HomeMy WebLinkAboutminutes.council.20080324Reeular Meetine Aspen Citv Council March 24, 2008
ZGREEN PROGRAM ....................................................................................................... . 2
CITIZEN PARTICIPATION ............................................................................................. . 2
COUNCILMEMBER COMMENTS ................................................................................. . 2
CONSENT CALENDAR .................................................................................................. . 3
• Resolution #23, 2008 -Contract Mazolt Boiler ..................................................... . 5
• Resolution #25, 2008 -Entrance to Aspen Right of Way Amendment ................. . 5
• Resolution #24, 2008 -Lot 3 Adams Subdivision Annexation ............................ . 5
• Resolution #22, 2008 -Concrete Replacement Contract ...................................... . 5
• Minutes - Mazch 10; 2008 .................................................................................... .. 5
ORDINANCE #7, SERIES OF 2008 -Code Amendments ADUs/Non-conforming ..... .. 5
ORDINANCE #1, SERIES OF 2008 - 434 E. Cooper (Bidwell Building) Subdivision. .. 5
ORDINANCE #8, SERIES OF 2008 -Code Amendment- Wildlife Protection ............ .. 6
ORDINANCE #9, SERIES OF 2008 - Extension of S/C/I Moratorium .......................... .. 6
ORDINANCE #10, SERIES OF 2008 -Extension of Commercial Mix/Historic Interio rs
Moratorium ....................................................................................................................... .. 6
ORDINANCE #5, SERIES OF 2008 -Adoption of Housing Guidelines ....................... .. 7
ORDINANCE #50, SERIES OF 2007 -Code Amendment Historic Lot Splits .............. .. 9
ORDINANCE #4, SERIES OF 2008 -Code Amendment S/C/I Zone ............................ 1C
1
Regular Meeting Aspen City Council March 24 2008
Mayor Pro Tem DeVilbiss called the meeting to order at 4:20 p.m. with Councilmembers
Skadron and Johnson present.
Councilman DeVilbiss moved to go into executive session at 4:20 p.m. pursuant to
C.R.S. 24-6-402(4)(b) Conferences with an attomey for the local public body for the
purposes of receiving legal advice on specific legal questions; seconded by Councihnan
Johnson. All in favor, motion carried. Also present John Worcester, city attorney; Steve
Barwick, city manager; Jim True, Special Counsel and Kathryn Koch, City Clerk. Mayor
Ireland came into the meeting.
Councilman DeVilbiss moved to come out of executive session at 5:20 p.m.; seconded by
Councilman Johnson. All in favor, motion carried.
COUNCIL MEETING
Mayor Ireland called the meeting to order at 5:30 p.m.
ZGREEN PROGRAM
Calla Ostrander, canary program, told Council this program is aimed at getting citizens
and businesses involved in the community environmental effort. Businesses can be
certified as ZGreen. There is a computer program where citizens and businesses can
assess their footprint and which suggests ways to reduce it.
CITIZEN PARTICIPATION
1. Peter Fornell told Council said his client would like to convert the commercial
space at 520 East Cooper into 5 retail spaces of 300 to 650 squaze feet each. There is a
commercial moratorium in place. Fornell asked if the moratorium will be extended.
Chris Bendon, community development depaztment, told Council staff is requesting an
extension of the moratorium and suggested Fomell meet with community development
department staff on this proposal.
2. Bill Wiener stated he supports affordable housing and solving the problem in this
community. Wiener said problems cannot be solved by just throwing money at them.
Wiener said many issues need to be addressed simultaneously to take a comprehensive
approach. Wiener said the community needs affordable housing; the growth management
plan exempts affordable housing, however, employees do have an impact. Wiener said
the payments-in-lieu aze unrealistically low and do not include the land costs. Wiener
noted the infill programs adding businesses and people to town is making the employee
program worse. Wiener suggested working on a fix for all the problems and presenting a
solution to the voters.
COUNCILMEMBER COMMENTS
Councilman DeVilbiss noted RFTA has hired new general counsel.
ReEUlar Meeting Aspen City Council March 24, 2008
2. Mayor Ireland announced there is an environmental forum next week
3. Mayor Ireland said at the Apri128th Council meeting, Council will honor the local
sports teams for their victories in various sports.
4. Councilman Skadron said the first meeting of the Historic Task Force took place.
with more than 20 attendees. The task force is working on their by-laws.
CONSENT CALENDAR
Councilman Johnson requested removal of (e); Councilman DeVilbiss requested removal
of (a) and (b) and Mayor Ireland requested removal of (d).
Resolution # 2008 -Golf Course Restaurant Lease.
Councilman Skadron asked if staff did anything to attract other bidders other than the
existing lessees. Councilman Skadron asked the dates of operation. Councilman
Skadron asked for comments on the 50% decrease in the lease payments and well as what
staff meant by "very successful".
