HomeMy WebLinkAboutminutes.council.20090114Special Meeting Aspen City Council January 14, 2009
Mayor Ireland called the meeting to order at 5:10 p.m. with Councilmembers Romero,
Kasabach and Skadron present.
ORDINANCE #34, SERIES OF 2008 -Lift One Neighborhood Master Plan COWOP
Mayor Ireland stated he appreciates the civility of these public hearings; there are pros
and cons on this issue. Mayor Ireland said the COWOP was a good public process; the
members were sincere and expressed their prejudices. Mayor Ireland said the COWOP
process resulted in a better application. Council's decision is whether that application is
adequate for this community. Mayor Ireland stated the ordinance has changed
substantially from last month; some changes came from the city and some from the
applicant. Mayor Ireland said Council will have to reconcile the ordinance as presented
today with Council and public comments from the last meeting.
Chris Bendon, community development department, reminded Council the Lodge at
Aspen Mountain project previously went through a review with opponents and
proponents. There were other projects in the Lift One neighborhood moving forward and
there was no cohesive vision for the Lift One neighborhood. Bendon stated the COWOP
process is used to have the "wouldn't it be great iP' conversation in concert with realities
and legalities. Bendon said the COWOP met weekly for 6 months with members who
were neighbors, who had interests, or who were citizens with no specific interests. The
COWOP process resulted in this proposal.
There are two lodges; Lift One Lodge and Lodge at Aspen Mountain. Lift One Lodge is
a fractional lodge with 101 keys and 5 free market residences and 9,000 square feet of
commercial space including a restaurant and an apres ski deck and affordable housing for
100% of the employees generated. The Lodge at Aspen Mountain proposes 75 lodge
units; 26 fractional units, 5 free market residences, 18,000 square feet of commercial
including a restaurant, and affordable housing for 100% of employees generated by this
project.
The proposal includes a high speed lift to replace the existing lA lift; ticketing for lift
access, ski patrol facilities, a surface lift, improvements to the Dean street right-of--way to
make it a better pedestrian experience, ski museum using the former Skier's Chalet lodge,
apres ski pub using the former Skier's Chalet Steakhouse, public parking, ski lockers, a
newly designed Aspen street to include pedestrian infrastructure and drainage, and a
return ski area.
Bendon said a member of the public asked for the standards of review. Bendon pointed
out exhibit I is 40 pages which outlines the standards used by the city to review
development projects. Bendon stated he feels the project meets all of the review criteria
for approval and for rezoning. Bendon stated the project conforms to the Aspen Area
Community Plan. Bendon noted the AACP directs lodging to the base of Aspen
Mountain. The project is in town and is pedestrian oriented and walkable, is integrated
into town, and proposes 100% affordable housing mitigation. Bendon said this project is
Special MeetinE Aspen City Council January 14, 2009
a healthy, vibrant, year round contribution to the economy as well as rehabilitation to
historic resources.
Bendon said there is a community/resort dynamic; Aspen is not just a resort nor is it just
a community. The proposed project contributes to the bed base and an improved lift
access. Bendon said the project contributes to the community as there is housing on-site
and there is access to Aspen mountain. Bendon noted this neighborhood will change;
there is an approval for 14 townhouses and affordable housing. Bendon said the
community development department staff was disappointed in the approval of empty
townhouses at the base of the ski mountain, which does not contribute to the ski resort or
to the community. The townhouse project does not contribute to a new lift nor does it fix
the streets.
Bendon noted the city should look at what change can happen and how can the city shape
that change. The townhomes is a "lights off' project and is not an engaging project.
Bendon said this project is not perfect but it is responsive to community needs and goals.
Bendon said he feels this is a well reasoned plan. Bendon noted the public comments are
included in exhibit E. Bendon said there are changes in the ordinance that cover
affordable housing, vested rights, public benefits and mitigation, construction
management planning and transportation and parking.
Bob Daniel, Lift One Lodge, told Council staff and the applicants attempted to respond to
Council and city attorney requests in order to receive final adoption at the December 8`h
meeting. Daniel said that created frustration, trying to keep track of all the changes.
Daniel pointed out the ordinance in this packet is edited to compare to the ordinance
presented December 8`". Daniel said exhibit L is a letter from the applicants addressed to
John Worcester, city attorney, outlining specific azeas in the ordinance where changes
were made to respond to comments and questions. Daniel reminded Council at the end of
the December 8`h meeting, he listed the azeas in which changes were to be made; housing
mitigation, vesting, public benefits, cross obligations, construction management plan and
transportation.
Daniel pointed out section 16, page 32, addresses housing mitigation. The concerns from
Council were (1) it was not clear to what the applicants were obligating themselves
regarding additional housing beyond that provided on site and (2) how that obligation
was being secured. Daniel said at the time of certificate of occupancy, the Lodge at
Aspen Mountain and Lift One lodge are required to pay a fixed fee. This fixed fee is
applied to housing mitigation. The denominator is what the actual cost of housing to be
delivered is and the applicants get credit for how many employees that equation results
in. The second is the idea there would be the ability for the two projects to pay over 3
years subsequent to the C/O the delta to get each project to 100% mitigation standard
based on the actual cost of delivering the housing That is required to be provided with
financial assurance at the time of certificate of occupancy.
Daniel reiterated there is an obligation at C/O both for cash as well as a financial
assurance. Daniel said both applicants have committed to provide for an audit to be
Special Meetin¢ Aspen City Council January 14, 2009
completed within 3 years after C/O. The housing mitigation is broken into the physical
housing provided, cash obligation from each project at C/O; the financial assurance at
C/O and the audit.
Daniel said another issue is vesting, which is addressed in Section 3. Daniel said the
ordinance outlines the milepost vesting as discussed at the previous meeting. The
applicants may not get to the next mile post if the previous one is not accomplished. The
first milepost is that within 2 years of the effective date of the ordinance, there must be a
master development agreement, resubdivision and right-of--way dedication plat. Two
years after that, the individual PUD improvement agreements for each project have to be
completed. Then there is a 5 year vesting time period. If the first two hurdles are not
achieved, there is no vesting.
