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HomeMy WebLinkAboutminutes.council.20090622Regular Meeting Aspen City Council June 22 2009 CITIZEN COMMENTS ..................................................................................................... 2 COUNCILMEMBER COMMENTS .................................................................................. 3 CONSENT CALENDAR ................................................................................................... 4 • Resolution #38, 2009 -Contract -Affordable Housing roofing repair project...... 5 • Resolution #39, 2009 -Asphalt Contract -Elam Construction ............................. 5 • Resolution #40, 2009 -Contract Castle Creek Energy Center -Reno-Smith ....... 5 Architects ........................................................................................................................ 5 • Resolution #41, 2009 -Resolution in support of Federal Climate Legislation...... 5 ORDINANCE #14, SERIES OF 2009 - 222 East Hallam Rezoning/PUD ....................... 5 ORDINANCE #16, SERIES OF 2009 - 210 West Francis Ordinance #48 Negotiation... 6 RESOLUTION #42, SERIES OF 2009 - 201 North Mill Extension of Vested Rights..... 6 RESOLUTION #36, SERIES OF 2009 -Dimensional Variance 1495 Homestake Drive Fence ................................................................................................................................... 9 REQUEST TO RECONSIDER ORDINANCE #13, SERIES OF 2009 - 219 South Third ............................................................................................................................................. 9 RESOLUTON #43, SERIES OF 2009 -Contract Cozy Point Ranch ............................. 10 1 Reeular Meetine Aspen City Council June 22, 2009 Mayor Ireland called the meeting to order at 5:08 p.m. with Councilmembers Torre, Johnson and Skadron present. CITIZEN COMMENTS 1. Les Hoist said in light of the Judge's decision on the Wienerstube case, he would like HPC, P&Z and Council to determine that no applications maybe submitted that contain any deviations from the AACP or the land use code. Hoist said the L'Auberge cabins on Main street could be used for seasonal rental housing. These cabins should be on the historic inventory. Hoist said he would like to have the air show back as a community event. Mayor Ireland said there is an established legal principle that the city cannot disallow applications. It is up to the volunteer boards and Council to make sure the AACP is respected. Mayor Ireland said he, too, would like the air show back but the airport is a county facility. 2. Bob Gardner, Holy Cross Energy, told Council their boazd meets the third Wednesday of the month and invited Council to attend. Gazdner said the Board would be willing to come to meet the City Council in Aspen. Gardner said Holy Cross Energy serves customers within the city of Aspen; the city also has electric customers. The revenue of each is about equal. Gazdner said there is a franchise agreement and Holy Cross collects 3% of their consumer's bills and remits it back to the city; which is about $225,000 annually. As part of the franchise agreement that Holy Cross provides a 1% community enhancement fee. Mayor Ireland said the city would be interested in meeting with Holy Cross and in developing renewable energy sources. 3. Andrew Kole told Council the mall entertainment is starting this Wednesday and is scheduled between 4:30 and 7:30 for 4 nights/week throughout the summer. Kole said the entertainment is programmed for the space along side Wagner Park and is kid's entertainment and music. Kole said he would like to program music at the east end of the Hyman Avenue mall and requested money to pay these musicians. Councilman Torre requested that rules and regulations for street performers be available to all so everyone is aware of the standards. Councilman Torre said he is not in favor of extra money until the program has been going for awhile. Councilman Johnson agreed the money could be used for the Hyman avenue mall now and when this program has run for awhile, the program can be assessed and if more entertainment is warranted, Kole can come to Council at that time. Councilman Torre agreed the entire summer has not been booked out so all the funds have not been allocated. Councilman Skadron asked why the music students aze being paid as part of this program. Kole said by booking them and paying them, the city will know there is going to be entertainment. Kole said the intention of this program is to add vitality to the mall, to get people to spend time in the commercial core and to add to the experience. Kole said he has booked local musicians, kid's entertainment and music student. Councilman Johnson said this is a cash flow issue; the activity can be increased now. If this is successful, Council can grant more money for this program. 2 Regular Meeting Aspen City Council June 22, 2009 4. Barbara McElnea stated she supports the change of management for the Cozy Point Ranch and the vast majority of horse people in the valley support Red Barn. 5. Mayor Ireland said for the Cozy Point Lease will begin with staff presentation, the Red Barn will have 15 minutes, Cozy Point will have 15 minutes, Council will take public comments. 6. Bill Wiener requested time 20 minutes to give Council an alternative approach to solve the Life One dilemma. Council requested staff arrange time for this in a work session. 7. Mike Maple said his concern with Cozy Point is this asset owned by the community should be managed and run effectively and cost effectively. Maple said this is a big piece of land used by a limited group. This asset should be generating revenue for the city. Maple recommended the city operate this as acommunity-minded facility available to all the community and a facility that generates revenue for the community or it should be torn down and left as open space. 1. Councilman Skadron complimented the Chamber and Food & Wine for a great event, which he hopes comes back for many years. Councilman Skadron said he attended Jazz Aspen performance which also was wonderful. Councilman Skadron congratulated Mayor Ireland for Riding the Rockies. 2. Councilman Torre said he lives in the commercial core and cautioned Council not to make decisions about activities that are not in character for Aspen and result in too much of a good thing. 3. Councilman Johnson agreed Food & Wine was great. Councilman Johnson said in these economic times, the community has to do things that enhance Aspen, things that are low cost and that support the town. 4. Mayor Ireland thanked Dale Paas and the Limelight Lodge for donating a free night's lodging during Ride the Rockies for answering an Olympic Trivia question and for promoting Aspen. 5. Jannette Whitcomb, environmental health department, announced Thursday, June 25`h, a pharmaceutical take back sponsored by her department and the police department. Citizens will be able to bring unused, unwanted prescription drugs to Conner park. These drugs will be disposed of properly and kept out of the water supply. 