Loading...
HomeMy WebLinkAboutminutes.council.20110725 Regular Meeting Aspen City Council July 25, 2011 PROCLAMATION — Gaden Shatse Monks 2 CITIZEN PARTICIPATION 2 COUNCILMEMBER COMMENTS 2 CONSENT CALENDAR 3 COUNCIL APPOINTMENTS 4 ORDINANCE #22, SERIES OF 2011— Burlingame Ranch Phase II 4 ORDINANCE #9, SERIES OF 2011— Boomerang PUD Amendment 5 ORDINANCE #19, SERIES OF 2011 — Aspen Walk (404 Park Avenue) Final PUD 9 1 Regular Meeting Aspen City Council July 25, 2011 Mayor Ireland called the meeting to order at 5:08 PM with Councilmembers Skadron, Frisch, Johnson and Torre present. PROCLAMATION — Gaden Shatse Monks Mayor Ireland and Council read a proclamation welcoming the Gaden Shatse monks who have been coming to Aspen for 21 years. Council supports their efforts to heal the earth. The monks were introduced and outlined the events in Aspen this week including a sand mandala at the Ute City Banque building. The monks are trying to keep the Tibetan culture alive by sharing it. The monks presented kata to Councilmembers. CITIZEN PARTICIPATION 1. Andrew Kole noted his letter to the paper about what it really cost to buy an affordable housing unit with mortgage, insurance, HOA dues, etc. Kole asked if Council is interested in a housing summit to determine what is being proposed and what the job market in the county looks like. 2. Ruth Kruger agreed and said the city needs to look at supply and demand of affordable housing. Ms. Kruger said categories 3 and 4 work better financially; however, it is important to look at the need for categories 1 and 2. Ms. Kruger brought up the signs at the entrance to Aspen recognizing Aspen High sports victories from 1997 and 1998 and these should be updated with newer victories. 3. Emzy Veazy suggested Council bring to Aspen a speaker who recently addressed economic development for Garfield County. Veazy said the Council minutes are alien when it comes for an intellect that is refined. Veazy suggested being more academic when it comes to him. 4. Inga Lark, affordable housing owner, agreed with Kole that without an understanding of what jobs are available in Pitkin County, Council would be making decision without reliable information. The recent newspaper article about more jobs does not discuss what those jobs pay. Ms. Lark said if there is a glut of units built in one category, what does an owner of a unit in that category who needs to sell it do. Ms. Lark asked if the city is required to purchase units that go into foreclosure. Ms. Lark said an attitude of letting the market sort this out may hurt owners of affordable housing units. Mayor Ireland noted the foreclosure rate on affordable housing is .08 %. Mayor Ireland said Council is concerned not to create products people cannot buy. Ms. Lark said owners of affordable housing have put their units on the market and have received no bids. Ms. Lark said allotting categories should not be done on a hunch. COUNCILMEMBER COMMENTS 2 Regular Meeting Aspen City Council July 25, 2011 1. Councilman Torre commended Race for the Cure and their event in Rio Grande park, proving that park is not "out of town ". Councilman Torre said it was a wonderful event and the community, volunteers and participants should all be thanked. 2. Councilman Torre commended Kathy Strickland and her work at the Saturday Market, her diligence and efforts and making the market a weekly success. 3. Councilman Skadron noted having a community like Aspen during hard times helps to ease those and he thanked everyone for their thoughts and good wishes. 4. Mayor Ireland brought up the upcoming bicycle race in Aspen, the pro cycling challenge August 24 Mayor Ireland said there will be other events, the women's race, Ride for the Cure, the Power of 4 bike race and the Aspen back country marathon. Mayor Ireland stressed many, many streets will be closed August 24 people should walk, ride their bikes or ride public transportation. 5. Mayor Ireland thanked the monks for coming to Aspen and for sharing their compassion. 6. Mayor Ireland announced the Aspen Art Museum resolution on affordable housing is being withdrawn. Ordinance #9, 2011, will be moved to the first public hearing. Councilman Skadron asked about the units that the art museum will purchase and whether they are managed by APCHA or owned by the Art Museum. Councilman Skadron asked if the tenants will have to be qualified through APCHA. 7. Councilman Torre said at the RFTA Board meeting, the investment policy and a supplemental budget request for some BRT items were discussed. 8. Councilman Frisch reported he attended the EOTC meeting and the no fare bus, which will expire in 2013, between Snowmass and Aspen was discussed. Councilman Frisch said this is a huge value to the community. Mayor Ireland said the no fare bus was an agreement between all the governments; however, it was agreed that Snowmass should be playing a larger role in that rather than EOTC. Councilman Torre said another discussion item is the upcoming airport extension and the pedestrian crossing and BRT and how all these pieces will work together. Councilman Torre cautioned the public to watch forr the planning process starting later this year as public input will be important. Mayor Ireland agreed the city needs a way to contribute formally to the airport terminal improvements and the transportation system. Chris Bendon, community development department, told Council there is no planning application for the airport yet. The formal application is a location and extent, which is almost an administrative review. Mayor Ireland noted this is an Aspen airport and Council needs to be a player. Councilman Torre agreed this will be a growth and traffic issue and the city needs to be proactive so that Aspen does not take the brunt on the negative impacts. CONSENT CALENDAR Councilman Torre requested Council Appointments be pulled. Councilman Johnson asked about We -cycle as part of Resolution #51, CMAQ Grant and the status of the project. Mirte Mallory told Council this project is moving along and once this contract is executed with CDOT, they 3 Regular Meeting Aspen City Council July 25, 2011 will go through an RFP process to pick a vendor and hope for the bike share