The next discussion point was public benefits, when are they delivered, how is there a
sense of assurance. Daniel pointed out table 1, page 2Qwhich obligates the parties based
upon their individual certificate of occupancy or either certificate of occupancy for either
project as to when specific public improvements need to be delivered..
Another issue was the construction management plan, Section 19, page 41, the ordinance
tries to be more specific regarding the CMP as requested by Council. Items such as
required intercept parking, specific allowances and numbers of on-site parking, parking
prohibitions in residential neighborhood, worker transit project, JOBOXes on site to
facilitate the use of mass transit, as well as compliance with the city's noise ordinances
will be addressed in the CMP
Daniel told Council the applicants looked at transportation and it is addressed in the
ordinance in 3 places; page 16 where the components of the master development
agreement are enumerated that the parties are obligated to provide prior to approval of the
master development agreement. Daniel said the city engineer requested the applicants
address the concept of quality of service, not just vehicular trips.
Section 19 discusses construction and the required component part of the CMP. Section
28 states before there is a building permit for either project, there has to be a
comprehensive demand management plan for each project approved by the transportation
department which includes plans for reduction of vehicle trips by employees, guests and
residences. Daniel said the applicants met with the city's transportation department,
outlined in exhibit K. Daniel noted based on the city's use tax generated by these 2
projects, there will be about $3.2 million worth of use tax to be used for transportation
project. Daniel said the applicants have discussed with staff extending the Galena street
shuttle or the cross town shuttle to incorporate this neighborhood if it is warranted.
David Myler, Lift One Lodge, went over the new language and noted in section 16 it was
not entirely clear. Myler said the applicants were trying to preserve an opportunity for
the housing units produced by the city with the additional funding from the applicants up
to 60% mitigation for the applicants' employees to have priority on those units. Myler
said this language related to the extent to which the applicants would have any control
Special MeetinE Aspen Citv Council January 14, 2009
over the mitigation housing. Myler said the applicants will have control over the housing
on site and they would like to preserve an opportunity to put their employees in some of
the mitigation housing built by the city with money provided by the applicants.
Myler said the issue on the Mine Dumps is whether the Lodge at Aspen Mountain will
control the Dean Street condominiums available on a right of first refusal to previous
tenants of the Mine Dumps. These units will only be available for sale and Lodge at
Aspen Mountain will not control those units. Another issue is whether the Lodge as
Aspen Mountain is mitigating both for the replacement housing required due to the
demolition of the Mine Dumps and 100% mitigation for job generation and the answer is
yes. The Lodge at Aspen Mountain is mitigating for both the employees to be housed as
a result of the replacement obligation as well as 100% of the job generation obligation.
Myler said the next issue is the assumption used by the applicant to determine initially
what the employee housing mitigation requirement should be. Myler said the applicants
are using assumptions required by the city and whether these aze accurate is moot
because there is an audit requirement 3 years after operation and pursuant to that audit,
differences can be reconciled between the assumptions and the ultimate mitigation
requirements.
Myler said there is a question about the FTE subsidy, the cost to the city to produce
affordable housing, which forms the basis for the 100% affordable mitigation formula.
Myler stated they agreed to the change which makes it clear that the land cost component
of the calculation will be based on free market land, not deed restricted land.
Myler said there was confusing language in the prior version of the ordinance and use of
the mitigation amount paid at issuance of C/O. The language was changed and is in the
present version making it cleaz there is a fixed payment due to issuance of C/O and the
balance based on FTE calculations is to be paid within 3 years and secured within
reasonable financial assurances.
Myler said the city attorney raised a question about language having to do with a real
estate transfer assessment as a source of funding for the FTE subsidy to get to 100%
mitigation. Myler said the reta has been eliminated as the source for that additional
payment and the applicants have agreed to pay cash and to provide a security bond for the
amount of that payment. Myler said the applicants have agreed to incorporate language
in the ordinance or in the master development agreement requiring the applicants to
establish reta mechanism. If the applicants could not provide a bond sufficient to assure
the city they would pay the FTE subsidy after the issuance of a C/O, the reta would
provide a source of funding for that purpose. The funds collected under the reta would be
paid directly to the city to be held in escrow to satisfy the FTE obligation of the
applicants. Myler said it makes sense to create the mechanism so it is not a surprise to
any buyers who would be obligated for it. Councilman Romero said this would be set up
prior to first sales. Myler said it would be.
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Special Meeting Aspen Citv Council January 14, 2009
Myler said the next comment is that the city would instititue strict fines for parking
violations and the applicants expect nothing less. Myler said they understand the
importance of controlling parking in the neighborhoods. Myler said there was a
suggestion the applicants need to spell out the number of vehicles that can be parked at a
site and this is something that will have to be resolved through the MDA. Myler noted
the city controls the number of parking permits through the master development
agreement..
Myler said the next issue is what happens if one project proceeds ahead of the other and
if the project that is proceeding is not obligated for construction of a particular public
amenity. Myler suggested including language in the development agreement to require
the project moving forward that has a contribution obligation to put that obligation in
escrow with the city who would have the ability to build that amenity and would have to
fund the difference. The city could reimburse themselves when the second project went
forward. Myler requested a reasonable time limit on the city's decision to go forward and
if that amenity was abandoned, the contribution would be refunded. Myler said this
agreement needs some fine tuning but the applicants feel they can meet the city's request.
Myler said another issue is if the Lodge at Aspen Mountain was not built, would Lift One
Lodge have access to its parking garage. There is separate access up Aspen street for Lift
One Lodge. Daniel noted a construction management plan is required prior to building
permit and the CMP has to comply with the adopted manual of June 2007. If there aze
more stringent parking requirements, those will be obligations to the applicant at the time
of building permit. Councilman Romero suggested staff describe the network of
financial assurances in combination with the overall strategic intent and in the different
categories, like affordable housing, restoration of the site, construction management.