6. Councilman Skadron told Council the RFTA budget is being scrutinized. The Board authorized a small land purchase in Glenwood Springs for a bus facility. Regular Meeting Aspen City Council June 22, 2009 7. Mayor Ireland announced the state transportation funding is decreasing again and there will be little work on state roads. CONSENT CALENDAR Councilman Torre said he had questions on all the resolutions. Resolution #40, Series of 2009 Contract Castle Creek Energy Center -Councilman Torre said his issue on this contract is the technical engineering for this particular location and does the local architect selected have the expertise to deal with this application for a hydro electric plant. Phil Overeynder, water department, told Council staff considered the team requirements for what is necessary to design this project. Reno/Smith will be handling the building above grade; below grade, is being handled by McLaughlin Water Engineers who has the technical expertise to handle this type of project. McLaughlin Engineers has done much larger projects than this. Councilman Torre said he appreciates local architects being chosen. Councilman Torre said he has been assured this footprint will be minimal. Resolution #38, Series of 2009 Contract Affordable Housing Roof Repair -Councilman Torre said he was disappointed to hear this was a safety issue in an affordable housing project and this sounds like a design flaw. Councilman Torre asked if the city would be better off hiring annual snow removal rather than spending $205,000 on this contract. Mayor Ireland said the roofs at Annie Mitchell are not easily accessible. Shaun Rourke, engineering department, told Counci] in the 2007-2008 winter, the city spent $50,000 for keeping snow off these roofs. Rourke said staff feels installation of a snow fence is the best design for a permanent solution. Councilman Torre asked about budget impacts. Rourke said money has been set aside for completion of the Annie Mitchell project and this project will not deplete that amount. Councilman Johnson asked about increasing the liquid damages of $100/day, which seems weak for contractors that do not perform. John Worcester, city attorney, agreed that liquid damages should increase after a certain number of days ofnon-performance. Resolution #39, Series of 2009 -Asphalt Contract Elam Construction -Councilman Torre asked the ranking for severity and costs of streets being repaired. Jerry Nye, streets department, told Council this is a preservation treatment; the streets in the core have not been done over the past 3 years for various reasons. Nye said these streets rank in the high 60's low 70's; they are good structural streets and with 1.5" on them, the streets will get another 10 years of life. Nye told Council reconstruction costs a lot more than maintenance. Nye said this will give the streets more structural strength, surface friction, and prolong the life of these streets. Nye said it costs about $13,000 to do a city block of 300' by 40' for the asphalt. Mayor Ireland moved to approve the consent calendar; seconded by Councilman Skadron. The consent calendar is: 4 Regular Meeting Aspen City Council June 22, 2009 • Resolution #38, 2009 -Contract -Affordable Housing roofing repair project • Resolution #39, 2009 -Asphalt Contract -Elam Construction • Resolution #40, 2009 -Contract Castle Creek Energy Center -Reno-Smith Architects • Resolution #41, 2009 -Resolution in support of Federal Climate Legislation All in favor, motion carried. ORDINANCE #14, SERIES OF 2009 - 222 East Hallam Rezoning/PUD Jessica Gan•ow, community development department, told Council this is an application for rezoning, the removal of SPA and the creation of a PUD for 222 East Hallam. Ms. Garrow told Council this parcel has split zoning, which appears to be from the original townsite boundary. Staff supports the application. Councilman Skadron asked if there are development restrictions on a TDR landing on a property. Ms. Gazrow said TDRs can land on properties zoned R-6. This request is to rezone this entire parcel R-6. Ms. Garrow noted with a PUD, Council has the ability to vazy dimensional requirements. Councilman Skadron asked for second reading why the post office trail was built without a conservation easement. Ms. Garrow told Council there is an existing easement for the trail which is not where the trail is actually located. Mayor Ireland said Council would like to have a final alignment for the trail. Councilman Skadron said he would like definitions on "contextual appropriateness" and does the allowance of a PUD impact the character of the neighborhood. Councilman Johnson asked if there are other properties in the community that have split zoning and could this approval set a precedence for other properties. Councilman Skadron moved to read Ordinance #14, Series of 2009; seconded by Councilman Torre. All in favor, motion carried. Ordinance No. 14 (SERIES OF 2009) AN ORDINANCE OF THE ASPEN CITY COUNCIL APPROVING WITH CONDITIONS THE REMOVAL OF A SPECIALLY PLANNED AREA (SPA) DESIGNATION, A REZONING FROM S/C/I (SERVICE/COMMERCIAL/INDUSTRIAL) TO R-6 (MEDIiJM DENSITY RESIDENTIAL), AN ALLEY VACATION OF A PLATTED ALLEY ON LOT K OF BLOCK 71, AND A PLANNED UNIT DEVELOPMENT (PUD) DESIGNATION FOR BLOCK: 71 LOT: K & LOT: L, CITY AND TOWNSITE OF ASPEN, AND A PARCEL OF LAND BEING PART OF LOT 4 OF THE TRUEMAN NEIGHBORHOOD COMMERCIAL PROJECT AS SAID LOT 4 IS SHOWN IN PLAT BOOK 5 AT Regular Meetine Aspen City Council June 22, 2009 PAGES 70-75, LOCATED AT 222 E. HALLAM STREET, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY, COLORADO. Councilman Johnson moved to adopt Ordinance #14, Series of 2009, on first reading; seconded by Councilman Skadron. Roll call vote; Councilmembers Skadron, yes; Johnson, yes; Tone, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #16, SERIES OF 2009 - 210 West Francis Ordinance #48 Negotiation Amy Guthrie, community development department, reminded Council this property 210 West Francis is on the Ordinance #48 list as a potential historic resource. The owner filed a request for a demolition permit and has some interest in negotiation. Ms Guthrie said the owner does not have plans and is not totally enthusiastic about remodeling or about demolition. Staff is suggesting the permits be issued with a vesting period up to 10 years so the owner does not feel the need to act immediately. Mayor Ireland moved to adopt Ordinance #16, Series of 2009, on second reading; seconded by Councilman Skadron. Mayor Ireland opened the public hearing. closed the public hearing. There were no comments. Mayor Ireland Councilman Skadron asked why staff is proposing a 10 year limit. Ms. Guthrie said Council could approve a different time limit; staff has told the applicant they are recommending 10 years, which fits the applicant's long range planning. Councilman Johnson said he feels 10 years is a long time. Councilman Johnson moved to amend the ordinance to have a 4 year time limit; seconded by Councilman Torre. Kim Raymond, representing the applicant, told Council the owner is trying to protect what her children can do with this property. The applicant would not have done anything if there was no Ordinance #48. In this economic climate, the owner does not want to do anything either. Mayor Ireland said he will support 10 years because that has the support of the homeowner. Ordinance #48 is a