE- SOUTHEAST^QUARTERr-OF -THE .SOUTHEAST QUARTER OF SAID SECTION 25;.- THENC& .N89!56'E 849.6' ALONOi^D^NORTHERLY.; IINE'-TO) THE ’ EAST .’ UNE OF -THE SOUTHWEST .QUARTER OF THE' SOUTHE^^QUARTER^OFjrTHE-iSOUTHEAST SQUARTER OF SAID SECTION'25; THENCE"Si00ri4*E 6S0;O ALONG?SAlD^EASTERLY-UNE^OF'-THE ‘.SOUTHWEST QUARTER OF THE SOUTHEAST1 QUARTER OF THE ’ SOI^THEAST'.'QUARTER - OF^SAI DI SECTION.' 25 TO THE NORTHERLY UNE 'OF. SAID SECTION 3$; THENCE * N89‘47>E^ ^16r4-' ALONG THE NORTHERLY UNE OF SAID SECTION 3 6 .-TO-THE NORTHEAST CORNER 'OF;:SAID-iSECTiON 36 (ALSO BEING. THE NORTHWEST CORNER OF SECTION 31, TOWNSHIP' 5) :NORTH; v.RANGE 72 WEST ' OF THE 6TH P.M.); THENCE SOGr-13'E 1331.3' TO THE NORTH- 1 /1 6 CORNER COMMON TO SAID SECTIONS 31 AND 38; * ■ ‘ . THENCE S88‘42'E 1294.4' ALONG THE NORTHERLY UNE OF, KORAL .HEIGHTS FIRST ADDmON TO THE NORTHWEST 1 /1 6TH CORNER OF SAID SECTION 31; "THENCE ;SOOr16’E 1321.5’ ALONG THE EASTERLY UNE OF KORAL HEIGHTS FIRST'’ADDITION TO THE* CENTER WEST 1/16TH CORNER OF SAID SECTION 31; THENCE SOGIS'E 8 78.7'-ALONG THE EASTERLY.;UNE OF KORAL-,HEIGHTS; THENCE S41‘19,W 577,6', MORE OR LESS, TO THE SOUTHERLY ClNE-OF- KORAL ’HEIGHTS;' . THRICE ALONG .SAID SOUTHERLY UNE N89,20*W 943.84' TO THEf SOUTH 1 /1 8 CORNER -COMMON TO SAID SECTIONS 31 AND 36; THENCE N01*07'24;E 1323.10’. ALONG, THE WESTERLY UNE OF KORAL HEIGHTS TO THE TRUE POINT OF BEGINNING/-SAID.'PARCELS CONTAIN A TOTAL OF 479,6 ACRES. MORE OR -LESS, AND ARE SUBJECT' TO ALL EASEMENTS AND - RIGHTS-OF-WAY OF RECORD, LARIMER COUNTY, COLORADO. No. 1215. Rev. 1-06. TRUSTEE’S DEED (Pnge3of3) RECEPTION #20190076462, 12/4/2019 9 01:30 AM, 1 of 2, $18 00 Angela Myers, Clerk & Recorder, Larimer County, CO BILL OF SALE DANIEL A. HEPNER, whose address is 950 Spruce Street, Suite IC, Louisville, Colorado, in his capacity as trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District of Colorado, pursuant to Order of the United States Bankruptcy Court for the District of Colorado entered on May 24, 2019 (“Seller”) and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby does grant and convey unto the TOWN OF ESTES PARK, COLORADO, whose mailing address is P.O. Box 1200, Estes Park, Colorado 80517 (“Buyer”), the following property, free and clear of all liens and encumbrances of record, to wit: Any and all tangible and intangible assets of Prospect Mountain Water Company, exclusive of all funds held by the Bankruptcy Estate, all funds in the Capital Improvement Fund held at U.S. Bank, and all uncollected accounts receivable, and, including, but not limited to, the following, including all appurtenances thereto: (a) the water distribution system infrastructure, storage tanks and pump station (whether above or below ground) currently existing in the service territory of Prospect Mountain Water Company described on Exhibit A attached hereto and incorporated herein by this reference; and (b) any and all personal property and equipment of Prospect Mountain Water Company (the “Assets”). The conveyance of said Assets is AS IS, WHERE IS, AND WITH ALL FAULTS, WITH NO REPRESENTATIONS MADE BY SELLER. Signed this J3"dav of June, 2019. DANIEL A. HEPNER, TRUSTEE ___EM **___________________________________________________ Daniel A. Hepner, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM United States Bankruptcy Court for the District of Colorado STATE OF COLORADO ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this li^d ay of June, 2019, by Daniel A. Hepner, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District of Colorado. WITNESS my hand and official seal. My Commission expires: 7 / a l / 'a .o a I . CAROLS. CIAGLO NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20094022901 MY COMMISSION EXPIRES JULY 21 2021 No. 35A. Rev. 9-83. BILL OF SALE EXHIBIT A BOUNDARY LEGAL DESCRIPTION; . ' " * ' BEGINNING AT THE WE$T 1 /4 CORNER OF SECTION -31, TOWNSHIP 5 NORTH, RANGE 72 .WEST * OF THE STH P.M. (ALSO BEINO THE EAST 1 /4 CORNER OF SECTION 38, TOWNSHIP 5 NORTH, RANGE .73 WEST 0F THE 6TH P.M.); THENCE N89,32*17’,W ’2658.04’. ALONG THE SOUTH UNE OF THE NORTHEAST QUARTER OF SAID SECTION 36 .TO THE. CENTER QUARTER CORNER OF SAID SECTION 36; -THENCE ALONG THE.EAST UNE OF THE .SOUTHWEST QUARTER OF SAID SECTION 38 S01’10*W 1557.fi’; THENCE LEAVING SAID EAST UNE EAST 100’; THENCE SOUTH'96.88*; THENCE S7718’W 104.97’ TO THE EAST UNE OF THE SOUTHWEST QUARTER. OF SAID SECTION, 36; THENCE ALONG -THE EAST-UNE- OF THE SOUTHWEST QUARTER OF SAID-SECTION 36 S01’ 10*W 037.5’ TO THE SOUTH QUARTER CORNER OF SAID , SECTION 36; THENCE N88*49’W 2855.9’ ALONG- THE SOUTH UNE OF THE SOUTHWEST QUARTER OF SAID SECTION 36 TO THE SOUTHWEST CORNER OF-SAID SECTION 36; THENCE SB9*38’W 62;6'-.TO THE NORTHEAST CORNER OF LOT 3, SECTION 2, TOWNSHIP 4 NORTH, RANGE 73 WEST OF THE 6TH P.M;; THENCE ALONG THE-EAST.LINE;.OF SAID LOT 3 S0Cf05‘22"E 1101.42', MORE OR LESS; THENCE 579*17^ 1617.8V.M0RE'OR LESS; THENCE N00r06’E 894.97’, MORE OR LESS, TO THE SOUTHWEST .CORNER; .OF PARCEL .034022-00-018; THENCE-ALONG THE SOUTHERLY UNE OF SAID PARCEL N89,36*E-'1.67.1/'MORE OR LESS, TO THE SOUTHEAST CORNER OF SAID .PARCEL; THENCE^‘ALONGl.THE, EASTERLY.UNE, OF SAID PARCEL'.NOO*OB’E 130.00’, MORE 'OR! LESS;' TO '.’RiE -NORTHE^v.COpNERi.'OF 'SAiD;. PARCEL; ’ . THENCE ALONG THE NORTHERLY ’UNE OF -SAIO PARCELv’S89,38tWr f87;i':'TO''THE 'tNORTHWEST • CORNER. OF.’SAID PARCEL; THENCE'iNOOWE- 25B.75VMOREfOR-LESS,-.TO THE NORTHERLY * UNE OF SAID LOT 3; THENCE’ ALONG SAID ■ N0RTHERLY.?UNE:'Na9,36’'Ev996.1j'l MORE. OR . LESS; ■ THENCE' N89*36’E 62.6’ TO THE SOUTHWEST- CORNER’ OF/SAID-SECTION 36;* . THENCE N01*55’E 12B2.9’ ALONG . THE WEST. UNE ’.OF-'-THE-SOUlHWECT'iQUARTER’ OF SAID SECTION 36. TO THE-SOUTH 1/16TH;.C0RNER COMMON'TOVSECTIONS^35j'AND.’Se, T5N, R73W OF THE 6TH P.M.. THENCE S89,-08’E 10.12,79.’, MORE 'OR '.LESS, .'ALONG JHE' NORTH -UNE OF * THE SOUTHWEST QUARTER OF THE SOUTHWESTQUARTERjVTHENCE^LEAVINO SAID "‘NORTHERLY ' UNE N 0r32’30-E 1298.96', MORE OR LESS, TO THE .NORTHERlY-UNE-'OrTHE SOUTHWEST QUARTER OF'.SAID^SECTION^e: .'.THENCE SBS’Xfi'E 305.8’ ALONG SAID NORTHERLY UNE TO THE WESt '1/16- CORNEirOF SAID SECTION 38; THENCE N01'25'E*2613,3’ ALONG THE WESTERLY UNE OF THE EAST^HALF OF THE NORTHWEST QUARTER OF SAID SECTION 36 TO. THE WEST 1/16 CORNER COMMON TO SECTIONS 25 AND 36, TOWNSHIP-3 , NORTH, RANGE 73 WEST OF THE 6TH P.M.; THENCE N89*42’E 1293.3’ ALONG THE NORTHERLY UNE OF SAID NORTHWEST QUARTER OF SAID SECTION 36.TO THE NORTH QUARTER-CORNER OF SAID SECTION.36;. THENCE N89'47'E 1298.4' TO THE EAST 1/18TH CORNER COMMON TO SAID, SECTIONS 25 AND 36;.' •*. THENCE N 0tr07’E 659.6’ ALONG THE WESTERLY UNE-j OF THE: SOUTHWEST. QUARTER OF THE ■ SOUTHEAST QUARTER OF THE 'SOUTHEAST QUARTERTOF^SAJD.,SECTION - 25 TO, .THE NORTHERLY UNE OF THE SOUTHWEST QUARTER OF THE’ SOUTHEAST'-'QUARTER^OF .THE -SOUTHEAST QUARTER OF SAID SECTION 2 5 ;-THENCE N89*36’E 649.6’ ALONGiSAID/NbRIHERLYiUNE'-TPlTHE EAST . UNE OF THE SOUTHWEST QUARTER OF THE - S O U m E ^ ^ Q U A R tW ^ j'THE^SOUTHEAST SQUARTER OF SAID SECTION 25; THENCE' SOD* 14’E 65B;0 AL0NG;SAlD!lEW5TOLY‘:UNEidF.”THE' SOUTHWEST QUARTER OF THE SOUTHEAST* QUARTER OF THE'SOLrTHEAST'.'QUfRTER-OF^SAID' SECTION.’ 25 TO THE NORTHERLY UNE OF. SAID SECTION 36; THENCE ^ NB9*4.7>E'! 6 * M - ALONG THE NORTHERLY UNE OF SAID SECTION 36 TO .THE NORTHEAST CORNER OF/SAID jSECTION 38 (ALSO BEiNO . THE NORTHWEST CORNER OF SECTION 31, TOWNSHIP-B/iNORTH^RANGE 72 WEST'OF THE 6TH P.M.); THENCE SOO*13’E 1331.3’ TO THE NORTH' 1 /1 6 ' CORNER’COMMON TO SAID SECTIONS 31 AND 35; ’ * THENCE S8B>42'E 1294.4* ALONG THE NORTHERLY UNE OF, KORAL f|EIGHTS FIRST ADDTRON TO THE NORTHWEST 1/16TH CORNER OF SAID SECTION .31; THENCE; SCO* 16’E 1321','5’ ALONG THE EASTERLY UNE OF KORAL HEIGHTS FIRST'ADDITION TO THE’CENTER-WEST 1/18TH CORNER OF SAID SECTION 31; THENCE SOUTS’E 878.7’-ALONG THEEASTERLY/UNE OF KORAL .HEIGHTS; THENCE S+VIO'W 577.6’, MORE OR LESS. TO THE SOUTHERLY UNE OF- KORAL HEIGHTS;', THENCE ALONG .SAID SOUTHERLY UNE N59'20*W 943.84’ TO THE.fSOUTH 1/16 CORNER • COMMON TO SAID SECTIONS 31 AND 38; THENCE N01*07'24"E -1323.10’. ALONG. THE WESTERLY UNE OF KORAL HPGHTS TO THE "TRUE POINT OF BEGINNING;'SAID>;PARCELS CONTAIN A TOTAL OF 479.6 ACRES. MORE OR -LESS; . AND ARE.SUBJECT TO ALL'EASEMENTS AND RICHTS-OF-WAY OF RECORD, LARIMER COUNTY, COLORADO. RECEPTION #20190076463, 12/4/2019 9 01 30 AM. AngetaMyere, Clerk & Recorder. Lanmer County. CO STATEMENT OF AUTHORITY 1. This Statement of Authority relates to an entity named Prospect Mountain Water Company. Inc., and is executed on behalf of the entity pursuant to the provisions of Section 38-30-172, C.R.S. 2. The type of entity is a: corporation 0 nonprofit corporation I~1 limited liability company O general partnership n limited partnership n other: 3. The entity is formed under the laws of: Colorado 4. The mailing address for the entity is: d o Daniel A. Hepner. Ch. 7 Trustee. 950 Spruce Street. Suite 1C. Louisville. CO 80027. United States 5. The ^ name E] position of each person authorized to execute instruments conveying, encumbering, or otherwise affecting title to real property on behalf of the entity is: Daniel A. Hepner in his capacity as trustee of the bankruptcy estate of Prospect Mountain Water Company. Chapter 7 Case No. 15-14286 TBM in the United States Bankruptcy Court for the District of Colorado, pursuant to Order of the United States Bankruptcy Court for the District of Colorado entered on May 24. 2019. A copy of the Order is attached hereto. 