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HomeMy WebLinkAboutminutes.council.20080714Regular Meeting Aspen City Council July 14, 2008 CITIZEN COMMENTS ..................................................................................................... 2 PROCLAMATION -Tibetan Week .................................................................................. 3 COUNCILMEMBER COMMENTS .................................................................................. 3 CONSENT CALENDAR ................................................................................................... 5 • Resolution #63, 2008 -Contract -Main Street Sidewalk ....................................... 5 • Resolution #64, 2008 -Contract -Investment Advisory Services ........................ 5 • Minutes -June 9, 16, 23, 2008 ............................................................................... 5 ORDINANCE #19, SERIES OF 2008 -Residential Parking Amendment ....................... 5 ORDINANCE #17, SERIES OF 2008 -Recycling ........................................................... 6 ORDINANCE #18, SERIES OF 2008 -Code Amendment Noise .................................... 7 RESOLUTION #48, SERIES OF 2008 -Puppy Smith Street Conceptual SPA ............... 7 ORDINANCE #l, SERIES OF 2008 - 434 East Cooper (Bidwell) Subdivision .............. 7 RESOLUTION #65, SERIES OF 2008 -Aspen Club Conceptual SPA/PUD ................ 10 1 Regular Meeting Aspen City Council July 14, 2008 Mayor Ireland called the meeting to order at 5:00 p.m. with Councilmembers DeVilbiss, Johnson, Romero and Skadron present. CITIZEN COMMENTS 1. Marilyn Marks stated she supports the request from Jim Perry for an independent investigator on Burlingame. Ms. Marks said people should stop talking about this as a brochure or language error. This appears in newspaper and TV records as well. Ms. Marks said it would be appropriate to address what caused the break down in communications and to have incorrect information. Ms. Marks said voters need to be able to rely on voter information materials with confidence. Ms. Marks said until the voting public can rely with confidence on the city's system and by the city figuring out and understanding exactly what went wrong, the city's credibility will have a hard time recovering. Ms. Marks suggested one way to regain the public's confidence is to bring in independent legal counsel and have them do a full examination to clear the air. Ms. Marks noted she attended the work session on the work to be done to accomplish a ballot issue on Burlingame for November. Ms. Marks said she attended a meeting of the construction experts group and feels there is not an efficient development plan for Burlingame phases 2 and 3, the total number of units, categories or design is not known. Ms. Marks said it seems unrealistic to have a careful plan to meet the deadlines for a November ballot. Ms. Marks said the city needs to have a well communicated plan that has the support of the citizens. 2. Andrew Kole reminded the community the Theatre Aspen is going on and the new season is great. Mayor Ireland said the city has been asked for a special prosecutor to investigate the Burlingame issues. Mayor Ireland noted there are two on-going audits. Mayor Ireland asked if Council wants to consider this request. Councilman Romero said regarding a separate investigation to investigate how the city got to where it went on the brochure, he is not interested in laying blame or point fingers on that activity. Councilman Romero said his goal is to try and get to lessons learned. Councilman Romero said he feels an investigator would be disruptive and divisive and damage the mutual respect that should be part of the community. Councilman Romero said he believes the city is seeing the communication errors and inconsistencies of information and the lack of a plan as to how the city communicated with the citizens. Councilman Romero said he does not see additional benefit in an independent investigator and is more focused on the lessons learned. Councilman DeVilbiss asked when the results of the two audits will be available. Steve Barwick, city manager, said the performance audit will be complete and available at the Burlingame open house. Barwick said the financial audit will be available at the end of July. Councilman DeVilbiss asked what a performance audit is. Barwick said one purpose is to look at the brochure, how it was produced, who produced it and what was trying to be communicated. The performance audit is also looking at the models used for affordable housing, the developer model used for Annie Mitchell and Burlingame, 2 Regular Meeting Aspen City Council July 14, 2008 looking at the contracts used. Barwick told Council the performance auditors will be looking at the skill sets the city should look for in the development team and what skill set the city staff should have. Councilman DeVilbiss asked about the financial audit. Barwick told Council this is being done by McMann and Associates, the city's annual auditor who will be looking at the expenditures for Burlingame and they should be able to tell how much was spent and the categories in which the money fell, infrastructure, Shaw contract, etc. Councilman DeVilbiss said in light of these on-going procedures, he does not see the need for the appointment of any additional level of outside assistance. Councilman Skadron concurred with Councilman DeVilbiss. Councilman Johnson agreed he is not ready to look for scapegoats. Mayor Ireland said he does not support this and has a written statement which says it is a mistake to criminalize the election process and information cited that later proves to be erroneous. Mayor Ireland said that should not be subject to criminal prosecution. PROCLAMATION -Tibetan Week Mayor and Council proclaimed the week of July 26 as Tibetan Week and welcome the Dalai Lama and his message of mutual understanding, respect and unity to the citizens of Aspen. COUNCILMEMBER COMMENTS 1. Councilman DeVilbiss reported he attended the American Power conference in New Orleans. The City of Aspen was received the Pioneer Award in recognition of the city's efforts to use more wind power, making a greater percentage of the city's power renewable; Aspen was recognized by APPA and by the Department of Energy. 2. Mayor Ireland congratulated the Boogie's Buddy 5 race, the participants and the volunteers. Mayor Ireland said it is a great cause and Boogie, Lennie Weinglass, picks up all the costs so all the proceeds go to the non-profit. 