voluntary program. Councilman Johnson and Councilman Torre in favor; Councilman Skadron and Mayor Ireland opposed. Motion NOT carried. Roll call vote; Councilmembers Torre, yes; Skadron, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. RESOLUTION #42, SERIES OF 2009 - 201 North Mill Extension of Vested Rights Errin Evans, community development department, reminded Council this applicant received approval to demolish the existing building at this site and redevelop it with Regular Meeting Aspen City Council June 22, 2009 mixed office and commercial space, free market and affordable housing and subgrade parking. Staff recommends approval as the zoning requirements have not changed substantially. Councilman Skadron asked what changed from the original approval if the vested rights extension is granted. Ms. Evans told Council a code amendment allows the height to be reviewed under commercial design review to 28 to 32'. The current approval is 32'. Ms. Evans noted the free market ratio has also changed; the applicant would be permitted a 1:1.5 ratio rather than a 1:1. The applicant could come back through the process for more free market footage. Mayor Ireland opened the public hearing. Bert Myrin noted the 2008 memorandum to Council states the land use code allows the applicant to satisfy multiple mitigation requirements, both residential and commercial, concurrently, when on-site housing is provided, which is double dipping. Myrin noted the FAR that 14,433 net livable free market could be built at 150%, which would require 9600 square feet of commercial, which would max out the building on the lot. Myrin said the affordable housing and the floor area allowable could change. This request is for an extension to 2014, not 3 years from today's date, and to a future Council. Myrin said the extension should be shorter. Mayor Ireland closed the public hearing Councilman Skadron said it is necessary to consider the land use code under which this gained approval. Councilman Skadron said this project purports to provide significant community goals, like affordable housing and additional commercial and parking. Councilman Skadron stated his concern is that extending these rights diminishes the city's ability to capture those community benefits. Councilman Johnson said his concern is that the community won't get any benefits if this extension is not approved. Councilman Skadron said this could come back under a revised land use code and ask for a larger building. Councilman Skadron said it is not Council's responsibility to insure a developer's success. Councilman Torre said he is not interested in extending vested rights. Mayor Ireland said state law on vesting acts as a one-way opportunity For change. If one is vested on their property, the project cannot be down zoned for square footage but it can be upzoned. Mayor Ireland agreed the possibility for double dipping should be amended in the ]and use code; however, this application cannot be required to comply with something that is not adopted. Herb Klein, applicant, told Council the commercial space is owned by local businesses who wanted to increase the size of the building for their uses. The only way to do that is to go through the land use code and to get some free market development to help pay for the expansion of the commercial space. Klein said the applicants had to wait until the existing tenants' lease ran out. The applicants worked with designers, engineers, builders, who said the process will take 18 to 24 months. Klein said in order to get a loan would be to have some pre-sales on the free market space. Klein reminded Council when 7 Regular Meetine Aspen City Council June 22, 2009 the project was approved, it exceeded the code requirements. The free market component was approved at .79 FAR; the number of free market units was reduced from 6 to 5 and the number of affordable housing units was increased from 3 to 5; the total is 5 free market and 5 affordable units. The affordable housing square footage is about 50% of the free market; the code requirement is 30%. Klein said the double dipping concept was addressed at the original approval and the applicants agreed to provide more affordable housing. Klein said if the applicants have to start this process over again, they would request what the code allows, which is greater free market square footage. Klein stated the applicants are comfortable with the project as approved. Klein told Council if they receive an extension of vested rights, they would agree not to file a new application for increased FARs. Mayor Ireland said one of his issues is whether the applicants are willing to accept an extension of vesting limited to the project as approved. Joe Krabacher, applicant, noted the original application was filed under the infill ordinance and was in the pipeline when the changes were made. The application as proposed mitigates for all the free market and mitigates for all the commercial and is only 40 square feet short. Mayor Ireland noted the extension is for another 4.5 years. Klein said their projections are that they will not be starting until 12 months and it will take time to get pre-sales to get money to get design plans and then building permit submittal time. Klein told Council the applicants agree to the condition not to apply for a new project during the vested rights period. Mayor Ireland asked if Council could impose a condition so the vesting covers only what was originally approved. John Worcester, city attorney, suggested language "The rights vested herein are limited to the approvals originally granted. Applicant shall not apply pursuant to any amendments of the land use code adopted subsequent to the original approvals". Klein said the applicants have discussed requesting a zoning change for additional allowed uses in the change. Worcester said that would be a zoning request, not specific to this building, and would affect the entire zone. Worcester said that would be okay. Mayor Ireland moved to adopt Resolution #42, Series of 2009, with the amendment to limit this project to the existing approval, that is all that is vested; seconded by Councilman Johnson. Councilman Torre asked what land use code changes have occurred since the approval of this project. Chris Bendon, community development department, said this zone district did not substantially change. There is a range of heights instead of one specific height; there is a new process to figure out the massing of the project; there are internal ratios between uses within the project, and the free market FAR was increased. Councilman Skadron said he feels this is establishing a precedent and could open the city to a parade of requests. Councilman Skadron said he would be abandoning his responsibility to consider the entire community for one development. Mayor Ireland and Councilman Johnson in favor; Councilmembers Torre and Skadron opposed. Motion NOT carried. Regular Meetine Aspen Citv Council June 22, 2009 Councilman Skadron moved to reconsider Resolution #42, Series of 2009; seconded by Councilman Torre. All in favor, motion carved. Mayor Ireland moved to continue Resolution #42, Series of 2009, to July 27; seconded by Councilman Skadron. All in favor, motion carried. RESOLUTION #36, SERIES OF 2009 -Dimensional Variance 1495 Homestake Drive Fence Jessica Garrow, community development department, reminded Council at the last public hearing, they directed staff to return with an agreed upon location for this fence. City staff met on site with the applicant and agreed on a location, which is shown in exhibit C. A portion of the fence is on city property, under where a benn exists, which helps minimize the visual impacts of the fence. The fence then goes onto the applicant's property and weaves through the trees. The resolution approves a 14' height variance on the applicant's property and allows the city to enter into a license agreement for that part of the fence on city property. Ms. Garrow noted there is a letter from the owner of the other half of the duplex, who will have to agree on the location of the fence. Ms. Garrow said this is a private property matter. Ms. Garrow said staff feels it is important the fence enter the applicant's property where shown on exhibit C to minimize visibility from the golf course, to minimize visibility from the adjoining property owners, and it is better for the trees. Brian Flynn, parks department, told council the reason the proposed location for the fence is threaded through the trees is these are spruce trees and some lower branches need to be trimmed and the parks department will do it on the branches already dead. Staff showed Council example of the fence that will be used. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Mayor Ireland moved to approve Resolution #36, Series of 2009; seconded by Councilman Johnson. All in favor, motion tamed. REQUEST TO RECONSIDER ORDINANCE #13, SERIES OF 2009 - 219 South Third Amy Guthrie, community development department, reminded Council at their last meeting, they approved Ordinance #13, a proposed negotiation on a potential historic land mark. The ordinance was passed without a FAR bonus, which was important to the applicant. The applicant wants to go back to HPC and discuss a smaller FAR bonus, receive their support and return to Council for approval. Suzanne Foster, applicant, told Council at the last meeting some members suggested the applicant recalculate the minimum square footage they needed to make this project work. Ms. Foster said by compromising the FAR that would be typically allowed on a property 9 Regular Meeting Aspen City Council June 22, 2009 of this size, minus slope reductions, the applicants are requesting 291 square feet for a total of 2208 square feet, which is what would be allowed on the property. Ms. Foster told Council HPC members indicated they would support some FAR bonus. Ms. Foster said she feels HPC will support this compromise and FAR bonus because it does not overburden the parcel next to a historic resource. Ms. Foster said she feels HPC will support this compromise because it will save a historic resource that is important to the community and to the neighborhood and because they would like to see some action on Ordinance #48. Ms. Foster said if she does not get support from HPC, the decision will stand. Ms. Foster said if HPC does support her request, she asks Council to support that request also. John Worcester, city attorney, stated Council's rules provide a motion to reconsider, which can be done at the meeting where the original motion took place or at the next regularly scheduled meeting. Worcester told Council the motion to reconsider has to be made by a member of the majority. A motion to reconsider is only to reconsider the original vote. Councilman Skadron moved to reconsider Ordinance #13, Series of 2009; seconded by Councilman Torre. Councilman Torre said if this is re-opened, it is re-opened the entire way including discussing Ordinance #48 and this property. Councilman Torre said he has opinions on how to move historic preservation forward. Mayor Ireland said he feels square footage bonus might be a viable tool, but only if there are standards by which to measure that. Mayor Ireland agreed everything is on the table if this application is reconsidered. Councilman Johnson noted Ordinance #48 is a concern to him and agreed this issue would be opened up entirely. Councilman Johnson said he would be willing to give this application a second chance because they are the first one through the process. Mayor Ireland said he would be willing to look at a code amendment with standards on which to judge extra square footage accessible to any applicant. Councilman Skadron said this project has a recommendation from staff, different from that of HPC, different from the historic preservation task force's feelings, and different from what the applicants are asking and different from what the neighbors want. Councilman Skadron said he would like to try and find awin/win situation based on shared elements from staff, HPC, task force, the applicants and the neighbors. Councilmembers Skadron, Torre and Johnson in favor; Mayor Ireland opposed. Motion carried. Mayor Ireland moved to continue Ordinance #13, Series of 2009, to July 27`h including reposting of that hearing; seconded by Councilman Torre. All in favor, with the exception of Mayor Ireland. Motion carried. RESOLUTON #43, SERIES OF 2009 -Contract Cozy Point Ranch 10 Regular Meeting Aspen City Council June 22 2009 Stephen Ellsperman, parks department, told Council this resolution approves a long term lease for Cozy Point Ranch. Ellsperman noted the memorandum reviews the history and why the city purchased this property. Ellsperman said the City committed to preserve this for public accessibility, public open space and agricultural heritage of that property. Ellsperman said this current lease was based on getting a degraded facility back up to par and the city contemplated the ability for the lessee to provide investment in the property and to be reimbursed through rent credits. This current Cozy Point lease expires in 2010. In 2007, Council directed staff to negotiate an extension of the lease with the current lessee. In 2008, staff recommended to go to an RFP as there were other people who had interest in negotiating for this lease. The RFP outlined goals, including the successful long term stewardship of the land. There were 50 criteria for evaluation of the proposals submitted including equine, facility management, business plan management and land management. Ellsperman told Council there was both a written and a verbal presentation. Ellsperman said an evaluation committee is not required as part of the RFP process but staff felt a committee was critical for this proposal. Ellsperman said the city tried to set up a committee that had expertise in the different areas and no connection to the lease holder. Ellsperman noted Cozy Point ranch is many things to many people in the community and important for different reasons. Ellsperman said the committee was made up of Michael Behrendt, Scott Dalginow, Dr. James C. Heird, Phillip Jeffrey, Mitch Knots, Lawson Wills, John Laatsch, Don Pergande and himself. Ellsperman said this RFP went through an extensive and objective process, which is documented in the memorandum. Ellsperman told Council the evaluation committee voted 7 in favor of Cozy Point and 2 in favor of Red Barn. Ellsperman told Council the committee made