Steve Aitken, golf course, told Council the proposed lessees, Rich and Jamie, have been
with Shlomo's operation for two years and have stepped up the operation. Aitken
reminded Council in the last two processes, the lease has been bid out with only one or
two responders. Aitken said a question in the bid process was whether the proposed
lessees would operate in the winter. At the last bid, the other responders said they would
not run the operation in the winter. Aitken said staff feels Rich and Jamie are the best
candidates to do the job. John Worcester, city attorney, noted Shlomo still has one year
with a 5-year option on their existing lease so he can tie the lease up for 6 years.
Aitken said the proposed lease payment went from $20,000 to $10,000. The proposed
operator will provide better hours of operation, earlier in the golf season to mirror the
golf and tennis hours. Aitken noted staff is excited about more hours in the summer.
Aitken told Council the restaurant operation has been a big challenge because of the
hours of operation. Aitkin said the quality of food and the service has increased with
Rich and Jamie. Councilman DeVilbiss said the 50% decrease in rent has not been
thoroughly explained. Aitken said the operation is not a big money maker. Offering
lower rent is in exchange for more hours, earlier in the morning during golf.
Mayor Ireland said the proposal is to accept less rent in return for a guarantee of more
hours, to include winter operation. Shlomo told Council after he got the bid for the
restaurant at the golf course, he opened for breakfast, tried to do dinner, tried apres golf.
These were losing operations because of the overhead and the lack of number of patrons.
The majority of golfers are locals who go home after golf. Shlomo said he worked with
city staff and agreed on less service hours. The lease states the food has to be affordable
Regular Meetine Asoen Citv Council March 24 2008
as a service to golfers. Shlomo noted golf course restaurants are not money making
propositions.
Councilman DeVilbiss requested staff negotiate with the prospective lessees. Council
indicated they want the extended hours. Mayor Ireland said he is inclined to agree there
is not a lot of money to be made because of the price restriction in the lease. Mayor
Ireland suggested staff look at a percentage of gross for 3 years. Helene Slansky,
president of the ladies golf club, noted the extended hours go along way toward making
the golf course a more quality experience. Ms. Slansky suggested Council consider a
shorter lease term to see how the quality of service is. Staff will return with this lease
when ready.
Resolution #23, 2008 -contract Marolt Boiler
Mayor Ireland asked how much in fuel costs this new boiler will save. Tom McCabe,
housing director, said staff anticipates a 30% savings in gas costs/yeaz. McCabe said this
is the 4`h of 4 boilers to be replaced. McCabe said staff will do an analysis after a114 aze
operating. Councilman DeVilbiss asked the life of the new boiler. McCabe said it is 20
years.
Resolution #24, 2008 -Annexation Lot 3 Adams Subdivision
Mayor Ireland asked why the city would want to do this. John Worcester, city attorney,
told Council this is the first of a 3 step process to set the public hearing date and to
determine compliance with state statutes. Councilman DeVilbiss asked if staff knows
what the Guyasuta Seventh Street LLC is. Worcester said there is a title commitment
and staff will have that infonnation before the scheduled public hearing. Mayor Ireland
said he would like to know what are the benefits to the city in annexation by that hearing.
Resolution #22. 2008 -Concrete Replacement Contract
Councilman Johnson asked if this work is within the TABOR question before the voters
in November 2006 or have concrete costs increase so that the city will not be able to get
the work done. Tricia Aragon, city engineer, said the city will be able to do Main street,
Lone Pine and the ADA ramps. Mayor Ireland asked how much concrete has gone up.
Tyler Cristoff, asset management, said since last year the bids have gone up 58%.
Councilman Johnson moved to approve the consent calendaz as amended; seconded by
Councilman Skadron. The consent calendar is:
4
Regular Meetin¢ Aspen City Council March 24, 2008
• Resolution #23, 2008 -Contract Marolt Boiler
• Resolution #25, 2008 -Entrance to Aspen Right of Way Amendment
• Resolution #24, 2008 -Lot 3 Adams Subdivision Annexation
• Resolution #22, 2008 -Concrete Replacement Contract
• Minutes -March 10, 2008
All in favor, motion carried.
ORDINANCE #7, SERIES OF 2008 -Code Amendments ADUs/Non-conforming
Councilman Johnson moved to read Ordinance #7, Series of 2008; seconded by
Councihnan DeVilbiss. All in favor, motion carried.
ORDINANCE No. 7
(Series of 2008)
AN ORDINANCE OF THE ASPEN CITY COUNCIL, ASPEN, COLORADO,
DETERMINING THAT AMENDMENTS TO THE FOLLOWING CHAPTER AND
SECTION OF THE CITY OF ASPEN LAND USE CODE OF THE CITY OF ASPEN
MUNICIPAL CODE: 26.312.030 -NONCONFORMING STRUCTURES -MEET
APPLICABLE STANDARDS OF REVIEW.
Councilman Johnson said for the second reading he would like included in the packet the
minutes regazding an eazlier request on this property from both Council and from P&Z.
Mayor Ireland asked if this code amendment would affect one piece of property. Jason
Lasser, community development department, said as faz as staff knows it will only affect
one piece of property.
Councilman Skadron moved to adopt Ordinance #7, Series of 2008, on first reading;
seconded by Councilman DeVilbiss. Roll call vote; Councilmembers Skadron, yes;
DeVilbiss, yes; Johnson, yes; Mayor Ireland, yes. Motion carried.
