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HomeMy WebLinkAboutcoa.cclc.ag.08052009COMMERCIAL CORE & LODGING COMMISSION REGULAR MEETING 130 S. GALENA SISTER CITIES MEETING ROOM August 5, 2009 8:30 A.M. 8:30 I. Roll call and approval of minutes II. Public Comments not on the agenda (please limit your comments to 3 minutes) III. ACRA -Debbie Braun - ALMD -Aspen Local Marketing District update. 9:15 IV. AACP -Aspen Area Community Plan -Ben Gagnon 10:30V. Adjourn C~ OPBOX 2~1D73) ASPS NSO 81612 ASPEN~~cHAMBER RESORT ASSOCIATION NWN'.AS PENCNR^NEN.0 N6 ASPEN LOCAL MARKETING DISTRICT (ALMD) -Frequently asked questions. Presently there is a''/z% lodging tax dedicated for marketing. It can raise around $600,000 annually. Unlike winter marketing that is funded significantly by the Aspen Skiing Company, there is no other overall Aspen community marketing effort for the spring, summer and fall seasons. Clearly we need additional resources so we can do a betterjob in promoting our non-ski season business. The Aspen Lodging Association and the Aspen Chamber Resort Association are collaborating with business and civic leaders to find the best means to increase our community marketing resources and have agreed that a marketing district is the best mechanism to achieve this outcome. Our organizations believe that increasing Aspen's tourism and promotion fund is vital to the economic strength of our community. The proposal will provide a 1 % increase in the lodging tax (no propertylsales tax impact) and will assist in supporting important year-round sales and marketing efforts. It is clear, especially this year that economic realities require an increased marketing and sales effort. Some basic and important questions: 1. What is a local marketing district? A local marketing district (LMD) is an organization formed for the purpose of funding an increase in advertising, marketing and promotion of tourism within a defined service area, in our case the Aspen commercial and lodging areas of our community. (See map.) The district is managed by a board of directors and is independent of the City of Aspen. 2. Why now? Hotel occupancy and rates are considerably down; Aspen's overall tax rate is below many of the mountain resort competitors and many local businesses are laying-off friends and neighbors to balance their budgets. Last year, Longwood's International, North America's leading travel marketing Research Company conducted an advertising effectiveness study for the State of Colorado. It reports that for every dollar spent on advertising, the return was $193 in new spending in Colorado, and $13 in new state and local taxes. Our organizations are confident increased marketing efforts are crucial to the continued success of our resort and will help lead us through these tough economic times. 3. How do you go about starting a LMD? The process is well underway and we can use your help - we have defined the boundaries of the ALMD which includes Aspen's core commercial area downtown as well as Aspen Highlands and Aspen Meadows. The district does not need to be contiguous. With the district defined, the next requirement was getting a petition signed by commercial property owners of more than 50% of the commercial properties valuation within the district. Proposed Marketing District FAQ, page 2 We've turned over the required signed petitions to the City of Aspen for verification by the City Clerk. On Monday, July 27, 2009 the City Clerk validated the petition and Aspen City Council heard the f rst reading of Ordinance #19, 2009 -Aspen Local Marketing District (ALMD). The timeline for getting the ALMD on the November ballot is as follows: July 27th - 1st Reading - no public comment at that time August 10th - 2~d Reading and 1St public hearing August 24tH- 2°d public hearing and possible adoption of the ordinance Ballot must be finalized by August 24th 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 which is approximately 785 total voters, which break down to 574 active and 211 inactive voters. 4. Where are the District boundaries? A general description of the boundaries and service area of the proposed District which is generally bounded by Main street to the north, 5th street to the west, Cleveland street to the east, and Aspen Mountain to the south, including the commercial areas of the Aspen Meadows Resort and the Aspen Highlands ski area. Please see attached map for boundaries. Again the district boundaries do not need to be contiguous. 5. When and how is the new lodging tax money going to be spent? If voters in the ALMD approve the formation of the District and the 1 % marketing and promotion tax, it is estimated that approximately $1 million dollars will be collected in its first full year. If approved at the November 2009 election, the new tax will begin being collected in January of 2010. The marketing advisory committee will make recommendations to the ALMD board on the new marketing plan. 6. What happens to the current .5% tourism and promotion tax? The existing tax will still be collected by the City and ACRA will continue to administer. The new ALMD funds will help augment the current tourism and promotion fund for maximum effectively. 