a consensus recommendation to Council. Ellsperman said there were scoring matrixes and other factors in the process of selecting Cozy Point LLC. Ellsperman told Council a new lease was negotiated with Cozy Point LLC to take the property into the next 10 years. Ellsperman reiterated when the original lease was negotiated, the priority was to get the property up to speed. Ellsperman said the next 10 years are to take this property and the ranch into environmental sustainability and how more can be done on the property. Councilman Skadron asked staff to define the values and the reason the ranch was originally purchased. Ellsperman said from the original documents, the city purchased this for multi-use, a portion of which was agricultural heritage and open space. Councilman Skadron asked how the term "agricultural heritage" is being satisfied by the current tenant and will it continued to be met by each of the proposals. Ellsperman said the committee looked at agricultural values; the setting is rustic, it is a Roaring Fork valley ranch setting, and that has been protected and maintained by the current operator. Councilman Skadron asked for a definition of "working ranch". Ellsperman said that can be different things to different people. A working ranch generally derives its income from agriculture; equestrian activities may or may not fit in that definition. Ellsperman said the current haying and irrigation and cattle operations are consistent with agriculture in this valley. John Worcester, city attorney, said agricultural heritage is not a term of art. 11 Regular Meeting Aspen City Council June 22 2009 Councilman Johnson asked why this is proposed as a 10 year lease. Ellsperman said this operation is a challenging one and there is a lot of up front investment. A lessee should be able to see a vision through on a longer period of time. Councilman Johnson asked if over the last 10 years, the permitted uses have not been adhered to or the tenant was not performing under that section. Ellsperman said there has been a discussion about permitted uses related to snow storage when the community needed places to store snow. There has been discussion about using Cozy Point as a parking area for X-games, which was a Council decision. That loop was closed with a conservation easement on the property. Councilman Johnson asked if the lease payments are proposed to increase. Ellsperman said the percentage of the gross annual receipts will increase. Bob Hoover, representing Red Barn LLC, said the Red Barn team is motivated, passionate and experienced. Hoover said Red Bam is critical of the process and believes they were not given a fair shake. Hoover said the objective score sheets combined with comments from members of the task force do not add up, which motivated this request for a reconsideration. Hoover said there was no follow up with the Red Bam team especially regarding comments made on the score sheets. Hoover said for the financials, Red Barn took the numbers from Cozy Point's website, number of stalls, number of horses, costs and fees, and came up with the budget figures. Hoover told Council none of the references listed by Red Barn were contacted by staff or the task force. Hoover pointed out on the items that were the same, like insurance, Cozy Point received high scores and Red Barn received low scores. Hoover questioned how the negotiations with Cozy Point went forward; it was Red Barn's understanding that there would be no negotiating until Council decided who would get the lease. Hoover said it seems as if Cozy Point incorporated ideas into their lease from the Red Barn proposal. Hoover said comments from the task force were there was a risk that Cozy Point would stop its haying operations if they were not awarded the lease. The benefits offered by Red Barn were favorable and superior for the city and it did not come across in the staff memorandum that all the benefits would be considered. Hoover noted during the proceeding 10 yeazs, Cozy Point paid no rent but received rent credits. Cozy Point was never audited; the finances were not looked at; Hoover told Council if trainers complained, they were thrown out of Cozy Point. Hoover said there is evidence Cozy Point traded stalls and horse storage for labor. Hoover said most of the environmental and safety hazards that have been pointed out have not been rectified. According to AVLT, Cozy Point is not carrying out a sustainable ranching practice. Hoover said people were charged to park on the property for long term storage. Judy Hil] Nelson, partner in Red Bam LLC and H2J riding camp, told Council her riding camp has been located at Cozy Point for 10 years. Ms. Nelson told Council she has started several equestrian centers from the ground up. Ms. Nelson said she and her partner, Melissa Wight, share a passion for horses and for children. Ms. Nelson said because they are interested in Cozy Point and what they thought it could do for the community, they urged the city to open the lease to an RFP process. Ms. Nelson told Council she believes Red Barn can make Copy Point a better facility and open space available to all citizens of Aspen. Ms. Nelson stated it is Red Barn's desire to use their 12 ReQUlar Meeting Asaen Citv Council June 22, 2009 entire team and their expertise to improve the Ranch and to financially benefit the city. Ms. Nelson asked Council to read all the proposals submitted before accepting any recommendation. Paul Menter, representing Red Barn, told Council he was asked to assist Red Barn in reviewing the current lease. Menter said Red Barn's budget proposal has self-contained logic with some simple assumptions, included in the proposal. Menter said Red Barn proposes to generate more revenue than Cozy Point LLC financial actuals. Menter said Red Barn layered in appropriation authority for all operational needs of the ranch. The expenses flow through the Red Barn LLC budget. Menter said he believes that Cozy Point has the capacity to generate sufficient income to cover the cost of the operations, the environmental stewardship and conservation work, the ranch management and also provide a rate of return to the city. Red Barn LLC is willing to guarantee $100,000/year. Menter noted the staff memo indicates $50,000 will be paid annually by Cozy Point. Menter encouraged Council to review both of the proposals to understand the benefits of each of the proposals. Menter said he feels the Red Barn proposal will improve the condition of the ranch and of the conservation easement. Cozy Point is an important asset for this community as a working ranch and equine facility. Brook Levan, Sustainable Settings, said his job is the stewardship of 240 acres south of Carbondale and was hired by Red Bam to develop an ecological philosophy and environmental policy to implement accepted sustainable agricultural practices. Levan said he looked at the city's goals for sustainability. Levan said he reviewed the last 5 years of AVLT conservation easements monitoring reports and the 2008 stream health initiative. Levan said Red Bam's desire is to operate the ranch as sustainably as possible and to make sure their plans match the city's stated goals. Levan stated on a facility owned by the city, a shift in land management