program to be working next summer. Lynn Rumbaugh, transportation department, said this program is for the kiosk and if something goes wrong with the We -cycle program, the city will retain ownership of the kiosk. Mayor Ireland moved to approve (c) Resolution #50, 2011 — Support for NWCCOG Economic Development District and (d) Resolution #51, 2011 — Approval of CMAQ Grant; seconded by Councilman Johnson. All in favor, motion carried. COUNCIL APPOINTMENTS Councilman Torre suggested that the DRGW covenant enforcement be the same as the RFTA representative because they are the same entity. Council agreed Councilman Skadron will be the DRGW covenant enforcement instead of Councilman Frisch. Councilman Torre noted ACRA made a request that someone from Council sit on the marketing advisory committee. Councilman Johnson said he has been attending those meetings and will continue to do so. Mayor Ireland moved to adopt the Council appointments as amended and the minutes of July 11, 2011; seconded by Councilman Torre. All in favor, motion carried. ORDINANCE #22, SERIES OF 2011— Burlingame Ranch Phase II Chris Bendon, community development department, reminded Council they are reviewing this both as an owner and as a regulator with separate and overlapping issues and Council will have to balance those interests. Bendon went over the schedule, including the first public hearing August 2 "d to be held at Burlingame at the Commons Room. The next public hearing will be August 22 " at a regular Council meeting with some special meetings scheduled for August 29 and September 6` Bendon announced there is a public open house scheduled for August 1 at the Rio Grande room at noon and 4:30 PM. All city boards are invited to those open houses. Bendon noted the application is hundreds of pages and he only included the introduction and the application is attached as a reference. Scott Miller, asset management, said this land use application is for phase II Burlingame Ranch affordable housing development. Miller reminded Council in 2010 the city team started a public approach to planning and design for this phase. Miller said the design team received a lot of public input on this design and project. Councilman Johnson noted livability of affordable housing has been an issue with other projects. Councilman Johnson asked how many proposed units are below APCHA's guidelines for size /category and if below or above by how much. Councilman Johnson requested a breakdown of categories and how it fits with the existing inventory. Councilman Johnson said this is the land use review, not financing. Councilman Frisch said the process, including the detail and thoroughness, has been great. Councilman Frisch said the assumption at the beginning was that category 5 and above make up 26% of the units. Councilman Frisch said staff should keep an eye on the categories and on the demand. 4 Regular Meeting Aspen City Council July 25, 2011 The current proposed subsidies are $320,000 to $350,000; if no one applies for the higher categories, how much might the subsidies go up. Chris Everson, asset management, reminded Council at the work session, they agreed staff should continue with the pre -sales program; however, some benchmarks and the criteria going forward for that program should be established. Staff is focusing on the land use approval, not the final categories. There is a current recommendation on categories; there will not be a vote on funding this November and construction is not anticipated until 2013. Mayor Ireland suggested a qualification system so that applicants do not have to go to 8 different banks to get a loan. Bendon said because this project is 100% affordable housing and is not a mitigation program, the units may be R/O or lower. Bendon said the final decision on categories needs to be made before transfer of the unit. Councilman Frisch noted there are 3 affordable housing projects in the approval process. There has been a demand for affordable housing units but as that demand diminishes, other affordable housing owners may not be supportive of more and more units. Councilman Skadron requested guidance from staff on the category mix in light of citizen comments and the other projects. Mayor Ireland moved to read Ordinance #22, Series of 2011; seconded by Councilman Johnson. All in favor, motion carried. ORDINANCE NO. 22 (SERIES OF 2011) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN GRANTING LAND USE APPROVALS AND A DEVELOPMENT ORDER FOR A SITE SPECIFIC DEVELOPMENT PLAN INCLUDING FINAL APPROVAL FOR SUBDIVISION, PLANNED UNIT DEVELOPMENT, GROWTH MANAGEMENT, REZONING, SPECIAL REVIEW, CONDOMINIUMIZATION, AND VESTED RIGHTS FOR PHASE TWO BURLINGAME RANCH AFFORDABLE HOUSING SUBDIVISION/PUD, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Mayor Ireland moved to adopt Ordinance #22, Series of 2011, on first reading; seconded by Councilman Frisch. Roll call vote; Johnson, yes; Skadron, yes; Torre, yes; Frisch, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #9, SERIES OF 2011— Boomerang PUD Amendment Jennifer Phelan, community development department, told Council the housing authority is working on guidelines for pre - sales. These guidelines will come back to Council for adoption. The ordinance states that once these guidelines are adopted, the applicant agrees to meet those conditions. Ms. Phelan reminded Council the applicant is requesting rezoning to RMF, PUD and subdivision approval. At the last public hearing, the applicant made changes to their application and these are outlined in staffs memorandum, including an amended design of 40 units, 3 story building with a gap between the middle and west wing of the building. The ordinance requires 5 Regular Meeting Aspen City Council July 25, 2011 half of the units be category 3 or lower and half category 4 or lower. There is a provision that 5 of these are car -free units and the homeowners association will administer that. Ms. Phelan noted Section 7 permits pre -sale for half of the units and that all first purchasers of the units can be selected by the applicant. APCHA does not have a provision for this in their guidelines. Ms. Phelan stated staff feels this application has met the review