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03-01-01 Town Council MinutesThe Work Session began at 5:30 p.m. COUNCIL MEMBERS PRESENT: SNOWMASS VILLAGE TOWN COUNCIL WORK SESSION SUMMARY 03 -01 -2001 Mayor T. Michael Manchester, Arnold Mordkin, Robert Purvis, Richard Virute, Douglas Mercatoris COUNCIL MEMBERS ABSENT: All Council Members were present. STAFF PRESENT: Gary Suiter, Town Manager; Carey Shanks, Assistant to the Town Manager; PUBLIC PRESENT: Public /Private Partnership Finance Mechanisms Ford Frick, David Bellack, Bill Kane and other members of the Public interested in today's Agenda items. Ford Frick, a consultant representing the Aspen Skiing Company, provided an overview of information related to findings on the trends of mountain resorts. He also provided information related to what competitors are doing and financing options available to them. Frick explained the changing relationships between public entities and ski area developers in an effort to provide development upgrades for resorts and meet the needs of the community. He outlined some of the changes occurring in other resort areas as a result of public /private partnerships. He further explained that the partnership process allows governments more control in respect to their community's future by gaining the ability to maintain the quality of the community and accommodate change. Addressing Snowmass Village, he stated that a partnership would allow the Town to take control of its future and address some of the issues it is currently facing as this community reaches buildout. Frick explained how other resorts are partnering financially with developers and the process being used to address the issues. He stated that the current thinking of ski resorts is different from ten years ago and the markets are changing. Partnerships allow utilization of government funding sources that are unavailable for private developers such as Special Improvement Districts, Business Improvement Districts and Sales tax associated with the new development. Mountain resorts are now facing problems that did not exist in the past, such as the commonality and effect of people migrating from mountain resorts to a down- 03 -01 -01 ws Page 2 valley area, as well as development of down valley businesses, golf courses and other amenities. This migration equates to a loss of sales tax to the traditional core resorts. Also, new resorts are developing in other areas, creating pressure, competition, and competitive advantage or disadvantage, to resorts such as Snowmass Village. He explained that privately owned resorts have financing vehicles such as special districts and regulatory powers to manage their ski resort environments and are not bound by the same rules imposed on county and town governments. They have the power to make their own decisions and can make decisions quickly. In private /public partnerships the public sector can take part in the advantages of ski resort development as well as provide the use of the public financing pool and municipal rates to accomplish community goals. The group discussed current trends, which included that 80 to 90 percent of the mountain resort competition, is under some type of major effort to revamp, revitalize or start over from scratch. Examples given were airport expansion programs, constructing gondolas along with a bed base in the town core, creation of new lodging taxes, sales taxes on new development and special improvement districts. Also discussed were comparisons of the skiing mountains, the combination of other amenities with the skiing experience, growth in interval ownership and current construction of 35,000 additional beds within the state. The Work Session ended at 7:30 p.m. Submitted By, Trudi Worline, Town Clerk