practices at Cozy Point is in order. Melissa Wight, partner of Red Barn, pointed out staff's memo states, the original intent of this lease was to insure that Cozy Point ranch would continue to meet the vision of the community while upgrading facilities that had become dangerously degraded. Ms. Wight told Council these conditions still exist. Ms. Wight told Council last year Ms. Nelson offered to remedy dangerous conditions at Cozy Point at her expense, asking fora 5 yeaz sublease for the riding camp. Ms. Wight told Council the operator of Cozy Point insisted a gag clause be signed. Ms. Wight said conditions at Cozy Point are unsafe and the health and safety issues of the users have to be addressed. Red Barn's proposal does not ask for office space at the ranch. Ms. Wight questioned what the $620,000 the city gave to Cozy Point has been used for. Ms. Wight said the city could remove itself from the responsibility of owning a dangerous facility. Ms. Wight requested Council review the history of the property and to consider a 3 year lease so the lessee can prove themselves. Monroe Sommers, Cozy Point LLC, told Council there was an allegation that H2J refused to sign a gag clause; Sommers said that clause is in every contract for every horse that is on the ranch. Sommers reminded Council Cozy Point has been in front of Council 3 times to talk about the lease. Sommers told Council Cozy Point has paid for snow removal and has paid for maintenance on the property. Sommers stated Cozy Point does 13 Re¢ular Meeting Aspen City Council June 22 2009 not feel like they have any liabilities they have to remove. Sommers said he has been working for the city for almost 10 years and feels like he has done a good job. Sommers noted Cozy Point paid rent every quarter; has provided the profit and loss statements to the city every quarter; has provided a tax return to the city. Sommers stated he has never charged an individual to park on the property; it is a service provided to the clients. Sommers told Council Cozy Point LLC has done everything at the ranch they ever promised the city. Sommers said he has put a lot of effort into the ranch operation. Sommers noted in August 2007, he made a presentation to Council and there was no opposition; in August 2008, Red Barn wanted Cozy Point to enter into a lease not in his or the city's best interest. Mayor Ireland asked if the gag clause is in the new lease. Sommers said it is not in the lease. Mayor Ireland said if a tenant wants to complain to Council, is that a violation of the lease. Sommers said it is not; what there is is a trainer acknowledgement agreement to attempt to have people work together cooperatively as a team. Mayor Ireland wants assurance that if someone complains, that their right to complaint to their elected official is maintained, no matter who is awarded the lease. Sommers said there is no intention to stifle anyone's free speech. Mayor Ireland asked if the committee evaluated the allegation of rent not being paid. Ellsperman said these allegations were reviewed by the city attorney's office and the parks department. Each allegation was looked at individually, one by one. Most of the allegations were related to the RFP process and anomalies. John Worcester, city attorney, stated the lease provides for a rent credit for any money put back into the operation, which is what staff wanted from the beginning in order to bring the facilities up to speed. Jeff Woods, parks director, told Council he was part of the original lease negotiations and staff felt rent credits were the only way to preserve Cozy Point. The city had no capital monies to put into the ranch. Woods said at that time, the city contemplated selling the property. The task force came up with rent credits as a way to keep the ranch open and to bring it up to code. Mayor Ireland opened the public comments. John Olsen told Council his daughter and niece have been riding at Cozy Point for a long time. Olsen said Council needs to keep in mind the character of the people managing the facility and the relationships they have with the children. Olsen said the current management is good people. A letter from Gail Holstein in favor of extending the Cozy Point lease was entered into the record. Shannon Williams, trainer at Cozy Point, told Council she has a great relationship with the current manager; it is a great horse environment. Pat Fallin, member of the original Cozy Point task force, told Council the task force met for over one year to decide what to do with the property and recommended it be maintained as an equestrian facility. The property had fallen into disrepair because of a revolving door of managers. Ms. Fallin stated she favor Sommers continue with the lease and the lease should not be shortened. Fran Soroka, resident behind Cozy Point and current boarder at Cozy Point, congratulated Council for keeping Cozy Point. The 14 Re¢ular Meetin¢ Aspen City Council June 22 2009 original intent was not as a revenue generating property but to revive it. Ms. Soroka asked when Cozy Point Ranch has not been open to the public. Deborah Driver has horses at Cozy Point ranch and stated it is a wonderful place and supports the current lessee. Richie Cohen told Council he has boazded horse at Cozy Point; his daughter takes riding lessons and he is very satisfied with the management of Cozy Point. Michael Daniels told Council his daughter won an equestrian scholarship to college to due Monroe Sommers and Patti. Kim Coretz told Council she brings 4 or 5 horses to Aspen every summer. Ms. Coretz looked around and chose Cozy Point and the care of the horses and the children has been stellar. Ms. Coretz said she would not want to take her horses anywhere else. Mike Mullen, Brush Creek resident, said Red Barn did not take the time to come to the Bruch Creek water authority to state their case. Mullen said Monroe Sommers did come to the water authority. Lisa Hall Flynn, trainer at Cozy Point, supports the current management. Ms. Flynn said the management is about personal chazacter and caring. Marlene Schroeder agreed the care at Cozy point is wonderful and one could not find a better manager than Patti. Jim Caldwell told Council he has known Monroe Sommers for years and he is very dedicated. Michelle Bonfils, horse boarder at Cozy Point and previous asset manager at the city, said the RFP was well done and well executed. The advisory committee was made up of professionals in the agricultural and equine industry and Council should follow their recommendation. Toni Kronberg said never change horses in the middle of a stream. Ms. Kronberg said 10 yeazs is important because it takes a long time to grow grass; in agricultural heritage, 10 years is a short time. Ms. Kronberg supports Sommers' efforts and his lease. Elliott Slade told Council Sommers managed his property for the past 15 years with great integrity. Sommers takes great pride in Cozy Point and has a great passion for horses, children and Cozy Point. Felix Tomaz said he trusts Sommers and Patti and if the community cannot trust the committee to make a good decision, why were they formed. Tomaz supports Sommers as he does a great job. Ellie Parker, horse boarder, told Council she loves it at Cozy point; her