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HomeMy WebLinkAboutminutes.council.20140714Regular Meeting Aspen City Council July 11, 2014 1 CITIZEN COMMENTS AND PETITION ................................................................................................... 2 COUNCILMEMBER COMMENTS ............................................................................................................ 3 BOARD REPORTS ...................................................................................................................................... 3 CONSENT CALENDAR ............................................................................................................................. 4 Resolution #80, Series of 2014 – Recreation Facilities Lighting Retrofit ........................................ 5 Resolution #81, Series of 2014 – Authorizing Renewable Energy Mitigation Program Grants ....... 5 Resolution #82, Series of 2014 – USA Pro Challenge Contract ....................................................... 5 Resolution #83, Series of 2014 – USA Pro Challenge Westin Hotel Contract ................................. 5 Resolution #84, Series of 2014 – Parking Enforcement License Plate Recognition System Replacement Contract ....................................................................................................................... 5 Minutes – June 23, 2014 ................................................................................................................... 5 Resolution #86, Series of 2014 – Parks Trails Overlay Contract ..................................................... 5 Resolution #78, Series of 2014 – Aspen Ice Garden Locker Room Remodel .................................. 5 Ordinance #20, Series of 2014 – 411 S. Monarch (Dancing Bear ) and 219 E. Durant (Chart House) PUD Amendment ................................................................................................................................................... 5 Ordinance #14, Series of 2014 – Red Butte Cemetery – PD Amendment.................................................... 7 Ordinance #19, Series of 2014 – Lodge Incentive Program Code Amendment ......................................... 12 Action Items ................................................................................................................................................ 18 Resolution #85, Series of 2014 – 110 W Main Street (Hotel Aspen) appeal of HPC Resolution #13, Series of 2014 ........................................................................................................................................................ 18 Regular Meeting Aspen City Council July 11, 2014 2 Mayor Skadron called the meeting to order at 5:00 p.m. with Councilmembers Frisch, Mullins, Daily and Romero present. CITIZEN COMMENTS AND PETITION 1. Tim Murray – 1275 Riverside Drive told the council this is again about the construction project at 1409 Crystal Lake road. He said the project is expected to continue for another few years. The heavy equipment on site uses approximately 250 gallons of diesel per day or 5 tons of greenhouse gas per day. This project promotes global warming, fatal accidents and bad health and is a health and safety issue for visitors and citizens. Mayor Skadron said there have been actions taken – Chris Bendon and Tony Kornasiewicz are looking at changes to construction practices to minimize noise. This type of development of double basements has never been seen before. Council is concerned and is this is being worked on. 2. Steve Spiritis- 80 Overlook Drive said the Red Butte Cemetery had agreed to remodel the historic cabin and landscape plan. None of that has occurred and he would like Council to look at this. 3. Mario Zulian – owner of Eco Steam Wash located at the Conoco said he is concerned about Mark Hunt’s real estate purchases. Mr. Hunt purchased the gas station and now Mr. Zulian will be forced to move his business. He has seven employees and it is a pioneer business with the steam wash technology. He wants to grow and continue to serve the community but is concerned with where he can move in downtown. Mr. Zulian said he is seeking guidance to take the right step. Questioned if Aspen can only have 1 gas station in downtown. Councilman Frisch said we are lucky to have one gas station here and this is a worthwhile discussion. Councilwoman Mullins said Council is working hard to support smaller businesses. Councilman Romero said maybe the model in Snowmass can be replicated. Councilman Daily said he is glad Mr. Zulian shared his concerns and some ideas he will pursue. Mayor Skadron said we live in a town that deemphasizes the automobile. His big concern is entrepreneurial businesses that may be lost. Mayor Skadron suggested Mr. Zulian email Randy Ready. 4. Bill Mitchell- told the Council he is concerned with the parking spaces given away to the art museum for the sculpture garden. They have taken over another 20 parking spaces. There are parking signs up with expired dates. He said the museum needs to be a good neighbor. The Parking department needs to be careful about the number of spaces they are granting. He said he was told by the parking department that they were told from “on high” to give the art museum all the spaces they want. Tim Ware, parking, and Trish Aragon, engineering, said the additional parking on Spring St. is to maintain pedestrian access on the west side. Mr. Ware said the museum is not paying for parking so there is no incentive to get out earlier. Regular Meeting Aspen City Council July 11, 2014 3 Barry Crook said he presumes the museum is acting per construction management plan. Councilman Frisch asked if they are using more parking than granted. Ms. Aragon said they were enforcing continually, especially today and this is being addressed. Mr. Mitchell suggested they should supply valet parking. Mayor Skadron said the Art Museum is aware of the impacts on the neighborhood and asked Ms. Aragon to speak to the art museum about these suggestions. COUNCILMEMBER COMMENTS 1. Councilwoman Mullins welcomed her sons Will and Matt to the meeting. 2. Councilwoman Mullins attended the Aging Well lunch given by the Aspen Pitkin Senior Services on July 24th and complimented them on the great job they are doing. 3. Councilwoman Mullins said there were two more Red Brick openings and the shows are still up to view. 4. Councilwoman Mullins commented on the number of people in town and it is good for Aspen. 5. Councilman Frisch said the 4th of July was great from the parade to the picnics and fireworks. 6. Councilman Frisch said we have not had much rain so we still need to be careful of fire and water usage. 7. Mayor Skadron welcomed his mother Nancy to the meeting. 8. Mayor Skadron received a letter from Norma Dolle thanking Council for being named queen of the 4th of July parade. 