standards and criteria of AACP; it is development in the traditional townsite; it is a private sector development of affordable housing; this area is served by transit; multi - family use is compatible with the neighborhood. Councilman Frisch asked if the purpose of the request for pre -sales is to gauge the interest before building. Ms. Phelan said the request is to allow local businesses to buy for their employees. Councilman Frisch asked if pre -sales is going to be a growing issue, allowing prospective buyers to by -pass the lottery. Chris Bendon, community development department, said the request for pre -sales is also a way to assist local businesses to sustain their employees' needs. Mayor Ireland said this also helps businesses who need only 1 or 2 units and cannot afford to build an entire project to house their employees. Bendon said the guidelines will need to address how an employer obtains housing, how is it transferred to an employee, what are the employee's rights, how long would an employee get to stay in a unit if they were no longer employed. Councilman Frisch said this would allow employees to move in and not wait for 4 years to join the lottery. Steve Barwick, city manager, said if employers are allowed to purchase units for their employees, there should be a requirement to buy down the units, if an employer buys a category 4 unit, and they sell it to their employee as a category 3 unit. Barwick requested Council allow staff to work out these details. Mike Hoffman, representing the applicant, told Council the applicant is willing to abide by whatever guidelines the city comes up with, including no pre - sales. Bendon noted Section 7 states this project will be able to participate in a pre -sale to employers program; policies to be adopted in the future. Mayor Ireland said this project impacts the entire community and the entire community ought to have an equal shot at the benefit of the project. Steve Stunda, applicant, told Council they agreed to remove the 4 floor and to eliminate 2 units. Richard showed the site plan, the 3 buildings, the entrances, the 2 floor and 3` floor plans, the space in between the buildings. Richard noted the unit sizes did not change and they all meet or exceed the APCHA guidelines. Richard showed the West Hopkins elevation, the north elevation, the 5 street elevation, 4 and Hopkins. Mayor Ireland opened the public hearing. Andrew Kole told Council the drawings appear as if these were breezeways and in Lift One it was determined that breezeways are not space between buildings. Kole said the ordinance suggests the car free restrictions be in the HOA and not in the deed restriction or the declaration of covenants. Kole said that condition should be in a legal document. Kole noted regarding the pre - sales, it seems as if an employer could purchase a unit and sell it to a friend, not an employee, or they could rent the units. Kole said he thought this was not to be a rental project. Kole said this should be changed so that there are no rental units and the units go through the lottery just like every other project. Ms. Phelan reiterated APCHA feels the need to develop guidelines for pre -sales and these guidelines will come back to Council for their review. Bendon stated this ordinance approves land use issues like height, density, and parking. The details of 6 Regular Meeting Aspen City Council July 25, 2011 pre -sales will be developed by APCHA and the applicant has agreed to abide by those guidelines. Councilman Frisch stated he supports the idea of car free units but is fearful it will not be enforced. Kole said if the punishment were to lose one's unit, it could be enforced. Jackie Kasabach asked about employers owning units and having that over employees who could lose their units if they lose their job. Mayor Ireland said that is a problem and he would like some resolution of that issue. Patrick Sagal agreed these units should be part of the lottery and more of the issues should be worked out before this ordinance is adopted. John Statten, 431 West Hopkins, noted the ordinance was changed again this afternoon. One of the critical issues is rental units, which makes it a different project with no APCHA involvement. Statten stated this is a private project governed by an ordinance. Statten noted the applicant stated he would take care of any shortfall; that is not addressed in the ordinance. The ordinance talks about exhibit A, the traffic plan, which is not in this packet. Statten said this should not be discussed until the ordinance is in final shape and not changed 2 hours before the meeting. Mayor Ireland agreed Council should see the entire ordinance before voting on it and to allow the public to review the proposed ordinance and to comment on it. Hoffman stated the applicants are willing to pull the pre -sale agreement off the table. Mayor Ireland asked about the parking enforcement. Bendon said the parking department can enforce those provisions. Hoffman said the people who would apply for a car free unit would be committed to that idea and to not getting around the system. Ron Erickson, housing board, said these car free units should be deed restricted as such. The housing office does have enforcement powers. Paul Taddune suggested this be continued so that the public knows what is being proposed. Taddune said besides getting the ordinance late last week, the ordinance is being amended at this meeting. Taddune said homeowner's associations do not want to enforce covenants like the car free units. Mayor Ireland said if section 7 is deleted, the ordinance will be as submitted last week. Taddune said P &Z is the final approving authority for items in this development, like growth management review for affordable housing, change in use, special review of off street parking and issuance of affordable housing credits, and Council should send this back to P &Z. Taddune submitted a letter for the record. Dan Verner, 432 West Hopkins, said this ordinance does not sufficiently address the issue of car free units and the consequences should be spelled out if the homeowner is in violation. Verner said these details should be in the deed and the condominium declaration. The