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HomeMy WebLinkAboutagenda.apz.20110816 AGENDA ASPEN PLANNING AND ZONING COMMISSION REGULAR MEETING TUESDAY, August 16, 2011 4:30 p.m. Sister Cities room 130 S. Galena Street, Aspen I. ROLL CALL II. COMMENTS A. Commissioners B. Planning Staff C. Public III. MINUTES IV. DECLARATION OF CONFLICT OF INTEREST V. PUBLIC HEARINGS — B. Miscellaneous Code Amendments — vacation rentals C. Miscellaneous Code Amendments — Impact fees and school lands dedication VI. OTHER BUSINESS VII. BOARD REPORTS VIII. ADJOURN Next Resolution Number: 14 P1 MEMORANDUM Va.. TO: Aspen Planning and Zoning Commission THRU: Jennifer Phelan, Community Development Deputy Directo FROM: Sara Adams, Senior Planner el/WA- RE: Vacation Rentals Code Amendment DATE: August 2, 2011 (continued from July 5 and July 19 ) SUMMARY: Vacation rentals (a.k.a short term rentals) of residential dwellings exist throughout the City in nearly every neighborhood. However, this type of' use is generally only permitted in zone districts with a lodge designation with the exception of 2 rentals allowed each year for residential properties. Approximately half of the 300+ rentals listed on vrbo.com are not permitted — most of the unpermitted rentals are located in the East and West End neighborhoods? Over the past year, the Finance Department has been trying to identify existing vacation rentals to require all operators receive a business license and to ensure that tax dollars are collected. The rule that only 2 rentals are permitted per year for most residential units creates problems when issuing a business license and subsequent enforcement to ensure that the properties are in compliance. Currently there are no controls in place to mitigate impacts on residential neighborhoods and the City's only recourse for complaints is to bring the operator into Municipal Court to cease operations. At the direction of City Council, Staff proposes a code amendment to permit vacation rentals of residential dwellings through the issuance of an annual Vacation Rental Permit. The Vacation Rental Permit requires specific standards to be met on the property and would be processed administratively at the same time as a business license application. REVIEW PROCEDURE: Section 26.310 Text Amendment. At a duly noticed public hearing, the Commission shall recommend by Resolution the City Council to approve, approve with conditions, or deny the application. BACKGROUND: With the popularity and prevalence of vrbo.com ( "vacation rentals by owner ") and similar sites, Aspen is clearly not the only resort town that grapples with this issue. Colorado Association of Ski Towns (CAST) has discussed vacation rentals for a few years. Recently, CAST hired VR The Lodge zone districts are generally located at the base of Aspen Mountain. _ .., __..c b :;i o cnline listings in February 2011. Vacation Rental Code Amendment P &Z memo, July 19, 2011 Page 1 of 4 • P2 Compliance LLC, a 4nsulting firm, to develop software that will provide local communities with property owner contact information and the actual physical address of properties listed on online rental sites. This action is helpful to local communities that need to contact the property owner; however it does,not address how and if vacation rentals are regulated. To better understand how other communities address this issue, Community Development sent out a basic online survey to CAST. Out of the 25 CAST communities, 21 responses were received and used as a basis for the proposed code amendment language. The survey shows that each community has a different approach to vacation rental regulations based on their specific needs. To summarize a few points: about 67 %, or 14 of the respondents are satisfied with their vacation rental program; and 12 of the 14 regulate vacation rentals only through business license and/or sales tax license and do not issue revocable vacation rental permits. Almost half of the communities have specific review standards (i.e. parking, trash, etc.), and half of the communities stated difficulty tracking compliance as a problem. The Town of Jackson is the only community that answered the survey that does not allow short term rentals and has no plans to allow them . Regarding uncollected sales and lodging tax, the Finance Department drafted some projections using VRBO data and data from "mtrip, an outside consultant, to calculate that the city is missing out on collecting sales tax and lodging tax revenues between $90,000 - $100,000 a year. 37% of the tax revenues will be streamed to ACRA with the remaining 63% directed to the City. OUTREACH: Staff has met with StayAspenSnowmass, Commercial Core and Lodging Commission, and members of the lodging community to better understand potential impacts on the lodge sector. Many of the community members felt that vacation rentals need to play by the same rules as hotels and lodges. While vacation rentals seemingly could take business away from traditional lodges, there seems to be an understanding about the existing prevalence of vacation rentals in the community and a positive response to putting controls in place to require tax collection and compliance with standards. Informative emails were sent to Aspen Ski Company, Aspen Board of Realtors, Aspen Lodging Association and Aspen Chamber Resort Association. STAFF RESPONSE: In an effort to balance the preservation of neighborhood character and minimize the application process for vacation rental property owners, Staff proposes the following code amendment: Section 1: Section I of the draft resolution proposes changes to the following terms in the definitions section of the code: hotel (aka lodge), long term, short -term, and adding the term vacation rental. In summary, long term is a rental period that is over 30 days. Short term is related to lodging and hotel stays that are equal to or less than 30 days. Vacation rental is defined as rental of a dwelling unit for a time period equal to or less than 30 days. 3 www.vrbo.com lists 12 pages of short term rentals in the Town of Jackson as of June 2011. ° mtrip reports provide statistical