HomeMy WebLinkAboutcoa.cclc.ag.07152009COMMERCIAL CORE & LODGING COMMISSION
REGULAR MEETING
130 S. GALENA
SISTER CITIES MEETING ROOM
July 15, 2009
8:30 A.M.
8:30 I.
II.
Roll call and approval of minutes
Public Comments not on the agenda (please limit your
comments to 3 minutes)
III. AACP Update -Ben Gagnon
10:30 IV. Adjourn
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Goals:
1. BID involvement
2. Marketing sales increase, Business promotions.
3. Rethinking and evaluating the malls. The lighting and trees need
redone. Be more proactive in town mobility. Address parking,
carbon, cars and bikes.
4. CCLC was the mall commission. We are long overdue thinking
how the malls should be rethought. What do they serve, how they
serve and do they do it well.
5. Parking mitigation -cash in lieu have a fund for seed money for
electric cars etc.
6. Create a public transit alternative in the form of bicycles, golf
carts etc. Low tech.
7. CCLC increase the business vitality. Think of ways to increase
business vitality. The city is not business friendly.
8. Facilitating special events but the CCLC is probably not that
venue.
9. Sign code -make recommendations as it is out dated.
MEMORANDUM
TO: Commercial Core and Lodging Commission
FROM: Ben Gagnon, Special Projects Planner
MEETING DATE: July 15, 2009
RE: Input on Aspen Area Community Plan Update
REQUEST: Community Development Staff requests that the CCLC have a discussion
on what would represent "major breakthroughs" in the retail and lodging sectors over the
next 10 years. This feedback will be provided to the City and County P&Zs' as they
review the Economics chapter of the AACP update on July 28. It would also be helpful
for the CCLC to choose a liaison who can be present to answer any P&Z questions on
July 28.
DISCUSSION: Community Development staff is providing the CCLC with some
background information on the retail and lodging sectors as well as public feedback on
these subjects. This background is not intended to limit the CCLC's conversation, but is
intended to provide an overview of the kinds of issues the P&Zs will be discussing at
their meeting on Economics on July 28`h. Staff will be present at the CCLC July 15
meeting to provide additional information, answer questions and to record your thoughts
and feedback, which will be provided to the P&Zs.
ATTACHMENTS:
Exhibit A: Economics: Past Planning, Statistics & Public Feedback
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Economics
Introduction
The Aspen area economy is primarily based on a mixture of skiing, lodging,
retail/restaurant, real estate and construction -with special events as a primary engine to
attract people to this destination resort. With regard to the subject of Economics, the
1993 and 2000 Aspen Area Community Plans (AACP) primazily focused on retail and
lodging.
The following includes information on past planning efforts as well as statistics -ending
with a section titled "Community Comment," describing the results of public feedback on
these topics in recent years.
Retail
The 1993 AACP called for striking a balance between "local and tourist shopping
opportunities." The 1993 AACP contained an action item stating that the term "locally-
serving business" should be defined in order to proceed with effective planning. (This
task has never been completed.)
In 2000, the AACP stated that "both residents and a diverse visitor population...demand
a lively, small-scale downtown with diverse and unique shops." An Action Item in the
2000 AACP called for exploring what other communities have done to manage the
impacts of chain stores. (Staff has conducted this research.)
In 2002, the Economic Sustainability Committee drafred a report on the economic health
of the community. One of the recommendations was to focus on "affordable retail and
commercial start-up opportunities."
Over the last 10-plus years, a number of longtime business owners decided to retire and
sell their businesses and/or properties, typically resulting in new tenants that had to pay
much higher rents/mortgage payments. Examples included the Smuggler Baz, Isis
Theatre, the Red Onion, La Cocina, Aspen Drug, Ute City, with the Crystal Palace a
recent example. Explore Booksellers was an example that was resolved through what was
essentially a philanthropic purchase. This generational turnover has resulted in a series of
mini-shocks in the local community, and a concern over "what's next?"