ORDINANCE #1, SERIES OF 2008 - 434 E. Cooper (Bidwell Building) Subdivision
Jennifer Phelan, community development department, told Council the applicant requests
a continuance to the next regular meeting.
Mayor Ireland opened the public hearing.
Bill Wiener asked Council not to take any action on a building that might be historic until
after the historic preservation task force has made recommendations to Council.
Regular Meetine Asnen City Council March 24 2008
Councilman Johnson moved to continue Ordinance #1, Series of 2008, to April 14, 2008;
seconded by Councilman DeVilbiss. All in favor, motion carved.
ORDINANCE #8. SERIES OF 2008 -Code Amendment -Wildlife Protection
Councilman Johnson moved to read Ordinance #8, Series of 2008; seconded by
Councilman DeVilbiss. All in favor, motion carried.
ORDINANCE N0. 8
(Series of 2008)
AN ORDINANCE OF THE CITY COUNCIL OF THE CTfY OF ASPEN,
COLORADO, AMENDING CHAPTER 12.08 OF THE ASPEN MUNICIPAL CODE,
SOLID WASTE, WILDLIFE PROTECTION.
Councilman Johnson moved to adopt Ordinance #8, Series of 2008, on first reading;
seconded by Councilman Skadron. Roll call vote; Councilmembers Johnson, yes;
DeVilbiss, yes; Skadron, yes; Mayor Ireland, yes. Motion carried.
ORDINANCE #9. SERIES OF 2008 -Extension of S/C/I Moratorium
Councilman DeVilbiss moved to read Ordinance #9, Series of 2008; seconded by
Councilman Skadron. All in favor, motion carried.
ORDINANCE NO.9
(Series of 2008)
AN ORDINANCE OF THE CITY COUNCIL OF THE CTTY OF ASPEN, COLORADO,
EXTENDING A TEMPORARY MORATORIUM ADOPTED PURSUANT TO
ORDINANCE NUMBER 19, SERIES OF 2006, AND AS AMENDED PURSUANT TO
ORDINANCE NO. 23, SERIES OF 2006, AND AS AMENDED BY ORDINANCE
NUMBER 38, SERIES OF 2006, AND AS AMENDED BY ORDINANCE NUMBER 3,
SERIES OF 2007, AND AS AMENDED BY ORDINANCE NUMBER 2Q SERIES OF
2007, AND AS AMENDED BY ORDINANCE NUMBER 47, SERIES OF 2007.
Councilman Johnson moved to adopt Ordinance #9, Series of 2008, on first reading;
seconded by Councilman DeVilbiss. Roll call vote; Councilmembers Skadron, yes;
Johnson, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried.
ORDINANCE #10, SERIES OF 2008 -Extension of Commercial Mix/Historic
Interiors Moratorium
Councilman Johnson moved to read Ordinance #10, Series of 2008; seconded by
Councilman Skadron. All in favor, motion carried.
ORDINANCE NO. 10
Regular Meeting Aspen Citv Council March 24, 2008
(Series of 2008)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
EXTENDING A TEMPORARY MORATORIUM ADOPTED PURSUANT TO
ORDINANCE NUMBER 51, SERIES OF 2006, AS AMENDED PURSUANT TO
ORDINANCE NO.2, SERIES OF 2007, AS AMENDED PURSUANT TO ORDINANCE
NUMBER 26, SERIES OF 2007, AS AMENDED PURSUANT TO ORDINANCE
NUMBER 37, SERIES OF 2007, AND AS AMENDED PURSUANT TO ORDINANCE
46, SERIES OF 2007.
Councilman DeVilbiss moved to adopt Ordinance #10, Series of 2008 on first reading;
seconded by Councilman Skadron.
Mayor Ireland said he is not sure he wants to do another 6 month moratorium.
Roll call vote; Councilmembers DeVilbiss, yes; Skadron, yes; Johnson, yes; Mayor
Ireland, yes. Motion carried.
ORDINANCE #5, SERIES OF 2008 -Adoption of Housing Guidelines
Tom McCabe, housing department, told Council this ordinance proposes increasing the
payment-in-lieu fee charged for affordable housing mitigation. The housing board
recommends increasing this fee 80% across the board. McCabe noted at first reading,
one question was where the 3,000 square feet came from. McCabe said he has not been
able to ascertain that in his reseazch. McCabe said the housing office has contracted to
do surveys to give information to generate a new set of standards. Staff is having a nexus
study regazding FTE generation and a needs assessment regazding affordable housing and
retirement in affordable housing. Mayor Ireland said after the studies aze done, housing
guidelines should be adopted to reflect the actual cost of construction and land.
McCabe said another question at first reading was what aze the additional costs to do
green upgrades in affordable units. McCabe said it is between $17 and $20/squaze foot at
a minimum. Chris Bendon, community development department told Council payment-
in-lieu is used for many different type of projects, including those just requesting building
permits
Mayor Ireland opened the public hearing.