3. Mayor Ireland said the resolution regarding Burlingame single-family lots will be deferred until everyone can agree. Mike Maple said some of the revisions to the Burlingame single family housing are well intentioned but need further clarification. Maple stated he believes in r/o housing, which is under appreciated and badly needed. Maple said he does not feel the caps should be eliminated for these units; there are some limits on income or assets so it would be counter productive to eliminate caps. Maple said the value of homeowner's sweat equity often exceeds the value of materials or outside contractors. Maple said sweat equity at Burlingame seems to be disregarded by this resolution. Maple agreed sweat equity is difficult to calculate in order to establish value but it should not be ignored. Mayor Ireland said staff will be reviewing all these issues before it comes back to Council again. Regular Meeting Aspen City Council July 14, 2008 Si Coleman said he is reading a book about investment advisory services and the book states never take advice from someone who wears ties. 4. Councilman Skadron asked about the sidewalk improvements for Main street and the proposed cost of $336,000; how does that fit with the TABOR approved question. Tricia Aragon, city engineer, told Council the original design was $500,000; the city found an alternate material, which reduced the cost of the project and still meets the project goals. Adam Trzcinski, engineering department, said any monies will be returned and can be used for other TABOR projects. Don Taylor, finance department, told Council the proposed contract for investment advisory services is with MBIA who has a division located in Denver and who has been in the businesses for over 20 years. MBIA provides investment advisory services on securities the city might purchase in compliance with the city's investment policy. Taylor noted the RFP did not include questions about attire. 5. Councilman Romero reported on the Lift One COWOP which has been meeting weekly. They are analyzing initial concepts to line up with the goals adopted by the entire COWOP. Councilman Romero said the next few weeks will be how the overall goals are translated to the drawing board and design themes. 6. Councilman Romero announced he and Councilman Skadron attended the RFTA board meeting. Councilman Romero said the Council received a report from the citizen budget task force subcommittee on transportation and fiscal policy, which was forwarded to RFTA. Councilman Romero said there is a plan to ask valley voters for a bond funded by an increase sales tax rate, which in Aspen will be .4% and will be used to purchase new buses and new technology to make bus riding more convenient and more reliable. Councilman Romero said RFTA is waiting to hear about being able to apply for small start federal funding. 7. Councilman Romero noted the construction experts group has been meeting with Steve Barwick, city manager, in an effort to look at Burlingame, specifically, and globally looking at the city's delivery of capital projects. This group is looking at a possible increase in density at Burlingame and making recommendations to the city on means and methods of construction delivery. 8. Councilman DeVilbiss said he attended the CORE meeting; there has been talk of a merger between CORE and New Century Transportation or New Energy Partnership or CLEER. Councilman DeVilbiss said there are issues to be worked out. 9. Mayor Ireland thanked the citizens' budget task force for recommendations the city hopes to implement on Burlingame. Mayor Ireland said Council received reports from the subcommittee on transportation and there is a lot of enthusiasm for rail as opposed to BRT. Mayor Ireland noted the subcommittee on transportation will be asked to participate in a project to evaluate transportation development in the valley. This will be a lengthy process. 4 Regular Meeting Aspen City Council July 14, 2008 10. Mayor Ireland said he attended another CDOT meeting and there is no money for any Entrance to Aspen projects. The Maroon Creek bridge was one of the last large projects to receive funding. 11. Mayor Ireland said he is participating in the Lift One COWOP and the process is going well and the COWOP wants a "lights on" neighborhood with better access to skiing, and one that creates more vitality and preserves the historic character. CONSENT CALENDAR Councilman Romero moved to approve the consent calendar as amended; seconded by Councilman DeVilbiss. The consent calendar is: • Resolution #63, 2008 -Contract -Main Street Sidewalk • Resolution #64, 2008 -Contract -Investment Advisory Services • Minutes -June 9, 16, 23, 2008 Marilyn Marks said as staff is working on the single family lots and thinking about Burlingame phases 2 and 3, homeowner association approval maybe needed for increased density and suggested the owners of the single family lots be asked to vote with the city on this increase density. All in favor, motion carried. ORDINANCE #19, SERIES OF 2008 -Residential Parking Amendment Tim Ware, parking department, told Council this amends Section 24 of the municipal code to allow up to 2 hours of free parking per day in residential zones within 3 blocks of the commercial core. Ware told Council in concert with this, staff will bring back a contract for license plate recognition and for pay stations to dispense day passes. Ware noted the license plate recognition will minimize the need for personnel for enforcement resulting in a savings in personnel. Ware stated balancing out expenses and net revenues from the sale of day passes, the new net revenue should be about $250,000. Ware said staff wanted to make sure the bus lanes were in place before this parking restriction was implemented. Councilman Skadron asked staff to comment, for second reading, on the increased invasiveness of license plate recognition over the chalking system. Mayor Ireland asked where the increased revenues goes. Ware said after the parking garage costs and parking department costs are covered, the revenues go to alternative transportation. Councilman DeVilbiss moved to read Ordinance #19, Series of 2008; seconded by Councilman Romero. All in favor, motion carried. 5 Regular Meeting Aspen City Council July 14, 2008 ORDINANCE NO. 19 Series of 2008 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING SECTION 24.16.180 OF THE MUNICIPAL CODE OF THE CITY OF ASPEN TO AMEND TIME RESTRICTED PARKING WITHIN THE RESIDENTIAL ZONES. Councilman DeVilbiss moved to adopt Ordinance #19, Series of 2008, on first reading; seconded by Councilman Romero. Roll call vote; Councilmembers Romero, yes; Skadron, yes; Johnson, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #17, SERIES OF 2008 -Recycling Ashley Cantrell, environmental health department, reminded Council the recycling ordinance adopted in 2005 had a sunset provision to allow staff and the community to see how recycling worked, what the concerns were and see if they want to make any amendments. Ms. Cantrell recommended the exemption for commercial customers who self-haul cardboard be discontinued. Only 3 customers availed themselves of this and they will be grandfathered. Another exemption to be deleted is separate cardboard by a different hauler. Ms. Cantrell said no one used that exemption. This ordinance requires reporting bi-annually instead of annually so the data will be more current and less anecdotal. Councilman Skadron moved to read Ordinance #17, Series of 2008; seconded by Councilman Romero. Councilman Skadron asked ifreporting bi-annually is going to increase costs on the haulers. Jannette Whitcomb, environmental health department, said staff met with the haulers and went over this amendment. Staff did not get negative pushback from the haulers. Ms. Whitcomb said it will be easier for haulers to remember the data if they report twice a year. Mayor Ireland stated he does not see a benefit in more reports. All in favor, motion carried. Ordinance NO. 17 (Series 2008) AN ORDINANCE AMENDING CHAPTER TWELVE OF THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO TO ENCOURAGE RECYCLING BY BUSINESSES AND RESIDENTS Councilman Romero moved to adopt Ordinance #17, Series of 2008, on first reading; seconded by Councilman DeVilbiss. Roll call vote; Councilmembers Johnson, yes; Skadron, yes; DeVilbiss, yes; Romero, yes; Mayor Ireland, yes. Motion carried. 