Although taxable retail revenues jumped from $240 million in 2002 to $327 million in
2007, interpreting this as anacross-the-boazd success for the downtown may be
somewhat inaccurate. A closer examination shows several noteworthy trends:
• While revenues for restaurants and bars have increased slightly since
2000, the total number of bars and restaurants has dropped from 71 to 55.
• Revenues for clothing stores showed a slight increase since 2000, which is
consistent with an increase from 53 clothing stores to 61.
• The largest increase came for products related to home construction and
renovation.
• Continual increases in already high rents appear to be steadily shifting the
profile of downtown. Local commercial brokers report that retail stores are
better able to pay higher rents compared to restaurants bars.
According to the Aspen Economy white paper, "the data indicate that restaurant and bar
sales have declined in constant dollaz terms over the past 10 years, while merchandise has
grown at less than a 2 percent annual rate, and food/drng store sales have barely kept
pace with inflation. All categories have experienced a substantial slowing of growth
compazed to 1986 to 1998...the data suggest a decline in Aspen's capture of the potential
retail mazket." (The Aspen Economy white paper can be found at
www.aspencommunityvision.com.)
A build-out analysis completed in 2008 for the Commercial Core Zone District showed
the potential for only 61,630 additional square feet of commercial space. In the
Commercial (C-1) Zone District the analysis showed potential for 23,138 additional
square feet.
Lod in
The 1993 Aspen Area Community Plan recognized the significance of small lodges,
stating that they "set the stage for the guest experience in Aspen. These lodges promote a
sense of scale and feel that provide the visitor with a transition into the uniqueness of
Aspen." In 2000, the AACP stated that "both residents and a diverse visitor
population...demand varied choices of accommodations, including small lodges."
The top priority of the Economic Sustainability Committee was addressing the
"deterioration of lodging and tourist facilities... including small lodges." In 2005, the
City adopted incentives for the development of lodges with a 500-square-foot average
room size. The incentives were amended to encourage even smaller room sizes in 2007.
While lodging revenues have jumped 49% since 2003, pillow counts have continued to
drop. Since 1994, there has been a 27% drop in total pillows. The most significant
decline has been in the "economy lodge" sector, as 241odging properties closed their
doors.
Lodging occupancy rates exhibit strong peaks in both winter and summer. Aspen has one
of the strongest winter and summer lodging occupancy rates in the western U.S.
mountain resort industry. Occupancy rates are consistently higher for deluxe
accommodations, and many older small to mid-sized lodges do not perform as well.
Lodging occupancy rates have increased 10% since 2004, while taxable lodging sales
have increased by 35% over the same period. Assuming a relatively stable lodging
inventory, this implies a significant jump in average nightly room rates, a pattern
corroborated by other, private lodging data sources.
A build-out analysis completed in 2008 for the Lodge Zone District showed the potential
for 322,376 additional squaze feet of land that could be developed, almost entirely located
in the Lifr 1 area.
Skiing and Recreation
Downhill skiing and snowboarding is the primary driver of Aspen's winter economy, and
has largely plateaued over the past two decades, albeit with some fluctuations. Since
2000-01, the four local ski mountains have accounted for a relatively steady 11 - 12
percent of total Colorado resort skier visits each season. The success of every other
economic sector depends heavily on the success of the ski resort.
The four ski mountains currently feature 5,303 acres of terrain, and recorded a combined
1.45 million skier visits in 2006 - 07. The X-Games have put Aspen on the map for
younger generations in recent years with national coverage of events at Buttermilk
Mountain in late January.
While important to the economy, the ski mountains were not examined in the 1993 or
2000 AACP. The Ski Company works with the Forest Service to adopt master plans for
the ski mountain areas. City staff is including the SkiCo in its outreach effort in
discussions about the economy for the current AACP Update.
Real Estate and Construction
Real Estate and construction have been major components of the Aspen area economy
since the 1960s. The impacts of construction and real estate sales have been addressed by
the city and county through the concept of managing growth. Initiated in 1976, the
Growth Management system has been continually updated since that time.