Bill Wiener said the in-lieu concept is flawed; money is put in the coffers to take care of
housing in the future but the employees are created now. Also the fees do not include
land costs. Wiener stated affordable housing should be built on site when it is required
and if built somewhere else, it has to be habitable when the other project opens. The cost
should be computed on the cost of the last two public affordable housing projects,
including all costs. Wiener suggested a cpi automatic adjustment be in the calculations.
Re¢ular Meetine Aspen Citv Council March 24 2008
Tim Semrau applauded the city's aggressive affordable housing program; however, the
city should be transpazent and cazeful. Semrau noted this change would affect some zone
districts where an ADU cannot be built, like R-15B or where subdivision covenants
preclude it. Semrau said with all city fees, a person could pay the city 35% of the cost of
the new housing. Semrau said this data is based on hazd costs/squaze foot. Semrau gave
Council letters from local affordable housing builders with the cost of building in 2007 in
Aspen indicating the highest cost was $250/squaze foot; the staff memo notes the hazd
costs are $400/square foot. The highest the city has paid is $300/squaze foot at
Burlingame, which included infrastructure costs.
Semrau notes staff's memo indicates the ]and costs aze $305/squaze foot. In 2007, in all
the city's land purchases, the cost for land was $108/squaze foot and the $305/square foot
comes from one purchase in town. Semrau said the city should use the actual land costs
from 2007. Semrau said other components of the calculation include the 3,000 square
foot rule which has no record, no basis other than being in existence for a long time.
Semrau suggested the city look at whether 3,000 square feet creates one FTE. The city's
land use code requires 60% mitigation of employees; this calculation requires 100%. If
that is the city's choice, the figure should be documented. Semrau asked Council to take
their time, do studies and get all the facts. Mayor Ireland agreed the city needs to do the
nexus study and to pin down the basis for using 3,000 square feet. The generation of one
FTE/3,000 squaze foot maybe low. This number does not include the generation of
construction workers to build a house. Mayor Ireland said the city has to include soft
costs and infrastructure in the cost/squaze foot.
Mike Maple agreed raising the housing fee-in-lieu is overdue and there should be a
mechanism to periodically review and update the fee. Maple said the nexus for the 3,000
square feet creating one FTE is incomprehensible and it is hazd to azgue using that
number when no one knows the basis of that number. This should be looked into before
an ordinance is adopted based on it. Maple noted the costs are based on building
department's information on representation from contractors on cosUsquaze foot. Maple
said there is no obligation for contractors to correctly represent what it costs to build a
house when applying for a building permit. Maple said there is little correlation between
the costs of commercial building in Aspen and the costs of building affordable housing in
Aspen. Maple said this seems too hastily constructed. Toni Kronberg encouraged
Council to do more research on this.
Mayor Ireland closed the public hearing.
Councilman Johnson said Council has been having many discussion around affordable
housing, conversion of the housing to second homes, whether all affordable housing
mitigation should be on site, raising the requirement from 60 to 100%, employee
generation, etc. Councilman Johnson said the current cash-in-lieu fee of $69.53 is a
mockery. Councilman Johnson said this fee has to be addressed. Councilman Skadron
said he is unwilling to vote on this with questions on accuracy of the numbers.
Councilman Skadron moved to table Ordinance #5 in order to substantiate the data.
Re¢ular Meetine Asnen City Council March 24, 2008
McCabe said staff is working toward updating those figures. The proposed increase is
from $69.53 to $125.15, which is a substantial increase. Steve Barwick, city manager,
said re-examining the job generation per squaze foot of residential is a large issue.
Costs/square foot for construction and for land is a straightforward issue. Councilman
Johnson said this increase is a better reflection of actual costs of affordable housing than
$69.53.
Councilman DeVilbiss moved to adopt Ordinance #5, Series of 2008, amending the
housing guidelines to set the $125.15/square foot; seconded by Councilman Johnson.
Councilman Skadron asked about substantiating the other components of the housing
program.
Mayor Ireland moved to table Ordinance #5, Series of 2008.
Mayor Ireland said there is data immediately accessible from Clarion as well as a study
from NW COG on job generation/employment/squaze foot. Mayor Ireland stated the job
generation figure of one employee per 3,000 square feet may well be low. Mayor Ireland
said he is leery of the land costs/squaze foot because there are $288, $150 and $901isted
in the memorandum and that average should be weighted by the size of the purchases.
Mayor Ireland said the soft costs, like architecture fees, should be included in the costs.
Mayor Ireland said studies may find that the relationship between job generation and
square footage is not a linear one.
Councilman Johnson asked the relationship between costs of constructing housing and
the cash-in-lieu costs. Mayor Ireland said a lot of questions can be answered by looking
at the studies that have already been done. Mayor Ireland noted the staff's figures
assume one employee/3,000 squaze feet and that maybe low. Mayor Ireland stated the
correct number should be used.
Mayor Ireland moved to continue Ordinance #5, Series of 2008, to April 28"'; seconded
by Councilman Skadron. Councilmembers Skadron and Mayor Ireland, yes;
Councilmembers DeVilbiss and Johnson, no. Motion NOT tamed.
Roll call vote; Councihnembers Johnson, yes; DeVilbiss, yes; Skadron, no; Mayor
Ireland, no. Motion NOT carried.
