IT IS SNOWING- TWO SKI AREAS OPEN
Perhaps the single most important factor in lifting the Vail Valley economy out of its doldrums since the start of 2009 is snow – and from the outlook, that appears favorable. The weather has turned much cooler and there is already snow on the peaks and upper ski trails in Vail and Beaver Creek. Snowmaking has already commenced on Gold Peak, which requires air temperatures below freezing. It is snowing as I write this Newsletter and snow is in our forecast 8 of the next 10 days. Loveland Ski area (on top of Eisenhower Tunnel) opened on October 7th and Arapahoe Basin opens on October 9th.
EVER VAIL UPDATE (Excerpt from Vail Homeowners’ Association Newsletter)
Vail Resorts’ new $2 billion EverVail ski village has gotten the initial go-ahead for its first step – to move the South Frontage Road west of Lionshead near the Marriott and construction site of the Vail Ritz Carlton Residences to right along side Interstate 70. VR also unveiled their architectural theme for their proposed EverVail development to the Vail Town Council. Distinctly contemporary in character, the design follows the Town’s guidelines to recast Lionshead in a European mountain resort style. While there are refinements as well as political obstacles remaining to be overcome, reportedly the Council gave the presentation a favorable reception. VR intends to submit their revised plan for formal review in November, with public hearings before reviewing bodies from this December to August 2010. Political obstacles include pressure being applied by local interests to employ what some consider as anticompetitive practices to outright stop the project. Other interests, it is claimed, are making overreaching demands for exactions that are legally unrelated to the direct impacts of the Ever Vail project so as to give advantage to rival developers. Perhaps the biggest obstacle is a straight tit-for-tat as some Town Council members are looking for VR to lift its deed restriction on the Lionshead Parking Structure, which remains an impediment for redevelopment of the Town-owned parking garage, before they will consider looking at the plan. In all likelihood, these issues will be undercurrents in the upcoming Town Council election in which 9 candidates are running for 4 spots on the Vail Town Council.
There are practical realities still remaining to be resolved for the project to optimize its market appeal. The most vexing is how to provide for the redeployment of a waste water treatment plant located immediately adjacent to the Ever Vail site. It is the desire of VRI to begin construction on the frontage road relocation next year. The start date for construction is dependent upon economic conditions, so who knows when this will really get off the ground. The facilities to be built first will include a gondola, parking, mountain maintenance, hotel, as well as residential and commercial facilities. (Visit www.vailhomeowners.com for a copy of Vail Homeowners Association newsletter).
VAIL MISSES OUT ON TOP SPOT in SKI MAGAZINE POLL
In the popular, but unscientific, SKI Magazine skier poll, Vail came up short and once again Deer Valley claimed the top spot for the third year in a row. However, this year it is worse then before, as Vail dropped from #2 in the poll to #3 behind Deer Valley and Whistler/Blackcomb. Vail is used to being top dog having achieved the #1 status 14 of the 21 years that SKI has conducted the poll and anything less then #1 is unacceptable. (It is kind of like being the New York Yankees). Beaver Creek moved up one spot to #5 with Park City #4.
REAL ESTATE UPDATE
Since the start of 2009, the Vail Valley real estate market had slowed to a near stand-still. Sellers were holding firm on pricing and prospective Buyers were only interested in bargains. However, in recent weeks, activity has picked up considerably. Some sellers are getting more realistic on pricing and others are flat-out desperate. Coupled with "aggressive" offers from Buyers, the result is some deals are coming together. In addition, with ski season on the horizon, seasonal interest has picked up. The Vail Board of Realtors has reported that 77 properties were placed "under-contract" in August as compared with just 22 contracts between January and July. 77 contracts in 30 days is not monumental, but considering the lack of activity, it is indicative of a more active market. Low interest rates continue to make buying attractive.
Property auctions, something that we have not seen before in Eagle County, are also becoming a more frequent occurrence in recent months. The results have been mixed. Complete update on real estate activity, auctions and opportunities next month. Click this link for more information on Auctions in the Vail Valley. http://65.38.150.230/IRM/usertext/auction.htm
This certainly is an interesting time in the Vail Valley real estate market and if history has taught us any lessons, it is likely a window of opportunity. While it is unclear how long this "window" will remain open. One thing we know for sure, there are good deals to be had in the Vail Valley with the right guidance and representation.
