Peak One Neighborhood Deed Restriction Modification Request

The Town of Frisco entered into a development agreement and real covenant with Ten Mile Partners LLC on February 9, 2010 to develop the property that would become known as the Peak One Neighborhood. This Agreement contained affordable housing requirements and specifically outlined the targeted purchase prices listed per Area Median Income (“AMI”) category. With each initial sale within Peak One, the sale price was established based off the targeted household income level relative to AMI.

With the establishment of the Peak One Neighborhood, affordability categories for each property were established (Live/Work, Category 1: 80% AMI, Category 2: 100% AMI, Category 3: 120% AMI and Category 4: >= 160% AMI) and can be found in the Peak One Neighborhood Affordability Categories Map.

In a letter dated January 13, 2023, to the Frisco Town Council, nine property owners from the Peak One Neighborhood requested a revision to the deed restrictions within the Peak One Neighborhood. The request is for Town Council to consider modifying the existing resale calculation to allow a deed restricted unit to sell at the price set through Summit County Housing Authority (SCHA) coinciding with the AMI unit type, or a 3% appreciation each year, whichever is greater, which would allow owners to potentially receive more money for the sale of their property than what may be permitted through the existing recorded housing restrictive covenant, or the Covenant that the Town approved in 2019 for any deed restricted property owner to opt-into voluntarily. Property owners who are requesting these revisions presented their request to Council during the work session.

At the August 22, 2023 work session, staff sought feedback from Council regarding the proposed modifications to the covenant as presented in the January 13, 2023 correspondence from nine property owners in the Peak One Neighborhood. Specific discussion points include and are outlined in the staff memo:

• Does the Council support the proposed modifications to the housing restrictive covenant as presented by this group of Peak One Neighborhood homeowners?
• If the Council supports the proposed concept, do they support modifying the covenant just for properties within the Peak One Neighborhood, or all deed restricted units within the Town that have a resale calculation within them?
• Does the proposed modification keep the affordability of the Peak One Neighborhood and meet the intent of the Peak One Neighborhood along with serving a benefit to the community as a whole?

Council considered these questions and indicated that they would like to continue the conversation at a future work session to understand how a change of this type would impact the home prices in the Peak One Neighborhood and other projects; what the goals are around the Peak One Neighborhood, including, whether the primary goal is affordability; what is the measure/definition of success on workforce housing, and do these issues need to be looked at and considered for future deed restrictions for other projects- current and future.  

Early Childhood Options

Early Childhood Options staff provided an update on their administration of the new countywide tuition assistance program, which the Town of Frisco is participating in and which will be governed by a Childcare Tuition Assistance Board.

Quick outline of the program:

• Tuition credits awarded to providers on behalf of families.
• Participants must be eligible for enrollment in a licensed, quality rated childcare facility
• September-August program year for tuition assistance
• At least one parent or legal guardian must work 30+ hours per week for a Summit County business
• To access full-time care (4 days or more), both parents or legal guardians must work 30+ hours per week for Summit County businesses
• Household income must be at or below $210k annual income; this calculation was based on the percentage of income being spent on childcare and support will vary based on income levels
• Quality ratings for childcare programs are also considered when providing childcare credits
• 27 Frisco families so far have already been determined eligible for tuition assistance programs

Find out more at Early Childhood Options and the countywide tuition assistance programs

Proposed Amendments to the Planned Unit Development Section of the Town Code

The Unified Development Code (UDC) establishes a procedure to depart from certain requirements within the code through rezoning to a Planned Unit Development (PUD) Overlay District. A PUD Overlay District is a tool that communities use to promote creative design efforts on the part of owners, builders, architects, and developers, and to produce developments that meet the objectives of the Town’s Community Plan.

The PUD Overlay District is generally used when there is special public interest that does not coincide with the traditional zoning in a geographic area. The PUD Overlay District may only be used when an application is not able to meet the requirements of a standard zone classification. The PUD is a mapped area with restrictions in addition to, or less than, those in the underlying traditional zone. Rather than attempt to create a new zoning category, an overlay zone is superimposed over the traditional zone and establishes additional regulations or reduces or extends the existing uses.