Mayor Ireland moved to continue Ordinance #5, Series of 2008, to Apri128a'; seconded
by Councilman Skadron. Councilmembers Skadron and Mayor Ireland, yes;
Councilmembers DeVilbiss and Johnson, no. Motion NOT carried.
ORDINANCE #50, SERIES OF 2007 -Code Amendment Historic Lot Splits
Amy Guthrie, community development department, told Council the historic preservation
program has offered incentives since the 1980s. One incentive is on a historic landmazk
site where a single family residence could be located is the opportunity to have two
Reeular Meeting Aspen City Council March 24 2008
detached homes with the same floor area. Ms. Guthrie noted in 1995 this was amended
to allow the two buildings on the same lot to be subdivided and in 2000 this was extended
into Main street, the office zone. Ms. Guthrie reminded Council the office zone was
changed to mixed use and the incentives in the area were changed to not give people
incentives to create new single family houses. Ms. Guthrie said this code amendment
allows a property owner on Main street with a historic property that could be subdivided
into two lots to create a mixed use project on the newly created lot, rather than just a
single family house. Ms. Guthrie said this is more consistent with the direction of the
mixed use zone district. P&Z recommends approval.
Mayor Ireland opened the public hearing.
Junee Kirk urged Council to refer this to this historic task force and have them comment
on this code amendment. The task force is working on context and chazacter for blocks
with historic buildings. Bill Wiener said he is concerned whether the lot is split
lengthwise or crosswise. If these are side by side lot splits, there is visibility on street
frontage.
Mayor Ireland closed the pubic hearing.
Ms. Guthrie said lot spit ordinance does not state which direction a lot has to be split;
however, the idea is to allow people to revert back to the original townsite lot
configuration of longer, skinnier lots. Mayor Ireland said granting lot splits is
discretionary and Counci] could take the configuration into account. Ms. Guthrie said
HPC favors two smaller buildings in many instances rather than one lazge building. Ms.
Guthrie said this could be refen•ed to HPC for their comments; that may be more
appropriate than the task force. Councilman Johnson said there was much public
comments last yeaz about historic preservation and one of the tasks Council gave to the
task force was to look at the incentive program, whether it was sufficient or not.
Councilman Johnson said this is creating an incentive and the task force should be
allowed to comment before Council takes action. Councihnan DeVilbiss agreed it should
be referred to the task force.
Ordinance #50 fails for lack of a motion.
ORDINANCE #4, SERIES OF 2008 -Code Amendment S/C/I Zone
Ben Gagnon, community development department, pointed out the 3 azeas of S/C/I
zoning are on the west of north Mill, the east of north Mill and the Obermeyer property.
Gagnon reminded Council the S/C/I zone is a shelter for uses that aze not commercial
core uses and are uses that the city wants to protect. Gagnon said if this were more free
market zone, uses like a Laundromat, paint or glass contractor would not exist.
Gagnon went over proposed changes. Gagnon noted uses have changed over the past 30
yeazs and once the door is open, it gets opened wider. In the late 1970's martial arts was
allowed, which expanded into physical fitness and yoga and Pilates studios. Staff
10
Regular Meetine Aspen City Council March 24, 2008
recommends a more rigorous approach to the S/C/I district. It is difficult to sepazate
fitness uses and to enforce and physical fitness uses are not consistent with the original
intent of the district.
Gagnon brought up brewery and brewing supplies. Gagnon said this use was added to
S/C/I in 2000. There was an applicant in 2007 who anticipated being able to run a baz-
style on the 25% of the business allowed. Staff did a code interpretation that a brewery
was meant to be a brewery with some tastings. Staff relooked at this and recognized the
language was not definitive and one could make a case that the section that allows 25%
of the business to be retail could be interpreted to allow a limited bar operation with no
limit on consumption. Gagnon said staff does not want bar operations to proliferate in
the future. Staff recommends allowing the Aspen Brewing Company to go ahead with
their brewery and use 25% of its space for a bar use without limit on consumption and to
close at 9 p.m. Staff also recommends tightening up the language not to allow this in the
future.
Gagnon said design studio is an example of what has happened in the S/C/I district. In
the 1980's someone requested opening up an artist studio, which was allowed. An
azchitect made an argument his business was an artist studio, which was also allowed. In
1999, Council established a 9,000 cap on design studio uses in response to having these
uses proliferating. Staff recommends limiting design studio uses to the S/C/I parcel
between North Mill street and the Roaring Fork river, which is where the architectural
uses are located. Staff wants to stop architectural uses which can outcompete the more
traditional S/C/I uses in the other parts of S/C/I. Gagnon said the only other architectural
use outside this pazcel will be allowed to remain as anon-conforming use.
Gagnon said another issue is medical offices. The S/C/I zone is not intended to be the
location for every business that cannot find a good place anywhere else in Aspen.
However, staff feels is medical offices can be added to the S/C/I zone without direct
competition to the more traditional uses and meet the city's task of health and welfaze for
its citizens.
Gagnon said floor area ratio describes how much square footage can land on a pazcel.