car free provision should be enforced by the parking department and APCHA, not the homeowners. Verner said the homeowners who purchase the car free units have to understand they are prohibited from automobile ownership. Steve Goldenberg said it is unfair to do things at the last minute. Goldenberg said he thought the neighbors would be able to see the final ordinance and to comment on it. Goldenberg said the project is connected on the 2 and 3` floors; it is not 3 separate buildings. Tom McCabe, housing department, noted an earlier comment about issues with capital reserves is untrue. APCHA has never been tasked with taking care of APCHA capital reserves, which are done by 7 Regular Meeting Aspen City Council July 25, 2011 individual HOAs. The housing department has tried to reach out to HOAs to assist with capital reserves. Marcia Goshorn told Council she likes the project. All owners will have to be approved by APCHA regardless if there are pre -sales or not. Cheryl Goldenberg pointed out there are no windows on the alley; the ground floor units will be almost unlivable because of traffic in the alley. Mayor Ireland closed the public hearing. Mayor Ireland noted section 7 has been eliminated. Mayor Ireland said an owner with a car registered to them would show up when the parking department scans the license plates. Bendon suggested that the inclusion of car free for 5 units be retained in the ordinance, adding that it be included in the disclosure documents. Bendon said the parking department should be in charge of the logistics as they are adept and equipped to do same. Bendon said the no car rule should be included in the deed restriction for that particular unit, enforceable by APCHA. Mayor Ireland stated an owner could own a vehicle but not store it anywhere in the city limits of Aspen. Mayor Ireland said he wouldn't risk ownership of a unit by trying to park in Aspen. Councilman Johnson said he would like to continue with the car free experiment. Councilman Johnson said it should be in the deed restricted with a stated cure period. John Worcester, city attorney, suggested the details be in the subdivision agreement. Worcester noted the entire approval process is iterative; it is expected to change from meeting to meeting. Worcester said these changes are not that substantive. Section 7 will be deleted entirely. The applicant's presentation will be part of the record; exhibit A will be part of the record. Ms. Phelan pointed out that the original transportation demand management plan stated each unit will get a parking space and with 5 car free spaces, it should state 35 units will be designated a parking space and the balance will be divided for guests and other unit use. Worcester noted the TDM should be an exhibit to the final ordinance. Bendon stated this project, as any other project, might be able to opt into any pre -sale program the city may come up with. Bendon said there was a brief discussion of rental units and the land use code does not discriminate between rental and sales units; it is considered the same type of use. Councilman Skadron said he would like to see the project built; it is a good project. However, the public comments throughout the projects have been cogent and appropriate. Councilman Skadron said he is reluctant to support the evolution of the ordinance without sufficient opportunity for public review. Mayor Ireland stated he is disappointed the applicants did not meet with the neighbors. Mayor Ireland said he would like to adopt the ordinance with changes incorporated by the city attorney. Mayor Ireland stated this is not a rental project. Councilman Frisch agreed this should be an ownership project even if it means losing the ability for businesses to own units. Councilman Skadron said he wants to preserve both the integrity of the affordable housing program and the interests of the neighbors. Councilman Johnson said without section 7, this is the agreement reached 2 weeks ago. Councilman Johnson stated he is not in favor of sending this back to P &Z. Councilman Johnson said he favors the deed restriction for the car free units. 8 Regular Meeting Aspen City Council July 25, 2011 Councilman Johnson agreed there was some confusion about this evening's public hearing but the heart of the ordinance is that presented over the process. Worcester said he will amend section 6 to state there will be no rental units. Mayor Ireland moved to adopt Ordinance #9, Series of 2011, on second reading as amended above; seconded by Councilman Johnson. Councilman Torre stated the car free units are a good idea. Councilman Torre said he likes the variation of interiors, which will give more livability and life. Councilman Torre said he would like less density on this project and no neighborhood deserves the impacts from this density. Councilman Torre reiterated he would have liked fewer units and less mass and cannot support this as a vote for Aspen's neighborhood and communities, not against affordable housing. Councilman Frisch stated he supports the philosophy of car free units and hopes some mechanism can be put in place to make this enforceable. Councilman Frisch said he would like the buildings to be more separated. Councilman Frisch stated he, too, would like less mass; however, since that is not likely he will support the project. Roll call vote; Johnson, yes; Frisch, yes; Skadron, no; Torre, no; Mayor Ireland, yes. Motion carried. ORDINANCE #19, SERIES OF 2011— Aspen Walk (404 Park Avenue) Final PUD Sara Adams, community development department, told Council this proposal is to demolish two existing multi - family buildings, merge two lots into one lot and to construct two new detached multifamily buildings, one of which will be deed restricted affordable housing and the other will be free market. 