Empowering Community Growth

Housing and Air Initiatives Drive Success!

Year One

1% for Housing and Air Report to the Public

Overview

What are we doing and why are we doing it?

Voters in Hailey, Ketchum, and Sun Valley —in May 2023 voted overwhelmingly to split the previous 1% local option tax for Air between Air and Housing. Prior to this vote, Housing was not a permitted use under the local option tax uses.

A Citizens Committee, with representation from all three cities, is providing this report on the collection of the funds resulting from this tax, and their impact on Housing and Air initiatives. This report focuses on the period of July 1, 2023-June 30, 2024, Year One of the initiative as well as some projections for Year Two (July 1, 2024-June 30, 2025).

Note: While all three cities split funds equally between Housing and Air, each city applies the tax to different categories of items such as lodging, alcohol, etc. Please see the info pages for Hailey , Ketchum and Sun Valley for more information.

How were funds used to support Housing Initiatives?

Funds for Housing are managed and allocated by the three cities individually. Each city has a plan for addressing housing and initiatives designed to address the specific needs of their communities and resources available. Please see the housing info pages for Hailey, Ketchum and Sun Valley for detailed information about each city's approach to community housing.

Detailed Reports by

City

HAILEY

Hailey formed a 19 member Housing Committee to provide direction to the City on the funds derived from the 0.5% LOT. The Committee recommended supporting community housing with a combination of initiatives from both Hailey’s General Capital Fund as well as the revenues from the Housing local option tax.

Hailey currently hosts 550 federal income restricted workforce housing units developed over the last few decades from other funding sources. Given available resources, Hailey’s Housing Committee and the City of Hailey prioritized the following projects for use of LOT funds in year one and looking forward to year two:

  1. Continued to negotiate approvals for the addition of community housing with development partners including ARCH and other developers.

  2. Continued the success of incentivizing Accessory Dwelling Units (ADUs, 60 created) and Tiny Homes on Wheels (THOWS, 6 created) via code adoptions and permitting.

  3. Partnered with ARCH to create an ADU/THOW incentive program which includes:

    • $30,000 grant toward a newly constructed ADU

    • $15,000 grant award toward placement of a Tiny Home on Wheels

    • $15,000 grant award to convert a short-term rental into a long-term rental

    • A nine year commitment is required

  4. Partnered with Blaine County Charitable Fund to assist homeowners in arrears on utility bills as a home preservation strategy.

Hailey continues to make progress on housing from blended sources. NEW housing units available, Year One:

  • ARCH Shenandoah: 12 community housing units total (no LOT funds)

  • Lido Apartment Homes: 12 community housing units, 104 total (no LOT funds)

  • ARCH/BCSD, Bullion Street: 5 workforce units total (no LOT funds)

  • Quigley Subdivision: 4 community housing units (no LOT funds)

  • Accessory Dwelling Units (ADUs): 6 units (no LOT funds)

  • Tiny Homes on Wheels (THOWS): 4 units (2 of which are supplemented by Hailey LOT funds)

  • Total Year One: 43 units

Housing units expected to become available, Year Two from other funding sources:

  • Saddle Lofts: 27 community housing units total

  • Star Light Lane: 1 community housing unit, 5 total

  • Quigley Subdivision: 4 community housing units

  • Accessory Dwelling Units (ADUs): 8 units

  • Tiny Homes on Wheels (THOWS): 4 units

  • Sunny Townhomes: 8 units

  • Total projected Year Two: 52 units

KETCHUM

The City of Ketchum has adopted and continues to evolve and implement a multi-year Housing Action Plan. Its vision is to increase access and create and preserve homes for residents at a range of income levels to maintain a thriving local community. Ketchum’s community designed and driven plan takes a holistic approach to address housing and leverages a variety of approaches and initiatives. Ketchum currently hosts 32 federal income restricted workforce housing units (Northwood Place), and an additional 99 income restricted units made available through the density bonus, Lease to Locals and Ownership and Preservation programs.

NEW housing units available, Year One (July 1, 2023-June 30, 2024), with support from Ketchum LOT funds:

  • 15 rentals (five to twelve month leases) added through the Lease to Locals program

  • 3 category Local ownership units* through the Ownership and Preservation Program

  • 21 new community housing, permanently restricted units through the density bonus** program

  • 34 transitional housing units leased by Blaine County Housing Authority and subleased to qualified tenants year round

  • 12 transitional housing units leased by Blaine County Housing Authority and subleased to qualified tenants over the winter ‘23-24

  • Total year one: 85

Housing units expected to become available, Year Two (July 1, 2024 and June 30, 2025), with support from Ketchum LOT funds:

  • 51 new federal income restricted units from Bluebird Village Project

  • 15 new rentals (five to twelve month leases) added through the Lease to Locals

    program

  • 7 new category Local units* through the Ownership and Preservation Program

  • At least 7 community housing, permanently restricted units through the Ketchum’s density bonus**

  • Total projected year two: 80

* Category Local units are properties that have been deed restricted to limit ownership to those living and working full-time in Blaine County through the Ownership and Preservation Program. Read more about this program here.

** Ketchum’s density bonus program (part of the 2014 Comprehensive Plan), provides for additional square footage for development in exchange for affordable housing units deed restricted to households making 80-100% AMI or less.

Highlights of Ketchum Housing Successes from Year One:

  • Awarded (June 2024) $2.5 million grant from the U.S. Department of Housing and Urban Development for gap financing of new construction and acquisition/rehabilitation of community housing to help support Ketchum’s Housing Action Plan.

  • Launched Ownership and Preservation Program, which provides a grant of 15% to 30% of home’s value in exchange for locals-only deed restriction (aka ‘Category Local’).