Staff proposes before medical offices can be allowed, a certain square footage of
traditional S/C/I uses needs to exist on a parcel. Gagnon noted the amendment proposes
one has to reach .75:1 FAR of S/C/I commercial uses before one is allowed .25:1 FAR of
medical offices. This would allow medical office uses as an "add on". Gagnon said free
mazket housing is allowed at .25:1 FAR only if the bar of .75:1 FAR of traditional S/C/I
uses is achieved. Gagnon noted another incentive is .25:1 FAR of medical offices if
proposed, the free market housing is allowed at .5:1 FAR.
Gagnon said mixed residential and commercial uses can create conflicts than can
compromise the commercial operation in the future. Gagnon proposed any
redevelopment project needs to demonstrate the commercial and the residential uses are
sepazated so the commercial uses have room for loading, for circulation and not
11
ReEUlar Meetine Aspen City Council March 24 2008
compromise the commercial uses. Gagnon noted the definition for coffee roasting
operation needs to be made cleaz it is not a cafe.
Councilman Skadron asked about the special review standard for height and the
additional 5' and would this be a lever to gain additional FAR versus a necessity.
Gagnon said the current code allows a 35' maximum height and allows an increase to 40'
if the additional 5' meets a special review standazd to tie the addition height to the 1 S`
floor of S/C/I uses, like a car repair shop. Gagnon pointed out this would only be
additional height, not FAR. P&Z did not like the additional 5'; however, staff feels that
additional 5' can be useful and the applicant has to show that additional 5' is appropriate
in use of the parcel.
Gagnon said medical offices aze treated separately as a use rather than listed as a
permitted or conditional use. Gagnon said none of the existing pazcels reach a .75 FAR
of S/C/I uses to allow medical uses. Councilman Skadron asked if free market residential
is currently allowed in the S/C/I zone. Gagnon said it is ae a conditional use.
Councilman Johnson asked about the marital arts studios. Gagnon said any business
existing in the S/C/I zone now will be grandfathered and can stay as long as they want.
Gagnon said the owner of a space can replace that use up to one year from when the
business leaves; after that one year, any new business must be conforming.
Mayor Ireland suggested Council consider mandatory operation of business. Mayor
Ireland said he won't vote for a zone district that allows residents to close out businesses
and carry empty space. Mayor Ireland said residential uses should be covenanted against
cross ownership of any other interest in a building. Mayor Ireland said the code ought to
require that the first .75 FAR be devoted to S/C/I uses. Gagnon said this is written so that
one cannot get any free market residential housing unless there is first .75 FAR of S/C/I
uses. Mayor Ireland asked how one could get to 40' with a 2.0 FAR. Gagnon pointed
out the maximum allowable FAR in the zone is 2.25. Gagnon said in order for S/C/I uses
to work, many need a lot of functional interior space, loading and unloading. Mayor
Ireland suggested limiting uses to prevent proliferation of a single kind of business.
Mayor Ireland opened the public hearing.
Kim Scheuer, primazy caze physician, requested primary care medical practices be
allowed in the S/C/I zone sooner rather than later. Primary care means family practice,
pediatrics, internal medicine and obstetrics. Dr. Scheuer said there aze several primary
care practices that are at risk of having to move out of central Aspen. Dr. Scheuer said
their office provides 8,000 visits/year for people who would have to go past the
roundabout, which would increase traffic. Dr. Scheuer noted medical reimbursements are
not directed by location and do not reflect the cost of location; insurance reimbursement
in the same in Aspen as in Delta. Dr. Scheuer said this issue is made worse in Aspen
with the high cost of office space.
Mayor Ireland asked if primary Gaze physicians have difficulty competing for space with
other medical offices. Dr. Scheuer said other types of specialties make enough money to
12
Re ular Meetin As en Ci Council March 24 2008
buy or lease commercial space. Councihman Johnson asked how much space primary
caze physicians require. Dr. Scheuer said they are functioning out of 1200 square feet
and should have at least 2500 square feet. Councihan Johnson asked if Aspen Medical
Care offices are capable of taking caze of all primary care needs of Aspen. Dr. Scheuer
said it is not and their office takes care of thousands of visitors annually as well as
residents.
Bridgette Belinski, administrator Aspen Medical Care, said she understands the concern
about medical offices squeezing out more traditional S/C/I uses. This change, however,
is only for new construction. P&Z supported a 15% square foot change which would
provide immediate relieve as well as capping the use to protect the traditional uses.
Ann Goyette, primary care physician, said the increase of baby boomers and Medicaze
will make the situation with primary caze worse over the next decades. Dr. Goyette
suggested if spaces in the S/C/I zone are sitting empty, they could be leased to primary
care offices. Councilman Skadron asked where the 15% came from. Gagnon told
Council at P&Z, who also struggled with this issue, suggested allowing 15% of every
building in the S/C/I district to have medical office uses. Staff did not agree with that
recommendation.