Real estate sales volume in Pitkin County grew dramatically between 2000 and 2007,
reflecting an aggressive real estate market and appreciating property values. Aggregate
sales volume more than doubled between 2003 and 2006, climbing from $1.13 billion to
$2.64 billion. Consistent with this growth, Pitkin County real estate employment rose by
32 percent between 2001 and `06.
Since October 2008, the international economy has entered a recession, which has
severely impacted this sector.
Community Comment
The information collected as part of drafting this section of the AACP Update deals
specifically with the retail and lodging sectors of the economy. The Managing Growth
section addresses the impacts of the real estate and construction economy.
Retail
Much of the community concern on this topic has been the result of redevelopment that
has resulted in the disappearance - or threatened disappearance -- of businesses that were
valued by the community.
There appear to be two related concerns: One focuses on the perceived lack of businesses
that serve the local population; and the other focuses on whether downtown stores serve
the tourist population well.
Aspen's Locally-Serving Businesses
From July 2006 to January 2009, three keypad sessions and a chamber survey asked a
series of questions on the subject of locally-serving businesses.
In the City of Aspen's "Core Beliefs" keypad sessions in July 2006, almost 60% of 374
keypad voters either agreed or strongly agreed that, "As a resident, I'm concerned about
the current mix of commercial retail and restaurants downtown and how it serves my
needs."
Asked the exact same question at a keypad session on Commercial Mix in September
2007, the rate of agreement increased to 76% out of 90 keypad voters.
The Aspen Chamber Resort Association (ACRA) sent a survey primarily to business
owners and managers in January 2008, asking a similar question: "The current mix of
retail and restaurants in the Commercial Core serves MY needs and interests." Of 92
respondents, 54% either disagreed or strongly disagreed, 16% were neutral and only 32%
agreed or strongly agreed.
Asked if "government should have a role in helping preserve and maintain some essential
businesses that serve year-round residents:"
• 63% agreed/strongly agreed at the July 2006 Core Beliefs sessions;
• 63% agreed/strongly agreed at the Sept. 2007 Commercial Mix keypad session;
• 64% agreed/strongly agreed in the Jan. 2008 ACRA survey.
Asked a similar question at the Community Vision meetings, 64% of participants either
said the government should "continue to explore this issue" (37%) or "make it a top
priority" (27%). Another 30% acknowledged the problem, but said the "local business
community should solve it."
Considering the importance placed on affordable housing, it was perhaps surprising that
in the Community Vision meetings people favored locally-serving businesses over
affordable housing in the downtown area by almost 2-1. "If I had to choose between
them, I'd prefer to see the most space set aside for ..."
• 33% Affordable housing
• 60% Businesses that serve year-round residents
Furthermore, participants at the Community Vision meetings did not believe that if more
affordable housing is built, the market will respond with more locally-serving stores. "I
believe that if there is more affordable housing in the Aspen area ..."
• 26% The free market would provide more locally-serving businesses.
• 70% It doesn't matter. High rents make it difficult to open locally-serving
businesses.
There appears to be a consistent concern that Aspen doesn't have enough locally-serving
businesses -and the problem is serious enough that a consistent majority wants
government to play a role in solving the problem.
When debating this issue in recent years, some have argued that Aspen residents have
always had to travel to Glenwood Springs and beyond for many of their goods, and that
the Internet provides another viable alternative to local shopping. When asked at the
Community Vision meetings, 68% of participants disagreed with this position.
One of the strongest messages in the Community Survey was that people want a more
diverse, unique, and interesting downtown and would support incentives to make it
happen.
Full time Second ALL VOTER
Homeowner Homeowner Homeowners LIST
Provide incentives for small
businesses that contribute to
amore diverse, unique and
interesting downtown. 74% 75% 73% 80%
Note: Survey uses a scale of 1-5, 1 being the lowest and 5 being the highest. The figures
above add the results of those who chose 4 or 5.