9. Mayor Skadron said he received many comments about why the City does not beautify and landscape the round a bout. He said beauty is in the eye of the beholder and it is a Council policy that any work return it to its original natural setting. He said the entrance to Aspen is spectacular and should remain as untouched as possible and if you want flowers there is a ski resort down the highway that has plenty. 10. Mayor Skadron thanked the Historical Society for running Chautauqua. 11. Mayor Skadron thanked the Chamber, Special Events and Aspen Institute for a fantastic 4th and Idea Festival. BOARD REPORTS 1. Councilwoman Mullins attended the Red Brick board meeting and their annual fundraiser is July 27th at the Doerr Hosier. 2. Councilwoman Mullins also attended the Ruedi Water and Power Authority meeting and the aquatic nuisance species inspection program received more funding this year and may be able to expand the program. The Frying Pan river study is almost complete. Ruedi is completely full and will remain so for most of the summer. The final draft of the Colorado Basin Implementation plan has been completed. 3. Mayor Skadron attended the RFTA board meeting and reviewed the five year strategic plan and the budget numbers are strong. Ridership is exceeding expectations. They are also reviewing the rail corridor. Regular Meeting Aspen City Council July 11, 2014 4 CONSENT CALENDAR Mayor Skadron pulled Resolutions 80, 81 and the minutes for review. Resolution # 80, Recreation Lighting Retrofit. Councilman Romero asked how many retro projects the Rec center has taken on. Tim Anderson, recreation, said four of five with some being very large. Councilman Romero asked what the savings are. Mr. Anderson said for the most part they have seen the savings that were expected with the exception of one project that is not operating as efficiently as expected but expect to see savings when running properly. Councilman Romero asked if the Rec center looked to CORE for a funding source in the past. Mr. Anderson replied yes. Councilman Romero asked if he anticipates future energy retros. Mr. Anderson said yes, pursuing funds in the 2015 budget. The original ask for CORE was $50,000 but they have fined tuned the numbers with CORE. Councilwoman Mullins asked for clarification on the payback and said it is impressive we can make the improvements and it is an affective program. Mayor Skadron asked about the funding. Mr. Anderson said there is $15,000 from CORE, $5,000 from the utilities fund and an estimated $8,000 in rebates from City utilities. Mayor Skadron asked if this is counted for in the current budget. Mr. Anderson said he has funding providing all the grants come through. Resolution #81 Authorizing Renewable Energy Mitigation Program Grants. Mona said this is a funding requests for 2015 including the Randy Udahl energy pioneer grants. The BOCC recommended funding for the Rocky Mountain Institute increase from 10,000 to 20,000 dollars and the increase would be an additional request. After Council this will go back to the BOCC for their final reading. Councilman Frisch asked for the big picture as to where CORE gets its money. Mona said the funding comes from the renewable energy mitigation program. This is a onetime fee assessed on homes and businesses that exceed certain energy use. Currently there are 3.9 million dollars in the fund and CORE is requesting 1.34 million dollars for this year leaving 2/3 of the balance intact. Councilman Romero asked how many annual dollars flow in from REMP. Mona said it’s about 1 million dollars. Councilman Romero asked how it is allocated. Mona said they serve Aspen to Glenwood Springs. 50% of the funds go into Pitkin County. Councilman Romero said getting the rec center and library as far forward as they can be should be a priority. Mona said one of the line items is for a platform for education and outreach to communicate with the public what Aspen and Pitkin County are trying to do. Aspen can be a model at an international level. Mayor Skadron asked if the 109,000 dollars on top of the Udahl 500,000 is the result of a policy change a few years ago. Mona said they designed a way to figure out what program delivery costs are and created a five year budget. Mayor Skadron said he didn’t remember approving amounts around 1 million in the past. Mona said there was a larger request in 2006 for 1.9 million but usually in the range of four to five hundred thousand. CORE needs to mitigate as much carbon as we can and have had more grant requests than ever. Mayor Skadron said energy smart in the past had not been part of REMP grand request but now is. Mona said COREs portion of energy smart comes out of REMP. Regular Meeting Aspen City Council July 11, 2014 5 Resolution 82 and 83 USA Pro Cycle. Bill Tomcich, stay aspen Snowmass and Bridgett Johnson, Westin, joined Nancy Leslie, special events. Mayor Skadron asked Ms. Leslie to comment generally on the Westin contract. Ms. Leslie said in the past these have been very loose contracts. She said we are fortunate to have the Westin house the majority of entourage, meeting rooms and feed the team. Westin group bookings require a contract. Mayor Skadron asked Ms. Johnson what occupancy would be if no events happening. Ms. Johnson said this is the first year to provide rooms and is not sure but during summer occupancy is around 80 % without this event. Mr. Tomcich said the Westin and Wildwood are providing a far greater percentage of overall rooms than any other Snowmass accommodation. They would be turning away business to host this group. Mayor Skadron asked why we currently have no contract signed with the bike race and why it happened so late. Ms. Leslie said the process starts in January. The contract is changed by her and legal and the applicant makes changes and it is a long process. Mayor Skadron said the world’s best cyclist will be in Aspen for a start, a finish and a start with opening ceremonies at Base Village. Councilwoman Mullins requested change in minutes to page 128 of the packet to add “either program is fine but prefers a grant, but if a loan works out that is fine too”. • Resolution #80, Series of 2014 – Recreation Facilities Lighting Retrofit • Resolution #81, Series of 2014 – Authorizing Renewable Energy Mitigation Program Grants • Resolution #82, Series of 2014 – USA Pro Challenge Contract • Resolution #83, Series of 2014 – USA Pro Challenge Westin Hotel Contract • Resolution #84, Series of 2014 – Parking Enforcement License Plate Recognition System Replacement Contract • Minutes – June 23, 2014 • Resolution #86, Series of 2014 – Parks Trails Overlay Contract • Resolution #78, Series of 2014 – Aspen Ice Garden Locker Room Remodel Councilman Frisch moved to approve consent calendar with increase of $10,000 to Resolution #81; seconded by Councilman Romero. All in favor, motion