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Why Develop

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Economic Development in Dillon

 Why Redevelop?

• The Development of Dillon Ridge Market Place in the 90's pulled retail businesses from Dillon Core Area to a more accessible location along HWY. 6 with opportunity for a visible storefront offering access to a broader audience.
• In the current market, Dillon Core Area captures the lowest rents in the county. This does not serve to elevate the retail environment yet rather produces a “race to the bottom”.  Recent business interest includes commercial laundry facilities, veterinary facility, warehouse, Pawn Shop.  By doing nothing Dillon is actually falling behind.
• Blighted buildings in Core Area and lack of engagement from absentee business owners contribute to deteriorating Core Area conditions.
• Opportunity to align with cohesive, Mountain Lakestyle identity.  
• Local year-round housing supports year-round vitality. 

Recent Re-Development History:

2009: Town of Dillon Urban Renewal Plan recommends utilizing the town-owned land, land assembly and catalyst projects as key redevelopment strategies. 
April 2015: Re-platted lots 16R, 17A/B for development as part of a Public Hearing.
Summer 2015: Staff creates a map of Town-owned land/potential land assemblage opportunities as marketing tool/platform for discussion with potential developers. 
September 2015:
Launched RFP for lots 16R, 17A/B
                Interest from two parties
                Colorado Mountain College expressed interest and was given a deadline Jan. 31, 2017 to develop a plan. Ultimately, they indicated that they would not be investing in the Dillon campus at this time. 

January - March 2016: 
Three months, multi-session, Visioning Exercise with Council/EDAC/Community utilizing Guiding Documents

16R, 17A/B RFP relaunched in March 2017 

May 2017: Developers scheduled a conceptual discussion as part of a regular council work session on May 2, 2017, discussing the concept of Dillon Flats and the Dillon Ridge Vista Apartments. Each of these projects has a year-round, local resident housing component. 

October 2017: Community Housing Forum: Attendees at the meeting felt that it was appropriate to increase density in order to help meet a portion of the demand for local housing. Community members supported the current height and even pushed for increases in height if it would support density.  

Dillon Council Housing Retreat: Discussed a baseline goal for local, year-round housing over the next 10 years.  Basically, the council looked at our infrastructure (sewer EQR’s) to determine what build-out could look like. This view showed a build out which was greater than what would make sense given our available land, existing code, etc. 

Council then dove into the County Housing needs assessment and looked at the need for ownership opportunities and rental opportunities in the range between 90 – 120% AMI. Finally, we looked at County Housing Needs Assessment and at the percentage of 5A Housing funds that the town receives (8.23%) which gave the council a starting baseline of year-round Locals housing that they want to contribute. The number Council is using as their base goal is 139 over the next 10 years. They would like to see the town move from a 70:30 ratio of second homeowner to year-round resident to 60:40. 

August 15, 2017: Lots 17A and 17B approved. Lot 16R before P&Z on September 6. 2017. 

July 31, 2017: Core Area RFP submittal received. The developer will present a conceptual presentation at the October 3, 2017, Council Work Session. 

Current year-round, local housing projects:

Dillon Ridge Vista
The Developer is proposing that 50% of the 36 units (18 units total) will be reserved for workforce housing and will be rented to people who can demonstrate that they work within Summit County a Minimum of 30 hours per week. The lease term shall be for a minimum of 180 days or 6 months.
For the first year, the maximum rental rate for each of these units shall be set at the 2017 rental rate for a 2 bed (3 person) rental unit based on 100% AMI (Area Median Income) household as established by the 2017 Summit Combined Housing Authority in 2017. In 2017, the 100% AMI
rental rate for a 2 bed (3 person) household is $1,980/month; and the rental rate should include utilities including electric, gas, water, sewer, trash and snow removal. If subsequent AMI studies in future years increase the rent level for 100% AMI rates, the maximum rental rate may be adjusted upwards accordingly.
The developer shall not be required to rent these units for less than the 2017 100% AMI rental rate for a 2 bedroom (3 person) household.
The Rental Units shall not be allowed to be subleased, nor shall the Rental Units be rented short term through vacation rental programs such as VRBO or Air B&B. The Developer will enter into a Workforce Housing Restrictive Covenant (“Restrictive Covenant”) with the Town of Dillon, this agreement will be approved by the Town Council at a future date.

Dillon Flats

The Developer is proposing that 25% of the twenty-four (24) units, a total of 6 units will be reserved for workforce housing and will be sold to people who can demonstrate that they work within Summit County a Minimum of 30 hours per week. Additionally, four (4) of these units will also have a maximum purchase price set by the Summit County Combined Housing Authority based on incomes within the 90% to 130% AMI (Area Median Income) range.
The final unit numbers to be dedicated with the AMI restriction will be finalized in a separate Workforce Housing Restrictive Covenant (“Restrictive Covenant”) that the Developer will enter into with the Town of Dillon. This agreement will be reviewed and approved by the Town Council at a future date and is a condition of the purchase and sale agreement between the DURA and the Developer.

