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To: Alan Kosloff, Board of Directors,
Membership, and Interested Parties
From: Jim Lamont
Date: November 3, 2005
RE: VVHA Position Statement for the
proposed Vail Conference Center Election
The Association’s Board of Directors
recommends the disapproval of the proposed Vail Conference Center. This
position is taken based upon our participation in the deliberations of the
Conference Center Study Committee. Further, we have respectfully taken into
consideration the public statements and positions of community members on
both sides of the issue. Our recommendation is based upon the following
conclusions.
1.
The Town of Vail doubled the zoning
density in Vail Village and Lionshead as a subsidy to stimulate business and
to increase private investment. Creating an additional subsidy at this
time is not warranted because business conditions will be steadily improving
as construction on current projects is
completed.
2.
There are other projects needing
public investment that could more readily benefit the economic improvement
of the community. Consideration as to whether to build a publicly owned
conference center is more appropriate after the completion of the private
sector projects, currently under construction, are in operation.
3.
Financial protections for Vail
property owners, particular as it affects protections from unanticipated
construction and operating cost, are insufficient. The project contractor
has agreed to a guaranteed maximum price (GMP) to construct the project, but
has not agreed to further protect the project financing through a guaranteed
performance bonding. The agreement to a GMP does not preclude the project
from being built to much lower standards. There are still unknown costs to
complete other supporting elements of the project. The projected
construction costs have increased by $20 million, without improving
projected revenues.
4.
The proposal has not met consultant
requirements for success, which are: the community must be fully supportive
of the project, and ease of access is guaranteed. The community remains
divided about the need for a conference center, which the result of the
election, one way or another, will not be sufficient to gain full support of
the community. Interstate 70 will be under major reconstruction for the
next twenty years and the Interstate is often closed due to weather and hazardous
conditions. Therefore, access cannot be guaranteed. The Association notes
that the Town Council, in a tie vote,
was unable to agree on a resolution of support to approve the ballot issue.
5.
The versatility of the facility to adapt to other uses during
non-peak conference seasons will be limited in its ability to generate
revenues from a diversity of other sources.
6.
The Association
supported an iconic architectural design for the center. The final design,
due to budget limitations, does not meet that expectation.
The Association is distressed that
professional consultants or contractors hired by the Town of Vail and who
will directly benefit from the approval of the proposal, have chosen
to become financial contributors in the election campaign. Such action
conveys the appearance that these parties are acting, not in the best
interest of the community, but in their own self-interest. The Association
is affronted by those, who are not Town of Vail taxpayers,
and seek to “buy” the outcome of the election.
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