7. What role will ACRA and the Aspen Lodging Association provide? ACRA will work with the ALMD Board to integrate and coordinate the ALMD marketing plan into the Tourism and Promotion Fund marketing plan. The Marketing Advisory Committee and the Aspen Lodging Association will continue to provide valuable input and strategic guidance as well as the ACRA board of directors and finance committee. 8. Is there any impact on property taxes within the district? What is our current tax rate? No. This is a hotel room tax only. Only visitors staying in overnight accommodations will be charged the new 1% lodging tax. Current tax rate is 10.1 %. The breakdown: 1 % to lodging/transportation; 2.7% City; 3.5% County; and 2.9% for state. Proposed Marketing District FAQ, page 3 9. Who collects the tax and how do they pay the tax? Lodging owners or their management companies are liable for the Local Marketing District tax rate beginning January 1st, 2010 on all receipts from lodging when the stay was less than 30 consecutive days. The tax is collected by lodging from the customer. This tax is then remitted quarterly to the Department of Revenue on Form DR 1490, and must be filed by the 25th day of the month following the quarter for which you are filing. Note: The Local Marketing District (Special District Tax) does not allow a service (vendor's) fee as you may be accustomed to with the Colorado Sales Tax Returns. 10. Is the Local Marketing District (LMD) part of the City government? No. The ALMD is a separate Governmental District with its own board members as allowed by State statute. 11. What other issues are on the November ballot? Questions for the November ballot are not finalized yet. However, the ballot probably will have issues from Crown Mountain, from CMC, from Aspen School District, from Pitkin County (some bond issue regarding efficiency improvements) and perhaps a city question on IRV. We will keep you updated as information becomes available. 12. What is a sunset provision? The City Council as requested a 5-year sunset provision with the Aspen Local Marketing District. This means after a period of five years, unless otherwise extended by a vote of the electors of the District will dissolve and no longer collect the 1 % lodging tax 13. Where can I get more information? The Aspen Chamber Resort Association has setup a web page for all the latest information. You can go to www.aspenchamber.org/almd. Also Become a Fan of Aspen Local Marketing District on Facebook. You can also contact: Tim Clark, chairman, Aspen Lodging Association 920-2000, tim(a friasproperties.com Warren Klug, chairman, Aspen Chamber Resort Association 925-1000, warren@asoensouarehotel.com Casandra Foister, chairman, Aspen Marketing Advisory Committee 925-2980, casandrafna asoenoreferred.com Debbie Braun, IOM, president, Aspen Chamber Resort Association 920-7140, dbraun anaspenchamber.org I F ==i ~~ C lJ , ~ f .. _. _ . , -- i ~ ~ s, '~ a ~ ` ~a ..._.... I - p s3 ; _ ~ ~ ~ ~ ,I i a ~ a f ~ _ ~ v J F ~ ` ' ~ •• ~ ' F / i ! ;, !% , r ! ~ ~ -.~ , j ' ~ ~ ~.l ~ .., ... i .., , 6 ~ ~ ~ i s - -! __ i .,,._ _- + ~, i I ,` .h . _.: u~.. _. ..-_ _._ ......_ .._. _ I Ty ~ .. a i ti ~ ~ i _ _. ~ I M~ ~. 1 s~ i ; rlll ~r~M ~~~ ... ...... + - I I_, i / i~ ~ ~ :~ i I ~ I 1 I s ~~4 _ M °a ~ ~ $ '~ e _ _ .:~_ - MEMORANDUM TO: Commercial Core and Lodging Commission FROM: Ben Gagnon, Special Projects Planner MEETING DATE: July 29, 2009 RE: Input on Aspen Area Community Plan Update BACKGROUND: On July 15, the CCLC discussed a range of issues related to the Economy chapter of the AACP update. This discussion will be continued on July 29. REQUESTS: Based on the initial July 15 discussion, staff has drafted several statements for the CCLC to review for the July 29 meeting (please see Exhibit A). Through a straw poll or some other method used by the chair, staff would like the CCLC to determine if there is consensus on any or all of these statements - or if they might be revised. This will help define CCLC's input to the city and county P&Zs. Staff has provided additional background information for the CCLC to review prior to July 29, including preliminary input from the Skiing Company, various "testimonials" from the private sector and the Economic Sustainability chapter from the 2000 AACP. At the next meeting, staff requests that the CCLC discuss whether to recommend carrying forward any portions of the Economic Sustainability chapter in the 2000 AACP, to continue its discussion on what would represent "major breakthroughs" in the Aspen area economy over the next 10 years, and propose any Action Items for the P&Zs to consider. The CCLC is also invited to choose a liaison who can be present to answer any P&Z questions on August 18. ATTACHMENTS: Exhibit A: Potential Areas of Consensus Exhibit B: Aspen Skiing Company preliminary input Exhibit C: Private Sector Testimonials Exhibit D: 2000 AACP Economic Sustainability section Exhibit B Preliminary Skiing Company comments Type of Economy /Plan in General: • The AACP should recognize, accept and embrace the fact