6 Regular Meeting Aspen City Council July 14, 2008 ORDINANCE #18, SERIES OF 2008 -Code Amendment Noise Ashley Cantrell, environmental health department, told Council the municipal code has contained sections on noise variances for special and athletics events. When the code was amended to move the noise associated with construction to another section, the section regarding noise variances was inadvertently deleted. This deleted section allows for events open to the public to exceed the zone district noise levels. This ordinance replicates the deleted languages. Ms. Cantrell noted when an event comes to Council or the special events committee for a noise variance, conditions can be added like time limits, decibel limits or requiring noise readings. Mayor Ireland said the city needs to look at some suggestions for a future ordinance, like lowering the allowable decibel level or requiring the noise to cease earlier. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Johnson moved to adopt Ordinance #18, Series of 2008, on second reading; seconded by Councilman Romero. Roll call vote; Councilmembers DeVilbiss, yes; Skadron, yes; Johnson, yes Romero, yes; Mayor Ireland, yes. Motion carried. RESOLUTION #48, SERIES OF 2008 -Puppy Smith Street Conceptual SPA This application is being withdrawn by the applicants. ORDINANCE #1, SERIES OF 2008 - 434 East Cooper (Bidwell) Subdivision Jennifer Phelan, community development department, told Council the applicant has presented solutions to comments heard from the public and from Council at previous meetings. The applicant proposes a public amenity space of 1,000 square feet on the corner of Galena and Cooper. The applicant proposes more commercial space than the original application. The original application had a 3 story building with a story of underground parking. The applicant now proposes basement commercial space, 1St floor commercial space with some commercial space on the 2°a floor. Ms. Phelan noted there is a reduction from 3 free market and 3 affordable housing units to 2 free market and 2 affordable housing units located on the 2°d and 3ra floors. There has been a reduction in height and mass of the building; the third floor has been setback from the property line to reduce the visual impact. Ms. Phelan said the applicant requests feedback from Council on this proposal and if it is going in an appropriate direction, the applicants will go back to HPC for conceptual development approval and to P&Z before coming back to Council for subdivision review. Ms. Phelan presented exhibit Q, two public comments and exhibit R, additional renderings, for the public record. Chris Bendon, community development department, said because of the scope of the proposed changes, Council should remand this project back to HPC and P&Z. Ordinance #1 is still active; however, Council should get fresh recommendations from their boards. Bendon noted the applicants have been responsive 7 Regular Meeting Aspen City Council July 14, 2008 to comments they heard at the public hearing and from Council. Mayor Ireland asked what has been eliminated to make this project smaller. Bendon said there is a reduction from 6 residential units to 4 residential units, 2 free market and 2 affordable units. Councilman Skadron asked the ratio of affordable units to free market units in the original project and in this proposed project. Ms. Phelan said this is very conceptual and she does not know that ratio; the project is changing and this can be answered when the project returns to Council. Mitch Haas, representing the applicant, told Council they are looking for direction, not an approval. They are satisfied with a remand to HPC and P&Z. Haas said they do not have all the numbers required for an approval. John Rowland, architect, told Council they heard objections to the project about scale, mass, height, and lack of pedestrian amenities and retaining a western vernacular. Rowland present studies on how to address the pedestrian amenities and to address the 9,000 square foot lot with 6,000 and 3,000 square foot segments and how the project will be integrated into the public square concept. Rowland presented an overview of the existing building and the proposed open space. Rowland said there will be no underground parking but will be commercial space in the basement with light wells for those spaces. There will be 2 parking spaces on the alley. There are smaller commercial spaces on the first floor. There will be 2 commercial spaces on the 2"d floor, a free market unit, and 2 affordable housing units. The upper floor will have only one free market unit. The building cascades toward the rear with setbacks from the street and from the mall. Rowland presented sections of the proposed project. Rowland said they will use reclaimed brick from the existing building and will use wood to create more of a western vernacular. Slides presented the view looking down on the building; a slide with the current view from Paradise bakery, this new design superimposed and the previous building superimposed. Haas said they have proposed major changes to respond to the concerns heard at the public hearing. Councilman Romero said he feels the changes, reduction in overall height and mass and providing an amenity space and reduction in the overall square footage are movements in the right direction. Councilman Romero said the applicants should not forget about the complexity of construction management plan and the impacts to existing tenants and to the adjacent building and their tenants and the town's guests. Councilman Romero requested the applicants think about physical impacts, economic impacts and that this site is center of town. Councilman Skadron said he feels this design is closer to what he wanted to see in western vernacular. Councilman Skadron said he like the airiness of the design and that he feels relieved when he looks at the building rather than being imposed upon. Councilman Skadron said it is a movement in the right direction. Councilman DeVilbiss said this design is in motion and it seems to be in a favorable motion. Councilman DeVilbiss would favor remanding it to P&Z and HPC. 8 Regular Meeting Aspen City Council July 14, 2008 Councilman Johnson said his objections were based upon the project encouraging other property owners in this square to redevelop their properties and the impact that would have on the open space. Councilman Johnson said this design is better but does not sufficiently address that concern. Councilman Johnson stated this proposal, while scaled down, is not scaled down enough to not encourage the other property owners to redevelop their properties. Mayor Ireland asked where the owners of the 4 proposed residential units will park their cars. Haas said there are ways to deal with this; purchasing parking passes; purchasing garage passes. Mayor Ireland asked if the affordable housing units face the alley; Haas said yes. Mayor Ireland opened the public hearing. Terry Butler, adjacent business owner, said Council should vote this proposal down and require the developer to remodel within the existing walls rather than demolish 1/3 of a block. Ms. Butler told Council her business, the Residence Hotel, sleeps 24 people. Ms. Butler said there is a lot of concern about the negative impacts of tearing down this building and how it will affect Aspen. Ms. Butler