Over the past several years, property owners have inquired about utilizing the PUD rezoning process; usually as an attempt to provide additional housing or reduce setbacks to protect sensitive environmental areas. These inquiries have not advanced into rezoning applications due to the existing PUD regulations containing requirements that are not necessarily conducive to the available vacant land in Frisco including:

• Usable open space requirement of 55% of the site
• Thirty (30) foot perimeter setbacks

June 2023 Review of PUD Regulations and Requirements

Town Council reviewed the existing PUD regulations and requirements during the June 27, 2023 meeting. During this work session, Council noted that the existing PUD regulations and requirements did not encourage creative developments that propose workforce housing as a public benefit, and as a result, Council directed staff to propose amendments to the UDC.

Overview of the Proposed Changes to the PUD

For clarity and to more effectively implement the use of the PUD Overlay District for applicants who are proposing developments that promote creative developments with an expressed community need, staff recommends amending Chapter 180, Unified Development Code. Staff is proposing the following code text amendments:

180-2.4.2 REZONING TO A PLANNED UNIT DEVELOPMENT

Staff proposes modifications to the existing section of Code to fine tune the standards for review. Proposed changes are shown in track changes so Council members can provide feedback.

180-4.3 PLANNED UNIT DEVELOPMENT OVERLAY (PUD) DISTRICT

Staff is proposing a complete strike-through of the existing section 180-4.3 of the UDC. Proposed language provides a more in-depth analysis of PUD standards. Specific changes include:

• Criteria for PUD rezoning proposals based on the community benefit. Developments proposing affordable housing as a community benefit have different listed standards than a development proposing to protect open space as a community benefit.
• Addition of a workforce housing requirement
  • Removal of 30% open space requirement for projects that have a workforce housing community benefit.
  • Removal of thirty (30) foot perimeter setbacks for projects that have a workforce housing community benefit.
  • All PUD developments proposing a community benefit of housing shall provide a minimum of 25% workforce units. Deed restricted unit(s) shall be occupied by a member of the household who earns the majority of their income in Summit County, or from an employer based in Summit County.
  • Occupant(s) of workforce unit shall not own any interest alone, or in conjunction with, other developed residential property.
  • No short-term rentals shall be permitted within the deed restricted unit(s).

Attachment 1 and Attachment 2 show suggested changes to the code.

Prior to the Town Council’s consideration of an ordinance to amend the text of the UDC, the Planning Commission must first review the proposed amendments and forward a recommendation to the Town Council. The Planning Commission reviewed the proposed modifications on August 17, 2023, and these recommendations were provided for Town Council’s review and consideration. Council directed staff to return on September 12, 2023 for the first reading of an ordinance to amend the UDC.

Frisco Backyard Fuels and Recreation Project

On March 22, 2022, Town Council adopted Resolution 22-10 which approved an agreement with Sno-Engineering, Inc. (SE Group), for the development of a U.S. Forest Service (USFS) proposal for resource management and National Environmental Protection Agency (NEPA) review of Frisco’s Backyard. Sno-Engineering, Inc., is developing a proposal for USFS consideration of trail and resource management in the area known as Frisco’s Backyard. The contracted scope of work includes the development of a proposal, on behalf of the Town, for resource management. The proposal includes goals for fuel reduction and trail improvements among other resource management opportunities.

During the work session before Council on August 22, 2023, the consultant team, led by Ash Smith of SE Group, along with Adam Bianchi with the U.S. Forest Service, gave an overview of the following:

