March 10, Board of County Commissioners C/O Sean Hanagan Eagle County Community Development PO Box 850 Eagle, CO 81631
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1 March 10, 2015 Board of County Commissioners C/O Sean Hanagan Eagle County Community Development PO Box 850 Eagle, CO Dear Board of County Commissioners: Thank you for your time and consideration in the review of the Hagedorn PUD for Edwards Mini-Storage. The BOCC requested some additional information about the need for storage facilities beyond the anecdotal information we presented and we have provided some additional information about current storage facility needs in the area. We have also reacted to some of the other questions we were asked. In addition to the information we have provided in this letter, we would like to give a brief overview of the information during the hearing on March 17, before public input begins. Fire District Review of the Driveway Design We have continued to work with the Eagle River Fire Protection District and the Eagle County Engineering Department to verify that the driveway design is acceptable and safe. The site plan was revised to allow for additional parking on the property and address fire district access. The drive aisle between the buildings was widened to allow adequate space for maneuvering and provide additional parking. On March 2, 2015, our engineer provided a stamped site plan that included an auto-turn analysis for the Fire District s ladder truck and indicating additional parking spaces (attached). Both the Engineering Department and the Eagle River Fire Protection District have indicated their acceptance of the design. Parking Modifications The total number of parking spaces has been increased from 6 to 12 spaces. Based on the experience of our operator, the number of parking spaces provided is more than adequate for the facility. The Traffic Impact Study indicates a range of 6 to 13 cars (worst case) arriving at the site in the peak hour. Status of the Edwards Area Community Plan Based on our understanding, Planning Staff will be putting together an overview of the current status of the Edwards Area Community Plan update. As potential land and business owners in Edwards, the Hagedorns are looking forward to participating in the process of updating the Edwards Area Community Plan and are excited to see its adoption. There have PO Box of 4 Eagle, Colorado
2 been significant changes in the development trends and character of the west Edwards Area since the 2003 plan was adopted with PUD approvals and commercial use, churches, and schools being developed in the area. Given that Highway 6 is a major arterial roadway with high volumes of traffic and transit overall, one would expect the character of the development fronting such a highway to be more intensely and commercially developed. Conditions Incorporated into Project To-Date A question was asked regarding which of the conditions of approval from the staff memorandum have already been addressed and incorporated into the PUD Guide prior to the BOCC hearing. The following list identifies the conditions and how each has been addressed: 1. The Applicant shall be responsible for construction and maintenance of an 8-ft wide recreation path across the frontage of their parcel. Timing for construction of this path shall be triggered by construction of a path on adjacent parcels to the east or west. The Applicant shall provide collateral in the form of a letter of credit in the amount of the estimated cost of construction to be held by Eagle County. Applicant Response: the location of the 8 ft. wide asphalt path is shown on the plan and referenced in the PUD Guide. 2. Prior to issuance of any building permit the applicant shall have a fully executed Access Permit issued by CDOT for the proposed access. Applicant Response: we have been working with CDOT and understand this requirement for a fully executed Access Permit. 3. To help delineate and maintain the identified wildlife corridor located on the southern and western portion of the PUD the applicant will plant native landscaping to prevent the human activities from negatively impacting wildlife. Applicant Response: we have included this requirement in the PUD Guide and therefore this condition could be eliminated. 4. The Applicant shall incorporate all Best Management Practices outlined in Perry Will s CPW letter. Applicant Response: we have listed the recommendations of Colorado Parks and Wildlife in the PUD Guide to make the project as wildlife-friendly as possible. This condition could be eliminated. 2 of 4