said the developer should be required to do an environmental impact study to address the concerns of the EPA especially for asbestos removal and release of bacteria during demolition. Ms. Butler said the town and neighbors will be negatively affected by construction traffic, heavy equipment and over sized vehicles. Ms. Butler said excavating deeply can cause foundations of neighboring building to erode. Ms. Butler said the developer needs a construction management study, where materials will be delivered and stored, advanced warning to neighbors when loud and dangerous construction will occur. Ms. Butler said there will be 24 hotel guests sleeping adjacent to this construction and the guests will not want to sleep next to jack hammering or have to evacuate because of construction dangers, dust or debris. Ms. Butler said her hotel will probably have to shut down. There has never been a construction project this large in the center of downtown Aspen. Ms. Butler said this will take 3 or 4 years. Ms. Butler said she has legal rights to be able to conduct her business and to be protected. Toni Kronberg said she has lobbied for conceptual approval so that property owners do not have to go through the laborious process with a project that does not garner community support. Ms. Kronberg noted this is a unique corner in Aspen and the only corner like it. Ms. Kronberg said this is a historic district and the 3rd floor will take away historical views. Ms. Kronberg said if this had been designated historic the owner would have the right to sever development rights through TDRs. Ms. Kronberg suggested this project mirror the Paradise Bakery, keeping the historic rooflines and keeping the building in context. Mike Russo, tenant Aspen International Realty, said there are currently 5 parking spaces in the alley, 2 of which they use. Russo said he does not feel there is a not high demand for sub grade commercial space and subtracting that space does not leave a lot of commercial space in the building. Russo said remodeling this building would be an 9 Regular Meeting Aspen City Council July 14, 2008 impossibility. Russo pointed out there are 5 locally owned business in this building and with the new plan, the rents will become so high that there will only be national chains in this building. Patrick Sagal said he is pleased to see the applicants have listened to the community and presented open space and setbacks. Sagal said this need to be a 2 story building. Mayor Ireland closed the public hearing. Councilman Romero moved to remand Ordinance #1, 424 E. Cooper, Bidwell building subdivision back to HPC and P&Z as described in the staff presentation; seconded by Councilman DeVilbiss. Councilman DeVilbiss stated the changes are so substantial; he could not pass or deny this ordinance. Councilman Skadron asked Ms. Butler if all the construction mitigation issues were addressed could she support the project. Ms. Butler said the project is oversized for this site. The current open space is about 25% of the building and they are offering 5% of what exists. Ms. Butler said this is the last existing example of old western architecture. All in favor, with the exception of Councilman Johnson. Motion carried. Bendon noted the tentative schedule for this is review at P&Z August 19th and HPC September 10th or 24th RESOLUTION #65, SERIES OF 2008 -Aspen Club Conceptual SPA/PUD Councilman DeVilbiss stated he was a member of the Aspen Club for a long time and the club was very important. Councilman DeVilbiss stated he stopped going when he realized this application would be coming to the city. Councilman DeVilbiss said Council should not recuse themselves lightly but he will recuse himself if the staff or applicant requests. John Worcester, city attorney, noted under the Charter, Council are required to vote on every matter unless a member has a conflict of interest, which is defined as a personal or financial interest in the matter. Michael Fox, applicant, stated he has no objection to Councilman DeVilbiss voting on this application. Mayor Ireland stated he, too, was a member of the Aspen Club and goes to bicycle classes. Mayor Ireland said he does not feel that constitutes a conflict of interest. Fox said he has no objection to Mayor Ireland voting on this application. Councilman DeVilbiss asked if the applicant is represented by counsel. Fox said he is working with Poss Architects and Sunny Vann. Jessica Garrow, community development department, presented exhibit M, additional public comment received after the packet was produced. There was an e-mail from Gary Rappaport sent to all Council members and not part of this exhibit M. Ms. Garrow went over the history of this site, which was first approved as part of the Callahan subdivision PUD in 1976 originally 161ots. Lot 15 was designated as the Club 10 Regular Meeting Aspen City Council July 14, 2008 facility; lot 14A was designated as a parking facility with access to the Club by a footpath over lot 14. The Club was built in 1977. There have been changes to the PUD to allow the Club to increase and to change lot 14 to a residential use. Lot 14 was intended to be part of the Club but was divided into 2 single family residential lots. The PUD was amended in the 1990's to add parking and access off Ute Avenue. Ms. Garrow said lot 15 is zoned 1tR/PUD and lot 16, which is to the west and the Benedict office building, is zoned RR/PUD/SPA overlay. The rest of the Callahan subdivision is zoned R-15/PUD and includes single and multi-family residences. Ms. Garrow told Council currently there are 35 parking spaces on lot 14A, 56 spaces on lot 15, 5 outdoor tennis courts, one of which is under a bubble. There is the Aspen Club spa building with outdoor deck, a trail crossing the property, and the 100 year flood plain is below that trail. There is a upper bench which has the club and parking facility; the lower bench is adjacent to the river and contains 4 tennis courts. There is a 8 to 14' grade change on the property. The proposed project retains the trail, adds 12 affordable housing units, 20 time share units divided into 14 townhomes and 6 flats added to the Club building. There will be 42 more parking spaces, bringing the total for the project to 133 parking spaces. There will be an underground parking garage and some short term parking near the affordable housing units. Ms. Garrow said this is a healthy living proposal to create an integrated healthy living community that fractional owners, members and the general public can participate in. Health and wellness programs will be offered throughout the year. This proposal has been accepted into the LEED for neighborhood development pilot program. Ms. Garrow noted an amendment to the PUD is required because there is an existing PUD and changes are requested to the dimensional requirements and to the underlying zoning. There are 2 requests for setback variances; one is front yard setback adjacent to Ute Avenue from 30' to 7.5' and east yard setback adjacent to Silver Lining Ranch from 20' to 3' for the affordable housing. There is a request for a west side yard setback variance from 20' to 10' to allow fire department egress from the upper bench to the lower bench. Ms. Garrow said there is an SPA, specially planned area review, which enables changes to the uses on the property. This SPA is required to allow construction of affordable housing and time share units. There is also a