data based on a sample of up to 17 properties in Aspen, representing up to 1,431 units and 62% of 2,304 total units in Aspen. Vacation Rental Code Amendment P &Z memo, July 19, 2011 Page 2 of 4 P3 Section 2: Section 2 of the draft resolution proposes a new section to the Land Use Code that explains the Annual Vacation Rental Permit purpose, standards, review process, and revocation and appeal processes. Process: The vacation rental permit process applies only to residential dwelling units: timeshare units, lodges, and hotels are exempt. A property rental that exceeds 30 days in duration does not qualify as a vacation rental and does not require a vacation rental permit. The rental permit is an administrative review processed simultaneously with the business license application. Review Standards: The review standards are based on past communities' experiences and the nature of complaints that Community Development has received over the years. There are 7 proposed review standards including: HOA notice: If applicable, the property owner is required to provide notice of the vacation rental permit to the Homeowner's Association. Business license application: Proof of a business license application is required. Parking: The property either has adequate parking on the site, or the property needs to demonstrate sufficient on -street parking passes. The residential guest parking pass is . permitted to be used for renters; however the Parking Department only issues 1 guest pass per residence. Additional "lodging guest" parking passes may be obtained from the Parking Department, if needed. Trash: The property must have bear -proof trash containers that meet the Wildlife Protection section of the Code. All properties are required to meet the Wildlife Protection regulations; however not all properties are in compliance. Staff proposes this standard to ensure that the rental properties meet the existing regulations and to bring awareness that proper trash disposal is extremely important in Aspen's environment. Local owner representative: A contact person and phone number for the property is required. The contact needs to be located within the Roaring Fork Valley and can be anyone — from the owner or a neighbor to a property management company. The owner representative's name and phone number will be listed on the city website as a contact for neighbors that have concerns or questions. A local representative will be able to address any immediate issues that arise and serve as an initial contact person for the City if a complaint is filed. Lodging and sales tax: Vacation rentals are required to comply with the City's taxpayer responsibilities listed in Section 23.08 of the Municipal Code. Notice to neighbors for single family and duplex residences outside the lodge zone districts: Vacation rentals of single family and duplex residences outside of the Lodge zone districts are required to mail notice to adjacent neighbors notifying the neighbors that a vacation rental permit is issued for the property and the name and contact number for the local representative. Notice keeps neighbors in long -term residential areas aware of rentals in the area and provides them with a contact if questions or concerns arise. Vacation Rental Code Amendment P &Z memo, July 19, 2011 Page 3 of 4 P4 Staff has received some feedback from local realtors that requiring notice to neighbors is overly excessive and may cause some neighbor to neighbor conflicts. Staff recommends that the Planning and Zoning Commission discuss and provide clear recommendations to City Council regarding notice. Staff proposes that multi - family units are exempt from mailing notice since it is generally assumed that multi - family units are rented, the impacts on the neighborhood are minimal, and to reduce the number of notices mailed out to neighbors. Single family and duplex residences located in the lodge zone districts, generally at the base of Aspen Mountain, are proposed to be exempt from mailing notice due to their location in the tourist concentrated area of town. Renewal: Annual permit renewals require only HOA notice (if applicable), a current business license, a local property owner representative, and notice (if applicable). Revocation: The Community Development Director has the authority to revoke the rental permit if the standards are violated. The property owner will receive notice of a hearing with the Community Development Director and receive full opportunity to be heard and to fix the violations prior to any action being taken. Section 3: This section adds vacation rental as a permitted use to zone districts that permit residential uses. The ability to short term rent is added into the purpose statement of each zone district as well. NEXT STEPS: Review by City Council. REQUEST OF THE P & Z: Planning and Zoning Commission is asked to make a recommendation to the City Council regarding the proposed code amendments in the attached draft resolution. STAFF RECOMMENDATION: Staff finds that the proposed amendment is consistent with the AACP, as outlined in Exhibit A, and recommends that the Planning and Zoning Commission recommend approval to City Council. ATTACHMENTS: Resolution # , Series of 2011 EXHIBIT A — Sectiop 26.310.040 Standards of Review EXHIBIT B - CAST survey Vacation Rental Code Amendment P &Z memo, July 19, 2011 Page 4 of 4 P5 RESOLUTION No. _ (Series of 2011) A RESOLUTION OF THE ASPEN PLANNING AND ZONING COMMISSION, ASPEN, COLORADO, RECOMMENDING THAT CITY COUNCIL AMEND THE ASPEN MUNICIPAL CODE BY AMENDING SECTION 26.104.100, DEFINITIONS, AMENDING VARIOUS SECTIONS OF CHAPTER 26.710, ZONE DISTRICTS, AND ADDING A NEW SECTION 26.575.220, VACATION RENTALS,. WHEREAS, in accordance with Sections 26.210 and 26.310 of the City of Aspen Land Use Code, the Director of the Community Development Department initiated amendments to the Land Use Code related to Section 26.104.100, Definitions, Chapter 26.710, Zone Districts, and adding a new Section 26.575.220, Vacation Rentals; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Section 26.104.100, Definitions, Chapter 26.710, Zone Districts, and