3 Market Trends for Mini-Storage in Eagle County Self-storage in the upper Eagle valley (Edwards, Avon, Eagle-Vail, Minturn, and Vail) is an underserved market with a constrained supply. The existing storage supply available to consumers in the area consists of five (5) smaller, older facilities concentrated around Avon and Eagle-Vail. No storage facilities exist in Edwards. In the self-storage industry, the standard measure of whether an area has a sufficient supply of storage is the existing number of square feet of self-storage per capita. An area is considered adequately served if it has approximately 7.5 square feet of existing self-storage per capita (the national average). An area with less than this amount of self-storage is considered to have a constrained supply for the population base. Residents may not be able to find an appropriately sized storage unit and prices will likely be high. The upper Eagle valley currently has approximately 4.4 square feet of self-storage per capita, well below what is considered to be a well-served area. Even with the proposed project, that number would be approximately 6.3 square feet per capita, still below the national average. And well below the average for Colorado of approximately 14.6 square feet per capita. These numbers are also conservative, since they are based off of 2010 census data indicating a lower population density. Given the constrained supply of self-storage in the upper Eagle valley, it is no surprise that prices in this area tend to be high. The standard measure of how expensive self-storage is, is the average amount of revenue a facility achieves per square foot of space per year. Based on this metric, storage in the upper Eagle valley is estimated to be about 90% more expensive than similar storage options in Eagle and Gypsum, and about 50% more expensive than storage in the Denver metro area. Our discussions with CubeSmart, a publicly traded national self-storage company, have confirmed that the upper Eagle valley is constrained in its self-storage supply. CubeSmart operates the storage facility located at 850 Nottingham Road in Avon for a Colorado-based owner. They confirmed that this facility has averaged an occupancy level of 92% over the last three-years, which is considered full occupancy. Anything near this level is thought of as completely full occupancy, since achieving a 100% occupancy level is realistically impossible. And as a reference for the price of storage in this area, CubeSmart also confirmed that this specific facility is commanding rental rates near what their properties in Brooklyn, NY are achieving. Residents of Eagle County are an active population with plenty of toys and gear. We believe that there is a demonstrated need for self-storage in Edwards, and that the project would be a benefit to residents of Eagle County. The attached exhibits provide an overview of the data we analyzed in arriving at these conclusions and their sources. The slides include the following: 3 of 4
4 Map showing distance of proposed Edwards facility to existing facilities in the upper Eagle valley; Map showing travel time to from Edwards to existing facilities in the upper Eagle valley; Graph of Self-Storage Supply in the upper Eagle valley in square feet per capita; Graph of Self-Storage Cost in the upper Eagle valley in dollars per square foot per year; and Existing Self-Storage Facilities - Size and Price per Square Foot. Where possible, data was sourced from publicly available sources and nationally recognized institutions. Statistics on the amount of self-storage space per capita was taken from The Self Storage Almanac, THK & Associates quarterly markets reports, market intelligence reports from CubeSmart, and 2010 US Census data. Pricing data was taken from existing facilities published rates, the Colorado Self Storage Association, and independent research. Occupancy estimates were provided by CubeSmart, as well as independent market research on existing facilities. These exhibits document the conclusions stated herein. We will provide an overview of this information at the March 17 hearing. Thank you for time and consideration of this matter. Sincerely, Dominic Mauriello, AICP Principal 4 of 4
5 Existing Self-Storage Facilities in the Upper Eagle Valley Distance from Edwards Mini Storage PUD Edwards Mini Storage PUD 4.8 miles Avon Mini Storage AAA Self Storage 4.8 miles Mountain Center Self Storage CubeSmart Avon 8.8 miles Vail Self Storage Source: Google Maps, Google Map Maker
6 Existing Self-Storage Facilities in the Upper Eagle Valley Drive time from Edwards Mini Storage PUD Edwards Mini Storage PUD 18 minutes Avon Mini Storage AAA Self Storage 11 minutes Mountain Center Self Storage CubeSmart Avon 16 minutes Vail Self Storage Source: Google Maps, Google Map Maker
7 Self-Storage Supply in the Upper Eagle Valley (Edwards, Avon, Eagle-Vail, Minturn & Vail) Square feet of self storage per capita Upper Eagle Valley CO Average National Average Upper Eagle Valley w/ Proposed Project Source: 2010 Census, THK & Associates, The Self-Storage Almanac, CubeSmart, Market Research
8 $30 Self-Storage Cost in the Upper Eagle Valley (Edwards, Avon, Eagle-Vail, Minturn & Vail) Average $ per sq. ft. per year $25 $20 $15 $10 $24.80 $16.20 $13.20 $17.00 $5 $0 Upper Eagle Valley Denver Metro Area Eagle / Gypsum Source: The Colorado Self Storage Association, CubeSmart, Edwards Self Storage PUD Pro Forma, Market Research Edwards PUD Anticipated
9 Existing Self-Storage Facilities in the Upper Eagle Valley Detailed list Name Address Town Size (sq. 4.) Avg. Rate ($/sf/yr) Mountain Center Self Storage 910 No4ngham Rd Avon 19,700 $27 CubeSmart Avon 850 No4ngham Rd Avon 28,500 $28 AAA Self Storage 371 Metcalf Rd Avon 30,000 $18 Avon Mini Storage 431 Metcald Rd Avon 16,000 $23 Vail Self Storage Highway 6 Eagle- Vail 19,500 $28 Source: CubeSmart, Published rates, MPG (calls to facilities), Independent market research
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