During this time we also worked with the Office of Economic Development and International Trade on two free, technical assistance grants. Part of the output from that process included the Adaptive Reuse Report,  a mini-feasibility study from the team at Community Builders, a registered 501(c)(3) economic development team located in Glenwood Springs, CO. The organization’s mission is to help create successful, prosperous communities through training, information, and assistance. See below and attached (pg.11) for their findings. See the attached Dillon Blueprint 2.0 document for really great information regarding our trade area and also about the state of Mixed Use today. The findings of this report build on recommendations and plans commissioned by the Town as part of our Guiding Document collection. These reports and plans for redevelopment of the Core Area range from 2004 through present. Guiding Documents: 

Goals of Re-Development:

Dillon’s Town Core can support one hundred thousand (100,000) sq. feet for multi-functional retail opportunities and support at least two-hundred (200) residential units. (Assumes redevelopment of privately held parcels in addition to Town-owned land.) Our primary purpose is to support projects that enhance Dillon’s Mountain Lakestyle Community and encourage year-round, full-time residents and pedestrian traffic to drive economic vitality for new and existing businesses and provide enhanced community experiences for residents and guests.
Dillon’s Mountain Lakestyle community is ideally suited for smaller living and workspaces, clustered within the town core area. Dillon is uniquely situated to capitalize on surrounding natural and community amenities. It includes the world’s highest deep-water marina, the Dillon Amphitheater, award-winning parks and play areas, the best farmers market in Summit County and connection to county resources and world-class ski resorts via a county-wide rec path and public transit system.
Preference may be given to development plans that include other properties in addition to Town-owned land. It is important for teams to have experience designing and building redevelopment sites with a mix of uses, architecture that elevates the spirit of community, and inviting gathering spaces and establishes a sense of place based on Dillon’s Mountain Lakestyle identity.
The Town of Dillon is seeking proposals from qualified Developers to develop a new residential, retail, commercial, restaurants, hotel or mixed use project(s) on the Parcels. The proposed project shall utilize the Town Center’s core area zoning to its full advantage to promote a high-density high-intensity development on these parcels which is consistent with the Town Planning Documents.
Development project should utilize town lots, or a combination of town-owned and privately held lots, to create a vibrant community inclusive of residential uses with an emphasis on workforce housing and pedestrian-oriented retail that aligns with Dillon’s Mountain Lakestyle identity and architectural guidelines. The residential component should include a mix of housing styles and types with both rental and ownership opportunities and provide housing choices affordable to a variety of income levels to encourage a healthy and, diverse community and address the needs identified in the Summit County Workforce Housing Needs Assessment.
The purpose of Dillon Town Core Revitalization is to create a vibrant, mixed-use destination that reflects our Mountain Lakestyle identity; is the preferred location for new and existing businesses, residents, and guests, and enhances the quality of life for all who venture here.
Projects should serve to diversify the existing business base, drive density, and solidify Dillon as a year-round destination with a lively, pedestrian atmosphere and a preferred location for community experiences; we encourage the addition of year-round residential units, commercial amusement uses such as indoor play and entertainment, taverns, restaurants, retail, education and community centers.
Goals of Revitalization include but are not limited to:
1. Increase year-round density and foot traffic
2. Continue to develop and solidify Dillon’s Mountain Lakestyle identity in order to solidify a sense of place unique to Dillon’s core area.
3. Improve the overall appearance of the core area and instill a sense of pride in the Dillon community
4. Diversify and expand tax in order to support a multi-functional downtown experience.
5. Re-imagine Lake Dillon Drive as Dillon’s “Main Street.” Narrowing Lake Dillon Drive is considered to be in the best interest of the community in order to shorten the length of the crosswalks and create a main street ambiance.
6. Further strengthen the connection between the Marina/Marina Park/Amphitheatre, Town Core and Town Park.
7. An emphasis on community gathering centers providing year-round opportunities.

2017 Zoning & Height Restrictions

2017 Zoning

MU (orange) = Mixed Use thirty-five (35) feet
C (pink) = Commercial forty (40) feet
RL (light blue) = Residential Low thirty (30) feet
RM (blue) = Residential Medium thirty-five (35) feet
RH (blue) = Residential High forty (40) feet
CA (yellow) = Core Area fifty (50) feet
POS (green) = Public Open Space thirty-five (35) feet

Feasibility Findings:
• The town would benefit from a focus on increasing housing stock in the core area that serves local residents. 900 full-time residents offer limited opportunity to foster a thriving, vibrant downtown. Much of Dillon's housing stock is owned by people outside of Dillon and is in use on a limited basis (for example, weekend ski trips). That presents a number of challenges to local businesses as there are major fluctuations in the Town's population. Working to grow the full-time population and getting more of those folks to live in Dillon's core would be a major step toward helping to achieve the town's goals for downtown.
• Community Builders has found that jobs follow people and that people are drawn to quality communities and great places. The Town of Dillon has some great qualities that would appeal to a range of people. Drawing people to Dillon shouldn't be too much of a challenge. The challenge is finding a place to house these folks and providing a range of housing options to meet the needs of different income levels. As Dillon's full-time population grows, a number of these folks may explore business ventures as they learn more about local markets in the Dillon area.
• With the lake, proximity to outdoor recreation opportunities, and other benefits, Dillon has a number of existing amenities that should be adequate for attracting new full-time residents, if additional housing opportunities are made available. It is hard to envision a vibrant downtown business environment without first getting more full-time residents in Dillon's downtown. Given our organization’s understanding of the need for housing in Summit County, the demand is there to fill new housing units. Therefore, our recommendation would be to place a focus on bringing housing downtown, which in turn should help make downtown more attractive to prospective businesses.
• If the Town is looking to invest public dollars to further amenitize the downtown, those dollars should be invested in amenities that add to the sense of place and identity in downtown Dillon. It is hard to say what those type of amenities might be without a deeper understanding of community values and vision. This is where place-making exercises and activities galvanizing town stakeholders and residents may be valuable.

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