Aspen has a "resort economy" as its modern economic catalyst, foundation and primary draw. o Other sectors of our local economy, including real estate, construction, retail and various service sectors, largely flow from or build upon this foundation. o The demand for real estate, for example, is predicated upon the existence and appeal of the resort, its features, activities and amenities. • Once the foundation of the economy is acknowledged, then consider how to nurture, sustain and promote its /our economic health and well being. Differentiating between the "Aspen the Resort" and "Aspen the Community" is a false dichotomy and engenders unnecessary and false choices. o With the demise of mining and ranching there would be no "Aspen Community" as we know it today without "Aspen the Resort." The former is borne by the latter, which also sustains it. The latter could not exist and function without the former. o Inseparable interdependence is the reality of Aspen's social and economic conditions and of all its participants. The area's economy should not then be thought of as consisting of or serving primarily one or the other segment, entity, concept or interest group. • The Economics section of the AACP should focus on the interrelationships of all sectors and elements of its economy, fitted together with other elements of the AACP, such as housing and transit for example. o The AACP should be considered and written to reflect this holistic economic perspective. • The brief Economics section of the 2000 AACP focused on "economic sustainability" and maintaining an economy in place while "limiting the expansion of the physical size of the community." • We should not be confused between "growing the economy" and "growing or expanding the physical size of the community." They are not synonymous and the new AACP should distinguish between the two. • The Economics section of the new AACP should broaden its perspective to include sustainably protecting, nurturing, promoting and enhancing the economy in broad and comprehensive ways over the long term of the next 10 to 25 years. • We should not be dazzled or blinded by selected metrics or categorizations that are not particularly meaningful; nor should we react reflexively to the raw data of such metrics. o For example, while the sheer Dollar volume of real estate transactions and construction permits in the past five to six years is eye catching, the Dollar amount alone of that economic sector does little to inform us or guide public policy regarding the purpose, longevity or effects of that economic activity. o For one thing, recent construction and real estate activity may be as much or more reflective of national macro-economic trends and circumstances than Aspen's own market dynamics in isolation. Certainly the sudden collapse of real estate in the past nine months from historic highs, which dramatically reversed the trends reported in the ERA and State of the Aspen Area Reports of 2008, is reflective of national, even international, macro trends. Aspen's economy and recommendations made regarding it should not be made in isolation, but rather viewed through the wide lens of a large contextual setting and a long lens, which sees beyond and through macro- economic cycles over time. Beyond gross Dollar values, other metrics, such as the number and percentage of jobs in the local economy relating to tourism, recreation, hospitality, and services might indicate that the tourism categories of businesses and business activities are "larger," more impactful or more significant in many ways than real estate or construction. o The ERA study, "The Aspen Economy," dated October, 2008, supports this idea, stating on page 20, "Although direct ski- generated revenues have been outpaced by real estate income, skiing remains the foundation of the Aspen tourism industry and economy." The report goes on to note that ASC alone provides roughly 3,800 full time and seasonal jobs for its employees. Other metrics of quantifying the resort economy, such as expenditures per guest, per day, when cumulatively aggregated, may be useful measures of the scope, scale and import of local tourism, and of the draw and significance of skiing and other winter recreation in particular. Such metrics, common in retail planning and financial projections, and a specialty of such firms as BBC Research and Consulting and Thomas Consultants, both formerly consultants and contributors to the City as part of the "Report and Recommendations of the Economic Sustainability Committee," dated September, 2002, are probably already part of the City's records and new planning information since the 2000 AACP which might be usefully incorporated in or inform this Community Plan. • The Economics section of the new AACP might consider the following questions or similar ones: o Who are we? o What do we want to be? o What does the guest, i.e. the market, want us to be? • The purposes found in the answer(s) to that question should become a core part of the AACP document. • In the private sector, strategic planning would naturally include a SWOT analysis. A similar exercise might inform