review of the time share units; commercial design review, which was granted by P&Z. Ms. Garrow told Council the purpose of conceptual review is to evaluate the suitability of a development project, to review proposed land uses, use mixes, access and infrastructure issues before a full development proposal is brought forward. A conceptual review allows identification of questions and concerns. This review allows Council to identify threshold issues relating to the appropriate mass for the site, affordable housing density, 11 Regular Meeting Aspen City Council July 14, 2008 access points, parking, comments on site planning and design. Ms. Garrow noted Council must determine there is a public benefit created by an SPA designation. Ms. Garrow cited, "any land in the city may be designated specially planned area by the city Council if, because of its unique historic, natural, physical or locational characteristics, it would be a great public benefit to the city for that land to allowed design flexibility and to be planned and developed comprehensively as multiple use development". Ms. Garrow said the applicant has outlined why they believe the application creates a public benefit, including programming open to the public and on-site affordable housing. Ms. Garrow said an SPA allows variations to uses on property. The applicant needs an SPA to allow timeshare and affordable housing uses. The property is zoned RR/rural residential. Ms. Garrow said this is zoned RR as that is the only zone district that allows a recreation club. Ms. Garrow said the proposal is consistent with the uses and this is a unique site that offers a variety of opportunities. Ms. Garrow noted Council should consider whether the proposal is compatible with the surrounding land uses, the density, height, mass, scale and open space. Ms. Garrow said it is important to look at the relationship between the development and the riparian area. There are no protected views planes and it will be important to retain a riparian corridor from the center of the site. The applicant has proposed affordable housing on site equal to 150% of the requirement. The proposal would generate 31 FTEs and will provide affordable housing for 27 FTEs and a code required mitigation of 18.6. Ms. Garrow said staff feels this project meets a number of goals of the AACP -affordable housing, economic sustainability, arts, culture and education. Ms. Garrow noted the economic sustainability section of the AACP recognizes "local ownership of businesses helps maintains our community's unusual character, tends to return more money to the local economy and provide additional opportunities forward mobility". Ms. Garrow said a stated goal of this proposal is to provide a new health and wellness opportunity for residents and visitors and to use the money raised by the sale of timeshare units to subsidize programs for locals. Ms. Garrow noted the AACP also states as a goal "to preserve and enhance and restore the natural beauty of the environment of the Aspen area". Ms. Garrow said the changes made in the application help enhance the riparian area on site. AACP asks that development "retain and encourage an eclectic mix of design styles to maintain and enhance the special character of our community". Ms. Garrow said the ideas for the health and wellness facility are good goals. Ms. Garrow said the transportation management plan will encourage people not to use their automobiles. Ms. Garrow said there is a concern that the mass of development on the lower bench may detract from the riparian but at conceptual it does meet the SPA criteria. Ms. Garrow noted staff has concerns that the architecture is repetitive and does not reflect the health living mission of the club and would like to see the connection with the riparian area. Ms. Garrow said this application meets all the criteria for timeshare. 12 Regular Meeting Aspen City Council July 14, 2008 This proposal meets the conceptual review criteria for SPA, PUD and timeshare. Staff recommends approval at the conceptual level and believes Council should address the scale and mass of the project related to the riparian area. Ms. Garrow pointed out two changes to the resolution; one is to transportation management plan and staff would like it to address pedestrian access from the affordable housing units to Ute Avenue and that the applicant meet with staff to work out the details of the trip generation study and that the crosswalks and speed bumps on Ute Avenue meet the criteria of the engineering and transportation departments. Ms. Garrow said the applicant should address the quality of service standards as well as the frequency. Ms. Garrow presented the project on sketch up showing existing conditions, the proposal, and location of the affordable housing, the townhome time shares, the existing tennis courts, and the view from across the river. Mayor Ireland asked if trees and vegetation will be removed. Ms. Garrow answered trees do need to be removed and the applicant will work with the parks department. Ms. Garrow showed the existing view from Ute avenue and the proposed project as seen from Ute Avenue. Councilman Skadron asked about a transportation study on Ute avenue. Ms. Garrow noted a study was done in 2005, which is in the application. Councilman Skadron asked if the creation of the Aspen Club results in no growth on Ute avenue. Ms. Garrow said the traffic study of 2005 shows an increase of 10 cars. Staff is asking that this study be re done and that the applicant meet with staff before it is done to go over the parameters of the study. Tricia Aragon, city engineer, said staff does not think 20 timeshare/40 keys and 12 affordable housing units will result in only 10 more trips/hour. Michael Fox, applicant, told Council he has spent the last year and a half working and this project, responding to concerns and questions raised by staff, by P&Z, and by the community, to get to this proposal. Fox stated the Aspen Club is an important asset to this community and the applicants are dedicated to find a way to preserve and enhance the Club for the future. Fox said Aspen is losing many community assets. Fox said this proposal is a practical attempt to maintain an expensive and resource-intensive business with the least negative impact. The Aspen Club has been a part of Aspen for over 30 years. Fox said the Club employs over 200 people, has over 1900 members, of which 70% are full time Aspen residents. The Club sees thousands ofnon-residents for therapy, classes and programs. Fox stated what happens to the Club affects a lot of people in this community. Fox said many ideas of this proposal come from outside the Club team, like more affordable housing, alternative transportation. Fox said the Aspen Club adds value to the quality of life in town. Fox said the proposal is integrated with the ideals of the Aspen Area Community plan; transportation, housing, managing growth, sustainable economics and arts, culture and education. The Aspen Club is committed to reducing their carbon footprint and to being a leader in the canary initiative employing wide ranging technologies including geothermal heating and cooling, solar photovoltaic and heating, better insulation. Fox said the transportation plan will reduce traffic and create a safer street. Fox noted the project proposes on site affordable housing for 27 employees in 12 two-bedroom units. The project will provide better jobs