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HomeMy WebLinkAboutagenda.council.worksession.20190129 CITY COUNCIL WORK SESSION 4:00 PM I. Council Conversation in re: Housing Issues (no staff memo) / Housing Development Opportunities for the Future CITY COUNCIL WORK SESSION January 29, 2019 4:00 PM, City Council Chambers MEETING AGENDA Council Conversation in re: Housing Issues (no staff memo) / Housing Development Council Conversation in re: Housing Issues (no staff memo) / Housing Development P1 Page 1 of 5 MEMORANDUM TO: Mayor and City Council FROM: Chris Everson, Affordable Housing Development Project Manager THRU: Sara Ott & Scott Miller, City Manager’s Office DATE OF MEMO: January 25, 2019 MEETING DATE: January 29, 2019 RE: Affordable Housing / Development Opportunities for the Future REQUEST OF COUNCIL: Agenda Part 1: “Council conversation regarding housing issues” – no staff memo Agenda Part 2: “Affordable housing development opportunities for the future” – see memo below PREVIOUS COUNCIL ACTION: At the October 2018 budget work session, Council requested the opportunity to review and discuss potential alternatives for future affordable housing development. DISCUSSION: Staff proposes to approach the discussion on future housing development opportunities for the future as follows: 1) Briefly review the 2012 “Employee Housing Demand Study”. What was the 2022 target? 2) Review what has happened since 2012. Where are we versus the target? 3) Review staff’s tentative plan from the October budget work session LRP 4) Review alternatives to accelerate, decelerate or modify the staff plan 5) Policy questions and Council direction 1) Briefly review the 2012 “Employee Housing Demand Study”. What was the 2022 target? In the Fall of 2012, the City and County held a joint housing work session to discuss a strategic review of housing. This occurred over the course of two days (Sept 27, 2012 & October 11, 2012) and attempted to include a holistic review of the affordable/workforce housing program. The packet for those joint work sessions included an “Employee Housing Demand Study” (Demand Study) by Economic & Planning Systems, Inc. (EPS) which projected the Aspen & Pitkin County affordable/workforce housing need from 2012 through 2022. Since the 2012 AACP no longer included a goal of housing 60% of the Aspen/Pitkin County workforce, the 2012 EPS study sought to project the amount of new affordable/workforce housing which was necessary to produce from 2012 through 2022 in order to maintain 47% of Aspen/Pitkin County workers housed within Aspen & Pitkin County – a level which had also been established at the time. The Demand Study looked at job growth, redevelopment and retirement as the primary three factors which would need to be mitigated for. EPS utilized numerous data sources and conservative P2 I. Page 2 of 5 assumptions to make the pertinent calculations of need. In summary, City staff communicated the following estimate of need to City Council and the Board of County Commissioners: • Job Growth: 247 new units needed by 2022 • Gentrification: 160 new units needed by 2022 • Retirement: 250 new units needed by 2022 TOTAL: 657 new units needed by 2022 2) Review what has happened since 2012. Where are we versus the target? Since 2012, the following affordable housing unit quantities have been produced: • 94 new units added by City of Aspen • 21 new units added by Pitkin County (13 of those to be added soon according to APCHA staff) • 67 other mitigation units added • TOTAL: 182 new units added since 2012 This would leave a balance of 475 units still needed based on the estimating assumptions in the Demand Study. Staff also suggests that we should bring the demand calculation up to date to the extent that we can with the following information: • The 2012 Demand Study projected local job growth at 0.5% annually, but actual job growth has been averaging only 0.16%. For this reason, we could adjust the target of 247 units needed due to growth down to 79 units. • And since 2012, APCHA has turned over a total of 68 units to qualified working households as a result of compliance enforcement. • These updates would subtract 236 units from the target for an adjusted balance of 239 units still needed by 2022. • APCHA staff has no reliable data on actual retirement since 2012, thus we are unable to update the retirement part of the calculation, nor are we currently able to update the number of free market units that housed local workers which have been lost to luxury redevelopment. One question which staff will add to the list of policy questions at the end of this discussion is whether Council would favor directing staff to prepare for the 2020 budget cycle to update the demand information for the next 10-year period and potentially beyond. The information update might entail updating the EPS Demand Study as well as some demand- related portions of the 2016 APCHA Policy Study and potentially information from the just completed Roaring Fork Valley regional housing needs assessment, RFTA/BRT and data which APCHA hopes to collect through a systemwide census after implementation of a Housing Information Management System. This update should also include a clear picture of any deed restrictions which will be expiring in the next 10 to 40 years. (There are about 500 deed restrictions which will expire in 10-30 