carried. Ordinance #20, Series of 2014 – 411 S. Monarch (Dancing Bear) and 219 E. Durant (Chart House) PUD Amendment Chris Bendon introduced Hillary Semnick also with community development. Ms. Semnick told the Council the PUD amendment will memorialize a subgrade pedestrian tunnel to connect the two lodges beneath Durant Avenue. The land use approvals would allow for a zero foot setback from lot line to the City right of way. Granting of the right away would Regular Meeting Aspen City Council July 11, 2014 6 be through a separate process. Staff’s recommendation is to adopt on first reading and schedule second reading for August 25th. Councilwoman Mullins said she would like additional details pertaining to fire and utilities and have them speak to their concerns at second reading. She would also like to have more discussion on the traffic report and the discrepancy with the engineering department as well as comparable intersections in town. Councilwoman Mullins would also like discussion of a 4 way stop at intersection as well as private use of right a way discussion. Councilman Romero stated he would like to understand if either PUD requires employee count audits any time post construction since employee flows are part of the justification of the tunnel. He would like to hear more from the consulting engineer about the utility department concerns if things shift to deep utility relocation and any proposed solutions. Councilman Daily said the tunnel is a good concept. Planning at this level does its best to insure no adverse impacts will occur during construction. He said he likes construction being coordinated with the Chart House construction. He asked what the estimated cost of the tunnel will be. Ms. Semnick said she will have that for second reading. Councilman Daily said it is good to know what the developer is committing and what assurances we have in terms of completeness. Mayor Skadron said he would like some discussion around the appropriateness of the use of right away and what the City loses by granting this. He asked if it is a permeant easement and if so, are we disposing of public property. Mayor Skadron would like further discussion by engineering and asset to objections on utilities and their other concerns. Should the City be asking for something of equal benefit in return. He would like to hear from Dancing Bear on what their benefit is as well as having Sunny to comment on digital ad at airport about re- inventing aspen. What is Dancing Bears philosophy and are certain goals of this property parallel with those of the community. Councilman Frisch said there is confusion about the process in making the tunnel and what happens when construction is done. He would like to hear more about when the tunnel is completed. Councilman Frisch moved to read Ordinance #20, Series of 2014, on first reading; seconded by Councilwoman Mullins. All in favor, motion carried. ORDINANCE #20 (SERIES OF 2014) AN ORDINANCE OF THE CITY OF ASPEN CITY COUNCIL APPROVING A PLANNED UNIT DEVELOPMENT – OTHER AMENDMENT AND ASSOCIATED LAND USE TO THE CHART HOUSE APPROVALS GRANTED BY ORDINANCE NO. 32, SERIES OF 2005 FOR THE PROPERTY DESCRIBED AS LOTS 6-9, BLOCK 3 OF THE EAMES ADDITION, CITY AND TOWNSITE OF ASPEN BEING A PARCEL OF LAND COMMONLY DESCRIBED AS 219 E. DURANT AVENUE, AS WELL AS APPROVING A PUD AMENDMENT TO THE DANCING BEAR LODGE PLANNED UNIT DEVELOPMENT APPROVALS GRANTED BY ORDINANCE NO. 29, SERIES OF 2003, FOR THE PROPERTY DESCRIBED AS LOTS Regular Meeting Aspen City Council July 11, 2014 7 P, Q, R, AND S, BLOCK 77, CITY AND TOWNSITE OF ASPEN BEING A PARCEL OF LAND COMMONLY DESCRIBED AS 411 S. MONARCH ST. Councilman Romero moved to approve Ordinance #20, Series of 2014, on first reading; seconded by Councilwoman Mullins. Roll call vote Councilmembers Romero, yes; Frisch, yes; Mullins, yes; Daily, yes; Mayor Skadron, yes. Ordinance #14, Series of 2014 – Red Butte Cemetery – PD Amendment Justin Barker, community development, stated this is a continuation of a public hearing from June 23. The applicant is seeking an amendment to use a portion of the existing maintenance facility as a housing unit. The reason for continuation is Council asked the applicant to look at other housing options within the community or through the City. No headway has been made. Staff recommends the same with the addition of an automatic termination after 1 year of approval. Jim True stated that Councilwoman Mullins participation has been questioned from her participation in the original application in 2008. Councilwoman Mullins stated she was present at the original application but this is considered a separate and new application. Mr. True said it is substantially different and a long time frame and she can look at this with an open mind and objectfully. Mayor Skadron disclosed that Councilmembers Daily, Romero and Frisch all live in the Cemetery Lane area but outside the 300 foot area. Alan Richman, representing cemetery association, said the cemetery has provided an important community service for over 100 years. For nearly two decades the same employee has been working and the association would like to improve the living conditions while providing the least impact to the cemetery property and neighborhood. When needed, the employee has slept in a small cabin at the front of property. The cabin has no heat or bathroom and is a sub-standard living condition. They are proposing a fold a way bed be added to the office meeting space. The space already has a kitchen and bathroom and this would not change the function of space. They are not proposing exterior changes, living room, outside decks or yard. Mr. Richman said the condition in the proposed ordinance makes the least impact. The deed restriction states that the unit shall not serve as the primary residence of the employee. The association has looked at options for off-site housing. Stony met with Barry but the seasonal housing the City has is leased to the music associates. The number of hours the employee works and where he lives does not qualify for seasonal housing or an ADU. They never intended to place a demand on the limited City housing. He has no objections to Staff’s additions. The 1 year trial run is what was requested in original application with the burden on the applicant not the neighbors to come back in one year. He suggest the association keep detailed records on the number of days the employee sleeps on the property and any neighborhood issues that arise. They will also detail if Regular Meeting Aspen City Council July 11, 2014 8 the employee being there had any beneficial results. They want the chance to prove to Council and the neighborhood this can be done with no issues. Councilman Daily stated the way the proposal has been developed with deed restriction satisfies the earlier concerns and Staff’s recommendations are sound. Mayor