6. The authority of the foregoing person to bind the entity is E l not limited 0 limited as follows: N/A 7. Other matters concerning the manner in which the entity deals with interests in real property: N/A Executed this day of June, 2019. □ registered limited liability partnership 0 registered limited liability limited partnership l~l limited partnership association 0 government or governmental subdivision or agency 0 trust (Section 38-30-108.5, C.R.S.) DANIEL A. HEPNER, TRUSTEE By: - Daniel A. Hejrfier, Trustee of the bankruptcy estate of Prospect Mountain Water Company, Chapter 7 Case No. 15-14286 TBM. United States Bankruptcy Court for the District of Colorado STATE OF COLORADO ) ) ss. COUNTY OF ) C i The foregoing instrument was acknowledged before me this I3^day of Juni Trustee of the bankruptcy estate of Prospect Mountain Water Company, TBM in the United States Bankruptcy Court for the District of Colorado. WITNESS my hand and official seal. i m Q J h y r in n ip l A M p p n p r apter 7 C«ftRf*£lt3A*i4Q86 NOTARY PUBUC STATE OF COLORADO NOTARY ID 20094022901 MY COMMISSION EXPIRES JULY 21.2021 My Commission expires: r7 /J l /ao P -1 . No. 1112. Rev. 8-01. STATEMENT OF AUTHORITY Case:15-14286-TBM Doc#:185 Filed:05/24/19 EnterRitns/74/i q 1 7-fM-nQ Panoi nf o RECEPTION #20190076464, 12/4/2019 9 01:30 AM, 1 of 2, $18.00 Angela Myers, Clerk & Recorder, Larimer County, CO UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF COLORADO In re: PROSPECT MOUNTAIN WATER COMPANY, INC., Debtor. ) ) ) ) ) ) Case No. 15-14286 TBM Chapter 7 I hereby atmr anti rertij)' that the foregoing, njjixetl tioeiimentlM herein ii/tire a full, true am! rorreet ropy o f the original itocouienl Jlleil/imieil bythh Court. c hnn«i 0 6 /1 1 /2 0 1 9 By: SJ Drpnty Clerk* I'.S. Bnakruptcv Court • District o f t ujormlo ORDER GRANTING MOTION TO (I) APPROVE VOLUNTARY WATER SYSTEM TRANSFER AGREEMENT BETWEEN TRUSTEE AND TOWN OF ESTES PARK, (II) AUTHORIZE TRANSFER OF PROPERTY FROM TRUSTEE TO TOWN OF ESTES PARK PURSUANT TO 11 U.S.C. §§ 363(b) AND (f), AND (III) EXCLUDE CERTAIN PROPERTY FROM AUTOMATIC ABANDONMENT PURSUANT TO 11 U.S.C. § 554(c) THIS MATTER, having come before this Court upon the Motion to (1) Approve Voluntary Water System Transfer Agreement between Trustee and Town o f Estes Park, (II) Authorize Transfer o f Property from Trustee to Town o f Estes Park Pursuant to 11 U.S.C. §§ 363(b) and (f), and (III) Exclude Certain Property from Automatic Abandonment Pursuant to 11 U.S.C. § 554(c) (the “Motion”) filed by Daniel A. Hepner, Chapter 7 Trustee (the “Trustee”), and the Court being duly advised in the premises, it is hereby ORDERED that the Motion be and hereby is GRANTED. The Court APPROVES the Voluntary Water System Transfer Agreement (the “Transfer Agreement”) and the transfer of the Assets' to the Town of Estes Park (the “Town”). It is FURTHER ORDERED that except for the Permitted Exceptions, sale of the Assets shall be free and clear of any and all encumbrances o f any nature whatsoever, whether known or unknown, pursuant to 11 U.S.C. §§ 363(b) and (f). It is FURTHER ORDERED as follows: 1. The Trustee is authorized pursuant to Sections 363(b) and 363(f) o f the Bankruptcy Code to convey to the Town all of the bankruptcy estate’s right, title, and interest in and to all o f the Assets free and clear of any liens, claims or encumbrances, subject to the provisions o f the Transfer Agreement. 2. All encumbrances with respect to the Assets, if any, shall attach solely to the proceeds of the sale under Section 363 of the Bankruptcy Code, unless paid at closing. 3. At closing, Trustee is authorized to pay all ordinary and customary closing costs 1 Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Motion. Case: 15-14286-TBM Doc#:185 Filed:05/24/19 Entered:05/24/19 17:04:09 Page2 of 2 including, without limitation, transfers taxes, property taxes, recording fees, and all other fees and expenses authorized by the Transfer Agreement and necessary to effectuate the Transfer Agreement. 4. As o f the Date o f Transfer, the Operating Agreement and Water Service Agreement shall be deemed terminated. 5. Trustee is authorized to pay all amounts due under the Operating Agreement with funds from the CIF. 6. Trustee is authorized to surrender the CPCN at a time and in a manner consistent with effectuating the Transfer Agreement. 7. Trustee is authorized to make all disbursements in accordance with the True-Up 8. The Trustee is authorized to execute, deliver, perform, consummate, and implement the Transfer Agreement and all additional instruments and documents that may be reasonably necessary or desirable to implement the foregoing. 9. The Trustee may deliver the Assets to the Town pursuant to the terms and conditions of the Transfer Agreement. 10. Pursuant to 11 U.S.C. § 554(c), notwithstanding closure of the case, the following property is not abandoned: a. all unpaid accounts receivable for Debtor’s customers, which remain after payment o f all allowed administrative expenses and allowed claims payable pursuant to 11 U.S.C. §§ 726(a)( 1) through (a)(3); and b. all funds held in the CIF that remain after the Trustee’s payment of all allowed administrative expenses and allowed claims payable pursuant to 11 U.S.C. §§ 726(a)(1) through (a)(3). 11. Within forty-two (42) days following entry of an order approving Trustee’s Final Report, Trustee shall file an accounting with this Court notifying it of distributions made to the Town pursuant to the True-Up Provisions. Upon filing of such accounting, all property of the Estate that has not been previously administered or transferred to the Town will be deemed abandoned. 