adding a new Section 26.575.220, Vacation Rentals, as described herein; and, WHEREAS, the Planning and Zoning Commission held a duly noticed public hearing to consider the proposed amendments described herein on July 19, 2011 continued from July 5, 2011, took and considered public testimony and the recommendation of the Community Development Director and recommended, by a _ - vote, that City Council adopt the proposed amendments. WHEREAS, the Planning and Zoning Commission finds that the development proposal meets or exceeds all the applicable standards and that the approval of the amendments are consistent with the goals and elements of the Aspen Area Community Plan; and, WHEREAS, the Planning and Zoning Commission finds that this ordinance furthers and is necessary for the promotion of public health, safety, and welfare. NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF ASPEN PLANNING AND ZONING COMMISSION as follows: Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 1 of 19 P6 Section 1. That Section 26.104.100 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to add the definition of the term "Vacation rental ", and by amending the definitions of the terms, "Hotel ", "Long term ", and "Short term ", which amended terms shall read as follows: Hotel (a.k.a. Lodge). A building or parcel containing individual units used for overnight lodging by the general public on a short-term basis for a fee, with or without kitchens within individual units, with or without meals provided and which has common reservation and cleaning services, combined utilities and on -site management and reception services. Timeshare (a.k.a. fractional) units and timeshare developments are considered hotels for the purposes of the Land Use Code. For hotels with flexible unit configurations, also known as "lock -off units," each rentable division or "key" shall constitute a lodge unit for the purposes of this Title. Unless otherwise approved pursuant to Chapter 26.590 — Timeshare Development, occupancy periods of a hotel or unit thereof, by any one (1) person or entity with an ownership interest in the hotel or units thereof, shall not exceed thirty (30) consecutive days or exceed ninety (90) days within any calendar year, regardless of the form of ownership. Occupancy periods for person or entities with no ownership interested (e.g. vacationers) shall be limited only by the ninety -days per calendar year requirement. Long term. The occupancy of a dwelling unit for residential purposes for a time period greater than thirty (30) days. Short -term. The occupancy of a hotel, lodge unit, or vacation rental for a time period equal to or lesser than thirty (30) days in duration. Vacation rental. The short term occupancy of a residential dwelling unit by the general public for a fee. Section 2. That the Municipal Code of the City of Aspen, Colorado, is hereby amended by adding a Section 26.575.220 which said Section shall read as follows: 26.575.220 Vacation Rentals A. Intent and purpose The purpose of this section is to establish the procedures and standards by which Vacation Rentals (See § 26.104.100, Definitions), of residential units are permitted within the City. It is the City's intent to establish Vacation Rental regulations that promote a mix of lodging options that support the City of Aspen's tourism base and local economy; that uphold the health, safety and welfare of the public; and, that protect long term residential neighborhoods by ensuring that the impacts of Vacation Rentals do not adversely affect the residents and the character of residential areas. Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 2 of 19 P7 B. Annual Vacation Rental Permit Required. 1. It shall be unlawful for any person, whether a principal or agent, clerk or employee, either for him or herself, or for any other person or for anybody, corporation or otherwise, to lease or operate a Vacation Rental without first obtaining an Annual Vacation Rental Permit in accordance with the provisions of this Section or operating same in violation of the standards set forth herein. 2. This section shall not apply to leases or other rental arrangements in Lodges, Timeshare Lodges, and Hotels. (See Section 26.104.100, Definitions, for definitions of these terms.) 2. It shall be unlawful for any person, whether a principal or agent, clerk or employee, either for him or herself, or for any other person or for anybody, corporation or otherwise, to lease or operate a Vacation Rental in a Bandit Unit or an Affordable Housing Unit or Accessory Dwelling Unit whose deed restriction prohibits short term rentals. C. Vacation Rental Standards. The following standards shall be applicable to Vacation Rentals. 1. Homeowners' Association Notification. When the proposed Vacation Rental is part of a common interest community, a letter shall be submitted to the Homeowners' Association providing notification of an application for a vacation rental permit. 2. Business License. Vacation Rentals shall obtain an annual City of Aspen business license pursuant to Chapter 14.08, Business Licenses. 3. Parking requirement. Vacation Rentals shall provide adequate off - street parking in compliance with Section 26.515, Off - street Parking, or on- street parking in compliance with Section 24.16.060, Residential guest permit and /or Section 24.16.070, Lodge guest permit. 4. Trash/storage requirement. Vacation Rentals shall provide clearly defined trash and recycle area and Wildlife- Resistant Trash and Recycling Enclosures, as specified in Chapter 12.08, Wildlife Protection. 5. Local owner representative. Vacation Rentals shall appoint and designate an owner representative within the Roaring Fork Valley, who is on call to manage the Vacation Rental during any period within which the Vacation Rental is occupied. The name, phone number and address of the local owner representative shall be provided to the Community Development Department at time of application for a Vacation Rental Permit and posted on the City website. It is recommended, but not required, that a Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 3 of 19 P8 sign identifying the representative's name and number be posted on the property. It is the responsibility of the owner representative to inform Vacation Rental occupants about all relevant City of Aspen ordinances including, but not limited to parking, trash and noise. 