31 units are proposed; 17 affordable housing and 14 free market in 40,967 square feet of floor area. The housing mitigation includes 17 units on -site and affordable housing credits for the other mitigation. Ms. Adams noted the property is zoned R/MF with a PUD overlay. A mix of six category 3 and eleven category 4 units is proposed. Ms. Adams told Council this project meets the underlying zoning with one height variance above the parking ramp required. Ms. Adams reminded Council this project received conceptual PUD approval in 2008, at which time threshold issues were identified as well as determining the suitability of a project for a certain site and to raise issues for final. The issues raised at conceptual were density, affordable housing mitigation, floor area, ownership and parking and these were conditions of approval in the resolution. Ms. Adams told Council this presentation is consistent with the conceptual PUD regarding land use and staff finds it meets the review criteria; however, there are 2 concerns and staff recommends continuing the ordinance. Ms. Adams said the 1 concern is livability of the affordable housing units. There is extra storage in the basement above the parking spaces and positive changes have been made to the garden level units. There are private patios. Ms. Adams noted staff supports the variance which allows these units to be 3' below grade. The applicant has revised the outdoor communal space for the affordable units, which is also an improvement. Ms. Adams said staff is concerned about units on the 2 " and 3 floors, some of which are sub - standard in size and there is no adjacent outdoor space. Ms. Adams cited the 9 Regular Meeting Aspen City Council July 25, 2011 AACP, "housing should be compatible with the scale and character of the community and should exercise quality construction ". Ms. Adams pointed out some results from the 2009 clicker session on quality affordable housing units. Ms. Adams told Council staff recommends adding balconies to the affordable housing units to increase livability to 2" and 3` floor units. The current plan is for French balconies for 2 and 3` floor units. Ms. Adams said staff feels balconies would break up the scale and mass of the project. The PUD criteria address visual interest, pedestrian relationships, compatibility with the neighborhood and whether the architecture represents it intended use. Ms. Adams reported throughout P &Z hearings, the applicants revised their design to address the concerns raised by P &Z and staff. Ms. Adams recommended the applicant continue to work on the design to reduce the perceived mass of the building, to better reflect the multi - family use of the building, adding front doors, and one -story elements. P &Z did not include those in their recommendations to Council. Ms. Adams stated staff supports the request to merge the two lots, the 5 year vesting period, and recommends continuing the ordinance for the applicant to work on livability of the affordable housing living, and the architecture to better relate to the neighborhood. Ms. Adams noted a table showing the ownership units in the city. Stan Clauson, representing the applicant, said this project has had many discussions before city boards and before Council for conceptual approval. Clauson reminded Council the original proposal was for a larger floor area in an attempt to put all the affordable housing required on site. After Council determined that was not appropriate, the applicant changed to two buildings and reduce the floor area and moved units off site as affordable housing credits. The floor area was then reduced to 1.28:1 at conceptual approval. Clauson noted this project meets the code in every respect except for a variance for the driveway to the subgrade garage. Clauson showed the 3 -story buildings in the area. Councilman Torre noted because of the slope of this area, 3 story buildings read differently than this design. Clauson reminded Council, they initially suggested category 2 and 4 units; however, APCHA recommended it more appropriate that this site contain categories 3 and 4 and all the off -site affordable housing credits be category 2 units. That resulted in a slight reduction of unit size in the housing unit size requirements, which was reviewed and approved by APCHA. Clauson showed the bicycle storage area in the subgrade parking garage. Clauson showed garage storage above each parking stall providing 110 cubic feet. Clauson noted the applicants have calculated for each unit type the total amount of storage, including the 110 cubic feet. Clauson told Council the structure of the HOAs was worked out with APCHA; there will be 2 separate HOAs and the affordable housing HOA will bear no responsibility for the free market elements and all owners are allowed access to the general elements. Clauson said the common elements are fixed and are not typically subject to luxury. The intent is not to saddle the affordable HOA with any undue expenses. Councilman Frisch said his concern is the free market can still drive decisions about common elements based on valuations. Clauson said within the HOA structure, there will be a capital fund established by the master association, based on a capital reserve study done by the applicants in advance of construction, one for free market and one for affordable housing, which would indicate the replacement schedule, likely costs and likely assessments. APCHA will review and approve the condominium documents for 10 Regular Meeting Aspen City Council July 25, 2011 the affordable housing units prior to any conveyance of the APCHA property into joint development. Clauson said the developers believe there are sufficient category 2 units in the pipeline for affordable housing credits to meet their requirement of 17.5 FTEs. Clauson said regarding the suggestion to provide balconies the applicants feel it creates a storage area, it is a constant snow removal issue and increases maintenance costs. Councilman Torre noted some of the proposed units are smaller than housing guidelines allow and asked if there is a corresponding reduction in the number of FTEs credited to a smaller unit. Tom McCabe, housing office, told Council the guidelines permit the housing board to look at the plans and approve variations up to 20% if other criteria are met. The housing board was happy with this plan and reduction in the FTEs has never been part of the discussion. That can be looked at in the future. Councilman Johnson asked the history on the minimum square footage requirement. McCabe said these numbers were determined prior to the 