12. The within order is self-executing and effective immediately upon entry, and the stay under Fed.R.Bankr.P. 6004(h) is hereby waived. Provisions. DATED this 24th day of May, 2019. BY THE COURT: Hon. Thomas B. M^N^tnara United States Bankruptcy Judge E-Filings Decision Detail Details of Decision C19-0440 Number:C19-0440 Title:Commission Decision Granting Application to Transfer Assets; to Relinquish Certificate of Public Convenience and Necessity; Approving Termination or Operating Agreement; Approving Termination of Water Service Agreement; Approving System Redevelopment Surcharge Formula; and Granting in-Part and Denying in-Part Request for Declaration and Determination Mailed Date:05/23/2019 04:29pm Decision Type:Commission Author:Gomez, Paul C. Proceeding(s):Proceeding Number Proceeding Title Industry 19A-0209W Prospect Mountain Water Company/Town of Estes Park transfer Water Description:1. The Joint Application of Daniel Hepner, Chapter 7 Trustee for the Prospect Mountain Water Company, Inc. (Prospect Mountain) and the Town of Estes Park (Estes Park) (together, Joint Applicants) for Approval of a Transfer of Assets is granted consistent with the discussion above. 2. The decision approving the transfer of assets shall include the following: a.) all real property and easement rights of Prospect Mountain to Estes Park; b.) all tangible and intangible assets of Prospect Mountain to Estes Park; and c.) all funds and accounts receivable held by Prospect Mountain to Estes Park upon the approval of the final report of the Trustee by the Bankruptcy Court. 3. The request of the Joint Applicants to surrender and retire Prospect Mountain's Certificate of Public Convenience and Necessity to serve in Larimer County, Colorado, and to wind down the utility upon the date of transfer to Estes Park is granted. 4. The request of the Joint Applicants to terminate the Operating Agreement between Prospect Mountain and Estes Park, approved in Decision No. C16-0571 as of the date of transfer, is granted. 5. The request of the Joint Applicants to change the use of certain funds provided to and held by Estes Park pursuant to Decision Nos. C16-0571 and C18-0380 is granted. 6. The request of the Joint Applicants to terminate the Water Service Agreement between Prospect Mountain and Estes Park, dated August 13, 2012 is granted. 7. The request by the Joint Applicants to approve the System Redevelopment Surcharge formula to be developed by Estes Park and charged solely to existing customers of Prospect Mountain and future Prospect Mountain area customers that connect to the system prior to the reconstruction of the Prospect Mountain distribution system by Estes Park is granted. 8. The request by the Joint Applicants for a declaration that the Commission approval of the System Redevelopment Surcharge formula constitutes the required approval under § 40-3.5-102, C.R.S., and that such approval will not be subject of further Commission review or approvals, and that Estes Park will not be subject to further Commission jurisdiction or rate review by virtue of that charge, other than the Commission's existing complaint jurisdiction over Estes Park is construed as a Petition for Declaratory Order pursuant to Commission Rule 4 Code of Colorado Regulations 723-1-1304(i). 9. The Petition for Declaratory Order by the Joint Applicants is granted in part and denied in part consistent with the discussion above. 10. The 20-day period provided for in § 40-6-114, C.R.S., within which to file applications for rehearing, reargument, or reconsideration begins on the first day following the effective date of this Decision. Result(s) of Decision C19-0440 Result Date:May 23, 2019 Result Type:Granted 8/24/26, 5:06 PM Decision Detail https://www.dora.state.co.us/pls/efi/EFI_Search_UI.Show_Decision?p_session_id=&p_dec=26448 1/3 Details:1. The Joint Application of Daniel Hepner, Chapter 7 Trustee for the Prospect Mountain Water Company, Inc. (Prospect Mountain) and the Town of Estes Park (Estes Park) (together, Joint Applicants) for Approval of a Transfer of Assets is granted consistent with the discussion above. Result Date:May 23, 2019 Result Type:Information Only - No Action Taken Details:2. The decision approving the transfer of assets shall include the following: a.) all real property and easement rights of Prospect Mountain to Estes Park; b.) all tangible and intangible assets of Prospect Mountain to Estes Park; and c.) all funds and accounts receivable held by Prospect Mountain to Estes Park upon the approval of the final report of the Trustee by the Bankruptcy Court. Result Date:May 23, 2019 Result Type:Granted Details:3. The request of the Joint Applicants to surrender and retire Prospect Mountain's Certificate of Public Convenience and Necessity to serve in Larimer County, Colorado, and to wind down