the AACP's Economic section. What are Aspen's economic Strengths? Weaknesses? Opportunities? Threats? • The perspective of the guest or visitor to Aspen should be heavily weighted and incorporated in the Economic section of the AACP. Skiing, commercial recreation, activities and events were not directly covered or addressed in the 2000 AACP Economics section. As fundamental components of our economy, key attractions to our guests, and frequently the very reasons for our own residencies here these subjects merit focus and attention in the Community Plan. Economy Vision Statements and Policy Themes: Retail • Don't try to micro-manage retail mix. o It is a futile proposition for the City to try and manage mix since it is neither a significant landlord, nor a retailing entrepreneur, and is therefore poorly positioned to define or alter supply. o Nor can the City manufacture or create consumer demand for goods and services by type or volume. o Except, the City can grow demand by increasing the number of residents or visitors through in-fill density increases in housing and lodging. If the City wishes to promote or support retail, it could help by reducing the costs of being in business, whether by reducing fees and taxes and/or by subsidizing the effective costs of rent and building occupancy. National trends and vendor consolidation in retail are reducing the number and type of local "mom and pop" retail stores and concepts everywhere. Amazon.com, Internet retailing and direct to door delivery have also altered the retail landscape enormously.. The City can't unilaterally alter those macro trends or create new retailers. Instead, the City might simply incent, support, or subsidize if it must, the creation of "incubator retail" where possible and let small, nimble entrepreneurs invent and try new concepts. o Reconsider the ideas and suggestions made by BBC Consulting and Comm Arts in their retail study of a few years ago. • Focus on experiential elements of the retail and services sectors. • Support and enhance the public areas of the town, specifically the commercial core where people can gather, interact, linger, sit and observe, or do things. • Support and encourage restaurants, cafes, bars, activities and nightlife. Encourage sidewalk seating and dining, bringing these activities to the public space. • Consider eliminating more traffic and on-street parking in the core, and expanding the Cooper and Hyman Avenue malls to Spring Street and reconsider centralized underground public parking beneath Wagner Park or elsewhere. • Capture automobile traffic in arterial park-n-rides on the urban perimeter and in centralized structures in the core and open more pubic right-of- ways to strictly pedestrian use in town ("Zermatt lite"). Consider new open air or quasi-open pedestrian "market places" that touch upon the City's public spaces or commons, such as a partially open market on the north end of Wagner Park. Tie such shopping experiences to gathering and relaxing places. Lodging Aspen lost 25% of its lodging bed base (roughly 2,500 hundred beds) in the decade of the 90's, most dramatically among small, lower cost, "more affordable" lodge properties. There is a reason: the economics of such small hotel or lodge properties simply no longer work. Re-development or new development of such properties does return on investment. Neither are such properties typically profitable operationally. These trends are not going to reverse course in the foreseeable future. • Replace this lost bed base with a variety of contemporary lodging products, suitable to today's economic and investment realities. • As suggested and recommended in the "Report and Recommendations of the Economic Sustainability Committee," issued September, 2002: "Support redevelopment of existing lodging facilities and the development of new lodging facilities." • Encourage and incent all types of mixed-use lodging product types, including pure hotel keys, fractional, club and fee simple residential lodge units. • If the City wishes to create or incent the creation of low cost, affordable lodging, particularly for younger, less affluent visitors, consider developing such lodging of sufficient mass and scale necessary to support a financial viable hotel over the Rubey Park Transportation Center or next to the Courthouse over the parking garage, or contributing the land and provide public financing to a private partner for such development. Skiing & Winter Sports, Outdoor Recreation, Activities and Events Include skiing, winter sports, outdoor recreation, activities and events in the Economic section of the next AACP. Describe the vision, intentions, philosophy, policies and goals to maintain, sustain, promote and enhance skiing and these other activities as economic and experiential foundations for Aspen and its residents. • Aspire and state as a goal to be the best winter sports and outdoor recreation resort in North America, if not the world. • Consider and recognize the changing demographics of skiing, winter sports and outdoor recreation generally (ASC will separately provide demographic information compiled by the