pony gets well taken caze of and she supports Sommers. Hannah Kaufman told Council she has had horses at Cozy Point for two years and she supports Sommers and Patti. Glenda Knight aid she supports Sommers and Patti, they have done everything well; it is a well managed and well run operation. Peter Alpenalp told Council he has seen the ranch over the past 10 yeazs and the city could not do better than have Sommers manage the property. Bridgette Alpenalp said she totally supports Sommers; he is conscientious, honest and as a neighbor she sees how the property is run. Michael Bonds stated he supports Sommers who has brought great people in and helps kids build character. Rick Deane said he is familiar with the challenges of ranching in the upper valley and Sommers has done a great job bringing the ranch back and has turned this into a good agricultural place. Landon Deane said Sommers has created an atmosphere that is fantastic to go to; great kids, people who like 15 Regular Meetin¢ Aspen City Council June 22, 2009 to trail ride; dressage, etc. Ms. Deane told Council she owns a dressage horse, which she keeps at Cozy Point. Ms. Deane said Cozy Point has improved since Sommers took over. Elaine Bonds said her family has boarded horses at Cozy Point for 10 years and supporters of Sommers are people who use the ranch daily. Sierra Parry told Council she rides at Cozy Point and loves it. Sommers and Patti bring together a lot of different people and create a nice atmosphere. Kathy Parry told Council her children have ridden at Cozy Point and she could not be happier. There is trust, cooperation, community; it is like a family there. Ms. Parry said she hopes Council extends the current lease. Rosemary Strong, veterinarian, told Council this is all about the horses and all about the environment. Dr. Strong told Council she spends 2 to 4 hours every day at the ranch and is very comfortable; the kids love it. Dr. Strong said it is good to have a management at Cozy Point that does not keep changing. It is integrated and is a nice place to be. Carla Kubick said she and her daughter take lessons together and it is wonderful and interesting. Cozy Point is a special place to do this. Brendan Powell told Council over the past 10 years, Sommers has developed a family. The city made a good deal 10 years ago and they would do well to continue in the same direction. Melinda Ness told Council she knows passion, character and integrity and Sommers has these. Peggy Johnston told Council she has known Sommers for 30 years and he is a man of great integrity. Kim Kaelin told Council things move very slowly on farms and it takes a long time for things to change. Ranch owners need to hire managers they can trust and who have proven they value the land, which Sommers and his staff have shown. Jane Graber said her family rides horses at Cozy Point. Ms. Graber said Patti is patient, kind and takes care of problems. Mike Thomas noted there is no quantification to the statements that the current management is not practicing sustainable ranching practices. Thomas said to him sustainability is using the resources that you have, which Sommers does every day. Emmie Cohen told Council she has been riding at Cozy Point for 6 years and has never had a terrible time and has had a lot of fun at the Ranch. Meg Kaufman supports Sommers and Patti, as the mother of a rider. Ms. Kaufman said H2J serves a different purpose and there is room for everyone. Megan Graber, Cozy Point rider, told Council Sommers and Patti do a wonderful job with this facility and have created a safe environment where kids can get along and can create relationships with adults. LeAnn Bonds supports Cozy Point ranch and the current management and has experienced friendly and professional interactions with the staff. Her horse has received good care and prompt medical treatment. Donald Stone told Council the Red Bam LLC has their heart in this and has passion to do a good job. Stone said the footing at Cozy Point is a concern to him. Stone said he is a taxpayer and is concerned that this is a costly facility and has not generated a lot of income over the past 10 years. The Red Barn proposal comes forward with $1 million in guaranteed money. Stone requested Council give consideration is the fiscal issue. Judy Family states she finds Cozy Point dangerous because of the footing and fencing. Ms. Family said her horses got ill. Ms. Family said Council needs to review both proposals to 16 Regular MeetinE Aspen City Council June 22, 2009 make sure they aze making a good judgment. Steve Elliott said he supports Red Barn LLC and is concerned with the maintenance issues, some of which are reaching health and safety issues and aze largely due to lack of funds. The Red Barn LLC has funds available. Ross Wight said Cozy Point has never paid any money; they have never been audited and have made boarders and trainers sign a gag clause. Wight said there are dangerous conditions at Cozy Point. Wight said this property has been handled too casually over the past 10 yeazs. Wight suggested a shorter term lease be awarded so the city can make sure that whoever is the lessee is doing what they said they would do. Hugh Colby said it is sad how this issue has divided the equine community in this valley. Colby said there has been dissatisfaction with some clients of Cozy Point. Colby told Council he would be the manager of Red Barn and has been fazming and working with horses all his life. Kim Dixon told Council she has not had positive experiences at cozy Point and has not boarded her horses there, nor would she. Ms. Dixon said she would like to see the footing upgraded; the fencing needs repair. Ms. Dixon said she supports Red Barn LLC; their vision cannot be matched. George Dixon said holes have been washed through the footing, which indicates the substrate for the outdoor footing is not properly compacted and there may not be a base necessary for good footings. Red Barn offered to pay for the footing, which was not accepted. Willie Fender, Red Barn team, told Council he was hired for irrigation and pasture management and land is important to this entity. The land needs to be worked and although Sommers has done a good job, more can be done with it. Cozy Point is the gateway to Aspen and Snowmass. Jeff Gorsuch told Council his daughters ride at Cozy Point. Gorsuch said there is a lot of passion for Cozy Point. Gorsuch urged Council to look at the time and energy put into the proposals. Gorsuch suggested putting some performance benchmarks for standards the city would like to see over the new lease. Karen Fyrwald told Council she feels there is room for improvement and the city should entertain the best bid. Lynn Bopley said this has been look backwards instead of forwards. Cozy Point is an incredible piece of property and it could be an incredible equestrian center. Ms. Bopley said it is not what has been done but would could be done. Vanessa Carter, teacher at H2J riding camp, told Council she believes in their passion. Alan Shaffer said there is a lot of feeling on both sides, showing this is a great equestrian community. Shaffer said this is a very important piece of property. Shaffer said agricultural heritage should be redefined; there aze too