1990's; the numbers can be reviewed and adjusted for future projects. Clauson pointed out the minimum size requirements for categories 1 and 2 are a different size than for categories 3 and 4. Clauson said this is a PUD, not because of variance, but because it was established as a PUD when the property was brought into the city. Clauson showed the relationship of the project and how it fits into the neighborhood with the city's sketch up program. Ken O'Brian, architect, noted this neighborhood contains an eclectic mix of architecture ranging from Victorian to 70's to contemporary. O'Brian said defining compatibility is difficult for architects. The applicants have taken materials found in the neighborhood and applied them to the design. The design is broken up both vertically and horizontally and is a contemporary urban design. The design meets all the setbacks and is under the height requirements. The building has been moved away from the Tailings to address their concern and the parking ramp has been moved away. Clauson showed the ramp and screening which provides a separation from the Tailings. There is a separation between the two buildings. Clauson pointed out the location of the roof deck, setback from the facade towards Midland Park Place. The roof deck is small. Clauson told Council P &Z outlined some concerns, which have been incorporated into this plan with the exception of eliminating the roof deck. The applicants feel the roof deck is an amenity that can be achieved without degradation to the neighborhood. Clauson said P &Z did not feel added balconies were a matter of concern. Clauson reiterated this project has had a lot of review with city boards and has had 3 significant redesigns. The applicants have worked with APCHA to meet their requirements. The project will house a considerable number of employees. The proposed free market development is an attractive alternative to what exists there now. Clauson said the project is driven by and conforms to the code; the land use code requires the multi- family housing replacement be done entirely on site. The 53 basement parking spaces will create an improved parking situation for the area. Tom Salmon told Council the applicants have worked with legal staff on the ownership issues. Salmon said the applicants view this as an attractive opportunity to provide some public benefit; replacing dilapidated structures and partnering with APCHA to replace a building they did not have the funds to replace. Clauson pointed out the sketch up product for the surrounding buildings seems out of proportion. 11 Regular Meeting Aspen City Council July 25, 2011 Councilman Skadron noted there is currently 17,600 square feet on 32,000 square foot parcel and the development will result in 2.5 times, or 40,000 square feet, the built environment on the same parcel. Clauson said the RMF zone is intended for the highest density of residential development. Councilman Skadron asked if the purpose of the RMF district is to result in this type of proposed development. Bendon said this zone district RMF is for the densest residential district in Aspen. This proposal meets the land use code. Bendon said multi - family housing replacement makes redevelopment of this type of building because of the requirement for replacement for affordable housing. McCabe explained exhibit 0 in the packet was to answer the query about the demand for category 4 units. McCabe said 35% of the total sales units are RIO; category 4 is 34 %; category 1 is 1 %; category 2 is 10 %; category 3 is 14.5 %; category 5 is 1 %; category 6 is 4% and category 7 is .5 %. These are sales units only. McCabe told Council last year there were 19 category 4 units on the market and 145 bids. There have been few category 1, 2 and 3 sales. McCabe said 2, 3, and 4 are the most popular categories over time. McCabe said bidders can bid for their category as well as those above it. The board has recently recommended one be allowed to bid in their category and only one above it. McCabe said there are variables, like location and pets or not, that make some units more attractive than others. Mayor Ireland moved to continue Ordinance #21, Series of 2011, 518 W. Main, to August 8; seconded by Councilman Torre. All in favor, motion carried. Mayor Ireland opened the public hearing. Kim Hay, resident at 414 Park Circle, told Council the residents were lead to believe they were grandfathered into the new project, would be given units without going through the lottery process. Ms. Hay said the Smuggler Mountain apartments are mostly category 1 rentals and tenants thought the units they would get would be category 1 or 2 units. Ms. Hay said tenants are being displaced and they are concerned about where they will be living. Jason, 414 Park Circle said he would love to stay there and have first dibs on category 1 units. Jason said there are few category 1 units available. Jason said the tenants were told because they were being displaced, they would have first try at the new units. Shael Johnson, Midland Park, read a letter from Cindy Houben outlining 3 areas of concerns. The first is lighting; this area is a transition area between town and the edge of Smuggler Mountain and the lack of lighting helps to keep the area tranquil. There are fewer and fewer places where the night sky can be seen. The second is functional and adequate outdoor space. Ms. Houben noted the site plan shows little open and outdoor space for the residents of the property and the available space is north facing. Ms. Houben said functional outdoor living space makes a big difference in quality of life. The third item is livability of the affordable housing units and includes light, sun, air and outdoor living space. Ms. Houben said the proposed affordable units do not have any of these qualities. The units face north or to the internal courtyard. Jim McPhee, Midland Park, said this project is too big and too dense. McPhee noted Midland Park has 37,000 square feet of built space; this density overlaid on Midland Park would result in over 100,000 square feet. McPhee said Aspen Walk is proposed lot line to lot line some of it in the city's right of way. McPhee said this flies in the face of