  • Partnered with Blaine County to fully staff Blaine County Housing Authority and implement the following initiatives and programs:

    • Housing applicant Common Intake Form online in English and Spanish

    • Increased oversight and enforcement on housing qualification and certification

    • Provided quarterly education and networking events

    • Implemented landlord tenant mediation and conflict resolution program

  • Partnered with SPUR Community Foundation and Wood River Land Trust to produce Employee Generation Nexus Study, demonstrating that new market-rate commercial and residential development increases the need for additional community housing.

SUN VALLEY

Consistent with the City’s stated objectives before the LOT campaign was approved by voters, Sun Valley budgeted their Housing funds from LOT to three initiatives in Year One:

  • Employee Assistance (ongoing):

    • $240,000 to Sun Valley City employee assistance for transportation and housing.

    • Currently, 67% of 39 full time employees utilize Sun Valley City employee benefits for either transportation assistance or direct housing assistance (managed through an outside partner).

  • Mid Valley Greenhorn First Responder Housing (completed):

    • Developed in partnership with North Blaine County Fire District

    • Features 8 long term rentals, 100 % occupied.

    • Existing units at Greenhorn under renovation

    • Occupancy is managed by City of Sun Valley and the North Blaine County Fire District.

  • Ellsworth Inn, Hailey:

    • Affordable Workforce Housing developed in partnership with ARCH Community Housing Trust.

    • Rents will be 30% of income

    • Caretaker unit (1) is renovated and occupied

    • Renovation underway for 6 one-bedroom units in Inn; City of Hailey has approved 13 cottages on grounds.

    • City of Sun Valley use of budgeted funds intended to support the original purchase and temporary maintenance of Ellsworth property including all existing buildings on site.

    • ARCH to continue to raise funds to complete the development of the site which will add a total of 19 affordable housing units upon final completion.

How were funds used to support Air Initiatives?

Funds from .5% LOT for Air are allocated by the Sun Valley Air Service Board. The Sun Valley Air Service Board is composed of the Mayors of Hailey, Ketchum and Sun Valley and a non-voting representative of the Blaine County Commission. LOT for Air funds are provided via contracts for service to Fly Sun Valley Alliance (FSVA) for air service support and development and to the Chamber of Hailey and the Wood River Valley and Visit Sun Valley for marketing support.

Note: The amount needed by FSVA for airline Minimum Revenue Guarantees (MRGs) and other air service development costs varies from year to year, depending on financial performance of the flights under MRG contracts. Over the past few years, FSVA has not needed all of its budgeted LOT income for MRG costs so the unexpended funds have gone into reserves. FSVA must maintain reserves to cover unanticipated MRG costs and future service opportunities. In this year and next, FSVA will be using some of those reserves to offset its MRG costs, which is why the amount provided to FSVA by the Sun Valley Air Service Board in Year One is much lower than usual. Also, Sun Valley Company contributes 50% of all MRG costs.

FLY SUN VALLEY ALLIANCE

Received $349,253 in funds from the Air Service Board in Year One.

  1. Increased SUN passenger enplanements by 9% in 2023 and by 13% January-June 2024

  2. Achieved 81% load factor (% of seats filled) on all SUN flights in 2023, and 75% YTD January-June 2024

  3. Expanded ORD (Chicago) flights to run daily in winter, extended summer flights to run May-September

  4. Expanded DEN (Denver) flights to run 2x daily in summer and winter

  5. Extended SFO (San Francisco) and LAX (Los Angeles) summer/fall flights to start in May and run through October

THE CHAMBER OF HAILEY AND THE WOOD RIVER VALLEY

Received $35,000 in funds received from the Air Service Board in Year One. These funds were used for:

  • Production and distribution of The Wood River Valley Guide targeting Southern Idaho and by mail to those outside the area by request, North American, Europe

  • Chamber tourism staff support, marketing and events efforts

VISIT SUN VALLEY

Received $1,238,256 in funds from the Air Service Board in Year One.

Year One funding used to support the following Visit Sun Valley efforts:

  • Marketing & Advertising

    • Targeted nonstop flight markets with added emphasis on expanded Chicago daily winter service

    • Promoted to regional ‘drive’ market (visitors that drive to the area rather than fly), during fall season when nonstop flights taper

    • Worked with national partners to share and promote local life-style stories

    • Focused messages to IKON & Mountain Collective ski/snowboard pass holders

    • Continued to prioritize winter and fall seasons

    • Partnered with local groups to create joint, expanded messaging

  • PR

    • Media Missions: Chicago and Boise

    • Hosted 10+ journalist

  • What Visit Sun Valley Plans to accomplish with Year Two funding:

    • Increase PR spending by 25%.

      • Media missions to Chicago, Denver and Boulder

      • Additional journalist hosting

    • Focus on nonstop air markets with extra attention on the Chicago market

    • Support Sun Valley Company and community in coordinating, and messaging to assure success of Alpine World Cup Finals.

Report Conclusion

The Yes for Housing and Air Citizens Committee appreciates the efforts made towards supporting Community Housing and Air service made by Hailey, Ketchum, Sun Valley, ARCH, Fly Sun Valley, The Chamber of Hailey and the Wood River Valley, and Visit Sun Valley. We also appreciate the collaboration and communication from each of these organizations and their contributions to this report.

We look forward to continuing to report to the public on progress and impact of the funds in the coming years.

Thank you!

—Citizens Committee for Housing and Air

Hailey

Paddy McIlvoy, co-chair
Susan Giannettino
Rick Kapala
Kathryn Graves
Jenni Rangel
Joan Davies

Ketchum
Calista Carter, co-chair
Baird Gourlay
Rachel Wolfe
Barb Figge

Sun Valley
Lisa Stelck, co-chair
Dave Luhr
Alan Stevenson

Molly Page, Campaign Manager
Wendy Jaquet, Campaign Coordinator