National Ski Areas Association). • Maintain market share and guest visitation in the face of changing demographics, national economic fluctuations, and increased competition. • Maintain the job base and meaningful, attractive employment for the skiing and outdoor recreation sectors of the Aspen area economy. • "Crack the multi-generational code" and continuously appeal to, touch and draw from at least three generations of guests, including Gen X and Gen Y. • Through the "X Games" and other means, establish brand relevance and appeal for younger guests and visitors. • Provide attractive, appealing and affordable activities, lodging, dining, events and entertainment for Gen Y and younger visitors. • Offer diverse events and activities, attractive to a wide range of guests and visitors. • Appeal to and continue to promote events and activities to specific interest groups among the diverse Aspen audience, reaching a wide range of visitors such as X Games devotees, Food and Wine patrons, Gay Ski Week participants, FIS ski racers, music festival guests and others with special or identifiable interests and reasons for visiting Aspen. • Tackle the "affordability problem," offering a range of events and activities (and lodging) that many segments of the Aspen demographic can afford. • Emphasize activities and events reaching a new generation of Aspen visitors as a sizeable sector of Aspen's historical audience through its modern era is elderly or becoming so and less able or inclined to visit and participate. The aging local population is also a "threat" to the sustainability of events, activities and entertainment because the traditional local audience is not participating at the same rate and supporting these activities through ticket patronage or serving as volunteers where labor is needed as they once did in the past. • Learn who the next generation of Aspen customers and guests is and appeal to them through attractions, events and activities that spark their interests and create an atmosphere, "vibe" or "buzz" that speaks to them and draws them here, rather than other resorts. • Identify the next cultural wave for Gen Y, offer events suitable to it and create a destination cache that delivers an experience of interest to the next generation. • Among mountain resorts, "own," promote and present at least two events every month in high winter and summer seasons. • Distinguish the Dollars spent or invested in an event and the continuing and secondary economic merits of a sponsored event. ASC invests approximately $3MM every year in events. Business promotions such as these should be leveraged as much as possible. The promotional power and "destination driver" of events should be considered in selecting and presenting events. For example, ten to twenty million people view X Games on television; its reach and promotional power far exceeds the audience of visitors who actually attend it or the direct costs of promoting it. • Concentrate on events or activities that can routinely and readily draw 1,000 to 1,200 people. Aspen enjoys the highest returning guest ratio among American destination ski resorts, approximately 73% of guests return, a twenty point difference between Aspen and its nearest competitor, due in part to the breadth and depth of the activities and experiences available here - continue to offer a widely diverse range of events and activities of arts, culture, and entertainment to retain this drawing power. Exhibit C Private Sector Testimonials Private Sector Testimonials: Perspectives on the Aspen Area Economy The following are testimonials,from people working in various sectors of the Aspen Area, ranging, from lodging, retail and downtown property owners. Because many business/property owners have important perspectives but are not willing to engage in puhlic debate on hot-button issues, the testimonials are anonymous. LODGING SECTOR The loss of "economy" and "moderate" lodges in Aspen over the last 15-20 years was due largely to the fact that many of the buildings were not built to last, aging proprietors seeking to retire and a product that is out of step with modern traveler seeking modern amenities. Unique is good, run-down is not. In terms ofmid-market lodging, our competition as a ski resort is in New Mexico, Breckenridge, Copper Mountain, Winter Park etc. Our status as a destination resort creates a substantial barrier to mid-market vacationers. Many people seeking mid-market accommodations are relatively wealthy Europeans who will come to Aspen but are looking for a financial break somewhere in the visit. The might want to stay at the most deluxe hotel in town, but they will take a nice new 2~ tier because everything else is expensive. Are these the next generation of ski "bums?" as referred to in your public feedback? Probably not, but they are the next generation. Because we are a destination resort, special events drive our success, but we take them for granted. The loss of HBO comedy fest was a major loss -even if many weren't skiers, they were young and cutting edge, they were cool and hip. Winterskol used to be a fearless, unhinged event -- skiing naked