the utility upon the date of transfer to Estes Park is granted. Result Date:May 23, 2019 Result Type:Granted Details:4. The request of the Joint Applicants to terminate the Operating Agreement between Prospect Mountain and Estes Park, approved in Decision No. C16-0571 as of the date of transfer, is granted. Result Date:May 23, 2019 Result Type:Information Only - No Action Taken Details:10. The 20-day period provided for in § 40-6-114, C.R.S., within which to file applications for rehearing, reargument, or reconsideration begins on the first day following the effective date of this Decision. Result Date:May 23, 2019 Result Type:Granted Details:6. The request of the Joint Applicants to terminate the Water Service Agreement between Prospect Mountain and Estes Park, dated August 13, 2012 is granted. Result Date:May 23, 2019 Result Type:Granted Details:7. The request by the Joint Applicants to approve the System Redevelopment Surcharge formula to be developed by Estes Park and charged solely to existing customers of Prospect Mountain and future Prospect Mountain area customers that connect to the system prior to the reconstruction of the Prospect Mountain distribution system by Estes Park is granted. Result Date:May 23, 2019 Result Type:Information Only - No Action Taken Details:8. The request by the Joint Applicants for a declaration that the Commission approval of the System Redevelopment Surcharge formula constitutes the required approval under § 40-3.5- 102, C.R.S., and that such approval will not be subject of further Commission review or approvals, and that Estes Park will not be subject to further Commission jurisdiction or rate review by virtue of that charge, other than the Commission's existing complaint jurisdiction over Estes Park is construed as a Petition for Declaratory Order pursuant to Commission Rule 4 Code of Colorado Regulations 723-1-1304(i). Result Date:May 23, 2019 Result Type:Granted in Part 8/24/26, 5:06 PM Decision Detail https://www.dora.state.co.us/pls/efi/EFI_Search_UI.Show_Decision?p_session_id=&p_dec=26448 2/3 Technical Assistance Accessibility © 2026 State of Colorado, Denver, CO Details:9. The Petition for Declaratory Order by the Joint Applicants is granted in part and denied in part consistent with the discussion above. Result Date:May 23, 2019 Result Type:Granted Details:5. The request of the Joint Applicants to change the use of certain funds provided to and held by Estes Park pursuant to Decision Nos. C16-0571 and C18-0380 is granted. Certificate of Service Close 8/24/26, 5:06 PM Decision Detail https://www.dora.state.co.us/pls/efi/EFI_Search_UI.Show_Decision?p_session_id=&p_dec=26448 3/3 ESTESPARK To:Property Owners in the Former Prospect Mountain Water Company Service Area Date:September 10,2026 Subject:New Monthly Water Surcharge of $150.00 Beginning October 2026 — Prospect Mountain Water System Improvements What this letter is about The new water system serving your property is delivering water.We expect that,beginning with your utility bill mailed in November for October 2026 service,you will see a Project Repayment Surcharge line item to begin repaying the project costs.The amount of $150.00 per month is subject to change as a small portion of the project is not yet final.This letter explains what the charge is,how it was calculated,and how it came about. How this project began The Prospect Mountain Water Company was a private utility that filed for bankruptcy in 2015, abandoning its water system and service obligations.Facing a system that no longer met current standards,its customers were left without a reliable water source.The Town of Estes Park stepped in at the request of the bankruptcy trustee to assume responsibility for the system,preventing a critical service failure and ensuring its customers'continued access to safe,reliable water. In 2019,the Town agreed to accept the transfer of the failing system on two primary conditions.First, to join the rest of the Town's water system,the failing water system must be rebuilt to meet the Town's standards.Second,the property owners who benefit from the new system must repay costs not covered by grants. Funding the Town secured to help the neighborhood Because the system became part of a municipal utility,the Town could pursue federal funding that a private water company —and individual property owners —could not access.The Town obtained approximately $15.3 million in grant and low-interest loan funding through the United States Department of Agriculture Rural Development (USDA-RD).The USDA-RD grant covered more than 66%of the project cost.The remaining project costs are paid by a USDA-RD low-interest rate loan and financed by the Town's Water Enterprise.The USDA-RD provided the longest repayment term available —40 years —specifically to keep the monthly cost to property owners as low as possible. What was built to serve your property New water distribution piping throughout the service area A new 180,000-gallon water storage tank and