Skadron opened public comment 1. Brian McNellis brought notes from the HPC meeting Councilwoman Mullins was chairing. Mr. McNellis stated he represents the Spiritis family. He is also here as a concerned former member of HPC 2006-2012. While on HPC he had opportunity to review the original application in 2008. He stated he is also a current P&Z member. He said there was a lot of discussion in 2008 and lots of concerns about the dwelling unit. Portion of the application requesting a dwelling unit were removed to obtain final approval. During the process HPC voiced: the dwelling unit is detrimental to historic character of cemetery, dwelling units not permitted in Park Zone and allowing dwelling unit sets a dangerous precedent. The condition adopted in the 2009 Ordinance stated the maintenance facility shall not be used as a living unit or a place to sleep overnight. The applicant made representation the facility would not be used as a dwelling unit. Mr. McNellis asked how it qualifies as a minor amendment with the history and concerns from 2008 and today. He said a minor amendment is reserved for insubstantial changes and the proposal does not meet standards of insubstantial, changing character of development, inconsistent with original approval and requires a variation from allowed uses. He stated this request is a major amendment that should require review by HPC and P&Z. He asked Council to deny request. Councilwoman Mullins said this has gotten muddy and it’s not fair to the applicant for her to sit in on decision and recused herself. Councilman Frisch comment on HPC and P&Z not being involved. Mr. McNellis said they are aware and feel like they are being circumvented. Councilman Frisch said this is the same thing at a different stage and why not back at boards. Mr. McNellis said if it was a major amendment it would have to go through those channels. 2. Joe Krabacher, told the Council he spent 7 years as an HPC member and is also working with the Spiritis family. Staff’s opinion is since there are no exterior changes HPC has no involvement and this does not seem right. If that is what the code says the code should be changed. The Park zone prohibits dwelling units as permanent and conditional use and the dwelling use was pulled from the original application. A conditional use in the park zone included a maintenance facility which got approved with the conditions of not being used as a living unit, operations coinciding with day light hours, and use of work yard and facility shall be limited solely for cemetery operations. He said the application involves the north portion of the cemetery where there are no graves currently Regular Meeting Aspen City Council July 11, 2014 9 but may be in future. The original PUD application contained a code provision, 26.445.040, that says land uses permitted in a PUD shall be limited to those allowed in underlying zone district. A use variation code change in 2013 allows zoning of the cemetery to be changed. Mr. Krabacher said he did not see any summary of public outreach or public notice for the change of zone. The other piece is growth management review. He said he does not understand why P&Z and HPC are being skipped over. This is a clear change in use and according to 26.470.070, you have to go through P&Z. He stated Council should deny the application. 3. Phyllis Bronsen stated as a citizen it would be great to have a caretaker at the facility occasionally. It is not a dwelling unit but at the end of the occasional work day. She would rather have someone sleep there than drive to Meeker. 4. Alexis Spiritis, 80 Overlook Drive, stated she is in opposition of the amendment. According to 26.445.060, permitted uses according to zoning should be used as a guide to make minor variation and does not include a residence. The first standard to consider is compatibility with existing and planned land uses. This project is a maintenance building and surrounding it is a cemetery. A residence does not make sense. The second standard is proposed use variation is effectively incorporated in mix of uses. She stated she does not see how a residence enhances those activities. The third standard is location size and design minimizes adverse effects on neighborhood. She fundamentally believe it is inconsistent to have a dwelling unit here. She stated she wanted to call attention to the letter from Bill Cain where he states there was a deliberate decision to the cemetery zone parks. It was intended to ensure there is never any residential development in the cemetery. Mr. Cain cannot be at meeting but gave permission to re-submit letter and share comments and his opinions have not changed. He stated he is surprised a use variation of this kind is even possible and a cemetery zoned park should be treated as any other park. His second comment is to warn Council if this type of amendment is passed council will regret unforeseen consequences and it is inappropriate. She understands the need for maintenance facility but it is inappropriate for a dwelling unit. The deed restriction is meaningless. The problem with a one year trial is the neighbors will have to be back next year. It is not a way neighbors should have to live. 5. Steve Spiritis, 80 Overlook Drive, stated the dwelling issue was thoroughly vetted by HPC and P&Z. The cemetery is not a home or resting place for the living. Staff’s investigation into the suitability of the 2014 application is inadequate. No evidence that an offsite employee has been unable to perform his upkeep duties. No substantial security issues. He asked what a one year trial will accomplish. The dwelling unit allows any and all sorts of home activity. He asked who determines the success of the trial and he does not want to become a cemetery policeman. Mr. Spiritis passed out 2012 tax returns of the cemetery association and said that they are liquid with zero liabilities and should they chose to pursue offsite housing they may. He asked Council to deny the application. Regular Meeting Aspen City Council July 11, 2014 10 6. Joe Porter 1270 Snowbunny lane told the Council he has comments sent by Howie Malory. Mr. Malory said the cemetery is much more than a place for people to walk dogs. He said the application should go back to HPC for review. If there is an employee housing issue at the cemetery the City and APCHA have the ability to address that problem. He is concern that this is the first step for a dwelling unit. 7. Justin Barker received over 1 dozen comments with all but one in opposition. Mayor Skadron closed the public comment. Chris Bendon said the application was not denied in 2008 but the applicant removed the request. They don’t prohibit people from coming back and re-asking for something that was removed from an application. He said this is a minor amendment and HPC does not have jurisdiction over use variations. The