The Vail City Council approved the purchase of two residential units that it will use to increase its inventory of employee housing in the community.
The city is expected to purchase a two bedroom, two bath unit at Pitkin Creek Condominiums in East Vail for $975,000 and a three bedroom, three bath townhouse unit at Chamonix Vail in West Vail for $634,940. The Pitkin Creek property is scheduled to close on June 16th and the Chamonix property on June 21st.
This is part of a larger push and goal by the City Council to increase the supply of housing for year-round residents. It also follows closely on the purchase of another condo in Pitkin Creek for the same purpose in early May.
The council’s goal is to purchase 1,000 additional property restrictions by the year 2027, per the Vail Housing Strategic Plan, adopted in 2017. Following recent acquisitions, the city’s condominium portfolio will increase to almost 950 apartments.
Pitkin Creek condominium
After the Pitkin Creek Condominium was purchased by the city, it is deeded under the city’s 1999 purchase program.
Or as Councilor Jen Mason put it Tuesday, “We are the proud owners and we will hopefully sell it to someone else who will be the proud owner and it will be deeded.”
While the unit was listed for $1.2 million, the city is under contract with the seller for $975,000, according to a memo in the City Council package.
Under this deed restriction, the property may be sold to either a township employee of the City of Vail or to a Vail resident employed by an Eagle County business. According to the memo, the unit will be “subject to the terms of a deed restriction at a cost of $625,000.”
The memo also provides that if the unit is not purchased by a city employee, it will be offered to a qualifying resident through a lottery sale process.
The residential complex has a long history as working class housing. According to the city, it was built in the 1980s, with the homes deeded and sold for just $82,000. However, after seven years, ownership restrictions expired and condos in the complex began to sell at market prices. Most recently, a two-bedroom, two-bedroom property at the complex sold for $1.1 million, the employee release said.
Townhome in Chamonix
The second property approved for sale by council on Tuesday is the property in the Chamonix Vail Townhomes area. This 32-unit neighborhood was completed in 2018 to provide copyrighted housing for the city’s workforce. As part of these deed restrictions, the city will have the first option to purchase units for sale in the neighborhood.
The terms of the deed restriction also limit the maximum resale price to $634,940 for that unit.
After that unit closes, the city intends to “tweak the deed restriction and hold a lottery for resale” at that price, City Attorney Matt Mire said at Tuesday’s meeting.
A note in the City Council’s package says the tweak will consist of specifically requiring that “at least 75% of a qualifying resident’s income comes from a business located in Eagle County.”
The memo went on to say that “the selection process for the lottery is scheduled to take place in mid-July, with a tentative conclusion to be reached in late August or early September, subject to conditions.”
This story used information from a press release from the City of Vail.
Reporter Ali Longwell can be reached at [email protected]