into pools, throwing water balloons in the parade -that you find only in Aspen. There was a fearless attitude, kicking a--, taking names, visiting Doctor Feelgood's head shop, yellow snow, steep deeps, nude anti-fur protests -just get out of my safe life and get wild, while the Institute stretched their minds ... but we've gotten older. We have experienced the taming of Winterskol. Are we a resort first that attracts people who want a great experience of "nutty" Aspen or are we catering first to an aging residential population and second home owners who don't want loud music in Wagner Park? The movies Aspen Xtreme and Dumb and Dumber were GOOD things -but we were too snooty to even let Dumb and Dumber film here. The Cougar show was totally unhinged, but there were a lot of people who felt embarrassed by that. Is that embarrassing? No! Sometimes we're too cool for school. People say if only we had cheaper hotels, people would come here. No, if we had a wet t- shirt contest, people would come here. I'm not being literal here - I'm not saying we should have wet t-shirt contests. I'm not saying we should try to duplicate the hipness and coolness of the past or trade on sex, but we have to find what's cool and cutting edge today, to young people. The X-Games are the only example of that -without the X- Games, we would be in big, big trouble -but that's not enough. We need well-educated world travelers, not people that have no money. "Affordable Aspen" just plays right into our rich reputation. What does that phrase mean to someone who's never been here? It's a defensive position. No really, we're affordable! It's like when Vegas tried to attract families -that bombed. It's only when they went back to that raunchy nasty reputation that it took off again. You are who you are and you have to be that. That doesn't mean we're just a playground for the rich and famous -we're super-athletic and we're environmentally conscious, we're John Denver. We have to be Colorado first. ``This is Colorado, and Aspen too." LODGING SECTOR The term ski bum is ancient history - we just don't have them anymore. A breakthrough in the next 10 years would be building a hotel and turning the Lift 1 area into a vital area, a new part of the base of the mountain. That would lift all boats, so to speak. Right now it's deader than dead. If it's all super-expensive that's not good, but making it all moderate, you just can't do it. I think having a mixture of different kinds of offerings would be great. I'm not as worried about having a diverse visitor base as some others. It's OK to say we're a resort on the upper end of the scale. We shouldn't have to be a place where a factory worker in Ohio who makes $35,000 a year would want to come -there are places like that, but Aspen's not one of them. A lot of people look to the past and say it used to be great and yes the rooms were cheaper but you still had to spend money to get here and stay here and people still b----ed about the lift tickets -- that hasn't changed. People who come here still think it's a terrific place. No one says, `Gee I wish I was here 30 years ago.' To worry that it's not the way it used to be, come on, everybody has changed, it's not relevant. The question is: What are people looking for today? What will they be looking for tomorrow? I think we're seeing a cultural shift away from the lavish consumption we've see since the 1980s. I think we're moving towards a cultural frugality -not just because of the economy, I think it's a bigger shift than that. Another breakthrough in the next 10 years would be another Limelight. It's good quality - it's not inexpensive, but it's certainly below the St. Regis and the Little Nell, it's a nice property and they've got great personality. I don't think we need chains, and I don't think we need another big super deluxe hotel. Some high-end at Lift 1 would be fine, but not the whole thing. As for inexpensive lodges, you just can't develop that in this town with the land prices, the building costs and the mitigation that's required. The Limelight was able to get some concessions and even so they can't be what you think of as "inexpensive." I mean no one's really talking about a Motel 6 on the edge of town, and I don't think anyone's talking seriously about the city publicly subsidizing a new hotel. On the question of whether we have enough local serving retail, some is a result of high rents perhaps but I think most of it is demand -there's just not that many locals to support that local-serving store and I think locals have gotten used to shopping elsewhere for a lot of things and that's just what we do. When Eddie Bauer disappeared, the owner said there just wasn't enough traffic to support it. Some of the high end stores like Prada, that's OK -it's sort of like people at the zoo staring at the $5,000 purses, it's different, but it would be nice to have some more of those nice funky boutiques we used to have. I'd like some more diversity in retail. RETAIL SECTOR A big breakthrough would be if rents were more affordable. There are some landlords now who are lowering rents because of the economy. But