recommendation by Staff is based on criteria of the land use code. Use amendments have been allowed via public hearing process for a long time and they do trigger public hearings by Council. Alan Richman said this is nothing like what was proposed in 2009. The original application contained an attached 2 bed room 1425 square foot dwelling unit and scaled back to 600 which was also controversial and ultimately removed. Mr. Richman asked if they could call it something other than a dwelling unit. The code dictates when there is sleeping, kitchen and bathroom it is a dwelling unit. There was public outreach including a meeting in March where everyone on the public outreach list was invited. He said this is a privately owned property and somewhat different than a public park and having occasional use will make the cemetery better. Councilman Daily asked Staff about the 2009 GMQS review and what new approval needs to be obtained and is there a P&Z recommendation. Mr. Bendon said the GMQS standards are exhibit B and there is no recommendation from P&Z since the review goes to Council. Councilman Daily said the language in the memo provides GMQS upon recommendation of P&Z. Mr. Bendon said the amendment is to an existing approval and that is the reason why it was not taken to P&Z. Councilman Frisch asked what stops this from turning into a full time residence. Mr. Richman said the deed restriction requires it not to be a primary residence. Councilman Frisch said the person has the ability to stay when they want and there is not a way to formalize that it stays part time. Mr. Richman said all that is proposed is a one year trial use. Councilman Frisch said he is missing the connection between the need to have immediate access and this is like a first responder request. Mr. Richman said he never represented this is a first responder situation all they are trying to do is provide housing for an employee. Councilman Frisch indicated he is not so concerned with neighbors’ concerns because not much will change. His bigger concern is the change of use. He said he is still confused if this is a continuation with the 2008 application and is not sure Councilwoman Mullins shouldn’t be here. Mr. True said he concluded that this application is substantially different and she can participate. After all the evidence and arguments he still agrees with that and she aired on the side of caution. Regular Meeting Aspen City Council July 11, 2014 11 Councilman Frisch brought up the list of promises / agreements that were to be met prior and fair to talk about now and from a community standpoint it has some weight. Mr. True said it is a different issue but will not prohibit Councilman Frisch from inquiring with the applicant. Mr. Bendon said there were questions about the rehabilitation of historic structure and vegetation and does not know the status but Staff will look at it. Mr. True said it is appropriate to look at the park zone which allow permitted use of accessory buildings and use. An accessory use is a use supported, secondary and supportive to the principle use of the lot parcel, building or structure. There is a provision that says accessory buildings or structures shall not be permitted provided with kitchen or bath facilities to render them suitable for permanent residential occupation. This is where Staff said this is a dwelling unit. The argument exists that this is an accessory use for this maintenance facility. The kitchen and bath already exist. The dwelling is not prohibited but not a designated permitted use. The proposed deed restriction states it is not the principle residence of occupant. Councilman Romero asked if the employee is full time or part time. Stony Davis replied 1099. Mr. True said the pertinent issue is whether this generates another employee for GMQS. Councilman Romero spoke about alternative living solutions and said it is pretty clear that they are failing to collaborate for a better solution. Just because they heard from staff that there is no housing available from the City everyone can rally and figure something out. He said the one year test sounds great but what are the alternatives. It need to be more creative and he is not ready to try a trial on campus. Councilman Daily stated the approval in 2009 anticipated one employee. He is comfortable no additional employees are being generated and P&Z involvement is not necessary and is comfortable with Staff’s recommendation. Councilman Frisch said he appreciates the concerns of the neighbors. He said he is not comfortable that someone could move in full time and is not supportive of the direction of the one year trial. Mayor Skadron thanked the public for their comments. He said he considers this from a community wide perspective and the AACP calls for managing growth that protects and enhances our physical and natural environment and one that supports a healthy year round community. The plan calls for parks and open spaces that provide for low impact facilities to support our natural resources. The park zones allow accessory uses and he believe this to be an accessory use. The code reflects community values and provides for variances to address circumstances that apply to various properties. He said this property is a park with an asterisk. Mayor Skadron said he is comfortable with the way Staff has written the application and finds that the criteria set forth in the use variation standard and growth management requirements are satisfied. He is willing to support as staff has suggested. Regular Meeting Aspen City Council July 11, 2014 12 Chris Bendon said the options are to ask for a motion of denial or to table for pursuit of alternative housing scenario. The item remains active and can be re-noticed in future for public comment. Mayor Skadron moved to approve Ordinance #14, Series of 2014; seconded by Councilman Daily. Roll call vote; Councilmembers Romero, no; Daily, yes; Frisch, no; Mayor Skadron, yes. 2-2 tie. Mr. Richman suggested tabling. Councilman Romero moved to table Ordinance #14, Series of 2014; seconded by Councilman Daily. All in favor, motion carried. Ordinance #19, Series of 2014 – Lodge Incentive Program Code Amendment Chris Bendon and Jessica Garrow, community development, told the Council this is the first public hearing. There will be an additional public hearing on July 28th with a tentative adoption date of August 11. Aspen has experienced a significant decline in bed base with all studies indicating a decline. Aspen’s bed base is 40 percent condo units and 50 percent hotels. Aspen has a strong brand but must invest in lodging to maintain its market share and the development process is unpredictable. Top 4 goals of the program are to bolster the bed base, enable existing lodges to remain functioning as lodges, encourage upgrades to aging product and encourage additional short term products. The code