Daniel said there are the standard public improvements assurety that any applicant has to
have regazding streets, rights-of--way, etc. and there is a series of community public
benefits committed to from the high speed lift, improvements to Willoughby Park, the ski
museum, volleyball courts which are obligated to be bonded or for which the applicants
provide financial assurance. Daniel said there is a requirement about restoration in the
event ahalf-completed project and if there is ability for a bond restoration. On top of
those financial assurances, there aze the on-site affordable housing requirements as well
as the additional requirement to get to 100% mitigation financial assurances. There is the
money to complete these benefits or to restore things.
Myler noted section 19 of the construction management plan requires financial assurance
to damages to streets caused by excessive construction traffic. Page 16 5(0) the
applicants agree to provide evidence to the city, in confidence, that the projects have the
financing in place to be completed. Councilman Romero said there seems to be checks
and balances to insure that the things the applicants have committed to do will be done.
Councilman Romero asked how the city conducts estimates of value for the pieces that
have financial assurances. Bendon said that is a staff operation that will occur during the
master development agreement process. Bendon said staff will look at the public
infrastructure and will do estimates of what it would cost the city to install those benefits.
Special Meeting Aspen City Council January 14, 2009
Those estimates will be put in the master development agreement. Worcester pointed out
section n on page 16 clarifies that the developers hires an estimator to work for the city to
help make those estimates.
Daniel said this ordinance outlines what the master development agreement will be
required to contain and it does not require these financial instruments be done prior to
permitting. The applicants understand the forms and amounts will be flushed out after
the adoption of the MDA. Councilman Romero said the complexity of this agreement
and the intent to provide checks and balances and protection for the community, this
elevates the concern that the city is dealing with experienced applicants for the next 2
years. Daniel reiterated that there are milestones set out, like adopting the master
development agreement, and if these are not reached, the approvals disappear.
Councilman Romero said the affordable housing, both to be constructed by the applicants
and the cash payments, and after an audit is completed and if there is additional
mitigation required, the city will get additional payments. Councilman Romero noted if
there are payments for mitigation required, the rate of those payments will be adjusted to
the cost of affordable housing through that period. Councilman Romero said the
collection of assurances being put together is unprecedented. Mayor Ireland asked if
Council is being asked to rest a public decision on information to which the public does
not have access.
Councilwoman Kasabach asked if owners of the Dean Street condominiums will have
parking in the underground parking. Daniel said they will. Councilwoman Kasabach
asked if there is parking for the public. Sarpa said there will be public spaces.
Councilwoman Kasabach asked about the egress onto Gilbert street. Daniel said the
applicants have committed to address this to the satisfaction of the city engineer.
Councilwoman Kasabach brought up mass and scale, based on the designs, the mass is
great, particularly the Lodge at Aspen Mountain. Due to the public benefits and the lift,
Lift One Lodge has had to break the mass up. Councilman Skadron asked how much
floor area there is in the two lodge projects. Bendon said if the public streets, rights-of-
way and parks are subtracted, just looking at the private land, the total building area
divided by the land area, the FAR is 1.34:1. The allowable FAR in the zone district is
2.5:1. Bendon pointed out the square footage is broken down by property in the
ordinance and the 13,000 square feet for the Dean Street condominiums is not the total
affordable housing on the project; there is affordable housing within the lodges.
Councilman Skadron said affordable housing is a key element in the desire to maintain
the balance between resort and community. Councilman Skadron said there is a need for
affordable housing today. Councilman Skadron asked how much affordable housing in
this project addresses today's need for housing. Bendon said replacement housing, the
demolition and replacement of the Mine Dumps, meets that need. The remainder is
mitigation for the employee generation from the project. Bendon noted the code
requirement is 60% mitigation and this project is mitigating at 100%.
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Special Meeting Aspen City Couucil January 14, 2009
Councilman Skadron said this project seems to be giving the community a lot of
affordable housing; however, it is mitigating for the project's employee generation and
does not do anything to address the current lack of housing.
Mayor Ireland stated there have been 6 versions of Ordinance #34 and provisions have
come and gone. Mayor Ireland asked why the applicants propose that the affordable
housing be changed to allow the developer to control the rental or ownership of 60% of
the mitigation units. Mayor Ireland said at the COWOP it was represented that the
housing would be open to the entire community. Myler stated the intent was not to assert
control but to preserve an opportunity for priority. Myler said if the language states
control, it was overstated. Myler said the practice has been for employees of a project to
have priority in the affordable housing. Myler stated if that is unacceptable, this
provision is not a deal breaker. Mayor Ireland said his issue is the representations made at
the COWOP meetings and the reliance of the COWOP members on those statements
when voting for a project.
Sarpa pointed out a lot of things have changed since the COWOP at the Council's
request. The COWOP made decisions based on how much affordable housing would be
provided and they were not comfortable with 60% mitigation and said they felt the
affordable housing mitigation should be 70 to 80%. Sarpa agreed that other than the
rental units, all other units would be in the pool. Sarpa said Council made it clear that
80% mitigation was not enough and it should be 100%.
Mayor Ireland asked what happened to the rationale for the elimination of the $4 million
letter of credit naming the city as a beneficiary for the construction of a new lift. Mayor
Ireland said this was in the ordinance Council reviewed in early December. There is no
explanation why it was there and why it is no longer there. Sarpa said the way in which
the letter of credit is set up has not changed, so that provision should still be in the
ordinance. Daniel said there was no attempt to skirt an obligation and in 5(e) the
improvement is discussed. Section 5(n) talks about the provision of bonds and financial
guarantees acceptable to the city for improvements listed in (e). Daniel said there is no
attempt not to provide surety for the improvements.