6. Lodging and sales taxes. Vacation Rentals are deemed to be "retailers" as that term is defined at Section 23.04.010, and accordingly shall be subject to all taxpayer responsibilities set forth at Chapter 23.08, Taxpayer's Responsibilities, particularly the responsibility to collect and payment of all applicable sales and lodging taxes. 7. Notice. Mail notice to neighbors adjacent to the Vacation Rental notifying neighbors that (i) the Community Development Department issued a Vacation Rental Permit for the subject property; and, (ii) the name and contact information for the owner's representative. D. Annual Vacation Rental Permits. 1. Applications. Applications for Annual Vacation Rental Permits shall be submitted to the Community Development Department. The application for a Vacation Rental Permit shall contain the following: a. If applicable, confirmation that notice was provided to the Home Owner's Association. b. A City of Aspen business license or application.. c. Evidence as required by the Community Development Department that the Vacation rental is capable of providing sufficient parking. d. Evidence as required by the Community Development Department of a wildlife resistant refuse container or dumpster enclosure that meets the requirements of Municipal Code Section 12.08 Wildlife Protection. e. The name, phone number and address of the local owner representative. £ Written confirmation that notice was provided to adjacent neighbors. 2. Annual permit renewal. A new application for an Annual Vacation Rental Permit shall be submitted each calendar year in accordance with the following application requirements: 26.575.220(D)(1)a, b, e, and f. 3. Exceptions. a. Multi - family dwelling units within the same complex have the option to submit a consolidated Vacation Rental Permit application for multiple units managed by one local owner representative. If multi - family dwelling units use different owner representatives, separate applications are required. b. Multi- family units are not required to provide notice pursuant to Section 26.575.220(C)(7). c. Single family and duplex dwelling units in Lodging Zone Districts are not required to provide notice pursuant to Section 26.575.220(C)(7). Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 4 of 19 P 9 E. Review Standards. The Community Development Department shall review applications for Annual Vacation Rental Permits for conformance with the review standards listed below. A license may issue upon a determination of the following by the Community Development Department: 1. A completed application containing the information described in Section 26.575.220(D)(2). Compliance with the Vacation Rental Standards set forth in Section 26.575.220(C). F. Enforcement and Revocation. Any person violating any provision of this Section 26.575.220 shall be subject to the penalty provisions of Section 26.104,040, Applicability and penalty, In addition, any Vacation Rental in violation of this Section 26.575.220, Vacation Rentals, shall be subject to a revocation of the Vacation Rental Permit as set forth herein. G. Denial and Revocation. Whenever the Community Development Director has cause to believe that any holder of an Annual Vacation Rental Permit is engaging, or is engaged, in any activity such as to preclude the issuance of a permit applied for or to warrant revocation of any permit presently held, he or she shall conduct a hearing to determine if such action shall be taken. The applicant or licensee affected shall be given adequate notice of any such hearing and be given a full opportunity to be heard and an opportunity to cure prior to denial or revocation of an Annual Vacation Rental Permit. H. Appeal. An applicant or licensee aggrieved by a determination made by the Community Development Department denying or revoking an Annual Vacation Rental Permit may appeal to the City's Administrative Hearing Officer in accordance with the procedures established by Chapter 26.316, Appeal Procedures. Section 3. That Section 26.710.040 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.040. Medium - Density Residential (R -6). A. Purpose. The purpose of the Medium - Density Residential (R -6) Zone District is to provide areas for long -term residential purposes, short term vacation rentals, and customary accessory uses. Recreational and institutional uses customarily found in Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 5 of 19 P10 proximity to residential uses are included as conditional uses. Lands in the Medium - Density Residential (R -6) Zone District are generally limited to the original Aspen Townsite, contain relatively dense settlements of predominantly detached and duplex residences and are within walking distance of the center of the City. B. Permitted uses. The following uses are permitted as of right in the Medium - Density Residential (R -6) Zone District: 1. Detached residential dwelling. 2. Duplex. 3. Two (2) detached residential dwellings. 4. Home occupations. 5. Accessory buildings and uses. 6. Accessory dwelling units and carriage houses meeting the provisions of Chapter 26.520. 7. Vacation rentals. Pursuant to Section 26.575.220 Section 4. That Section 26.710.050 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.050. Moderate - Density Residential (R -15). A. Purpose. The purpose of the Moderate - Density Residential (R -15) Zone District is to provide areas for long -term residential purposes, short term vacation rentals, and customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate - Density Residential (R -15) Zone District typically consist of additions to the Aspen Townsite and subdivisions on the periphery of the City. Lands within the Townsite which border Aspen Mountain are also included in the Moderate - Density Residential (R- 15) Zone District. B. Permitted uses. The following uses are permitted as of right in the Moderate - Density Residential (R -15) Zone District. 