for employees helping to sustain long term 13 Regular Meeting Aspen City Council July 14, 2008 employment. This proposal will allow investment in the Club and upgrading the facilities. Fox presented a view of the Aspen Club from the Ute trail with the parking, the buildings and the river. Fox showed the previous proposal and noted that the size has been reduced 10% and the overall FAR is less than when they started. Fox pointed out the entrance to the Club for the new project. Fox showed the view from across the river, the proposed outdoor pool, a landscape feature to connect the affordable housing units to the river, which provides open space around the housing units. Fox noted the last review of the Aspen Club; the concerns were not about the project but about the impacts to the community. Fox said this plan will better serve the members, employees and the community. Fox reiterated the sales of the timeshare units will pay for the upgrades to the Club, the affordable housing units, keep membership dues affordable and subsidize the clean energy initiatives. The upgrades include an outdoor pool, new locker rooms, exercise studios with updated equipment, and additional classes. Fox said the community benefits to justify the SPA designation will be providing a wide range of public benefits. The on-site affordable housing will eliminate the daily commute for employees who will live in Aspen and become part of the community. The Aspen Club will continue to support local non-profits, hosting Project Graduation and helping local athlete train. Fox said an issue that has come up is why there are 20 units and why are these fractional. Fox said the team studied the site and cam up with a design that fits comfortably on the site. The number and size of the units balances the needs of the Club, the members and the residences. Fox stated fractional fee units, rather than whole units, are a compromise to maintain energy and vitality, to have people taking advantage of the Club year round. Fox stated a goal is to decrease traffic on Ute avenue. The applicants have worked with the neighbors on this issue and safety on Ute avenue is a concern. Fox pointed out the applicant proposes items that address traffic and safety; improvements to Ute avenue with speed tables and crosswalks; traffic mitigation with expanded shuttle service, use of electric vehicles, car and bike share programs, paid parking at the Club, expanded employee bus passes and car pool programs. Fox told Council they will track this plan to make sure the goals are being achieved. Baseline traffic conditions are being established with which to compare this plan. Fox said the upgrades to the Aspen Club will have many positive benefits with few negative impacts. Councilman Romero asked if approval is granted, how will the public be assured that the improvements and community programs will remain and have a lasting effect. Fox said there is a struggle to balance the high cost of real estate with community benefits. Fox said they are trying to create a way to maintain the Aspen Club, what is a value to the community is the Club itself. Councilman Romero asked if the homeowners' association ownership structure will reflect some form of control with multi-levels of ownership. Fox told Council part of the purchase documents will have assurances that the Club will 14 Regular Meeting Aspen City Council July 14, 2008 remain. Councilman Romero encouraged the applicants to consider how to address the permanence piece so the city has a greater level of confidence on that. Councilman Johnson said it seems the applicants does not have any method in place to guarantee the Aspen Club will be kept in operation. Fox said the nature of the plan is to insure the Aspen Club will be there. Councilman Johnson noted there is no legal mechanism in place to insure the Club remains and to meet the definition of community benefit. Councilman Johnson said he would like to know what the Aspen Club and its amenities will look like at the end of this proposal; he would like a drawing of present and proposed. Councilman Johnson requested the management of the timeshare units, the renting, front desk, and other hotel-type amenities. Ms. Garrow noted the PUD restricts lot 15 to being a recreation club; there would need to be a PUD amendment if that recreation club was changed. Councilman Skadron asked the changes to this application from the previous application. Fox said after the first proposal, the applicants looked at the impacts of the project. The first application did not have a traffic management plan. The applicants also looked at their carbon footprint and how it could be reduced. The units are smaller in this proposal and are spread out along the lower bench; 50% more affordable housing has been added; the mass of the Club has been reduced; the amount of surface parking has been reduced; underground parking has been added. Fox told Council the design and layout try to mirror the surrounding activity. Councilman Skadron noted gathering places in town are like the gondola plaza or the Paradise Bakery and what is the measure of accessibility for the general public of the Aspen Club for someone who is not a member. Fox said in order to create a viable enterprise in Aspen, a wide net has to be cast. Fox said there are memberships available for non-profits like bike clubs, fire department, there are different ways to become a member of the Aspen Club. Fox noted in 1996 there were 400 members of the Aspen Club and 1500 members have been added in 10 years. Fox told Council they have tried to be as inclusive as possible. Councilman Skadron said the presentation at P&Z did not describe this as a real estate development, which it is. Councilman Skadron said it seems as if Council is being asked to disregard the real estate development and only focus on the benefits of the Aspen Club. Fox said he does not view this as a real estate development and the Aspen Club is more valuable than the real estate. Councilman Skadron asked if it is possible to quantify the claims made about the economic impact that the employees in the affordable housing might have on the community. Ms. Garrow said staff does not have the tools to quantify and could address that in terms of the number of units and employees and the lessened burden on transportation. Councilman DeVilbiss asked if the applicant is the sole owner of the Aspen Club. Fox said he is the majority owner and there are other investors. Mayor Ireland asked if the other shareholders are local residents and if not, how this is classified as a locally owned business. Mayor Ireland opened the public hearing. 