the AACP and does not fit in the 12 Regular Meeting Aspen City Council July 25, 2011 neighborhood. Sara Garton, Midland Park, told Council her objection to the roof garden area is that is an urban amenity for a big city or downtown Aspen. Ms. Garton stated she is concerned about the lighting and the noise. It seems as downtown Aspen is creeping into quiet residential areas. Smuggler mountain is a wildlife area. Ms. Garton said Aspen Walk is not in scale with the neighborhood. Ms. Garton read a letter from Midland Park resident Pam Cunningham, two projects that recently requested rooftop decks that amenity did not assure their financial success. Ms. Cunningham noted the historic preservation task force met for 2.5 years and the only point of agreement was mass and scale and its potential detriment affects. Ms. Cunningham notes both the 2000 AACP and the draft 2010 AACP speak frequently to neighborhood. Midland Park is a neighborhood developed with substantial green space and abutting open space. Jackie Kasabach, King Street resident, told Council this project is too big; it needs to be broken up. The project is not in keeping with any of Aspen's community values. Tom Griffith, Midland Park, commended the developer for being sensitive to some of the needs of Midland Park by relocating the garage ventilation unit, eliminating a sidewalk close to Midland Park. Griffith noted meeting all codes does not make a project appropriate for the neighborhood. Griffith said there are no roof top decks on the north side of the river; they are in the downtown core. Griffith said there is no way to control noise and partying on roof decks other than calling the police. Griffith pointed out the Boomerang is 38,000 square feet and this project is proposed at 41,000 square feet and the mass and scale is too big. Marcia Goshorn pointed out this is a public /private partnership, something the AACP talks about. Ms. Goshorn said APCHA did not have the funds to redevelop the Smuggler Mountain apartment site. Ms. Goshorn reminded Council APCHA recommended the city buy the site on the corner, which did not happen. Ms. Goshorn said APCHA requested $750,000 which is to help buy down units for the current tenants. Ms. Goshorn told Council it is difficult for employees to qualify for category 1 units and to keep up with expenses associated with ownership. Ms. Goshorn said the housing office finds that balconies cause maintenance problems; they have to be shoveled or roof leaks can occur. Ms. Goshorn said this project has been through iterations and has gotten smaller. Jay Maytin, Tailings, told Council the lot for the Tailings is lower than that of this project. The Tailing is 3 stories of 8' stories; the plate height on the new building is probably higher than 8'. Maytin said changing the categories from 1 and 2 to 3 and 4, tenants are displaced with no plan to use the $750,000 to help them. Maytin said the housing office indicated the higher categories would mesh better with the free market units. Maytin said there are variances by combining two lots and by building lot line to lot line. Maytin said he is afraid this will start other developments in the neighborhood. Maytin said he would like the housing board minutes on discussing the change in categories at this project. Maytin stated this project does not fit in the neighborhood. Maytin asked Council to not approve this project and to request a redesign following the community plan and to satisfy the community need for housing. Judy Kohlberg, Midland Park, stated there are unresolved issues with the proposed project. Ms. Kohlberg said Midland Park is a special neighborhood and has lived and evolved for nearly 33 years. Ms. Kohlberg said this is a diverse community of long term residents who love and take pride in living in Midland Park. Ms. Kohlberg said the neighbors would like to see Aspen Walk become an exemplary housing project that according to the AACP should "emphasize the development of neighborhoods and community, not just units ". Ms. Kohlberg said issues of 13 Regular Meeting Aspen City Council July 25, 2011 concerns are mass and scale, in particular that of the free market building, the roof top amenity, and the livability of the affordable housing units. Ms. Kohlberg said mass and scale of the free market building is inconsistent with the neighborhood; the AACP concerning new development states they need to be sensitive to the existing neighborhood. P &Z commented on size and that the new development did not fit into the neighborhood as did the planning staff. Ms. Kohlberg suggested breaking the free market building into 2 buildings and increasing the green space on site. Ms. Kohlberg said the roof top deck is an urban amenity and it does not belong in a residential neighborhood. Ms. Kohlberg said the noise and light spill from a roof top deck can never be fully remediated and will have an adverse affect on adjacent neighborhoods. Ms. Kohlberg said the livability of the affordable housing units is a concern if one wants this to become a neighborhood. The units are undersized and would not be long termed owned. Ms. Kohlberg noted livability fosters longevity which builds stability into a community, which is what the affordable housing program fosters. Dion Millman, Smuggler Mountain apartments, told Council the tenants thought they would be able to purchase units in the new building without going through the lottery. Ms. Millman said the residents did not know about the change in categories. Ms. Millman questioned where replacement category 1 and 2 units are proposed to be built. Ms. Millman agreed with the non - livability of the affordable housing units and with their relationship to the street. Ms. Millman said this project will change their neighborhood. Kathryn Koch, city clerk, entered an e -mail from Nina Merzbach, Tailings, into the record. Clauson said the $750,000 payment to APCHA was intended to provide buy downs or protections for the current residents. Clauson said APCHA asked the applicant to change the categories and he is not sure how that affects replacement for the current tenants. Clauson told Council the applicants have worked on the bulk and mass of the building and