Mayor Ireland asked about language for vesting of the townhome site until the issuance
of a PIJD, which was agreed to by all parties. Mayor Ireland said it seems as thought the
approval for the townhouses and this project will exist simultaneously. Sarpa said the
vesting for the townhouses should only existing until the master development agreement
is executed.
Mayor Ireland said the city received a letter from the applicants stating neither of them is
proposing a real estate transfer assessment to provide a source for the FTE subsidy and
describes how that FTE will be paid for. Mayor Ireland said there has been a
representation that a real estate transfer assessment is okay and the applicants would be
willing to do that. Mayor Ireland said a real estate transfer tax has to be part of the
adoption of this ordinance so that if the property is conveyed between now and any of the
guideposts, the subsequent owner could not assert this tax is void under Colorado law
Special Meeting Aspen City Council January 14, 2009
because of TABOR. Mayor Ireland said the real estate transfer assessment needs to be
part of this ordinance.
Myler said the applicants anticipate a real estate transfer assessment; however, it is not in
the ordinance because the applicants thought Council wanted to agree to concepts. Myler
said he will craft the real estate transfer assessment and will address the TABOR issues.
Myler said he feels a real estate transfer assessment can be crafted to minimize the risks
of a TABOR challenge which is why the RETA is being offered as a back up to the
bonds. Mayor Ireland said unless the city gets the money up front, the city could be
faced with applicants stating they can no longer afford to pay for the public benefits.
Mayor Ireland said he does not want a future Council to have to renegotiate the
community benefits.
Councilman Skadron said the mission of the COWOP was to return with a project that
honors Aspen's history. Councilman Skadron asked if this project honors Aspen's
history or is the history being leveraged to justify development. Councilman Skadron
said lodges that are historically Aspen are not of this style. Councilman Skadron said he
would like to see buildings generally smaller and broken up and that the resulting built
environment of this project has a closer relationship to Aspen's history, not 60' buildings
that do not speak to historic definitions of community character. Councilman Skadron
said these buildings should be more like the Skier's Chalet, or the Lodge at Aspen
Mountain be broken up into smaller buildings. Councilman Skadron said this project
appears to result in a formidable fortress of 5 star properties and inaccessibility.
Councilman Skadron said this pattern of development does not speak to the inclusive
desires of the Aspen Area Community Plan.
Councilwoman Kasabach agreed she would ideally like to see the Lodge broken up in
some manner. Councilwoman Kasabach stated she will not support architecture that
looks like the Skiers' Chalet. Councilwoman Kasabach said the city has to accept the
fact that Aspen visitors have changed. Councilwoman Kasabach said small lodges that
are inexpensive cannot happen in this market. Councilman Skadron said it is the city's
responsibility to return to that area a project that honors Aspen's history and this design
falls short of satisfying that mission. Councilwoman Kasabach agreed while respecting
the past, the business is to get on with future life. Councilman Romero said there is an
effort for preservation with the Skiers' Chalet and the Skiers' Steakhouse and by moving
them to the front of the property. Councilman Romero said the COWOP was consistent
about honoring the preservation of the past. Councilman Romero said mass and scale
was a theme at the COWOP and there were discussions about mass and scale in context
of the trade offs. Daniel said what has created interest in Aspen is the juxtaposition of
the new and the old.
Sarpa noted through the COWOP, the Lodge at Aspen Mountain was redesigned to have
breaks in the facade. Sarpa said this is a hotel and the Lift One Lodge functions
differently. The Lodge at Aspen Mountain has space requirements, like meeting rooms,
spa facility, that make it a different design. Sarpa said the lodge developers were asked
to work with the community to develop a master plan. Sarpa said the COWOP was a
Special MeetinE Aspen City Council January 14, 2009
broad group of people who looked at the objectives and the vision for this area; the
history of the azea and how it evolved. Sarpa said the HPC looked at this plan and were
convinced that this was a great in the historic aspect.
Sarpa said the applicants heard that the building on the west of the plan was too big and
should look more residential so the building was broken up and moved away from the
adjacent property owners. The lift being the center of the master plan became a driving
factor for everyone involved. Sarpa said the center of the plan was designed to be open
to feature the ski lift. Sarpa said in order to have a surface lift, the Lift One Lodge had to
be pulled back and to go into Aspen street, which then had to go into the Lodge at Aspen
Mountain property. Sarpa said there were many moving parts to the master plan. The
COWOP spent months on the site plan and what is important to the community and the
community's vision. The site plan preserved as much green space in the middle, de-
emphasized traffic on Aspen street, and plans all service and delivery underground.
Councilman Skadron said other concerns are what is being left for Aspen's future and the
general development on this site and how it relates to development overall in Aspen.
Councilman Skadron said vitality results in people, which results in development.
Councilwoman Kasabach said the city created the size of this project by asking for a
master plan and the other community benefits. Councilman Skadron agreed and said the
issue is whether the end result is worth the cost.
Mayor Ireland said the city does not control the price of real estate and the market that
drives that higher and higher. Mayor Ireland said his concern is that the community
needs to have access for moderate income people, rather than just affluent visitors. The
essence of vitality is bringing in the new. The economy is changing and the resort needs
to have the flexibility to service people of lesser means.
Mayor Ireland said it would have been good if the COWOP had been able to see story
poles or a 3-dimensional rendering of this project. Mayor Ireland said the ordinance in
2007, the employee generation was 197 employees and this states that 153 employees are
needed to run the larger proposed Lodge at Aspen Mountain. Mayor Ireland asked how
size can go up and the number of employees goes down. Bendon said these figures are
from the land use code and are based on experience from lodge operations. Mayor
Ireland noted page 20 of the ordinance states that the two applicants are jointly paying for
community benefits. There is a shared cost in the table for items like the relocation of the
lodge. The ordinance states the applicant is willing to agree if one of the applicants drops
out, the other is willing to put up a share for the improvements and the city can pay for a
percentage. Mayor Ireland noted Table 1 on page 20 does not outline what the
percentages are. Daniel said they aze comfortable with the concept of the obligation
being fulfilled by another party. Daniel said the applicants can figure out the percentages
for each one for each community benefit.