booster pump station 170 MACGREGOR AVE. P.O.BOX 1200 ESTES PARK,CO,80517 WWW.ESTES.ORG Attachment 3 43 fire hydrants to provide fire protection The result is drinking water that meets state and federal standards, a distribution system built and maintained to Town specifications, and fire hydrant coverage to support firefighting response. What the charge is and how it was calculated The monthly surcharge covers the loan payment on the rebuilt system, the reserve accounts the USDA - RD loan requires the Town to maintain, and project costs not covered by federal funding. It is separate from your regular water usage charges. The total monthly obligation for the system is shared equally among the 134 properties served by the system. The obligation is attached to the property and held by any/all owner(s) of the property throughout the course of the 40-year repayment term. This charge will appear as a separate line item on your monthly utility bill so you can see exactly what you are paying. What is still being determined The $150.00 charge covers the project's loan obligations and administrative costs. It is subject to change once the outstanding construction issues are finalized. When finalized, you will receive written notice of the option to pay the amount in full. Until you hear from us, the repayment amount is $150.00 per month. Option to pay in full Once the final project cost is set, owners will have the option to pay their share in full instead of carrying the monthly charge for the 40-year term. Paying in full ends the charge for that property and settles the obligation — it does not transfer to a future owner. The Town Board is tentatively scheduled to consider this surcharge at their September 22nd Town Board meeting at 7 PM in the Town Board room, 170 MacGregor Ave. Questions We understand this is a significant monthly commitment, and we want every property owner to understand what it pays for. Contact Utilities Project Manager Jacqui Wesley at jwesley@estes.org or 970-577-6311, or visit estes.org/prospect-mountain-water-project for more information. Sincerely, Reuben Bergsten, Utilities Director, Town of Estes Park We are committed to providing equitable access to our services. If you need any assistance, please email digitalaccessibility@estes.org. Prospect Mountain Repayment AMOUNT DUE FROM BENEFITTED CUSTOMERS Payment of the USDA-RD loan to rebuild the Prospect Mountain water system is due and is to be paid by the benefited customers. We are committed to providing equitable access to our services. If you need any assistance, please email digitalaccessibility@estes.org. Presentation Provided at Meeting 2026-09-22 Agenda 2A •Project History •Voluntary Transfer Agreement Terms •Status of Construction •Repayment Requirements •Discussion Project Timeline 3 *PMWC incorporated in 1969. 2012: Temporary Bulk Water Supply Agreement with the Town 2015: PMWC Filed for Bankruptcy, Public Meeting held with Larimer County and PMWC customers 2016: Agreement between the Bankruptcy Trustee and Town for the Town to operate the Prospect system. 2017:DOLA Grant to Larimer County for Preliminary Engineering 2018: Preliminary Engineering Public Meetings, Approval of reconstruction from property Owners, USDA-RD Financing secured 2019: Voluntary Transfer Agreement approved by Bankruptcy Court and the PUC, Design work begins 2021: Eminent Domain for Water Storage Tank site, Resolution 24-21 2022: Awarded Construction Contract Res. 82-22, USDA-RD Increased Grant Amount 2025: Partial Completion of Construction 2026 USDA Loan Closing Ordinance 7-26 Voluntary Transfer Agreement Voluntary transfer of assets Inclusion in Northern Colorado Water Conservancy District New system to Town standards with new individual meters Prior to Transfer: Town operates/maintains the system. Operating Agreement funds used for unreimbursed operational costs Following Transfer: Operating Agreement terminates. Former PMWC customers are Town customers subject to Town rules and billing. 4 Credit pro-rata amount (33%) of the System Development Fee to former PMWC customers Surcharge calculated after the Project's completion to repay USDA loan Surcharge applied to former PMWC customers and customers connecting before Project completion Customers connecting after Project completion pay standard tap fee and water rates, but not the surcharge Pr o j e c t P a r t i c i p a n t s 5 Former PMWC customers Status of Construction •All services connected and operating on new system •Old system is fully decommissioned •Outstanding “punch list” items •Tank is still weeping but in service •Partial Substantial Completion 6 Project Financing Project Component Budget Amount Construction $10,732,588 Contingency $1,501,292 Admin, engineering, interim loan interest, other elements $3,566,120 Total Budget $15,800,000 7 Funding Source Budget Amount USDA-RD Loan $4,493,000 USDA-RD Grant (>68% of cost)$10,535,000 Applicant Contribution $245,000 Additional Contingency (per Resolution 