amendment includes an incentive program, zone district changes, changes to time share regulations, growth management, special review and some miscellaneous changes. Ms. Garrow explained a lodge unit has a 30 day maximum stay, vacation residence is six month maximum and free market residential has an unlimited stay. The proposed program will only be in place for 5 years to help encourage home owners associations to participate. There are non-development incentives and three levels of incentives. The non-development incentives are targeted towards the smaller lodges and include free building code compliance and amenity evaluations. The lodge would get a report from the City identifying areas recommended for upgrade. Staff is recommending free parking and reduced cost passes as well as assigned parking in the right of way. All of the smaller lodges indicated that additional parking would be a great help. Grants and loans would be part of City yearly budget. To participate the lodge must participate in one of the free evaluations and use the money for identified items. Staff is also recommending adding a lodge ombudsman to provide guidance for small lodges, acts as an advocate through land use and building process Staff did additional outreach for the non-development incentives and the small lodges continued to advocate parking, grants and loans with the possibility of added transit or shuttle services. Councilman Romero said he would like to see some sort of shuttle or loop. Councilwoman Mullins said expanding the shuttle service could be beneficial. Councilman Frisch said focusing on parking and transportation are good things. There are three incentive program levels for both vacation residences and lodges: Basic- minor exterior updates and changes and basic infrastructure. Standard- interior upgrades and small expansions. Regular Meeting Aspen City Council July 11, 2014 13 Standard plus- larger expansion and new product. Vacation Residence The basic package includes free code evaluations, energy and accessibility upgrades, exterior renovations, on street parking spaces, administrative land use reviews, expedited permit review and 25-50% fee waiver. In exchange the residence would enter into a development agreement allowing short term rental for five years and remit sales and lodging tax. Only available on a complex wide basis. Standard Program All basic benefits plus exemption from multi-family replacement requirements, coordinated complex expansion, larger signage allowances, dedicated parking in right of way and a 50-75 percent rebate. Conditions include a development agreement with yearly reporting to City on rentals and 50 percent of units must be available for short term rentals for 10 years. Must reimburse City if use changes in additional 10 years. Conditions also include providing on site services or use of an off-site management company, units available through reservation system, owner storage of cars not allowed, update common areas to meet accessibility requirements and must remit sales and lodging taxes. Councilman Romero asked about feedback on the reporting. Mr. Bendon said this provision is already in the code as something that can be audited. Councilman Romero asked about the five year plan. Ms. Garrow said the timeframe came from the feedback they received. Standard Plus Includes same benefits as basic and standard as well as expanded common amenities, reduction in affordable housing mitigation, 50/50 split for right of way improvements with the City, and a 75-100 percent fee rebate. Conditions include 75 percent of the units must participate for 15 years, upgrade trash and recycling areas and if use converts in additional 10 years must reimburse the City for the benefits received Lodges The basic program incentives include the free building code and amenity evaluations, energy upgrades, exterior renovations, on street parking passes and dedicated parking in the right of way, 50/50 split for cost of right of way improvements with the City, expedited review and a 25- 50 percent fee waiver. Conditions include a development agreement to remain a lodge for five years and reimbursement if convert from a lodge for an additional ten years. Lodge Standard includes the same benefits as basic with the addition of interior space reconfiguration resulting in additional units being exempt from GMQS, add up to three lodge units and be exempt from mitigation and 50-75 percent fee rebate. The conditions include a development agreement to remain a lodge for ten years and reimburse the City if convert to a different use for an additional ten years. Regular Meeting Aspen City Council July 11, 2014 14 Standard plus includes same benefits as standard adding fourth floor in lodge zone south of Durant with a planned development process, participation in the program and with Council approval, reduction in affordable housing mitigation based on density, reduction in mitigation related to commercial space and transportation. The City would pay for the right of way improvements and a fee rebate of 75-100 percent. Conditions include the development agreement requiring the property remain a lodge for 20 years and additional 20 years on conversion or reimburse City. Timeshares Retain existing occupancy limitations and reporting requirements but would no longer trigger an automatic planned development review. There would also be changes to the time span estates reducing it from seven to four. Zone Districts Creating unit size caps in all districts for vacation residences, lodge units and free market residential units. Adding vacation residence use as an allowed use in most districts. Bed and breakfast uses go to conditional uses. There are also internal floor area increases and height and unit size caps. The commercial core and C1 district would allow increased lodge floor area but not add vacation residences as an allowed use. Mixed- use and neighborhood commercial zone vacation residence use would be added and the amount of lodge you could build would also increase. Lodge zone would add vacation residence use, increased lodge floor area, vacation residence use, increased lodge floor area, increased affordable housing floor area, free market residential tied to net livable of lodge and vacation residences, decreased residential floor area when sole use, limits on increasing height and unit size through planned development. The commercial lodge zone would allow vacation residence use, increase the amount of lodge and affordable housing floor area and the possibility of a fourth floor. The lodge overlay zone would also add the vacation residence use and increase the amount of lodge floor area to a 1 to 1 in residential zones and a 1.5 to 1 in commercial zones. The lodge preservation zone would include the same as lodge overlay as well as a potential height increase to 28-32 feet (only affecting