• Update on the public scoping period that occurred along with unique comment submittals received.
  • The public scoping period for the project began with the publication of a legal notice in the Summit Daily on April 14, 2023 and ended on May 15, 2023. SE Group assisted the USFS  with preparation of a scoping narrative and map that was emailed to a mailing list. SE Group also prepared an online Story Map of the project that allowed the public to explore the proposal in detail. A public meeting was held at the Frisco Day Lodge on May 2, 2023 from 5:00pm-7:00pm. Thirty-two individuals provided information on the public meeting sign-in sheet; attendance was higher than 32 as some attendees declined to sign in.
  • A total of 64 unique comment submittals were received from the public during the scoping period, and these submittals are publicly available on the Forest Service project website: https://cara.fs2c.usda.gov/Public//ReadingRoom?Project=63395. Key comment themes included maintaining a high-quality recreation experience and applying low-intensity treatment methods.
• Modifications to the scope of work.
  • The fuels treatments initially proposed by the Town and the basis for SE Group’s cost proposal were 230 acres; the acres proposed for treatment has been increased to approximately 1,200 acres following USFS proposal review.The overall analysis area, including trails projects, is currently approximately 2,850 acres.On October 12, 2022, the Frisco Backyard area was included in the Camp Hale-Continental Divide National Monument designation. The intent for this presidential designation was not known at the time SE Group’s contract of services was awarded in March 2022. Due to the project area’s designation as a National Monument and the regulatory complexity associated with this designation, the National Environmental Policy Act process has been modified to include a more robust alternatives development process, more opportunities for public involvement, additions to resource analysis, and an increase in the number of prepared documents than was disclosed in SE Group’s cost assumptions.
  • Since the original contract was executed in 2022, the project design, regulatory environment, and the public involvement have been modified. This expanded scope includes (but is not limited to) adding a third alternative, which is up from two alternatives; having a more robust recreation analysis; analyzing the effects of climate change; securing high resolution drone orthophotography; providing separate scenery reports, including visual simulations; and providing more detail on tree clearing. As a result, a change order is requested at this time to bring out of scope and previously completed tasks into contract, meet the needs of the White River National Forest, and extend the contracted period.
• Request for additional funding in 2023 and an updated cost for funding the project in 2024.
  • The initial contract costs were based on a project schedule ending in February 2023, and due to the modifications to the scope of work, an additional fee is necessary to extend the project schedule through 2024.
  • SE Group reviewed the proposed change order request with Town Council. Preliminary numbers are still being reviewed at this time but indicate a need for an additional $381,124 for work to be performed through 2024. This $381,124 change order is requested to supplement the original $240,500 contract. If approved, this would change the contract from $240,500 to $621,624.

Town Council continues to support this project and directed staff to return with a change order to accommodate the expanded growth of this project.

Highway 9 Sidewalk Improvements

State Highway 9 (Summit Boulevard) does not have a sidewalk on the west side of the road, between Hawn Drive and I-70. Additionally, the Hawn Drive to School Road sidewalk section is difficult for Frisco Public Works to maintain in the winter, due to the sidewalk being directly adjacent to Highway 9 (Summit Boulevard) and the adjacent grades/retaining walls, resulting in winter closures due to snow buildup. The maintenance issues and missing sidewalk section create both pedestrian connectivity issues.

To address these issues, a preliminary design was completed for a new sidewalk between School Road and Ten Mile Drive (Walmart shopping center driveway). The new sidewalk will be a 10’ wide shared use path detached from the highway to accommodate both pedestrians and bicyclists. In the section between Hawn Drive and School Road, the boulder retaining walls will be removed and new retaining walls will be constructed. The sidewalk will be elevated above the highway with both a lower and upper retaining wall in areas.

Town staff previously applied for a Colorado Department of Transportation (CDOT) TAP grant to gain additional project funding. This original grant application was not successful. However, additional funding recently became available for CDOT’s Multimodal Transportation and Mitigation Options Fund (MMOF) and the Town was awarded a grant of $504,882 for the sidewalk improvements. Staff is currently working with a consultant to complete the preliminary sidewalk and retaining wall design in order to advertise the project for bids in fall 2023 with construction anticipated for 2024.

Council adopted Resolution 23-24 to authorize Mayor Mortensen to sign the State of Colorado IGA for the Highway 9 Sidewalk Improvements, allowing the Town to utilize grant funding to reduce the Town’s financial requirements to construct new sidewalk improvements.

Development Agreement with NHP Foundation

In May 2023, Town Council approved Ordinance 23-14 on second reading concerning the development of two affordable rental housing projects, where the Town of Frisco intends to grant a long-term ground lease at 602 Galena Street to the NHP Foundation to facilitate the development of affordable housing units. NHP also now owns 101 West Main Street to develop affordable housing. Through this acquisition, NHP would finance, construct, and operate affordable housing improvements, in addition to owning the property. After pricing both modular and stick-built methods of providing the agreed upon workforce units at the 602 Galena Street property under the initial development agreement, NHP has proposed the following modifications to the lease:

• That the lease for the property to fulfill 54 workforce units (more than originally proposed) be modified to include the whole property of the 602 Galena land owned by the Town of Frisco
• The method of construction will be traditional vs modular
• The Town’s obligation to accommodate the State of Colorado Workforce Center currently at 602 Galena Street be fulfilled at the 101 West Main Street location, which is currently owned by NHP

These proposed modifications need to be memorialized in the lease option and the development agreement amendment to keep the Town’s records up to date and to make sure that future applications by NHP or the Town for any kind of grant or financing indicates the correct site requirements.