Mayor Ireland opened the pubic hearing.
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Special Meeting Aspen City Council January 14, 2009
Mary Anne Meyer, COWOP member, said they examined height and mass with drawings
and with comparisons, the topo of the project, and were well tuned to the height and mass
of the project. Ms. Meyer said one can take the drawings and walk the site to understand
the project and to see that the Lodge at Aspen Mountain is tucked into the mountain.
Tim Ditzler said citizen democracy is important and the COWOP worked hard to build a
consensus among HPC, P&Z, Aspen Valley Ski Club, ACRA and the Board of Realtors.
Ditzler said Council should not send the wrong signal to the citizens of Aspen by
disregarding all the work of the COWOP. Ditzler reminded Council citizens members of
the COWOP reported back to their boards and brought any concerns to the COWOP.
Peter Grene said as a young member of the community, if this is not approved, what is
next. What developers would want to work so closely with the community and when will
this dilapidated neighborhood is redeveloped. Grene said this master plan is not perfect
but it is something the community could be proud of. Grene urged Council to support
this proposal. Kerrie Johnson, Juan street homeowner, said they are surrounded by this
project on two sides. Ms. Johnson said this has gone through an exhaustive process and
this site is the right place for lodge development and the plan is good for the local
economy.
Les Holst said the Aspen Area Community Plan was not used as a guideline by the
COWOP and it should have been. Holst said iconic historic buildings are used by the
community; this is not a community building. Howie Mallory said the renderings are not
very representational of the final product. Mallory noted the community is concerned
about the mass and scale of the proposed development. Mallory suggested Council
require story poles be erected to show corners and high points of the proposed buildings.
Mallory said it is difficult for many people to visualize projects in 3-dimensions so
Council should suggest fabric is erected between the story poles to represent the scale of
the project and to give a better sense of the project and so Council knows what they are
voting on.
Helen Klanderud said she is concerned about the future. The past is important and it is
essential to preserve the best of the past; however, we live in the present. Ms. Klanderud
said the annoyance of construction project is short-lived and one has to look beyond that
to be building for the future. Ms. Klanderud said this project is the future of Aspen. Ms.
Klanderud pointed out this does follow the 2000 Aspen Area Community Plan, which
directs lodging to be at the base of Aspen Mountain. Ms. Klanderud said this project will
bring vitality and she supports the project.
David Schoenberger said the COWOP was a group that came together with many
different opinions and created compromise. Schoenberger said it is fair to give the
citizens the prerogative to vote on this project. Bridgette Starri agreed with what Howie
Mallory said. Ms. Starri suggested the decision on this project by the electorate could be
in the best interest of the community.
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Special Meetine Aspen City Council January 14, 2009
Peter Greene said Aspen was a wonderful town 50 years ago but everything has changed,
some for the better and some not. Greene encouraged Council to approve the project.
Greene said the COWOP worked hard. This project is big, but the area needs to be
redeveloped. The current economics do not allow little lodges to be built.
Bob Hoover, representing the Mountain Queen, told Council their objections are to the
mass and scale of this project. Hoover noted the developers are asking for the master
planned area to be expanded along the southwestern border of the Mountain Queen.
Hoover said the Mountain Queen has a drainage and emergency access easement in that
area, and they have concerns about the grading and drainage and grade cut for the new
lift. Hoover said developers of a project this large would not be on the brink of approval
if they had gone through the ordinary land use approval process.
Bob Grueter urged Council to listen to what the COWOP and the staff recommend.
Grueter said the times are changing and Aspen should be changing with them. Mike
Monroney complimented Aspen citizens to be willing to be part of the COWOP and the
public process. Monroney said the small lodges existed because of circumstances, a
valley with a small population. Monroney urged Council to support the result of the
COWOP and to vote yes on this project.
Mark Cole, Aspen Valley Ski Club and a COWOP member, said there are parts of this
project, like the apres ski deck, the brew pub, ski lockers, that will pull in locals and will
make it something that is not an impenetrable fortress. Cole said if not this project, then
what and what willbe better about that and what process will lead to a significantly better
conclusion.
Louis Buettner, surveyor, said the Eames addition has never been subdivided and platted.
It is an old area; the boundaries are unknown. Buettner told Council he was asked to
calculate streets and rights-of--way being vacated. Buettner said alt the maps and plats of
the area he looked at had contradictory information on the property boundaries. Buettner
asked if the city owns the streets and alleys being vacated; does the city have fee title or
easements. Buettner asked how this development addresses the view planes and will
Council give a variance from that view plane. Buettner said there is an 8040 greenline
and how does that affect those properties.
Mary Barbee asked if the further approvals required will allow public hearing. Mayor
Ireland said the construction management plan is done by staff with their existing rules.
Mayor Ireland said one of his concerns is that some provisions are left vague with no
opportunity for public input. Mayor Ireland said this is the final process. Ms. Barbee
requested that the affordable housing unit on the Barbee property be included in the right
of first refusal.
Ruth Kruger agreed concerns about affordable lodging are real; however, no private
developer is going to build an affordable lodge in Aspen where land costs are so high.
Ms. Kruger said this is the best project for this neighborhood. Ms. Kruger said the major
11
Special Meetin¢ Aspen City Council January 14, 2009
community benefit of this project is the added beds at the base of the mountain and jobs
that accompany added beds. Ms. Kruger said Council should approve this project.
Ken Adelman said the point of an exercise in government is to come out with something
that is acceptable and to do it civilly. Adelman said the community does not need more
dead spots, which the approved town houses would be. Adelman said one of the ways to
get new blood into the community is to keep the community vital and Council has an
obligation to think ahead of a project that makes sense. Andrew Kole said the surface lift
would honor history; it is small and fits into the landscape. Kole said this is only a better
project if it is built. Kole stated Aspen is a high end resort with the many benefits that
come with that. Kole said it is easy to criticize the COWOP but it is hard to understand
all the work and compromise that went into the process.