72-25)$502,000 DOLA Grant $25,000 TOTAL $15,800,000 Benefited Customer Payments 8 Total Monthly Cost $16,352 Monthly Debt Service on USDA-RD Loan $14,509 Debt Service Reserve $1,451 Short Lived Asset Reserve $392 Number of Connections 134 Repayment Period, years 40 Interest Rate 2.375% Repayment (includes estimated administrative costs) $150 Next Steps Notify benefited customers about start of repayment Reconcile final costs following project completion Adjust monthly repayment amount (if necessary) Establish one-time payoff amount and timing Discussion The Town of Estes Park is committed to providing equitable access to our services. Contact us if you need any assistance accessing material at 970-577-4777 or townclerk@estes.org. Memo To: Honorable Mayor Hall & Board of Trustees Through: Town Administrator Machalek From: Jackie Williamson, Town Clerk Department: Town Clerk Date: September 22, 2026 Subject: Estes Park Housing Authority Board Appointments Type: Appointment Objective: To consider three appointments to the Estes Park Housing Authority. Present Situation: The Estes Park Housing Authority (EPHA) received resignations from Julia Daley, Rut Miller and Marty Miranda in June 2026. The positions were advertised and 14 applications were received by the deadline. The interview committee consisting of Trustee Lancaster, liaison to the EPHA, and Trustee Igel conducted interviews with six (6)applicants on September 10th and 11th. Proposal: The interview committee is recommending the appointments of Isaiah Johnson to replace Marty Miranda for a term expiring April 30, 2029, Adam Hochstetler to replace Julia Daley for a term expiring April 30, 2027 and recommend extending the term to April 30, 2029, and Zengzhen (Jillina) Yang to replace Rut Miller for a term expiring April 30, 2028. The proposed extension of the term for Hochstetler is to assist with the term expiration dates. The term extension will allow for two (2) board seats to expire in 2027, 2028, and 2029, and one (1) term to expire in 2030. Without this extension the Board would have three (3) seats expiring in 2027. Please see the brief bios below for each of the applicants: Isaiah Johnson is a resident and commercial loan officer with the Bank of Colorado. He brings a strong background in finance with a career centered around banking and lending. He has also worked closely with individuals on navigating homeownership and housing-related financing. This background provides a practical understanding of housing markets, financial stewardship, and the importance of creating opportunities for community members to live where they work. He noted that housing is a critical issue that affects local businesses, workforce retention, families and the overall character of our community. Adam Hochstetler is a long-time accommodation business owner and operator in the community, in which he has assisted in growing a hospitality operation from a single property into multiple successful businesses. He also has experience managing budgets, providing financial oversight, organizational skills, problem-solving, and managing teams. He stated he has developed a deep understanding of the housing challenges that impact the workforce, families including those in the Hispanic community, and the overall economic stability of the town. He is motivated to serve to contribute his time and perspective to support thoughtful, fair, and effective housing decisions that benefit the community long-term. Jillina Yang has lived in Estes Park for 14 years and previously operated Molly Bs. She currently works at The Stanley Hotel in hospitality management with experience in budgeting, operations, team leadership, and strategic planning. With this background she brings insight into workforce housing, and local business needs while balancing decisions for the community. Advantages: Appointments to the EPHA Board ensures a continuity of operation and assists the Board with meeting its quorum needs. Disadvantages: Leaving the positions unfilled may cause quorum issues until an appointments can be made by the Town of Estes Park. Action Recommended: Approve the appointments as outlined. Finance/Resource Impact: None. Level of Public Interest: Medium. Sample Motions: I move to approve/deny the appointments of Isaiah Johnson to replace Marty Miranda for a term expiring April 30, 2029, Adam Hochstetler to replace Julia Daley for a term expiring April 30, 2029, and Zengzhen (Jillina) Yang to replace Rut Miller for a term expiring April 30, 2028. Attachments: 1. Cover letter Isaiah Johnson 2. Cover letter Adam Hochstetler 3. Cover letter Zengzhen (Jillina) Yang Isaiah Johnson Estes Park, CO July 13th, 2026 Estes Park Hou sing Authority Board of Comm issioners Estes Park Housing Authority 363 East Elkh orn Av e, #101, Estes Park, CO To Whom It May Con cern, I am wri ting to expre ss my intere st in serving on the Estes Park Hou sing Auth ority Board of Comm issioners. As a re sident of Estes Park and a Loan Offi cer