years). P3 I. Page 3 of 5 Another question which staff will add to the list of policy questions at the end of this discussion is whether Council would favor maintaining the status quo percentage of Aspen/Pitkin County workforce housed in Aspen and Pitkin County (47% was mentioned above and could be updated) or if Council would favor a modification to this goal? 3) Review staff’s tentative plan from the October budget work session LRP Staff’s plan from the October budget work session includes the following tentative approach to funding over the next few years. This approach would enable us to sequence the work to accomplish the following: • 2019 Perform community outreach related to this plan and for Burlingame Phase 3 • 2020 Finish construction of 45 new AHP rental units • 2020 Relocate tenants from Truscott 200-300 who can be accommodated in AHP rentals • 2020 Construct 36 new units at Burlingame Phase 3 • 2021 Relocate remaining Truscott 200-300 tenants to Burlingame Phase 3 on a temporary basis • 2021 Major repairs to Truscott 200-300 Buildings including drainage and building envelope • 2022 Construct 43 new units at Burlingame Phase 3 • 2022 Relocate tenants back to Truscott 200-300 and/or out of Truscott 10-70 Buildings if needed • 2023 Repairs to Truscott 10-70 Buildings (may or may not require relocation of tenants) • 2023 Construct the two remaining Burlingame Single Family Residences which are required • 2024 Repairs to Truscott 100 Building This approach would create 126 new units by 2023, compared to the updated 2022 target of 239 which was calculated in the section above. And at Council’s direction, the City’s Capital Asset Department is developing plans to potentially use the 505-City employee housing fund to create additional City employee housing units at Water Place. P4 I. Page 4 of 5 Thus, for the next few years, staff proposes that the suggested development plan – when considered along with the additional efforts mentioned here – creates a reasonable working target until we can update our information and re-assess where we stand. One question which staff will add to the list of policy questions at the end of this discussion is whether Council favors continuing with staff’s proposed development plan or if Council would prefer to modify the direction? 4) Review alternatives to accelerate, decelerate or modify the staff plan Some alternatives to the above plan may include, and are likely not limited to, the following: Explore Efficiency of Existing Inventory 1. Incentives for downsizing – explore incentive possibilities? 2. Additional efficiency – such as allow households to swap units due to family size changes? Explore Alternative Development Opportunities 1. Continue to review land acquisition opportunities – or potentially more aggressively? 2. Cash-flow other development(s) instead of the proposed 126-unit development plan? 3. Use debt to increase the amount of proposed development? 4. Redevelop Truscott 200-300 Buildings instead of repairs in 2021 (+20 units, + Parking) 5. Accelerate redevelopment of Truscott 100 (2-level +25 units, 3-level +50 units, + Parking) 6. Accelerate lumber yard outreach, planning & redevelopment (+75 to 120 units) Explore Re-Allocation of City Assets 1. Add 150-Fund APCHA housing to Water Place expansion? (currently 505-Fund only) 2. Study potential to add housing to new City offices development in surface parking area? 3. Study potential to convert other City land/assets to 150-Fund housing? Staff is prepared to discuss the above alternatives and any others which Council may be interested in exploring. 5) Policy questions and Council direction 1) Does Council favor directing staff to prepare for the 2020 budget cycle to update the demand information for the next 10-year period and potentially beyond? 2) Does Council favor maintaining the status quo percentage of Aspen/Pitkin County workforce housed in Aspen and Pitkin County (47% was mentioned above and could be updated) or Council would favor exploration of modifying this goal? 3) Does Council favor continuing with staff’s proposed development plan would Council prefer to modify the direction based potentially on some of the proposed alternatives or other alternatives? P5 I. Page 5 of 5 RECOMMENDED ACTION: Staff recommends considering the proposed development plan and updating the demand information for the reasons stated, as well as exploring other alternatives as Council sees fit. CITY MANAGER COMMENTS: P6 I. 24 January 2019 Burlingame Ranch II Condominium Association, Inc. C/O Rutledge And Company P.O. Box 3149 Aspen, Colorado 81612 City of Aspen City Council Asset Department APCHA Re: Burlingame Ranch II Condominium Association, Inc. Future Development To whom it may concern: To preface the following statement, the Association would like all parties to know it appreciates the efforts of everyone inv olved in the development of Burlingame Ranch as a whole. The sole intent of th is action and statement is so that the Association, moving forward, is positioned to fulfill its responsibility as a well-functioning community. The Association is always interested in open communication. Please accept this letter and the following recorded amendment to the Association’s governing documents as a formal request by the Association to submit into public record this statement of its right and intent to assert