15 Regular Meeting Aspen City Council July 14, 2008 Bill Fabrocini, Aspen Club employee since 1990, said there are many ways to access the Aspen Club, seeing a doctor, having physical therapy, high school programs. Fabrocini said the environment has changed in the last 15 years; there are more recreational facilities. However, there is no other health club in the area that offers all the overall community benefits. Mike Marolt said this is a unique project, a low basis real estate project which gives the applicant the ability to sell real estate to fund a sustainable business. Marolt said other applicants have not budgeted into the purchase price of their businesses the need to survive without variances from the city. Marcia Goshorn said the applicant is trying to improve the Aspen Club for community benefit. Ms. Goshorn said what Fox has done in the past is a good indication of how the business will be run in the future. Ms. Goshorn noted the Aspen Club was originally short term rentals and the townhouses have now been taken out of the rental pool. These units will add to the rental pool instead of owners just using the property 60 days a year, it could be used all year round. Linda Nathanson, 1271 Ute, said this proposal is a real estate deal, not an idealistic healthy living center. Ms. Nathanson said approval of this project will change the character of the neighborhood; fractional ownership units that can be used as a hotel do not belong in the neighborhood. That use would be a large impact to everyone on Ute. Ms. Nathanson noted the applicant knew what the zoning was when the Club was purchased and it is not Council's obligation to make the Aspen Club a profitable venture. Ms. Nathanson noted the profitability of the Club will be improved by the construction of the 20 fractional units. Ms. Nathanson said the arguments about the benefits provided by the Club to schools and non-profit organizations are not relevant to the code. Ms. Nathanson pointed out Ute avenue is a pedestrian corridor with many pedestrians and bicyclists. Ms. Nathanson requested Council not approve the project. Bruce Fretz, Crystal Lake Road, told Council their homeowners association, with the exception of 1 unit, supports this project. Fretz said only 3 of the properties on Crystal Lake road are offered for rent. Fretz said there is traffic to the Club on Crystal Lake road. Fretz noted no other facility like the Aspen Club will be built this side of the Airport Business Center and the traffic going to an out of town facility would increase the carbon footprint for the community. Darcy Brown, doctor, said approving this project would allow 24 employees and families to live in town and not have to move down valley. The Aspen Club supports many local non-profits and kids program. Dirk Schultz, trainer at the Aspen Club, noted there is a lot of world class talent at the Club. Approval of the project would allow expansion to more programs and more people. Kim Moore, told Council she sees challenges in young professionals in efforts to enhance their careers. Ms. Moore said she works toward preserving the community and this is a meaningful project towards that end. Susan Saghatoslami, tenant Aspen Club, said she values the Club and supports what they are doing to enhance the experience of the guests from all over. The Aspen Club is a great value to the community and she supports keeping this local business. Warren Klug 16 Regular Meeting Aspen City Council July 14, 2008 stated he supports this plan and recognizes the importance of the Aspen Club to the community and to other businesses in the community. The Aspen Club is an important amenity to athletes in training and being rehabilitated. Klug stated this is not just a condominium development but is a program development that ties condominium owners to the Club. Klug said the project is well designed and fits on the site. Klug reminded Council the town is losing short term beds. The addition of these short term beds is important and the occupancy should be higher than other hotels. Klug said the issue of the legal requirements and the tie in between the interval owners and the Club should be defined as a tie in before the units are sold. The fractional fee owners are buying into the Club. Andrew Kole said he does not see traffic on Ute avenue. Kole stated the question is whether Council wants to keep this amenity in the community. Kole said this facility is used by locals and visitors both and the loss of this amenity would be awful. Evan Boenning, Aspen Club member, said if the Club goes away, where do the 2000 users go; that issue is a major factor. Boenning said this facility adds to the community, it does not take away from the community. The applicant is trying to enhance and preserve it for the community. The concierge at the Hotel Jerome said her guests all want the newest and the best in club facilities and she would like to send them to the Aspen Club. She requested Council approve this project. Chris Klug told Council he trained at the Aspen Club for the last 16 years; it is a great asset for professional athletes in Aspen. Chris Klug said he has been put back together at the Aspen Club several times. Chris Klug said Aspen is fortunate to have this facility and he encouraged Council to help continue the program. Chris Klug told Council he founded anon-profit and the Aspen Club hosts fund raising events for this non-profit. Steve Wickes told Council the Aspen Club has hosted project graduation for 18 years, which has eliminated accidents on graduation night. Wickes encouraged Council to support this project. Rick Neiley, representing adjacent property owners, said all of them will have negative impacts from approval of this project. Neiley said not much has been said about the requirements for SPA designation for this property. Council also asked the difference between this project and the one presented in 2005. Neiley said the differences he sees are that this is a more intensive and larger development than the one presented in 2005. The 2005 application had 39,000 square feet of additional FAR; this proposal has 66,000 square feet of additional FAR. The previous application had 19 free market units; this proposal has 20 free market units. The previous application had more parking; this application proposes to increase the parking on Ute avenue by 42 spaces. Neiley questioned the increased parking if there is no proposed increased in traffic. Neiley said Council must find that there are unique characteristics about this property that warrant SPA designation, which allows innovative design for the great public benefit. Neiley said the great public benefit has to be demonstrated before rezoning can be granted. Neiley noted there is no guarantee of any permanent benefits to the public - no trails, no open space dedication, no tie between the redevelopment and 40 units of hotel- 17 Regular Meeting Aspen City Council July 14, 2008 type rooms. Neiley said SPAs require something more than a real estate development. Neiley said the unique characteristics of this property identified by staff are proximity to the Roaring Fork river, existing recreational facility and existing trail. Neiley said the river and trail would be better enhanced without the development. Neiley stated this application does not comply with SPA requirements of the code. Neiley reiterated there is not one element of permanence of how allowing this development will permanently enhance the community. Toni Kronberg told Council this is a complete application and the transportation plan is a good one. There is a lot of wasted space at the Aspen Club, which can be put to better use. Ms. Kronberg said this is an important institution as a health and fitness facility, not a recreation center. Kim Scheuer, local physician, told Council this is an instance of locals helping other locals, like non-profits. Ms. Scheuer said this proposal has been developed as least impactful as possible. Approval of the project will sustain the Aspen Club, which is a community benefit. Rich Reeve, construction worker, told Council he has rehabbed at the club, where there are healing properties at this facility. Reeve said the Club is an asset to the