Patrick Sagal said he supports small lodges and urges Council to vote no on this project.
This project would make a wall across Aspen Mountain. The project should be scaled
down. Larry Yaw said during the review of the Little Nell, the city was facing the future
rather than looking backwards. Yaw said Aspen is in the business of honoring the past
and also creating context for the future. Norma Dolle, Snow Queen Lodge, said they run
a small bed and breakfast lodge in Aspen. Ms. Dolle said her concern is alleys that
disappear when they are built on. Ms. Dolle said this project is too large; she is
concerned about construction traffic.
Dave Ellis, Timberridge, said this master plan is the result of the COWOP with many
interests and it is a compromise. Ellis said he is in favor of this project. Ellis questioned
the process if this is denied, other than getting townhouses and a dark neighborhood.
Sheryl Tennile, resident of Washington DC, told Council she is loyal to Aspen's lodges
and in the era of the smart and the green and inclusive, accessible mountains, clean water,
fresh air and walkable space should be emphasized. Tennile requested Council keep
Aspen a mountain home, not a large city.
Mike Maple thanked citizens, Council and staff for all the time and effort put into the
COWOP. Maple urged Council to agree with the COWOP. Maple agreed mass and
scale are troubling and people like things that are smaller. Maple said this is not possible
because of the cost of developing in Aspen, like providing 100% affordable housing
mitigation and the community benefits. The trade off for getting community benefits is
more mass and scale. Junee Kirk said the survey of streets, rights-of--way and parks the
city is giving up is 4.5 acres of public lands, which is assessed at $80 million. Ms. Kirk
said the community should not have to put up with the mass and scale, the loss of views
and the loss of the historic grid. Ms. Kirk urged Council to deny this plan; it is too
massive and the trade offs are inequitable.
Toni Kronberg said there are 8 areas within the Aspen Area Community Plan by which
this project is required to be judged, like mass, scale, character and density. Ms.
Kronberg said story poles were requested, a transportation plan was required of the
COWOP process. Ms. Kronberg said the platter lift is not ski access. Mary Janss,
COWOP member, told Council the reason the height and mass increased in this project
12
Special Meeting Aspen City Council January 14, 2009
was that the COWOP insisted on more on-site affordable housing to increase vitality on
site and to decrease traffic. Ms. Janss said people who use lift one will use the platter
lift. Ms. Janss agreed everyone would like to turn the clock back; however, the COWOP
came to understand the present realities.
Phyllis Bronson said she feels Aspen has been going in the wrong direction; a place has
to be true to its own identity to be honest. Aspen is an old mining town and ski resort.
Ms. Bronson said appeazance is replacing substance. The COWOP was an advisory
board, not the final mandate. Their findings do not mean other people do not have
different opinions. Ms. Bronson said this project takes the town in the wrong direction
and the infrastructure of Aspen will not survive this. Ms. Bronson said this project is
lazge and not sustainable. Ms. Bronson said she would like to see smaller, elegant lodges
with gradation up the mountain that does not destroy the beauty of the mountain.
Jeremy Bernstein, south Aspen street, told Council construction on south Aspen makes it
a nightmaze. Bernstein said it is not worth the end result. Bernstein said the hotel should
fit the scale of town. David said young people in Aspen want to see lift one redeveloped,
to see vitality increased, to have more jobs. David urged Council to make a decision in
favor of this project for the future of Aspen.
Mayor Ireland closed the public hearing.
Councilman Skadron asked if the COWOP reviewed this project with the same criteria
used by P&Z or Council. Bendon said the COWOP was not a review board. Bendon
said the COWOP had the criteria and plans adopted by the city to assemble their final
decision. Mayor Ireland asked for a justification for 500 car parking garage. Mayor
Ireland said trying to address traffic by adding parking does not work. Mayor Ireland
said there is a critical problem with the roundabout and he would like the number of on-
site parking spaces reduced.
Sarpa said the number of pazking spaces is driven by the requirements, contractual
obligations, and requests from the COWOP and from the neighbors. Sarpa said the
requirements for Lodge at Aspen Mountain are 104 for the hotel room, 30 required for
the Aspen Ski Company replacement pazking, and 80 public parking spaces, tota1214
parking spaces. There are 40 to 44 spaces to replace the neighborhood pazking that is
being lost. Daniel said the code requirement for Lift One Lodge is 100 spaces, there is
some parking required by the Aspen Ski Company, employee car pool spaces and shuttle
spaces, affordable housing parking on site and membership parking spaces. They
committed to some spaces for the Aspen Historical Society and a few spaces for the parks
department.
Mayor Ireland moved to amend the Ordinance #34, Series of 2008, to reduce the total of
parking to 300 spaces. Motion DIES for lack of a second.
Councilman Romero moved to adopt Ordinance #34, Series of 2008, on second reading;
seconded by Councilwoman Kasabach.
13
~ecial Meetine Aspen City Council January 14, 2009
Mayor Ireland moved to amend Ordinance #34, Series of 2008, to change on pages 35
and 38, the mitigation requirement, giving the applicants priority on 60% of the units
built on site; seconded by Councilman Romero. Mayor Ireland said the amendment will
alter the ordinance so that so there is no priority above the 60% for the applicants. All in
favor, motion carried.
Mayor Ireland moved to amend Ordinance #34, Series of 2008, effective immediately
that all the land is burdened with a deed restriction imposing by a real estate transfer
assessment of 1 % to be escrowed by the city and paid to the city for the purpose of
funding affordable housing mitigation that is not paid for otherwise under the ordinance
and further that in the event the applicants propose a bonding mechanism or other
financial instrument suitable to the city that the voluntary real estate transfer assessment
can be removed at the discretion of the property owner; seconded by Councilman
Romero. This would be effective tonight, burdened with the property.