with Bank of Colorad o, I have dev eloped a deep appre ciation for the challen ges and opportun iti es facing our commun ity, p art icularly re gard ing ho using affordab ility and ac cessibili ty. Througho ut my career in banking and lending, I have worked closely with indiv idu als and fam ilies nav igat ing important fi nan cial decisions, including homeowners hip and housing-re lated fi nanc ing. This experience has prov ided me with a prac tical und ers tan ding of hou sing market s, finan cial ste wards hip, and the importan ce of creat ing opportunit ies that allow community m embers to live and thri ve in the place th ey call home. 1 am passionate ab out support ing the long-term strength and sustai nab ility of Estes Park. H ou sing is a cri tical issue that affects local bu sinesses, work force retent ion, families, and the overall character of our community. I believe my finan cial backgroun d, an alyti cal ski lls, and c omm itment to servi ce wou ld allow m e to contribute meaning fully to the Hous ing Authority's m ission and governan ce respon si bil ities. In addi tion to my pro fessional experien ce, I value collaborati on, transpare ncy, and tho ughtful decision-m ak ing. I wou ld we lcome the opp ortu nity to work al ongside fellow com missioners, sta ff, and commun ity stakeh old ers to help ensure that the Housing Autho rity cont inu es to prov ide re spons ible leadersh ip and effecti ve housing soluti ons for current and future re sident s. Thank you for your con siderat ion. I would be ho nored to serve the Est es Park community in th is capac ity and wou ld welcome the opp ortun ity to discuss my qua lifi cat ions further. Sincerely, Attachment 1 Cover Letter Adam Hochstetler Estes Park, Colorado Date: Esteemed Members of the Estes Park Housing Authority Board, I am writing to express my interest in serving on the Housing Authority Board for Estes Park. As a long-time business owner and operator in the community, I have developed a deep understanding of the housing challenges that impact our workforce, families, and overall economic stability. Over the past fifteen years, I have helped grow hospitality operations in Estes Park from a single property into multiple successful businesses. This experience has given me direct insight into workforce shortages, housing affordability challenges, and the importance of sustainable community planning. I believe that effective housing policy requires both financial responsibility and a strong understanding of the people it serves. My experience managing budgets, leading teams, and overseeing property operations allows me to bring a practical, business-oriented perspective to these discussions. Additionally, my personal and family connections to both the United States and Mexico have given me a strong appreciation for cultural diversity and the importance of inclusive housing solutions that reflect the needs of all members of our community. I would be honored to contribute to the Housing Authority Board and support efforts to ensure Estes Park continues to provide attainable, sustainable housing options for its residents and workforce. Thank you for your time and consideration. Sincerely, Adam Hochstetler Attachment 2 Dear Members of the Appointment Committee, I am honored to apply for appointment to the Estes Park Housing Authority Board of Commissioners. For the past fourteen years, Estes Park has been my home. During that time, I have built both my career and my business here. I previously owned and operated a local restaurant and now serve in a leadership role at The Stanley Hotel, one of the town’s most recognized employers. These experiences have allowed me to work closely with residents, employees, visitors, and local businesses while developing a deep understanding of the opportunities and challenges facing our community. One of the most significant challenges I have witnessed is housing. Throughout my years in hospitality, I have seen how access to stable and attainable housing directly affects employees, employers, families, and the long-term vitality of Estes Park. I believe strong communities are built through thoughtful planning, responsible stewardship, and collaboration. Professionally, I bring experience in financial management, budgeting, strategic planning, operations, and team leadership. Equally important, I bring a long-term commitment to Estes Park and a genuine desire to serve the community that has given me so much over the past fourteen years. If appointed, I will approach every decision with integrity, respect, careful preparation, and an open mind. I will listen to different perspectives, work collaboratively with fellow commissioners, and focus on solutions that support both today’s residents and future generations. Thank you for considering my application. It would be a privilege to serve the Town of Estes Park and contribute to the important work of the Housing Authority Board of Commissioners. Sincerely, Zengzhen Yang Attachment 3