Keypad session participants this January thought there should be more room for young
people in the downtown, with 67% agreeing/strongly agreeing that, "We should
encourage the creation of gathering places and businesses that cater to younger
generations to enjoy the downtown, including nightlife."
Aspen's Tourist Oriented Businesses
The issue of downtown's commercial profile is not as simple as whether there are enough
businesses that serve the year-round community. Aspen has been aninternationally-
known resort for more than 50 years. Local residents -whether they're business owners
or not -have always expressed interest and concern in how Aspen is perceived in the
world.
At the "Core Beliefs" session, 64% of 372 keypad voters agreed or strongly agreed with
the following statement, "I believe the current mix of retail stores is too `high-end' and
does not meet the needs and interests of tourists." Another 73% agreed/strongly agreed
that "the high number of funky boutiques that Aspen used to have were part of the unique
charm that attracted tourists."
Asked the exact same question at a September 2007 keypad session on Commercial Mix,
about whether downtown stores were too high-end for tourists, the rate of agreement
dropped somewhat to 54% of 93 keypad voters. The support for "funky boutiques"
remained strong, at 69% agreed/strongly agreed they "were part of the unique charm that
attracted tourists."
The ACRA survey of January 2008, sent primazily to business owners and managers,
asked a similar question: "The current mix of commercial retail and restaurants in the
Commercial Core serves the needs and interests of visitors." Of 92 respondents, 54%
either agreed or strongly agreed, 17% were neutral and 34% either disagreed or strongly
disagreed.
The Community Vision keypad meetings in January 2009 included a general question
about Aspen's retail environment. Only 5 percent were very satisfied with the "feeling
created by our mix of retail stores," over 30 percent were satisfied, and nearly 65 percent
were not satisfied or totally unsatisfied.
If the downtown is the place where first-time visitors form their impression of the City's
identity -are you generally satisfied with the feeling that is created by our mix of retail
stores9 This is not about the visual aesthetics of the downtown.
Res onses
ercent
Ve Satisfied, I wouldn't than e a thin 4.54%
Satisfied, it's OK with me 30.53%
Not satisfied, I don't like the im ression we make 47.48%
Totally unsatisfied, I'm embarrassed when friends visit for the first
time
17.45%
Seventy-five percent of those at the keypad meetings agreed strongly agreed that, "Aspen
needs more small shops with unique local merchandise and fewer high-end shops."
6
LodEing
Much of the community concern on this topic revolves around redevelopment that has led
to the disappeazance of dozens of small to mid-size lodges. The greatest loss of pillows
came in the "economy lodge" sector. When a longtime lodge owner decides to retire, sell
the business and/or the property -the new buyer has tended to redevelop into
condominiums or fractionals.
The concern over a declining lodging base was part of the motivation for establishing a
moratorium on Land Use Applications in the commercial and lodge districts in 2006.
The City Council asked staff to explore options to rebuild the lodging base. At the Core
Beliefs keypad meetings in July 2006, 91 % of participants felt it was important "for
Aspen to maintain diverse (price, location, quality, size) lodging choices for visitors."
Follow up questions explored what trade-offs the community was willing to make to
achieve this goal.
A total of 72% were willing to allow either additional height, bigger buildings, more free
market units, or all of the above in exchange for a diversity of room sizes as part of future
lodge development.
The November 2008 Community Survey strongly supported providing incentives for
existing small to mid-sized lodges.
Full time Second ALL VOTER
Homeowner Homeowner Homeowners LIST
Provide incentives for existing,
small to mid-sized lodges that
may encourage a more diverse
visitor population 71% 59% 66% 74%
Note: Survey uses a scale of 1-5, 1 being the lowest and 5 being the highest. The figures
above add the results of those who chose 4 or 5.
There was strong support for the development of"inexpensive" lodging at the January
keypad meetings with 62% in favor of "providing a place for the next generation of ski
bums to discover Aspen." Twenty-five percent thought that lodging prices were not a
problem, and 13% preferred to focus on providing deluxe accommodations.