five properties) and may increase free market unit size through a planned development and with a TDR. Regular Meeting Aspen City Council July 11, 2014 15 The only residential zone district that is included is the residential multi-family district. This would add the vacation residence use, increased floor area for projects with more units, increased height from 32-36 feet for more units. Ms. Garrow said at the July 28 meeting they will present on special review, growth management and the miscellaneous changes. Mr. Bendon added this is a true long term issue. The community has been struggling with this issue for a long time and we are at a point where the community recognizes this is a problem. Mayor Skadron opened the public comment: 1. Michael Brown stated he does not believe TDR’s have been addressed and they deserve their own forum. He said the current LP overlay has 60 percent free market and the proposed table only has 55 percent and not sure how that is an incentive. Ms. Garrow stated the base percentage is 45-55 depending on density and can be increased by 5 percent with a planned development taking it to 60. Councilman Romero said the existing code is tilted to what is most desirable, 60 percent. He said it is expensive to land a TDR and may not be a benefit. Mr. Brown said the benefit is the same as what it is today if not worse since you have to buy the TDR. Mr. Brown said it appears TDR owners want buyers to buy where real estate is most expensive. If they were reasonably prices there would be a lot more landing places and a lot of demand at the right price. Mr. Bendon stated the intent of a TDR is to not come across as punitive. It’s intended to put incentives out for true historic properties. 2. Marcia Goshorn told the Council she agrees with the program but is unclear on lodge basic and lodge standard. She said a fee waiver for basic may be better if it was a larger percentage. Standard should be a waiver not a rebate because one of the biggest issues for the small lodges is coming up with money up front. For vacation rental the condo decs would need to be verified to make sure short term rentals are permitted. She stated the affordable housing never came before the housing board. 3. Debbie Braun thank Staff for the work on the program. She said it is an important focus for community’s energy and aligns with AACP and chamber goals. She stated the lodging is not keeping up with competitors but getting weaker. Guests are getting savvier and making different choices and we are not meeting expectations with older inventory. 4. Bill Tomcich, president stay aspen snowmass, stated demand relative to supply and quality of supply is out of balance. The price of an average room is so much higher than competitors. The average daily rate in Aspen last summer was $280/ night or 51 percent higher than 17 other destinations. 5. Donnie Lee, chairman of ACRA and manager of the Gant, thanked staff and council. He said at the end of the day it is what’s right for Aspen. We need to preserve core values Regular Meeting Aspen City Council July 11, 2014 16 for the community. Over time quality overall has deteriorated and needs to be addressed. He said we need to address the needs of today’s customers and those of tomorrow. Lodging needs to support the restaurant and cultural base. 6. Maria Morrow said this is a great collaborative process and a community issue. One of the goals of the AACP was to replenish the lodging inventory and encourage a diverse visitor base. Council goal is to focus on lodging problem. She said this is a call to action and we need to move forward. She said this is not a developer driven program but a community idea and City goal. It is not a growth and more plan but a five year plan that focuses on the renovation of the existing inventory. She said lodging one of the most important pieces of our infrastructure but we need to continue to think about our small town character. 7. Ziska Childs said she lives at the 5th avenue condos, residence for 6 months and rented for 6 months. She also has a unit in the long term rental pool. The Condo authorized a six million dollar renovation and her special assessment will be around 160,000-200,000 dollars. The waiver would not include structural improvements or the pool or jacuzzi. She stated she is concerned with the details. In her general opinion it’s not enough for the vacation rental pool. 8. David Corbin, aspen skiing company, from a resort perspective he is concerned the bed base suffers compared to other resorts. Anything that facilitates lodging upgrades is a step in the right direction. Generally, he supports addressing the problem but recommends the ordinance is reviewed in some way that would make it more manageable. 9. Stan Clauson said Council should pass with changes. Free market residential is the single most important factor to encourage lodging development. Clearly need a greater level of incentive. He encourages Council to rethink free market residential and TDR’s are an important consideration. There needs to be a variety of forms free market residential can take. He also said four stories should be permitted and 36 feet in height could be considered in the mixed use zone. 10. Bert Myrin encouraged Council to try something small that way you can stay on top of it. 11. Skippy Meisrow stated he works here and lives here. Hotel prices are much more than other communities and young people don’t come here. We need to recognize that we need young people here and the price of lodging effects that. 12. Charlie Bantis said the changes don’t go far enough and will do nothing to move the supply curve. Young people can’t afford to come here. Lodges equal more people which equals more economic activity which equals more opportunity. Jessica Garrow entered two emails into public comment. Mayor Skadron closed the public comment. Regular Meeting Aspen City Council July 11, 2014 17 Councilman Romero commented the basic incentives fall short of expected commitments. He said he would like to ensure the grant and loan program is robust and includes energy audits. He said he agrees that free market residential is the driver and there is a problem with the TDR’s. Councilman Romero said a fourth floor south of Durant through a planned development must be compelling. He said we need to go further on the entry level incentives and the five year window feels short. He also suggested a pilot program and the development agreement be toned down. Councilwoman Mullins said transportation should be added to the non-development incentives and we need to rethink the TDR. The expedited permit process should be emphasized more at all levels. She asked how Staff will get HOA compliance. She said it need to be more aggressive financially where there is the opportunity for the lodges to make more money and the program is only viable if supported