Worcester asked if this is acceptable to the applicants. Daniel said the language that this
will fulfill the FTE subsidy obligation is an important clarifier.
Mayor Ireland amended his motion to include that this will fulfill the FTE subsidy
obligation; seconded by Councilman Romero.
Worcester asked if this is a voluntary assessment. Myler said it is a voluntary assessment
and it will be recorded to be effective with the ordinance. Mayor Ireland stated this
requirement is effective tonight, not when the ordinance is recorded.
Mayor Ireland amended his motion that the transfer of sales of deed restricted property be
exempt from this assessment; seconded by Councilwoman Kasabach.
All in favor, motion carried.
Mayor Ireland moved to amend Ordinance #34, Series of 2008, to reinstate the original
language as proposed in the ordinance of December 8th, which states if the new lift is not
operational when the Lodge at Aspen Mountain is ready for occupancy in order to grant a
right of occupancy, the applicant shall provide to the city and the Aspen Skiing company
as co-beneficiaries a letter of credit in the amount of $4 million less any portion thereof
advanced by the applicant, in a form satisfactory to the city attorney; this will replace
section 26.2 and 26.1 deleting the strike outs in tonight's version; seconded by
Councilwoman Kasabach. All in favor, motion carried.
Mayor Ireland moved to amend Ordinance #34, Series of 2008, that the ordinance is
subject to submission of percentage allocations for community benefits table on page 20,
the submission subject to approval of the city attorney or at his discretion to be referred to
Council; seconded by Councilman Romero. All in favor, motion carried.
14
Special Meeting Aspen City Council January 14, 2009
Mayor Ireland moved to amend the construction management plan to adopt a limitation
on operation of the dump trucks carrying the fill so that dump trucks aze not in the traffic
mix during peak hours and there should be a limitation to no more than 80 cars pazked at
anytime on the construction site and be registered with the city; seconded by Councilman
Romero.
Mayor Ireland said the applicants have agreed on an off-site parking area and car pooling.
Mayor Ireland reiterated the town does not have excess traffic capacity. Sarpa said
limiting the hours of operation will extend construction time and will increase cost of the
project. Sarpa said being able to go out of town against traffic dining peak time is
important to the applicants. Mayor Ireland said the traffic is 60/40 during the peak hours;
there is not a 90/10 balance of inbound and outbound. Sarpa said the plan is to have
trucks parked overnight on site and these trucks will go out of town to alleviate the
coming into town traffic clog. Daniel said this provides the opportunity to enforce and
support a transportation solution for employees. This will be 7 to 10 trucks parked on
site and going out of town in the morning peak hours.
Councilman Romero agreed to 80 cars on site limit and with trucks parking on site
overnight and going out of town at peak hours.
Mayor Ireland withdrew his original motion and amended it to limit the number of cars
on site to 80 and to limit the number of trucks going out of town in peak morning hours
to 7 and no trucks going out of town between 330 p.m. and 6 p.m.; Mayor Ireland in
favor; Councilmembers Kasabach, Romero and Skadron opposed. Motion NOT carried.
Mayor Ireland moved to limit the on site to 80 vehicles said vehicles to be registered with
the city and limit outbound traffic to 7 trucks; seconded by Councilman Romero. All in
favor, motion carried.
Mayor Ireland moved to delete the newest language on vesting appearing at page 47
staring with "it is understood and agreed" which is superfluous language and creates
ambiguity; seconded by Councilman Romero.
Bendon noted the vesting rights for the townhouses will expire July 2011 or the
recordation of the master development agreement. Mayor Ireland agreed that is what the
motion means. Sarpa said this language came from the COWOP resolution. Bendon said
the multiple applications limitation in the code does not allow two simultaneous land use
applications. This was important as to have a master planning process for this area, the
Lift One Lodge application was put on hold and if the master planning process stops, the
Lift One Lodge application is still valid. That is why the language was in the COWOP
resolution. Bendon said there can only be one plat for one piece of property and the
recordation of the master development agreement would terminate the townhouse
approval.
Mayor Ireland in favor; Councilmembers Skadron, Kasabach and Romero opposed.
Motion NOT carried.
15
Special Meeting Aspen City Council January 14, 2009
Mayor Ireland moved to amend Ordinance #34, Series of 2008, that the city's only
obligation to spend the escrowed monies under 5.4 on page 20 that within a reasonable
amount of time the city shall spend that money; to require the city whenever
contributions from a project in the event the other project does not go forward according
to the table, the city would have the obligation to make good faith efforts within a
reasonable amount of time to spend that money on the purposes for which that money
was escrowed; seconded by Councilman Skadron
Bendon suggested an actual time, like 7 years which is contained in the code rather than a
"reasonable time". Councilwoman Kasabach agreed Council is trying to remove
ambiguities and "reasonable" is ambiguous. Daniel said their letter proposes at the
termination of vested rights. Mayor Ireland said one has to expect the city to act
reasonably.
Councilman Skadron and Mayor Ireland in favor; Councilmembers Kasabach and
Romero opposed. Motion NOT carried.
Mayor Ireland moved to amend Ordinance #34, Series of 2008, to provide that the city
will have 7 years from the date of payment of funds to spend that money; seconded by
Councilman Romero. All in favor, motion carried.
Mayor Ireland brought up the requirement to heat the streets and asked how that will be
accomplished. Daniel said the intent is a systemic approach for 28(a), that an
environmental budget for the overall project be looked at. The recommendation of the
consultant is that there be a budget and the project commit that whatever energy goes into
heating the street has to be within that budget. It could be a boiler or the ground source
system.
Mayor Ireland moved to amend Ordinance #34, Series of 2008, to add (e) to section 28
that any street heating shall be done exclusively with renewable resources; seconded by
Councilman Skadron.
Sarpa said it is his understanding that the boiler is necessary to heat the street given the
severity of the temperatures in Aspen. Sarpa said only a combination of boilers at the
peak times with other renewable energy could the street be kept dry and warm. Daniel
said renewal energy sources are best used for duration events, not peak events and
heating the street is a peak event and it is more efficient to use renewable energy for the
buildings.