1. Detached residential dwelling. 2. Duplex. 3. Two detached residential dwellings. 4. Home occupations. 5. Accessory buildings and uses. 6. Accessory dwelling units and carriage houses meeting the provisions of section 26.520.040 7. Vacation rentals. Pursuant to Section 26.575.220. Section 5. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 6 of 19 P11 That Section 26.710.060 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.060. Moderate - Density Residential (R -15A). A. Purpose. The purpose of the Moderate - Density Residential (R -15A) Zone District is to provide areas for long -term residential purposes, vacation rentals, and customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate - Density Residential (R -15A) Zone District are similarly situated to those in the Moderate - Density Residential (R -15) Zone District and are lands annexed from Pitkin County from Zone Districts in which duplexes are a prohibited use. B. Permitted uses. The following uses are permitted as of right in the Moderate - Density Residential (R -15A) Zone District: 1. Detached residential dwelling. 2. Duplex, provided fifty percent (50 %) of the duplex units are restricted to affordable housing. 3. Two (2) detached residential dwellings. 4. Home occupations. 5. Accessory buildings and uses. 6. Accessory dwelling units and carriage houses meeting the provisions of Section 26.520. 7. Vacation rentals. Pursuant to Section 26.575.220. Section 6. That Section 26.710.070 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.070. Moderate - Density Residential (R -15B). A. Purpose. The purpose of the Moderate - Density Residential (R -15B) Zone District is to provide areas for long -term residential purposes, vacation rentals, and customary accessory uses. Lands in the Moderate- Density Residential (R -15B) Zone District are similarly situated to those in the Moderate - Density Residential (R -15) and (R- 15A) Zone Districts, but are those in which single - family structures are a permitted use and duplexes are prohibited. B. Permitted uses. The following uses are permitted as of right in the Moderate - Density Residential (R -15B) Zone District: 1. Detached residential dwelling. 2. Home occupations. 3. Accessory buildings and uses. 4. Vacation rentals. Pursuant to Section 26.575.220. Section 7. Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 7 of 19 P12 That Section 26.710.080 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.080. Low - Density Residential (R -30). A. Purpose. The purpose of the Low - Density Residential (R -30) Zone District is to provide areas for long -term residential purposes, vacation rentals,and customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Low - Density Residential (R -30) Zone District are typically located along river frontages in outlying areas of the City. B. Permitted uses. The following uses are permitted as of right in the Low - Density Residential (R -30) Zone District: 1. Detached residential dwelling. 2. Duplex. 3. Home occupations. 4. Accessory buildings and uses. 5. Accessory dwelling units and carriage houses meeting the provisions of Chapter 26.520. 6. Vacation Rentals. Pursuant to Section 26.575.220. Section 8. That Section 26.710.090 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.090. Residential Multi- Family (RMF). A. Purpose. The purpose of the Residential Multi- Family (RMF) Zone District is to provide for the use of land for intensive long -term residential purposes, vacation rentals, and customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Residential Multi - Family (RMF) Zone District are typically those found in the Aspen infill area, within walking distance of the center of the City or lands on transit routes and other lands with existing concentrations of attached residential dwellings and mixed attached and detached residential dwellings. B. Permitted uses. The following uses are permitted as of right in the Residential Multi- Family (RMF) Zone District: 1. Detached residential dwelling. 2. Two (2) detached residential dwellings. 3. Duplex dwelling. 4. Multi- family dwellings. 5. Home occupations. 6. Accessory buildings and uses. 7. Dormitory. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 8 of 19 P13 8. Accessory dwelling units and carriage houses meeting the provisions of Chapter 26.520. 9. For historic landmark properties: bed and breakfast. 10. Vacation Rentals. Pursuant to Section 26.575.220. Section 9. That Section 26.710.100 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.100. Residential Multi - Family -A (RMFA). A. Purpose. The purpose of the Residential Multi - Family -A (RMFA) Zone District is to provide for the use of land for intensive long -term residential purposes, vacation rentals, and customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Residential Multi - Family -A (RMFA) Zone District are typically those found in the Aspen infill area, within walking distance of the center of the City or lands on transit routes and other lands with existing concentrations of attached residential dwellings and mixed attached and detached residential dwellings. B. Permitted uses. The following uses are permitted as of right in the Residential Multi- Family -A (RMFA) Zone District: 1. Detached residential dwelling. 2. Two (2) detached residential dwellings. 3. Duplex dwelling. 4. Multi- family dwellings. 5. Home occupations. 6. Accessory buildings and uses. 7. Dormitory. 8. Accessory dwelling units and carriage houses meeting the provisions of Chapter 26.520. 9. For historic landmark properties: bed and breakfast. 10. Vacation Rentals. Pursuant to Section 26.575.220. Section 10. That Section 26.710.110 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.110. Affordable Housing/Planned Unit Development (AH/PUD). A. Purpose. The purpose of the Affordable Housing/Planned Unit Development (AH /PUD) Zone District is to provide for the use of land for the production of category affordable housing and resident occupied lots and units. The Zone District also permits a Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 9 of 19 P14 limited component of free market lots /units to offset the cost of developing affordable housing. It is contemplated that land may also be subdivided in connection with a development plan. The AH /PUD Zone District is intended for residential use primarily by permanent residents of the community and in some instances allows for vacation rentals. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the AH /PUD Zone District should be scattered throughout the City to ensure a mix of housing types, including those which are affordable by its working residents; at the same time the AH /PUD Zone District can protect the City's neighborhoods from rezoning pressures that other non- community- oriented Zone Districts may produce. Further, lands in the AH /PUD Zone District should be located within walking distance of the center of the City or on transit routes. B. Permitted uses. The following uses are permitted as of right in the AH /PUD Zone District: 1. Residential uses restricted to category affordable housing guidelines and resident occupied units which comply with the following requirements: a. Minimum bedroom mix. A minimum of seventy percent (70 %) of the project's total bedrooms shall be deed restricted affordable housing consistent with the Affordable Housing Guidelines. The mix between categories of housing shall be consistent with the Affordable Housing Guidelines. The remaining bedrooms that are not deed restricted to affordable housing may be free market residential units. b. Permissible reduction in bedroom mix for exemplary projects. A project may be eligible for a reduction of the minimum affordable housing bedroom mix requirement to a level of sixty percent (60 %) of the project's total bedrooms if the applicant can demonstrate to the satisfaction of the City Council that the project meets the requirements for an exceptional project as set forth in the Affordable Housing Guidelines. 2. Home occupations. 3. Accessory buildings and uses. 4. Accessory dwelling units meeting the provisions of Chapter 26.520. 5. Vacation rentals. Pursuant to Section 26.575.220. Section 11. That Section 26.710.120 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.120. High Density Residential (R -3). A. Purpose. The purpose of the High Density Residential (R -3) Zone District is to provide for the use of land to locate manufactured housing for intensive long -term residential purposes, vacation rentals, and customary accessory uses and less intensive Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 10 of 19 P15 office uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. The High Density Residential (R -3) Zone District shall be located in areas where the effect on surrounding property shall be minimized, where the health, safety and general welfare of the High Density Residential (R -3) Zone District residents and others will be protected and where the topography is suitable for the permitted uses and conditional uses allowed in the High Density Residential (R -3) Zone District. B. Permitted uses. The following uses are permitted as of right in the High Density Residential (R -3) Zone District: 1. Mobile home park. 2. Home occupations. 3. Accessory buildings and uses. 4. Accessory dwelling units meeting the provisions of Chapter 26.520. 5. Vacation Rentals. Pursuant to Section 26.575.220. C. Conditional uses. The following uses are permitted as conditional uses in the High Density Residential (R -3) Zone District, subject to the standards and procedures established in Chapter 26.425: 1. Park and open use recreation site. 2. Public and private academic school. 3. Church. 4. Child care center. Section 12. That Section 26.710.130 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.130. Rural Residential (RR). A. Purpose. The purpose of the Rural Residential (RR) Zone District is to allow utilization of land for low density, long -term residential and vacation rental purposes with the recreational, institutional, public and other compatible uses customarily found in proximity to those uses allowed as permitted uses or conditional uses. B. Permitted uses. The following uses are permitted as of right in the Rural Residential (RR) Zone District: 1. Detached residential dwelling. 2. Farm building and use, provided that all such buildings and storage areas are located at least one hundred (100) feet from pre- existing dwellings on other lots. 3. Nursery. 4. Greenhouse. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 11 of 19 P16 5. Home occupations. 6. Accessory buildings and uses. 7. Accessory dwelling units meeting the provisions of Section 26.520.040. 8. Vacation Rental. Pursuant to Section 26.575.220. Section 13. That Section 26.710.140 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.140. Commercial Core (CC). A. Purpose. The purpose of the Commercial Core (CC) Zone District is to allow the use of land for retail, service commercial, recreation and institutional purposes within mixed -use buildings to support and enhance the business and service character in the historic central business core of the City. The district permits a mix of retail, office, lodging, affordable housing, free - market housing, and vacation rental uses oriented to both local and tourist populations to encourage a high level of vitality. Retail and restaurant uses are appropriate for ground floors of buildings while residential and office uses are not permitted on ground floors. B. Permitted uses. The following uses are permitted as of right in the Commercial Core (CC) Zone District: 1. Uses allowed on basement floors: Retail and restaurant uses, office uses, uses and building elements necessary and incidental to uses on other floors. 2. Uses allowed on the ground floor: Retail and restaurant uses and uses and building elements necessary and incidental to uses on other floors. Office uses are prohibited on the ground floor except within spaces set back a minimum of forty (40) feet from a street and recessed behind the front -most street - facing fa9ade. This prohibition shall not apply to split -level buildings (see definition). Parking shall not be allowed as the sole use of the ground floor. 