by lodging. She said a seven year window sounds more solid than five. She would like to know more about the financial implications to the City of the waivers and what the impacts on affordable housing are by waiving mitigation. She asked if there is a way to put into place a rate control for room rates. Mr. Bendon suggested they steer clear of that. Councilwoman Mullins suggested using Lift 1A as a litmus test. She stated she is still not a supporter of the fourth floor but depending on the situation is willing to re-look at it. Councilman Frisch stated he is not objecting to anything that has been said before. He said the smaller the condo the higher chance of renting it out. He said we should let operators figure out how big they want their rooms to be. He said TDR’s do not belong in the hotel discussion but is supportive of them being used to support historic preservation. Councilman Frisch said he is confident we can handle a substantial fee waiver and still provide community benefits like parks, trails, wheeler and social services. Our small town character is one of Aspen’s biggest competitive advantages. He does not want to get involved in loans unless the free market has failed. He also does not like replacement housing and we should try to get it as low as possible. Councilman Daily said he likes Councilman Frisch’s thoughts of separating out TDR’s to the free market side. He in in favor of further incentivize any place we can towards the redevelopment of small properties. He would like more information on the height issue and how the planned development process would work and if there is an adequate measure of control. Mayor Skadron stated generally he agrees with Councilmembers Romero and Mullins on the non-development incentives and adding transportation. His general comments are markets have an efficient solution not an optimal one. Four stories can be 60-63 feet and speak against our core values and makes us more like everyone else and is a dangerous direction to go. Fee waivers force a conscious decision on service cuts. Mayor Skadron said multi-replacement housing will be replaced with higher quality more expensive units and will put more pressure on the affordable housing program. He is concerned we are not hearing from a broad enough section of the community. Regular Meeting Aspen City Council July 11, 2014 18 Councilman Romero moved to continue to July 28th; seconded by Councilman Frisch. All in favor, motion carried. Action Items 400 E Hyman Ave – Callup Notice Mr. Bendon said this is a non-historic building across from the Wheeler. They are expanding the windows and was approved 4-1 by HPC. 407 E Hyman Ave is also a non-historic building and was approved 5-0 by HPC. The front of the building will be replaced with a more traditional looking stone and brick façade. Councilwoman Mullins commented it would be nice to see the elevation in context to the adjacent buildings. No call up Resolution #85, Series of 2014 – 110 W Main Street (Hotel Aspen) appeal of HPC Resolution #13, Series of 2014 Councilwoman Mullins recused herself. Mr. True stated this is an appeal of Resolution 13, 2014 from the HPC addressing if the commission failed to provide due process, exceeded its jurisdiction or abused its discretion. The appellant, Ms. Steele is asserting the HPC failed to provide due process and abused its discretion. Bert Myrin, representing Ms. Steele, stated due process means public comment is more than a process to open and close. Government should create public comment to protect the public and should include analysis of public comment against established code or HPC guidelines and an analysis of direction by Council. By ignoring all procedural rights HPC is operating outside of guidelines and exceeding their authority. Council gave direction to HPC and so did public. He said Council gave direction to reduce glazing and have the three buildings look different. Mr. Myrin stated there was no conversation on reducing the glazing as asked by Council and the public. He said on making the three buildings appear different, Willis addressed but no support from other members. He said denial of due process and abuse of discretion occurred because HPC failed to reference or discuss HPC guidelines, established code, direction from council and public comment. He urged Council to pass Staff’s acting without authority resolution. Stan Clauson stated the memo from Staff includes case law defining denial of due process to mean the regular process was not conducted according to the rules and this was certainly not the case. Many people spoke, some at considerable length. Abuse of discretion must be devoid of evidentiary support and at the meeting, both issues were discussed by public, applicant, staff and HPC. He stated the reduction of glazing was a condition of approval from Council. They showed comparative slides of amount of glazing Council saw and the amount being proposed. HPC understood and accepted that. As far as the concept of making buildings different from one another there was discussion by the public, HPC and staff. There were some changes in the mullions and fenestrations. HPC believed it was appropriate the way in which the buildings Regular Meeting Aspen City Council July 11, 2014 19 were differentiated. There was no denial of due process and no abuse of discretion. Mr. Clauson agrees that the Staff memo is correct to deny the appeal. Councilman Daily stated the original approval contained a concession from the applicant to reduce the height and mass. He expressed appreciation at the end of the meeting for the applicant paying attention to Councils concerns. He said the issue raised at the end of meeting was to “give some thought” about differentiation of buildings and not radical change. It was not a condition of approval and not considered by any other Council members and not intended to be a condition of approval but more a personal wish list. HPC looked at the buildings as redesigned and was comfortable with what they saw. Staff reviewed what was presented and the revised proposal was appropriate for the neighborhood. He has no issue with the way this was handled by applicant, staff or HPC. Councilman Daily said he continues to have a sensitivity towards a different look but that is his personal preference. Mayor Skadron stated they are to determine if HPC acted in an arbitrary or capricious way. He said at the HPC meeting matters were brought up, facts presented, evidence considered and a decision was rendered. He is going to support the resolution as presented to affirm the HPC resolution and deny appeal. Councilman Frisch moved to approve Resolution #85, Series of 2014; seconded by Councilman Romero. All in favor, motion carried. Councilman Daily moved to adjourn at 11:10 pm; seconded by Councilman Romero. All in favor, motion carried. Linda Manning City Clerk