community. Paul Copaken, 62 Ute Avenue, said this is not about the Aspen Club; it is a land planning issue. Council has to decide if this meets the requirements of the land use code. Staff concluded in 2005 the application should not be approved because that was not the ideal location for a lodge development. Copaken noted the application has not changed since 2005. Copaken said the traffic report uses numbers from 2004. The applicant has stated his membership increased from 400 to 1900 members and an increase of 10 cars with 50 new keys does not seem feasible. Mayor Ireland closed the public hearing. Councilman Johnson said Council is not questioning the value of the Aspen Club to Aspen, or the value of the employees to the community. Councilman Romero said permanence, traffic plan, and further details of the connection of improvements to the riparian area are his issues. Councilman Romero said the traffic plan will have to be updated in conjunction with the city's engineer. Councilman Romero said the connection with the land in unique, historic or natural characteristics that makes it a benefit to the Club is based on how the project is connected to the river, which should be more fully articulated. Councilman Romero said the applicants have to give assurance of the permanence of this facility. Councilman Skadron said the threshold issue is whether this project meets the criteria for an SPA overlay. Councilman Skadron said this is a massive development in a zone district that disallows it. Councilman Skadron said there is the issue that there is no guarantee that benefits brought to the community are permanent if the Club should sell. Councilman Skadron stated he recognizes the importance of the Aspen Club to the community and to the tourists; it is a unique amenity. Councilman Skadron said this is well designed for the footprint upon which it sets and is appropriate for the neighborhood. Councilman Skadron said he could support this and finds reason that this 18 Regular Meeting Aspen City Council July 14, 2008 does provide sufficient public benefit in exchange for the SPA. Councilman Skadron said he needs better information on the traffic issue, permanence, the continued enhanced public accessibility even beyond what exists there. Councilman Skadron said it is in the best interest of the community to proceed conceptually. Councilman DeVilbiss said the traffic study is dated. Councilman DeVilbiss said this is conceptual approval and he is persuaded there is enough merit in the project to move ahead at this level. This is not final approval. Councilman Johnson stated there is a disconnect between the claims made without any guarantees. Councilman Johnson said there is no guarantee that the reinvestment would actually go back into the Club. Councilman Johnson said it is difficult to see how the loss of tennis courts would be a public benefit. Councilman Johnson said he needs information about time share management, the actual changes to the Aspen Club, the plan for the traffic studies. Councilman Johnson said he thought smaller free market units/rooms would be more in keeping with the applicant's idea. Councilman Johnson said shifting the access from Highway 82 was an error. Councilman Johnson stated it is difficult to understand how replacing tennis courts with condominiums can be maintaining a recreation asset. Mayor Ireland said the Council is being asked to approve a real estate development as a component of a long term plan for a locally operated, locally serving business with long term sustainability and to continue as a local benefit. Mayor Ireland noted this is a capitalist system, which is not designed to provide community benefits or long term sustainability. Mayor Ireland said two problems are the sustainability/permanence and parking. Mayor Ireland said the applicant only owns 35% of the Aspen Club, so it is not locally-owned. Mayor Ireland said there has to be a way to insure the Club will continue to operate and will continue to be accessible to locals and tourists and that it remains the way it is on site. Mayor Ireland said for the traffic issue, staff and the applicant decide how much traffic there will be, ration and measure it and if that is exceeded, the Club is fined. Mayor Ireland said the city would be granting free market and affordable housing in perpetuity, and the community needs must be balanced and not subject to revocation. Mayor Ireland said the applicant will pay for a traffic study, the city chooses the contractor. Mayor Ireland said this club provides athletic facilities that if they did not exist in Aspen, the city would have to cope with that use at the Recreation Center. Mayor Ireland said he will not support this at final review if the city does not have satisfactory measures to insure the sustainability and permanence of the club and that the traffic issue is resolved. Councilman Johnson moved to suspend the rules and extend the meeting until 11:15 p.m.; seconded by Councilman Romero. All in favor, with the exception of Mayor Ireland. Motion carried. 19 Regular Meeting Aspen City Council July 14, 2008 Fox said the issues that have been raised can be addressed through the process. The applicants will work with the city engineers on the traffic study. Ms. Garrow requested if Council is going to adopt the resolution that they add the conditions as suggested by staff. Councilman Johnson said he has difficulty voting for this at conceptual without more issues being worked out. Mayor Ireland asked if Council approves conceptual, does that constitute a finding that this constitutes a great community benefit and the Council is bound by that finding. John Worcester, city attorney, said the city code is clear and granting conceptual does not vest any rights and the record is clear that in order for this to be a great public benefit, additional work must be done. Councilman DeVilbiss agreed there are issues; one is how to bind the other 65% of the Aspen Club to any promises. Councilman DeVilbiss said there are issues to be resolved; but this is a conceptual approval moving toward more work to be done. Mayor Ireland said he does not understand all the alternatives for development on this site and what is the highest and best use. Councilman Romero moved to adopt Resolution #65, Series of 2008, including the conditions highlighted by staff; seconded by Mayor Ireland. All in favor, with the exception of Councilman Johnson. Motion carried. Councilman Johnson moved to suspend the rules and extend the meeting to 11:45 p.m.; seconded by Councilman Romero. All in favor, with the exception of Mayor Ireland. Motion carried. Mayor Ireland moved to go into executive session at 11:23 p.m. pursuant to C.R.S. 24-6- 402(4)(b) Conferences with an attorney for the local public body for the purposes of receiving legal advice on specific legal questions; seconded by Councilman Johnson. All in favor, with the exception of Councilman DeVilbiss. Motion carried. Also present Jim True, special counsel; Jessica Garrow, community development department, Kathryn Koch, city clerk, Steve Barwick, city manager, and John Worcester, city attorney. Ms. Garrow left at 11:50 p.m. Councilman Johnson moved to come out of executive session at 12:10 a.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. Councilman Johnson moved to adjourn at 12:10 a.m.; seconded by Councilman Romero. All in favor, motion carried. i ~ ~ Kathr S. Koch, City Clerk 20