3. Uses allowed on upper floors: Retail and restaurant uses, office uses, lodging, timeshare lodge, affordable multi - family housing, free - market multi - family housing, vacation rentals and home occupations. 4. Uses allowed on all building levels: Retail and restaurant uses, neighborhood commercial uses, service uses, arts, cultural and civic uses, public uses, recreational uses, academic uses, child care center, accessory uses and structures, storage accessory to a permitted use, uses and building elements necessary and incidental to uses on other floors, including parking accessory to a permitted use, and farmers' market, provided that a vending agreement is obtained pursuant to Section 15.04.350(B). Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 12 of 19 P17 Section 14. That Section 26.710.150 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.150. Commercial (C -1). A. Purpose. The purpose of the Commercial (C -1) Zone District is to provide for the establishment of mixed -use buildings with commercial uses on the ground floor, opportunities for affordable and free - market residential density, and to support vacation rentals of residential dwelling units. A transition between the commercial core and surrounding residential neighborhoods has been implemented through a slight reduction in allowable floor area as compared to the commercial core, the ability to occupy the ground floor with offices, and a separate chapter in the commercial design guidelines B. Permitted uses. The following uses are permitted as of right in the Commercial (C -1) Zone District: 1. Uses allowed on upper floors: Lodging, affordable multi- family housing, free - market multi - family housing, vacation rentals and home occupations. 2. Uses allowed on all building levels: Retail and restaurant uses, neighborhood commercial uses, service uses, office uses, arts, cultural and civic uses, public uses, recreational uses, academic uses. child care center, bed and breakfast, accessory uses and structures, uses and building elements necessary and incidental to uses on other floors, including parking accessory to a permitted use, storage accessory to a permitted use, farmers' market, provided that a vending agreement is obtained pursuant to Section 15.04.350(b). Parking shall not be allowed as the sole use of the ground floor. Section 15. That Section 26.710.170 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.170. Neighborhood Commercial (NC). A. Purpose. The purpose of the Neighborhood Commercial (NC) Zone District is to provide for the establishment of mixed -use buildings with commercial uses serving the daily or frequent needs of the surrounding neighborhood, thereby reducing traffic circulation and parking problems, to provide opportunities for affordable and free - market residential density, to support vacation rentals of residential dwelling units, and to provide a transition between the commercial core and surrounding residential neighborhoods. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 13 of 19 P18 B. Permitted uses. The following uses are permitted as of right in the Neighborhood Commercial (NC) Zone District: 1. Uses allowed on upper floors: lodging, affordable multi - family housing, free - market multi - family housing, home occupations, and vacation rentals. 2. Uses allowed on all building levels: retail and restaurant uses, neighborhood commercial uses, service uses, office uses, arts, cultural and civic uses, public uses, recreational uses, academic uses, child care center, bed and breakfast, accessory uses and structures, uses and building elements necessary and incidental to uses on other floors, including parking accessory to a permitted use, storage accessory to a permitted use, farmers' market, provided that a vending agreement is obtained pursuant to Subsection 15.04.350(b). Section 16. That Section 26.710.180 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.180. Mixed -Use (MU). A. Purpose. The purpose of the Mixed -Use (MU) Zone District is to provide for a variety of lodging, vacation rentals, multi- family, single- family and mixed -use buildings with commercial uses serving the daily or frequent needs of the surrounding neighborhood, to provide a transition between the commercial core and surrounding residential neighborhoods and to provide a variety of building sizes compatible with the character of the Main Street Historic District. B. Permitted uses. The following uses are permitted as of right in the Mixed -Use (MU) Zone District: 1. On historic landmark properties: Retail and restaurant uses, neighborhood commercial uses and bed and breakfast. 2. Service uses. 3. Office uses. 4. Lodging, timeshare lodge and exempt timesharing. 5. Arts, cultural and civic uses. 6. Public uses. 7. Recreational uses. 8. Academic uses. 9. Child care center. 10. Affordable multi - family housing. 11. Free - market multi - family housing. 12. Single- family residence. 13. Duplex residence. 14. Two (2) detached single - family residences. 15. Home occupations. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 14 of 19 P19 16. Accessory uses and structures. 17. Storage accessory to a permitted use. 18. Vacation rentals. Pursuant to Section 26.575.220. Section 17. That Section 26.710.190 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.190. Lodge (L). A. Purpose. The purpose of the Lodge (L) Zone District is to encourage construction, renovation and operation of lodges, tourist - oriented multi - family buildings through vacation rentals, high occupancy timeshare facilities and ancillary uses compatible with lodging to support and enhance the City's resort economy. — The City encourages high- occupancy lodging development in this zone district. Therefore, certain dimensional incentives are provided in this zone district, as well as other development incentives in Chapter 26.470, Growth Management Quota System (GMQS). B. Permitted uses. The following uses are permitted as of right in the Lodge (L) Zone District: 1. Hotel or lodge. 2. Timeshare lodge. 3. Exempt timesharing. 