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ORDINANCE NO. 566
SERIES OF 2021
SERIES OF 2021
AN EMERGENCY ORDINANCE APPROPRIATING FUNDS, CREATING AN INCENTIVE PROGRAM TO ENCOURAGE PROPERTY OWNERS TO ENTER INTO LONG-TERM MASTER LEASES WITH LOCAL SMALL BUSINESS FOR EMPLOYEE HOUSING, AND AUTHORIZING THE TOWN MANAGER TO ESTABLISH GUIDELINES TO OPERATE THE PROGRAM AND TO AWARD INCENTIVE PAYMENTS
WHEREAS, a critical shortage of workforce housing is straining local businesses and employees;
WHEREAS, local small businesses are reducing operating hours and limiting business operations due to challenges hiring and retaining staff who are unable to find affordable places to live in our community;
WHEREAS, the recently published Mountain Migration study identified the workforce housing crisis to be at a peak due to increased housing competition with higher-earning remote workers and new part-time residents;
WHEREAS, the COVID-19 pandemic has negatively impacted tourism and the local economy such the employers and employees alike have spent through reserve funds and are operating or living day-to-day; and
WHEREAS, the Town of Winter Park has taken action to bring additional deed-restricted workforce housing units into Town in the longer-term, additional immediate action is needed to address the workforce housing shortage during the construction and completion of these new deed-restricted units.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL FOR THE TOWN OF WINTER PARK, COLORADO, THAT:
Section 1. The Town council appropriates $325,000 from the General Fund to be used for the Short-Term Fix Long-Term Lease Incentive Program (the "Program") for use in 2021 in the form of incentive payments to property owners to subsidize rent lost to the property owners by participation in the Program ("Incentive Payments").
Section 2. The Town Manager is hereby directed to establish the Program within the following parameters:
The rental property must be located with the Fraser Recreation District boundaries.
Hotels, bed & breakfasts, and other traditional lodging properties, as defined by the Winter Park Municipal Code (the "Code"), are not eligible rental properties for the Program.
To be eligible for the Program, a rental property must be a dwelling unit, as defined by Chapter 11 of the Code, with a minimum size of 300 square feet, a kitchen that contains at least a sink, a refrigerator, and cooking facilities; and a full bathroom with at least a sink, toilet, and shower or bathtub. The rental property must be accessed by a separate outside entrance and must include parking deemed adequate by the Town.
To be eligible, a rental property must not have been long-term leased by the owner within the past two-years. For purposes of this Program a long-term lease is a lease of more than one month in duration.
E) A rental property that is an existing short-term rental, as defined by Title 3, Chapter 9, of the Code, must be registered with the Town as of August 1, 2021, and in good standing to qualify as a rental property in the Program.
F) Incentive Payments will be paid directly to a property owner who enters into a master lease of a minimum six-month duration with a business with a physical business location within the Town of Winter Park employing a total of 50 employees or fewer to provide the local business' employees with housing in the rental property.
1. The actual Incentive Payment amount for a rental property will be negotiated with each property owner, and payment from the Town will depend upon the specifics of each rental property, including, without limitation, the demonstrated rent lost by the property owner in placing the rental property in the Program.
2. The Town will make an an initial Incentive Payment offer to a property owner upon finding the rental property is eligible for participation in the Program.
3. Incentive Payment guidelines are generally as follows but are subject to adjustment depending on a rental property's specific and documented circumstances: one-bedroom and studio unit would be eligible for a $5,000 incentive for a six-month lease, or $10,000 for a 12-month lease; two and three-bedroom units will be eligible for a $10,000 incentive for a six-month lease or $20,000 for a 12-month lease.
G) The Program shall contain a provision requiring the rental property owner to return a prorated portion of the Incentive Payment if the rental property is not leased by a local business for the minimum required term.
H) Program participants, both property owners and local businesses, shall agree to audits and to provide the Town with property, tax, business, rental records, and the like, as may be reasonably necessary for the Town to confirm the participants' eligibility for and compliance with the Program.
I) No rental property owner and no local business is guaranteed participation in the Program. Program funds will be awarded on a first-come, first-served basis.
Section 3. Town staff shall develop rules and regulations for the Program's administration, including without limitation, clarifying definitions of eligible local businesses and eligible property owners; developing applications and other forms; establishing a process for reviewing applications and making Incentive Payments; and creating an appeal process for property owners or rental properties denied participation in the Program.
Section 4. The Program will automatically expire on December 31, 2021, unless funded in the Town's 2022 adopted budget and continued by a future action of the Town Council.
Section 5. Pursuant to § 4.11 of the Town Charter, the Town Council hereby finds and declares that this ordinance is necessary for the immediate preservation of the public health, safety and welfare by assisting in ameliorating the negative effects of the COVID-19 pandemic on the local workforce, a lack of affordable workforce housing, and to address the critical employment challenges facing restaurants and other businesses in the Town.
Section 6. This ordinance shall take effect immediately upon approval by 5 affirmative votes.
INTRODUCED, ADOPTED, AND ORDERED PUBLISHED this 7th day of September 2021. Publication in summary shall occur within 10 days after adoption or as soon as possible thereafter.
TOWN OF WINTER PARK
Nick Kutrumbos, Mayor
Danielle Jardee, Town Clerk