Mayor Ireland moved to amend the previous amendment to provide that (e) read that all
energy used to heat the streets shall be from renewable sources as much as is technically
feasible in the opinion of the city engineer; seconded by Councilman Skadron. All in
favor, motion carried.
16
Special Meetin¢ Aspen City Council January 14, 2009
Councilman Skadron said he has supported this project in the past and his position has
evolved. Councilman Skadron said this is about the Aspen Brand and a brand in its core
is a promise. Councilman Skadron noted the issue is to protect and grow the Aspen
Brand and a massive development erodes the Aspen Brand. Council's position is
different from the volunteers on the COWOP. The COWOP members focused on issues
before them and Council's responsibility is to consider needs of the entire town and how
the project works within the context of the entire town. Councilman Skadron said the
townhouses are within the context of development even if they are not desirable. This
large development is based on vitality, which means people and development, and a
critical mass of people. Councilman Skadron asked from where these people come and
what impact does that have on areas like the gondola and Highlands. Councilman
Skadron said he is not persuaded vibrancy comes with this project.
Councilman Skadron said projects like this are well served by a COWOP; however, he is
not willing to support a project of this enormity without evaluating it against the land use
code. Councilman Skadron stated this is his belief that development and its mass and
scale should be guided by the goals in the community plan that speak to the historic
definition of community character. Councilman Skadron said this project can do a better
job of meeting the definition of community character and he will not support it as
presented tonight.
Councilwoman Kasabach said she is going to support the project as this is a reasonable
plan and has been supported by the city's commissions and by the COWOP.
Councilwoman Kasabach said the developers have been cooperative throughout the
project. Councilwoman Kasabach agreed she would like to see Aspen maintained as it
was 35 years ago; however, buildings do not change community character.
Councilwoman Kasabach noted it is people who create character of a community, which
is a reason to be an advocate for affordable housing. The more people living in Aspen
and this proposal offers 100% affordable housing mitigation, create vitality and context.
Councilman Romero said he would like to advance progress that is in balance with what
is defined as the quality of life. Councilman Romero said this is defined, for him, how
one raises a family, how one performs in work, and how one demonstrates responsibility.
Councilman Romero said he is proud of the effective compromise produced by the
COWOP. Councilman Romero said he respects a system approach to life. The COWOP
process addressed a problem with 27 different opinions and demonstrated what is
powerful about this community, to see through differences and to make a better result.
Councilman Romero said the lift one master plan was suggested by the community to
come out with a better product and a more effective solution. The COWOP was an
advisory board and they owned the responsibility of speaking for the community or for
the special interest groups they represented. Councilman Romero noted there is a list of
safety valves that are in or have been added to the ordinance. Councilman Romero said
he believes this project lines up well with the AACP and with the visions and aspirations
for this community. Councilman Romero said he can vote yes for this project.
17
Special Meeting Aspen City Council January 14, 2009
Mayor Ireland said it is Council's job to scrutinize development proposals; it is Council's
responsibility to look out for the public interest. Mayor Ireland noted at the last minute,
the city was asked to forego control of up to 60% of the affordable housing units. Mayor
Ireland pointed out the Town of Snowmass Village is being asked to give back benefits
because of changes in the economic climate. Mayor Ireland said Council needs to start
thinking about being overly dependent on outside sources. Mayor Ireland said vitality is
diversity, mix of people, growth and new people coming in. Mayor Ireland said the poma
lift is an improvement to what access there is at lift one today. Mayor Ireland agreed the
town houses are dark and there is 92,000 square feet of development. Mayor Ireland said
the site plan does create better views than in the past or with the townhouses. It is a plus
to move the museum and to have underground parking.
Mayor Ireland said the economy is contracting in a way such that the city will make a
mistake to continue to rely on the highest income earners. Mayor Ireland said his issues.
are if Council approves this, it will be referred to the votes in a way that maybe
confusing. Mayor Ireland said if it goes to referendum, there will have to be a special
election rather than having the question on the May ballot. Mayor Ireland said this
community is practically and educationally smart and they can decide on a project on a
ballot.
Mayor Ireland said he cannot support this because of the 500 car parking garage; cities
cannot build their way out of congestion by building parking garages. Mayor Ireland
said Council should not approve this before evaluating the project in 3 dimensions and at
a minimum there should have been story poles. Mayor Ireland said there is a tie vote on
this ordinance and the public should be able to break the tie. If the motion goes down
two to two, it will put the project into limbo with no resolution.
Roll call vote; Councilmembers Kasabach, yes; Skadron, no; Romero, yes; Mayor
Ireland, no. Motion NOT carried.
Mayor Ireland moved to refer Ordinance #34, Series of 2008, pursuant to Section 5.5 of
the Charter, where Council shall have the power to submit any question to the voters in
May 2009; seconded by Councilman Romero.
Mayor Ireland said the COWOP process produced a better project for Council's
consideration. It is important to honor the COWOP's recommendation; however, the
Council cannot delegate their responsibility for a final decision to any board and the
community can make up their minds. Councilman Romero said given the two to two
vote, he will support putting this to a vote.
Sarpa noted the applicants took a large gamble and placed their confidence and trust in a
process, which did not work. Sarpa said everyone spent a lot of time, money and effort to
be in the same place they were a year ago. Sarpa said he will have to come back to
Council and request additional time for the vested rights for the town house project.
Council agreed. Daniel said the applicants have heard that Council feels a desire and a
18
Special Meeting Aspen City Council January 14, 2009
duty to take this issue to the voters. Daniel said this question will be crafted as a yes or
no issue for the community.
All in favor, with the exception of Councilwoman Kasabach. Motion carried.
Councilman Skadron moved to adjourn at 11:55 p.m.; seconded by Councilwoman
Kasabach. All in favor, motion carried.
Ka S. Koch, City Clerk
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