have downsized it twice. The building has been divided into two; they have changed the architecture. Clauson reiterated this is the densest residential zoning in the city and the purpose speaks to the creation of multi - family housing. The building is within the zone dimensions and within the parameters established at conceptual approval. The applicant met with the Midland Park homeowners' association and has tried to address concerns that they could. Clauson stated this property is surrounded by open space and by Smuggler Mountain, trails and parks. Clauson noted the livability of the units has been certified by APCHA. The housing units are set into the ground the same way the free market units are. Clauson said although the land use code does not dictate what a project should be, it is an indication of what is appropriate for an area. Councilman Torre reminded everyone the charge of the housing office is affordable housing and final decision rest with Council who has to look at balancing the community. Councilman Torre asked for the review criteria for subdivision. Councilman Torre asked if parking credits should be given to "stacked" parking. Councilman Torre stated he would not support 5 years vested rights. Councilman Torre noted for the free market housing he has concerns about the dens becoming de facto bedrooms. Ms. Adams told Council the general requirements for subdivision include consistency with the AACP, consistency with the character of existing land uses in the area, the subdivision cannot adversely affect development in the surrounding area, suitability of the land for subdivision. 14 Regular Meeting Aspen City Council July 25, 2011 Councilman Torre said there does not seem to be any relief for the affordable units, the backside is a parking garage ramp and the other side is the free market building. Councilman Torre said he does not think this project is compatible with the neighborhood. This seems to be displacing community members in the pursuit of a company that may not have the best interest of the community at heart. Councilman Torre stated the project has a lot of work to be done, landscaping, lighting issues. Councilman Torre noted the public stated that the project does not fit in the neighborhood, and he concurs the project is not appropriate in this location. Councilman Johnson stated he feels 5 years vesting is appropriate. Councilman Johnson said he can see the roof deck at Dancing Bear from his house and there is light and noise, and the roof top deck is a concern in this location. Councilman Johnson noted he is concerned about the displaced residents and he would like for them to have an opportunity to stay where they are or at least know where they are going. Councilman Johnson stated he would like more consideration on how the two 1-IOAs will work together. Councilman Johnson said the affordable units, across the board, are too small and this is an issue of quantity over quality. Councilman Johnson said the lack of storage has to be addressed; balconies are critical given the size of the units. Councilman Johnson requested more information on the outdoor communal space. Councilman Johnson said the category mix should be revisited. Councilman Johnson concurred this does not seem to fit the neighborhood; the project needs more work. Councilman Frisch said all projects need to fit into what is community appropriate, regardless of their use. Councilman Frisch said dropping this proposed project into this eclectically organic neighborhood, it seems out of place and sticks out. Councilman Frisch said areas do need redevelopment; however, there will be diversity between what is there and what is proposed to be built. Councilman Frisch noted the land use code allows structures that are too big. Councilman Frisch stated he would like to see changes to this project before he can support it. Councilman Skadron concurred with Council's comments. Councilman Skadron said he thought the current tenant's residency issues were addressed. Councilman Skadron supports staff's recommendation that the development needs to be more sensitive to the scale and character of the neighborhood. Councilman Skadron said this project fails to meet the review standards set forth in subdivision review; the general themes are displacement of current tenants and relationship to the character of the neighborhood. Councilman Skadron said one issue of development in general is what is proposed by the applicant is so incongruous with the community. Councilman Skadron said the roof top deck issue is not a threshold issue for him if other issues are addressed. Councilman Skadron said the length of vesting, for him, is negotiable if scale and mass can be addressed to be more accommodating to those most impacted by this development. Mayor Ireland stated the city should not be in the business of displacing people from the city's affordable housing program. Mayor Ireland said he is concerned about the loss of category 1 units. Mayor Ireland noted the east side of Aspen is losing population and the structures are being turned into single family homes although this is still a local's low key neighborhood. Mayor Ireland said he has been concerned about the scale and mass of the project since the outset. Mayor Ireland stated he has supported affordable housing for 20 years but just because projects are affordable housing does not mean the standards of scale and mass and compatibility with the neighborhood should be different. Mayor Ireland noted when elected he stated one of his goals was to make the zoning consistent with community desires. Mayor Ireland said he is 15 Regular Meeting Aspen City Council July 25, 2011 concerned with scale and mass, with displacement of tenants, with the size of the units, that category 1 and 2 residents are not being well served. Mayor Ireland stated $750,000 will not solve the problem of displacement of existing tenants. Councilman Johnson moved to continue Ordinance #19, Series of 2011, to August 8 for a check in; seconded by Councilman Skadron. All in favor, motion carried. Councilman Torre moved to adjourn at midnight; seconded by Mayor Ireland. 11 in favor, motion carried. Kat ! n Koch City Clerk 16