FOR IMMEDIATE RELEASE
September 19, 2007

Contact:   Suzanne Silverthorn, (970) 479-2115
      Town of Vail Community Information Office

VAIL TOWN COUNCIL APPROVES LIONSHEAD PARKING STRUCTURE REDEVELOPMENT
AGREEMENT AT SEPT. 18 MEETING

(Vail)-The Vail Town Council has approved a resolution to adopt a
Development Improvement Agreement for redevelopment of the LionsHead
parking structure, marking the second major decision point in the
multi-year process with additional milestones yet to come. The action
took place at the Sept. 18 Town Council meeting following public
comment. The vote was 6 to 1, with Gordon, Hitt, Logan, Moffet, Newbury
and Slifer offering support, while Foley voted against the motion.

The decision to move forward follows nearly six months of negotiation
between the Town of Vail and Open Hospitality/Hillwood Capital Partners.
Last March the Town Council took its first major action by selecting the
Dallas-based development group following a year-long competitive review
process which included interest from six developers and the submission
of redevelopment proposals from two development teams.

Open Hospitality/Hillwood Capital Partners is proposing to build a $600
million mixed-use development on the town-owned site. The proposal
envisions demolition of the existing 1,150 space parking structure, in
three phases, to be replaced by a new structure which would add 500 net
new parking spaces to the site. It is anticipated two hotels would be
built and branded as a W Hotel and a St. Regis Hotel, according to the
agreement. Approximately 60,000 square feet of retail space would be
built as well residential condominiums associated with the hotels. In
addition, the agreement identifies an estimated 217 employee housing
beds that would be required. A conference center of approximately 34,000
square feet is also included, as well as a transit center and a new
visitor information center.

As approved, the Development Improvement Agreement outlines a sequence
of benchmarks, including financial guarantees, interim public parking
plans, and removal of a deed restriction on the parking structure held
by Vail Resorts, among other requirements.  In reviewing the agreement
at its evening meeting, the Council added clarification to the document
and included a request by the developer to allow one year of unilateral
flexibility within the project timeline. The agreement is available on
the town's web site at www.vailgov.com. Approval allows the developer to
continue to work with the town in developing a project plan for the
site.

The agreement is organized around four milestones. The first milestone
is a planning and entitlement period from October 2007 to December 2008
in which details are to be addressed on specific issues, including
release of a deed restriction on the parking structure, town council
approval of an interim parking management plan, town council approval of
the conference center design and approval of a workforce housing plan.
An overall project plan, showing internal layouts, building footprints,
massing, circulation patterns and major architectural concepts will be
due to the town by March 15, 2008 with a possible six-month extension
available to the developer. Completion of the project plan will trigger
the entitlement process in which zoning and other development matters
will be reviewed by the town's boards and commissions.

The second milestone is escrow delivery, which is anticipated by the end
of 2008. Once all approvals have been obtained as well as ancillary
agreements, including a shared facilities agreement and approval of
roadway changes by the Colorado Department of Transportation, all
documents will be placed in escrow. At this point, the town will be
ready to convey the property rights for the two hotels, but 9 to 12
months will be necessary for construction drawings to be prepared for a
construction contract to be negotiated.

The third milestone is the final closing. The agreement outlines a Feb.
1, 2010 closing on the land transaction. At that time, Open/Hillwood
would receive a deed for the development parcel, which includes the air
rights and development rights on the site, excluding the parking
structure parcel.

Following closing, the fourth milestone is construction, which would
occur over a three-year period beginning in 2010. The agreement calls
for a letter of credit to guarantee continuous construction of a new
parking structure so as not to disrupt availability of public parking
for the winter season.

In the event the developer defaults on its obligations, the town has the
option to take back the project and to find a new developer, according
to the agreement.

In rallying fellow council members to support the agreement, Kent Logan
acknowledged the document is not ideal, due in part, to the absence of
involvement by Vail Resorts, Inc. The agreement hinges on a decision by
Vail Resorts to remove a deed restriction on the parking structure as
well as completion of a new parking structure in West LionsHead prior to
demolition of the LionsHead parking structure.

Despite the obstacles ahead, Logan encouraged the Town Council to
continue moving forward, calling it the "single most important project"
in addressing the town's two highest priorities: public parking and
workforce housing. The development would add 500 net new public parking
spaces, which would make up half of the projected deficit identified for
the next 10 years, he said. In addition, the developer would be
responsible for providing workforce housing at an estimated cost of $28
million dollars with the option of redeveloping the town's Timber Ridge
employee housing site, which has been identified as a community asset.
#     #     #







Remove yourself from future email here:
http://i.mg00.net/remove?vailmail:4:1190239140.28600:jflamont@vail.net:e
or reply to this message with the word 'remove' in your email message
subject line.

Town of Vail
75 S. Frontage Rd
Vail, CO 81657
US
Phone: (970) 479-2100
Toll Free: (866) 650-9020

This message was sent to jflamont@vail.net
X-PMG-Recipient: jflamont@vail.net





pmguid:31.2i52.14s