Ms. Belinski said the primary care offices do not want to be in a position of weighing
their importance against other S/C/I uses; however, there is an immediate need for their
offices. The 15% of the S/C/I suggestion would allow a solution and not drive out
traditional S/C/I uses. Ms. Belinski told Council if they cannot move to S/C/I and have to
move out of their current space, there will be no ob-gyns east of the roundabout. Bill
Wiener said when trying to find a doctor in Aspen, he cannot find one who takes
insurance or Medicaze. Wiener suggested if medical offices aze allowed in S/C/I, they
must take insurance and Medicaze. Wiener asked if staff considered creating new S/C/I
zones, like adjoining the hospital. Junee Kirk suggested eliminating the free mazket
residential in order to get as many needed businesses in the S/C/I zone. Ms. Kirk said the
height should be kept at 35'. Ms. Kirk asked how the pazking in the S/C/I zone would be
handled. Ms. Kirk said this code does not address the issues of character in the zone
district and preserving that character. Councilman Johnson said Council should look at
all challenges faced by the community; it is all one system.
Chris Bryan, representing the Aspen Brewery, reminded Council this was discussed as a
code interpretation amendment in February. Bryan stated his clients are willing to go
with staffl s recommendation that there be no consumption limitation on brewery
products. Bryan said he has also prepared an alternative definition to take caze of the
internal inconsistency as exists in the current land use code. The code allows brewery as
a use in the S/C/I zone, which allows for 25% of the floor azea to be customer reception.
Bryan suggested if Council does not approved unlimited consumption, the definition of
brewery be amended to allow for limited reception of the public and to allow for the
packaging and mazketing of alcohol and non-alcoholic malt beverages. Bryan told
Council when the brewery first applied to community development department, there was
13
Regular Meeting Aspen Citv Council March 24 2008
no mention in the code of the 16 ounce limitation. Bryan said at that time, the brewery
may have chosen to locate in some other zone.
Bryan noted that on-site consumption will not account for a lazge percentage of the beer
produced; however it will constitute a lazger percentage of the revenue. Bryan said when
beer is purchased in bulk, it is at a lower cost, about 1/3 less than purchasing a taste at the
brewery. Bryan noted there were no limitations on consumption in the code when the
brewery application was made. Bryan said the brewery does not want to be a bar; the
land use code defines a baz as selling liquor, wine, food, entertainment, dancing. The
brewery will have none of that. The public area will only be about 400 squaze feet.
Bryan said the brewery will comply with staff's request to close at 9 p.m. nightly and 6
p.m. on Sunday.
Mayor Ireland asked if the servers will have TIPS training. Bryan said they will adhere
to the Colorado beer and liquor codes. Bryan said their goal is to promote a high quality
draft beer for people to taste and to purchase.
Paul Chichester told Council he located this space for the Aspen Brewery. No one was
aware of the consumption limit or the business may have located elsewhere in the city.
Chichester asked staff if the business produced beer in 75% of the space that they could
sell retail in the other 25% and was told that was possible. Chichester said based on that
from staff, the Aspen Brewing company spent money and time creating this brewery
business.
Duncan Klaus, Aspen Brewing Company, told Council they were happy to find the S/C/I
zone which is limited to preserving locally serving businesses and which has lower rents.
Klaus said they wanted to open the Aspen Brewing Company in Aspen rather than
somewhere else in western Colorado. Klaus said there is a difference between a brewery
and a brew pub, which is a bar that makes beer and also serves other alcohol and food.
Klaus told Council he and his partners visited other breweries and their tasting rooms.
Klaus said they want to create an environment where one is in a brewery rather than
separated from the actual brewery. Klaus said they plan to brew as many different beer
styles as possible to appeal to different tastes. Klaus said the beers will change with the
seasons. Klaus noted the tastings aze a major way to promote their company and their
craft.
Councilman Skadron asked why this business requires one to taste 36 ounces of beer.
Klaus said they have not recommended a certain number of ounces; they do not want the
tastings to be limited. Klaus said they reseazched if there is an industry standard
appropriate for tasting. The brewers' association did not have a recommended number.
Councilman Johnson asked to what degree unlimited consumption is required for the
success of an individual's experience in distinguishing the different brews and also to
what degree unlimited consumption is required for the success of a brewery business.
Klaus noted no other brewery in Colorado has a consumption limit, which allows
customers the opportunity to taste however many beers are being brewed.
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Re ular Meetin As en Ci Council March 24 2008
Rocky, previous resident on North Mill street, said this is trying to mess up the S/C/I rule
and those rules should stay in effect. This should stay as a brewery and the zoning should
not be changed. Rocky said making this into a baz would not be good for Aspen. The 16
ounce rule should stay. Ryan Johnson, 117 N. Monarch, said the S/C/I code serves a
great purpose. The S/C/I zone does allow for a brewery and it does not have a rule about
how many ounces are allowed currently. Johnson stated he supports the brewery and
does not support limiting how a locally owned business operates. Brad, owner, said there
is no way to tell how much a tasting is for each individual.