TOWN OF VAIL CONSIDERS LODGING TAX HIKE
In response to the recession and downturn in business and thus sales tax revenue, an ad hoc committee, Vail Citizens for Action (VCFA),is suggesting that the Town of Vail propose a 3.1% increase to the existing 1.4% lodging tax. If approved, the Vail lodging tax would be increased to 4.5%. What are these people smoking? So their answer to the Town’s budget crisis is to bite the hand that feeds us and stick it to our guests? To quantify this, an increase in the lodging tax to 4.5% from 1.4% is more than tripling the existing lodging tax. This also reflects a 32% increase on the overall tax on lodging including state, county and local taxes.
The tax proposal is being presented under the guise of a marketing tax in an attempt to win community support, when in reality it is merely a re-arranging of town expenses in an effort to deal with revenue declines. Obviously, we cannot support this tax increase for the following reasons:
1. The lodging community has already responded to the economic downturn by employing the basic laws of supply and demand by offering discounts and incentives to the guests that are our life-blood. This proposal would undo some of the incentives by adding more cost to the very same people we are trying to court. It is naïve to believe that this added cost can be passed on unnoticed to our guests. An increase in the lodging tax will simply make Vail less competitive as it will cost more.
2. This will put legitimate hotels and lodges at a competitive disadvantage compared with free-lancing private rentals. To our knowledge the Town is making no attempt to enforce sales tax collections against private homeowners who rent their property over the Internet on sites like VRBO and Craig's List, whose numbers are large and growing. Right now we are already at nearly a 10% disadvantage against these individual who do not collect or pay sales taxes and would increase that disadvantage to nearly 15%. Where is the logic in these difficult times of punishing those who comply with the law and benefiting those who do not
3. It is a mistake to increase taxes and then place those funds designated for marketing in the hands of those who have not demonstrated the ability to effectively deploy marketing funds. Bluntly, the Vail Marketing District which manages the Vail Marketing tax funds has no idea what they are doing. Vail marketing funds need to be professionally managed either by Vail Resorts or an advertising agency (who have to be hungry) as opposed to unprofessional local agencies that have incestuous relationship with the District. Times are too tough for nepotism to be allowed to continue. In addition, the funds must be used exclusively for Vail as opposed to marketing the entire valley.
What are the solutions? The Town must simply tighten their belts and sharpen their pencils just like every other business in Vail and America. The tax increase must be shot down. And existing marketing funds have to be spent in a more effective manner. This proposed tax increase would have to be approved by Vail Voters.
BAAAATTLING THE TAX MAN
If you have driven the road between Wal-Mart and Avon’s commercial district during August, you might have notice sheep grazing on the land between the road and Interstate 70. Sheep grazing in and around the Vail Valley is nothing new and occasionally you might see sheep being driven down county roads as they move locations. However, seeing sheep graze in city limits is something new. Avon has no ordinance against livestock grazing. Magnus Lindholm, owner of the “grazing: land as well as Home Depot and Wal-Mart sites and a huge parcel on the northside of Interstate 70, has always been somewhat of a controversial figure in the Vail Valley. Is this another controversy brewing? Speculation is that Lindholm is grazing sheep there as an attempt to get agriculture status for the property that was originally intended for development. The incentive? Vacant land in Colorado gets taxed at a high rate – three times the rate of developed residential property. However, with agriculture status comes much lower taxes as the property is considered to be worth far less. Could it be a tax ploy or could it be just a coincidence that sheep were passing through?
SUPPORT YOUR PROPERTY ON THE INTERNET
Improve your property’s rating and ours! The Internet is the marketing portal for Vail Realty and your property. Websites like Orbitz and Travelocity rely on visitor comments on sites like Trip Advisor (www.tripadvisor.com) to rate properties and document guest experiences. We need your support to improve the ratings. We are looking for comments like “We stayed at 9 Vail Road with Vail Realty. Great location in Vail Village, great value and friendly staff”. Or “found a great deal in Beaver Creek at Townsend Place.” We all need to stuff the ballot box to improve our overall rating. Please contact Lee Williams, Ross Goldberg or Bart Cuomo to get more information.
OTHER NEWS HEADLINES:
Loveland Ski Area Opens October 7th; Arapahoe Basin October 9th
Barenaked Ladies (a rock group, not strippers) to Play Free Concert on Dec. 12th
Vail Woman Fends Off Bear with Pillow
Last Chance to Get your Epic Pass at www.EPICPASS.COM
|