many uses on Cozy Point and it should become more equestrian uses. The facilities there are limiting and there should be more places to ride. Shaffer suggested the city get a third party outside consultant. Audrey told Council she supports Red Barn. Harvey Fahy said he supports Cozy Point and as a pediatrician does not see a lot of accidents from Cozy Point. Fahy said staff has put a lot of time into this issue and he supports the current management. Tom Goode said he hopes the result is that the horses win. Roine St. Andre said the tax payers need to work together and if the Red Barn has 17 Regular Meeting Aspen Citv Council June 22 2009 money to make things better, that should be considered. The tax payers cannot keep supporting this. Robert Mandel said he boards horses at Cozy Point and loves the feeling of the property; it feels like old Aspen. Jeanette Darnauer said she is proud of being associated with the Red Barn team and being able to share their vision has been a joy. Councilman Torre said he has questions about imgation, about physical upgrades, fiscal issues. Councilman Torre said he would like to know all the uses at Cozy Point, including user groups, different types of horse disciplines. Councilman Torre said he would like to know the possibility of the two parties working together to upgrade the facility. Councilman Skadron said whether it is fact or opinion that the conditions need upgrading, is the substrate sufficient for good footing, are performance benchmarks necessary for an operation like this, are there insufficiencies that need to be addressed. Councilman Skadron asked about rent credit. Worcester said as part of the original lease, rent credits for improvements were allowed. Councilman Skadron asked if audits are required. Jeff Woods told Council both cpas and the city's finance department have looked at the financial statements and the financials are in order. Woods said Sommers has irrigated the property using the water rights, which are worth more than $600,000. Sommers built two bridges and addressed major work that had to be done, financing the work himself and paying himself back through rent credits. Councilman Skadron noted it has been suggested that conditions need upgrading. Woods stated if Council's intention is to make this a Kentucky blue grass horse facility, it needs upgrading. Woods said if it is to be a western ranch that is beautiful, it is that. The hayfields are wonderful and the irrigation system works. Woods said staff is looking at the north part of the property and upgrades. Woods said for community access, the rugby club uses it as a training ground. The archery part of the ranch has been separated and will be community open space. Councilman Skadron stated he has read both proposals and has read over 300 e-mails, speaking to the passion of the equestrian community. Councilman Skadron said for him the issue is what best satisfies the city's vision for the property. Councilman Skadron said the question here is a working ranch versus an equestrian facility, and one proposal suggested working ranch, agricultural heritage with equestrian amenities that helps Cozy Point remain in rustic splendor. The other proposal is an upgrade to make the property an equestrian facility. Councilman Skadron said public opinion has been persuasive. Councilman Skadron stated it is important that the application meets agricultural heritage. Councilman Skadron said he trusts the city's parks department and finance oversight and that they would identify any mismanagement, financial or environmental. Councilman Skadron said Cozy Point asset is less about money and more about protecting the city's environment as it relates to the overall goal for the property when it was acquired. Councilman Skadron stated he has no reason to believe that the recommendation by the task force is inadequate. Councilman Skadron said the Red Barn's proposal was beautifully written; however, he is skeptical about proposals that use marketing and public relations to promote them rather than relying on the merits of the application. Councilman Skadron said he can support the Cozy Point LLC proposal 18 Reeular MeetinE Aspen City Council June 22, 2009 Councilman Johnson stated he has read every page of both proposals and has spent time on both financial sides. Councilman Johnson said looking at Cozy Point actual financials and projections on the Red Barn proposal, without raising fees and increasing the volume, it would be hard to meet the Red Bam projections. Councilman Johnson agreed the facility should stand on its own, financially. Councilman Johnson said he feels this operation has been successful and Cozy Point has been successful in upgrading the facility. Councilman Johnson said there are aspects that can be taken away from the Red Barn proposal that can be incorporated into the lease. Councilman Johnson said he would like to see more detail, like monthly financials and tax returns to provide clarity; an audit is provided for in the lease. Councilman Johnson said he feels there should be a yearly strategic plan review of how the operation is going and where it should go. Councilman Johnson said he would like to see some advertising money spent; the safety issues need to be addressed. Councilman Johnson said he would like to see benchmarks in the lease and a term of 5, plus 5, plus 5. Councilman Tone said the footing and fencing have come up as issues at the facility. Councilman Torre agreed he would like to see benchmarks in the lease as well as a yearly review to look at a direction and a schedule of improvements. Mayor Ireland concurred the lease should be renewed with Cozy Point LLC. Mayor Ireland said the offer from Red Barn LLC is financially attractive; however, there is value in running an operation that motivates so many people to testify at a Council meeting, which is a strong case that the operation is well run. Mayor Ireland said the issues about safety is something the city should evaluate and asked staff to look to see if the footing is adequate. Mayor Ireland said the question about sustainability should be answered. Mayor Ireland noted there is a schedule of improvements proposed, which can be benchmarks in the lease. Mayor Ireland said this facility is about serving people and people seem to be happy with they way it is being run, which offsets the possibility of collecting more rent. ~IVlayor Ireland moved to formalize the decision to go with Cozy Point LLC and that staff return with a lease that evaluates the sustainability, has an outside evaluation of the adequacy of the footing and fencing and overall safety of the operation, that contains benchmazks for performance of improvements; seconded by Councilman Torre. All in favor, motion carved. Mayor Ireland moved to go into executive session at 10:05 p.m. pursuant to C.R.S. 26-4- 402(4)(a) The purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest; seconded by Councilman Skadron. All in favor, motion carried. Councilman Torre moved to come out of executive session at 10:40 p.m.; seconded by Councilman Johnson. All in favor, motion carried. Councilman Torre moved to adjourn at 10:40 p.m.; All in favor, motion carried. seconded by Councilman Johnson. Kathr .Koch, City Clerk 19