Tom Peckham said a concern of his is the loss of business vitality and he feels that a
brewery is the kind of business this community wants. This has attracted young
entrepreneurs who will help the community. Peckham said he does not think their ability
to make revenue should be limited. Sherry Cutler commended Aspen for having
something like the S/C/I zone; it is a unique tool to maintain a community, which is
obvious from the discussion about medical services and a brewery. Toni Kronberg
recommended Council approve the brewery's request. There is a difference between a
bar and a tasting room. A bar stays open later, has entertainment, and has food. Mike
Jahn, Vine Street, said he is concerned about extending the reach of government into
private businesses. Bill Wiener said the S/C/I district should have uses that operate both
day and night to increase the vitality.
Toni Kronberg asked if the standards of review for zoning change are included in the
packet. Gagnon said they were included in the first reading. Michael Sailor said he is
located next to the S/C/I zone and asked about pazking requirements. If lazge trucks aze
coming in, they need loading zones; customers need pazking areas. Bill Wiener supports
what is being proposed. Wiener said the Roaring Fork River and the trails aze a great
asset. Wiener said buildings should be limited in height so as not to impact the trails and
river experience. Mayor Ireland asked for some graphics on heights allowed on the
Puppy Smith section of S/C/I.
Mayor Ireland closed the public hearing.
Gagnon said there has been testimony about the differences in tasting room and bars.
The problem with the S/C/I zone district is creep; if the door is opened to uses, it gets
opened wider and wider. Staff has tried to be as definitive as possible so applicants are
clear on the allowable uses.
Councilman Skadron said as Aspen has prospered, the zoning regulations have become
more complex. Councilman Skadron said the S/C/I zone should promote a diversified
and stable local economy and provide for the needs of the community. Councilman
Skadron agreed ambiguity should be eliminated from the S/C/I regulations. Councilman
Skadron stated he has reservations about free mazket residential and would favor no free
mazket residential, which changes the characteristics of the zone. Councilman Skadron
said he can support medical offices in the S/C/I zone with conditions. Councilman
Skadron noted he favors lower heights in the zone, as recommended by P&Z.
15
Reeular Meetine Asoen City Council March 24 2008
Councilman Skadron said there should be a limit on tastings, as opposed to no
consumption.
Councilman DeVilbiss stated he does not want bars and restaurants in the S/C/I zone.
Councilman DeVilbiss said he is willing to allow limited tastings. Councilman DeVilbiss
agreed with limiting the heights to 35' in the S/C/I zone. Councilman DeVilbiss stated he
supports allowing medical offices in the zone district and suggested looking at amending
the PUD to allow the medical offices in vacant spaces at Obermeyer Place. Councilman
DeVilbiss agreed with limiting architectural offices in the Andrews McFazlin space and
that martial arts and yoga studios should be removed as a permitted use and the ones
there should be allowed to remain.
Councilman Johnson said he hopes the community is able to make the distinction
between wants and needs. Councilman Johnson said he sees doctor's offices as actual
needs and unlimited on site consumption of beer is a want. Councilman Johnson
requested staff research what other breweries do; there must be a definition on how to
distinguish a tasting room. Councilman Johnson stated he supports a brewery in the
S/C/I zone and would like to assist the brewery in being successful without opening up
the zone to bars and restaurants. Councilman Johnson agreed that residential uses should
not be in the S/C/I zone. Councilman Johnson asked if these code amendments are
cleaning up "S/C/I creep" or are creating more creep. Councilman Johnson suggested
looking at extending the S/C/I zone district within the city. Councihnan Johnson said
medical offices should be allowed now and not wait for redevelopment. Councilman
Johnson said there should be a strict definition to allowed medical offices.
Mayor Ireland said free mazket residences should be allowed if the community gets other
things in exchange for it like space that is empty for more than 6 months to be auctioned
off as S/C/I uses. Mayor Ireland said he would also like a requirement that cross
ownership by the residential space not be allowed. Mayor Ireland suggested the number
of breweries be allowed to 1 or 2. Mayor Ireland said he does not think the city is
capable of regulating the intake of beer. Mayor Ireland agreed the height should be
limited to 35'. Mayor Ireland reiterated he would like visual representations to
understand what 35' means, where is it measured from, what is the natural grade.
Mayor Ireland agreed use creep could be addressed by limiting the number of breweries.
Mayor Ireland said he does not like residential uses along Main street which supplant
commercial uses. Mayor Ireland said limiting medical offices to primary care physicians,
pediatricians, ob-gyns, internal medicine that take walk ins and accept Medicaze and
insurance matches what S/C/I is intended to do.
Bendon recapped Council's direction is to pursue medical offices, limited to primary care
medical office with a definition to include walk in and accepting Medicaze and this could
be allowed in Obermeyer Place. Bendon noted if free market is allowed, there should be
a mandatory occupancy of the commercial space and no cross ownership between free
market residential and the commercial space. Council will consider a 35' height limit
16
Re ular Meetin As en Ci Council March 24 2008
with visual modeling. Staff will research limitations on other breweries and the concept
of requiring liquor license review.
Councilman Skadron moved to continue Ordinance #4, Series of 2008, to Apri128" ;
seconded by Councilman DeVilbiss. All in favor, motion carried.
Councilman DeVilbiss moved to adjourn at 10:55 p.m.; seconded by Councilman
Johnson. All in favor, motion carried.
^~~
Ka S. Koc ,City Clerk
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