I'm a strong believer in market forces and not having government involved. If you have a concept the market wants to support, it will succeed. If stores go, maybe it wasn't what the market wanted to buy. We're a town that's always been very sought after because of the natural beauty and the culture, particularly in summer, and there are a lot of high-end tourists, like Monaco, and that's OK. I think for a long time now, I think there's been a tone and a message that's gone out that they're not appreciated and that's not right. We should embrace everyone. Overall I think we've done a good job balancing the resort and the community. We're very conscious of that as a town. On "locally-serving business" -I've asked people to define it and I haven't heard the definition yet. People might say there's no place for me to buy clothes, but I think people forget that there never really was. And we can't compete with Target and the Internet. So what if we had a new casual clothing store: What I want will probably be different than what ~ want. Which local are we serving? I think we have a healthy blend. Yes, the big names have the prime locations and if you're doing a quick drive-through, that's what stands out, but if you pound the pavement, there are still a lot of great boutiques. And there's a trend of people going subgrade now, which is primarily a function of lower rents. There's a new clothing store in Peter Fornell's space, there's Parallel 15, Double Dog. That's not a bad thing. In a way, you want to be a great little find that people go out and discover. It's difficult, but local people are opening businesses such as Gisella. Bad Billy's has created quite a vibe. On the subject of restaurants, when I go to other towns or resorts, I do see more places that are a combination of sandwich and salad for lunch but also offering casual family dining, like Boogies. We don't have a lot of that here: sort of Jour de Fete plus dinner. I think a lot of us have a longing for the past and to turn back the clock, but you know, we have it pretty good here. Yes, town has changed. I think a lot of this discussion about locally-serving business is nostalgia-driven. I got here when Andre's was just closing and I know there are beloved memories of that. People walk past today and it's Prada and it gets their hackles up. Do we really wish we could change it back to when the Brand Building was a hardware store - do we really want the economics of Leadville? As for the future, it's great that the X-Games has introduced Aspen to a new generation. It makes Aspen cool. We need those street concerts. What Michael Goldberg was talking about for a concert in the park was great. Town is going to have to be about more than the Music Festival and Institute crowd, even though of course they're so important. I was flying into Aspen and the woman sitting next to me had been visiting for years. She said she was reading the local newspapers and she said it seems like we want to change our image and our reputation. She said, "It's always been exclusive to a degree. It's not easy to get to, It takes time and money to get here. Why not just accept it as it is?" DOWNTOWN PROPERTY OWNER Locally-serving business is exactly what will never be here - Wa1Mart and Target. Don't get me wrong, I don't think anyone wants them here and there's not enough space either. The point is they offer products and price-points that no one can compete with - no matter how you cut it. That's why they're WalMart and Target. That's the reality of retail in the last 15-20 years. I loved the shoemaker, the cobbler when we had one, but he doesn't survive today because shoes have become throwaway items. I think it was Margo Pendleton many years ago who coined the phrase about being able to buy socks and underwear in Aspen. The Gap sells those things, Eddie Bauer sold those things but they didn't have the volume to support the store. Even then, people shopped downvalley. On the subject of restaurants: There has been a conversion that's taken place over a long period of time where the really prime locations have shifted from restaurant to retail. Andres became Prada, Smuggler Bar was converted, Tom's Market became Hard Rock Cafe which became Amen Wardy, Ute City became Burberry, Cooper St. Pier will become retail on the ground floor with the bar/restaurant in the basement. I think this conversion has run its course. Aside from Ruth Chris, I can't think of another really prime location that isn't already retail. On generational change: What the Ski Company did with snowboarding and the X- Games was brilliant. I think there is a worry about gentrification and aging of the community. I think you have to think about what your business is. I think the City is in the arts business and whether people like it or not, the City is in the tourism business. On that level, I think we are totally under-marketed compared to what other resorts spend. I think a major breakthrough would be that the City government has a welcoming posture to everybody, including the second homeowners who keep the town afloat. City government should be open-ended and open-armed.