its authority to written consent by the Association, acting through its Executive Board, prior to Declarant’s and/or any other associated entity’s exercise of any such reserved or special development rights as set forth in the Governing Documents of the Association, including without limitation the exercise of any rights incident thereto. Additionally, the Association, through its Executive Board, may, from time to time, implement policies and procedures regarding the Executive Board’s review and consent to the exercise of any proposed special or reserved development rights as it may deem appropriate or necessary. Such policies and procedures may include notice, hearing, document production, and other requirements so as to ensure the proposed development is undertaken with full disclosure of relevant information and in the best interests of the Owners, the Project, and the Burlingame Ranch II community. Further, no exercise of reserved or special development rights shall be valid without the written consent of the Association being first granted and recorded in the records of the Pitkin Coun ty Clerk and Recorder’s Office. The Association has no intent to prevent future development; however, it reserves all rights to approval of any form of development of its lands including but not limited to the lands as recorded on the plat of the Association on 09 April 2013 in Pitkin County at reception number 598453. With regard, Burlingame Ranch II Condominium Association, Inc. P7 I. AMENDMENT TO CONDOMINIUM DECLARATION OF BURLINGAME RANCH II CONDOMINIUM ASSOCIATION, INC. WHEREAS, Burlingame Ranch II Condominium Association, Inc., a Colorado nonprofit corporation (the “Association”), was established upon recordation of the Condominium Declaration of Burlingame Ranch II (the “Declaration”) in the records of the Pitkin County Clerk and Recorder’s Office on January 8, 2014 at Reception No. 607201 thereby submitting the Association to th e provisions, terms and conditions of the Declaration pursuant to the Colorado Common Interest Ownership Act; and WHEREAS, pursuant to Section 18.2, the Declaration provides that the Owners of Units in the Association may amend the Declaration by approval of Owners to whom at least sixty-seven percent (67%) of ownership interests in the Common elements are allocated; and WHEREAS, in accordance with the provisions of Section 5.2 of the Declaration, the Period of Declarant Control, as that term is defined in the Declaration under this Section 5.2, has expired and the Owners in the Association now control the Association; and WHEREAS, the current Owners of the Association now seek to approve an Amendment to Article 15 of the Declaration regarding certain reserved development and special Declarant Rights, as well as all such rights incident thereto, so as to require Association oversight and approval of any future development of the Project specified under Article 15 of the Declaration; an d WHEREAS, although Section 1.2 of the Declaration provides that the subject Declaration shall be subordinate at all time to the Master Declaration (as that terms is defined therein) and shall be interpreted in a manner consistent with the Master Declaration, this Amendment to the Declaration is not inconsistent with the relevant provisions of the Master Declaration or any other existing Declarant rights, and it constitutes a valid exercise of powers granted to Owners under the subject Declaration; and WHEREAS, the current Owners of Units in the Association, in order to effect this objective with regard to oversight and approval of future development of the Project, desire to amend the referenced Declaration pursuant to the provisions of Paragraph 18.2 thereof, by adopting the within Amendmen t to the Declaration; NOW, THEREFORE, the current owners of units in the Association do hereby amend the Condominium Declaration of Burlingame Ranch II as follows: A new Section 15.8 is hereby added to Article 15 of the subject Declaration as follows: Section 15.8 Association Approval of Development Rights. Notwithstanding any exercise of remaining reserved development or special Declarant rights contained within this Article 15 of the Declaration, if any, Declarant must first obtain written consent by the Association, acting through its Executive Board, prior to Declarant’s exercise of any such rese rved or special development rights as set forth in this Article 1 5, including without limitation the exercise of any rights incident thereto. The Association, through its Executive Board may, from time to time, implement policies and procedures regarding the Executive Board’s review and consent to the exercise of any proposed special or reserved development rights as it may deem appropriate or necessary. Such policies and procedures may include notice, hearing, document production, and other requirements so as to ensure the proposed development is undertaken with full disclosure of relevant information and in the best interests of the Owners, the Project, and the Burlingame Ranch II community. No exercise of reserved or special development rights exercised by the Declarant pursuant to this Article 15 of the Declaration or any rights incident thereto shall be valid without the written consent of the Association being first granted and recorded in the records of the Pitkin County Clerk and Recorder’s Office. P8 I.