The character of small to mid-size lodges remains an important value to the Aspen
Community. When asked to choose between the preservation of small lodges with
unique chaaacter and inexpensive lodging, 55% of keypad participants favored small
lodges with unique character over inexpensive lodging.
Based on the vazious types of community feedback, the community cares about a range
of issues including the preservation of small to mid-size lodges, a diversity of room sizes,
and the development of inexpensive lodging.
People at the Community Vision meetings placed few restrictions on the development of
small lodging units and day-to-day retail services.
I would place the fewest restrictions on the following kinds of
develo ment: Select u to four
Res onses
ercent
Smaller lod in units 16.94%
Affordable housin 16.55%
Day-to-day retail services (basics,
esserttiais
16.47%
Arts and cultural facilities 15.07%
Let the market decide 8.90%
Public/Institutional 8.51
Free market housin 6.09%
Tourist-oriented retails ace 4.29%
Lar er lod in units 3.75%
Office space 3.43% I
Kathy Strickland
From: Debbie Braun [dbraun@aspenchamber.org]
Sent: Thursday, July 09, 2009 5:00 PM
To: Kathy Strickland
Subject: CCLC/ACRA
Kathy can you forward this information to the CCLC. I would also like to request a meeting (August 5`n) to go over any
other questions they might have. Thanks.
HELLO CCLC,
I wanted to take a moment and update you on our progress to form the Aspen Local Marketing District (ALMD). As you
probably read by now, Aspen City Council informally approved moving forward with the ALMD by a 3 -2 vote at
Tuesday's work session. The ALMD will most likely include a sunset clause - a s year clause was discussed by council but
has not been formally decided. We have now turned over signed petitions from nearly 60%of the assessed commercial
value of the district to the City Clerk for verification (50+%of the total value of the district was required to form the
district).
The timeline for getting the ALMD on the ballot for November election is as follows:
July 27`n - 1st Reading - no public comment at that time
August 10`n - 2nd Reading and 1~` public hearing
August 24`n- 2"d public hearing
Ballot must be finalized by August 24`"and the vote will be a special election (by mail) in November. The only people
voting on the ballot question will be residents who physically reside in the district. Approximately 720 voters actually
reside in the district and we are expecting the voter list from the City this week. We are forming a campaign committee
to help inform and educate the eligible voters and the community at large on the formation of the LMD and the
marketing plans . If you would like to be on the committee please let us know!
Please click on this link http://www.aspenchamber.org/membership/about-chamber/local-marketing-district/ to learn
more about the Aspen Local Marketing District. If you are on FaceBook, please become an Aspen Local Marketing
District Fan.
If you have questions or need additional information regarding the ALMD, please contact Debbie Braun directly at
dbraun@aspenchamber.org.
Debbie Braun ~ President & CEO ~ Aspen Chamber Resort Association ~ 425 Rio Grande Place, Aspen, CO 81611 ~ tel.
970.920.7140 ~ fax 970.920.1173 ~ cell 970.948.5050 ~ www.aspenchamber.ore
`,~ Please consider the environment before printing this a-mail
Kathy Strickland
From: Tim Ware
Sent: Wednesday, July 01, 2009 2:35 PM
To: Kathy Strickland
Cc: Randy Ready
Subject: Parking Options.
Kathy,
I went and spoke with Randy after the meeting as requested about extending the paid parking hours and a flat early bird
rate in the garage.
Randy asked that I do some quick time estimates regarding the paid parking time extension.
While we could get decals on signs and rate plates changed over in about 2 to 3 weeks, we very well could fall short on
meeting City Council requirements and the public education/outreach process that would need to be done before we
implemented.
The garage flat rate program could be done rather quickly and really just requires us doing that.
For those reasons we would like to recommend that we do the flat rate in the garage as soon as we can get the
programming done.
Let's see how that works and start working on a full summer test of extending parking hours next summer. That would
give us a better time span to see how it would change the parking habits the night time workers.
We think this is a very good idea and want to make sure the opportunity for success is high.
Tim
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