Town Council approved the adoption of Ordinance 23-15 on the second reading.

Deed Revision to Housing Helps Program

On August 27, 2019, the Town Council adopted Resolution 19-31 to establish Frisco’s “Housing Helps” program. The Frisco Housing Helps program was initially set up to provide financial assistance in exchange for a live/work occupancy deed restriction, including income and appreciation caps.

In June of 2021, Town Council approved a modification to the Housing Helps program, deemed “Housing Helps 2.0”, which modified the program to remove the income and appreciation caps from the program. Since its inception, the Housing Helps program has been used to purchase or acquire restrictions on ten properties. Six properties were purchased by the Town, two deed restrictions were purchased jointly with Summit County, and two were properties purchased by people employed within the Ten Mile Basin utilizing the down payment assistance option of the program. To date, the Town has spent approximately $3.9M on the program; this will be reduced when the Town sells three of the units in the upcoming months.

Current options under Housing Helps 2.0

• Option 1: Town purchases a deed restriction from a new home buyer who can use that cash assistance for anything, including as down payment assistance. Buyers may include businesses or investors who want to rent their properties to occupants who work at least 30 hours a week at businesses within one mile of the Ten Mile Basin.
• Option 2: Town purchases a deed restriction from a current property owner (including businesses and developers) and then this property has a deed restriction that limits occupancy to local workforce community members who work at least 30 hours a week at businesses within one mile of the Ten Mile Basin.
• Option 3: Town purchases a market rate or existing deed restricted housing unit and resells the property with a deed restriction limiting occupancy to local workforce community members. Income caps, price appreciation caps, and/or household size limits may be imposed at the discretion of the Town if the property is purchased by the Town.
• Option 4: Town provides financial assistance to a current property owner to construct an accessory dwelling unit that is deed restricted to local workforce community members who work at least 30 hours a week at businesses within one mile of the Ten Mile Basin.
• Option 5: Town partners with Summit County to purchase a deed restriction from a current property owner (including businesses and developers) that limits occupancy to local workforce community members with no income cap, price appreciation cap, or household size requirement.

Recently, the Town had been approached by a retired homeowner wishing to sell a deed restriction to the Town on their home. The individual is no longer employed 30 hours per week within one mile of the Ten Mile Basin, and therefore, does not meet the conditions of the current standard Housing Helps deed restriction.

At the May 9, 2023, Town Council meeting, Staff and Council discussed the Housing Helps program with a potential scenario regarding the Town proceeding with placing a deed restricted covenant on a unit with an owner/occupant who is not currently employed but who does live full time in the unit. Knowing that one of the goals of the program is to increase full time residency in Frisco, Council directed staff and the Town Attorney to move forward with an amendment, Resolution 23-20, to the Housing Helps covenant allowing a retiree who resides in a unit for over seven years to qualify as an occupant under the covenant.

Staff presented Resolution 23-20 to include Option 6, where the Town can purchase the deed restriction from the current property owner who has lived in the property as a principal residence for at least the previous seven years. The restrictions limiting occupancy to local workforce community members would no longer apply, but requirements such as income work/live requirements (work more than 30 hours per week in the area) would apply to the next owner.

Town Council adopted Resolution 23-20.

Frisco Town Council Meetings: Ways to Participate

Frisco Town Council meetings are available to view via Zoom and YouTube, and are also held in person to make Town Council meetings easier to access for everyone.

The public can provide comment during meetings via Zoom or in person (not YouTube), and a public comment period will be available at 7:00pm; during the consideration of ordinances; and at the discretion of Town Council during work session items, which are discussions that don’t require a formal vote by Town Council and do not require public comment.Again, this hybrid approach is intended to make Town Council meetings more accessible, and meeting recordings will typically also be made available the day after a meeting in the meeting archive with agenda topics bookmarked to the discussions in the video.

Due to technical issues, the YouTube recording of last night’s meeting is not yet available.

You can watch the meeting through a Zoom recording by clicking this link and using the passcode:  6DgBF8@p