4. Offices and activities accessory to timeshare unit sales (see Section 26.590). 5. Bed and breakfast. 6. Conference facilities. 7. Uses associated with outdoor recreation facilities and events. 8. Accessory uses and structures. (Food service for on -site lodge guests is an accessory use.) 9. Storage accessory to a permitted use. 10. Affordable multi - family housing accessory to a lodging or timeshare operation and for employees of the operation. 11. Free - market multi - family housing. 12. Home occupations. 13. Vacation rentals. Pursuant to Section 26.575.220. Section 18. That Section 26.710.200 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.200. Commercial Lodge (CL). A. Purpose. The purpose of the Commercial Lodge (CL) Zone District is to provide for the establishment of mixed -use commercial and lodge development by permitting Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 15 of 19 P20 commercial uses on the ground floor with lodging development above. The City encourages high- occupancy lodging development in this zone district through hotel, lodge and timeshare uses and vacation rentals B. Permitted uses. The following uses are permitted as of right in the Commercial Lodge (CL) Zone District: 1. Uses allowed in basement and ground floors: Those uses allowed in Basement and Ground Floors, respectively, within the Commercial Core Zone District. Uses and facilities necessary and incidental to uses on Upper Floors. Parking shall not be allowed as the sole use of the ground floor. 2. Uses allowed on upper floors: Hotel or lodge, timeshare lodge, exempt timesharing, offices and activities accessory to timeshare unit sales (see Chapter 26.590), conference facilities, accessory uses, storage accessory to a permitted use, affordable multi - family housing, free - market multi - family housing, vacation rentals (Food service for on -site lodge guests is an accessory use.) Section 19. That Section 26.710310 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.310. Lodge Overlay (LO) Zone District. A. Purpose. The purpose of the Lodge Overlay (LO) Zone District is to provide for lodge uses and vacation rentals in areas of the City suitable for lodge accommodations but which lie in predominantly residential neighborhoods or where there are limitations on development that necessitate the permitted density to be significantly less than that in the City's other lodge Zone Districts. B. Permitted uses. The following uses are permitted as of right in the Lodge Overlay (LO) Zone District: 1. The uses permitted in the underlying zone district. 2. Hotel or lodge. 3. Timeshare lodge. 4. Exempt timesharing. 5. Bed and breakfast. 6. Offices and activities accessory to timeshare unit sales (see Chapter 26.590). 7. Conference facilities. 8. Uses associated with outdoor recreation facilities and events. 9. Accessory uses and structures. (Food service for on -site lodge guests is an accessory use.) 10. Storage accessory to a permitted use. 11. Affordable housing accessory to a lodging or timeshare operation and for employees of the operation. Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 16 of 19 P21 12. Free - market multi - family housing. 13. Vacation rentals. Pursuant to Section 26.575.220. Section 20. That Section 26.710.320 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.320. Lodge Preservation Overlay (LP) Zone District. A. Purpose. The purpose of the Lodge Preservation (LP) Overlay Zone District is to provide for and protect small lodge uses on properties historically used for lodge accommodations, to permit redevelopment of these properties to accommodate lodge and affordable housing uses, to provide uses accessory and normally associated with lodge and affordable housing development, to permit vacation rentals of residential units, to encourage development which is compatible with the neighborhood and respective of the manner in which the property has historically operated and to provide an incentive for upgrading existing lodges on site or onto adjacent properties. B. Permitted uses. The following uses are permitted as of right in the Lodge Preservation (LP) Overlay Zone District: I. The uses permitted in the underlying zone district. 2. Hotel or lodge. 3. Timeshare lodge. 4. Exempt timesharing. 5. Bed and breakfast. 6. Dormitory. 7. Offices and activities accessory to timeshare unit sales (see Chapter 26.590). 8. Conference facilities. 9. Uses associated with outdoor recreation facilities and events. 10. Accessory uses and structures. (Food service for on -site lodge guests is an accessory use.) 11. Storage accessory to a permitted use. 12. Affordable housing accessory to a lodging or timeshare operation and for employees of the operation. 13. Free - market multi - family housing. 14. Vacation rentals. Pursuant to Section 26.575.220. Section 21. That Section 26.710.330 of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 26.710.330. Ski Area Base (SKI). Planning & Zoning Commission Reso # of 2011 Vacation Rental Code Amendment Page 17 of 19 P22 A. Purpose. The purpose of the Ski Area Base (SKI) Zone District is to provide for areas which allow for a mixture of uses related to ski area uses and operations including, skiing and appurtenant uses and structures, ski area administrative offices, recreation, lodge /hotel, retail, restaurant and bar uses, tourist - oriented service uses,_residential uses, and vacation rentals. It is intended that this Zone District will apply to areas located at the base of ski areas and all development within this district will be master planned through a planned unit development (PUD) process. B. Permitted uses. The following uses are permitted as of right in the Ski Area Base (SKI) Zone District: 1. Alpine and Nordic ski areas, related uses and support facilities typically associated with the uses and operations of ski areas. 2. Lodge units. 3. Hotel. 4. Multi- family dwellings. 5. Detached residential or duplex dwellings. 6. Dining rooms, customary accessory commercial uses, laundry and recreational facilities located on the same site of and for guests of lodge units, hotels and dwelling units. 7. Accessory residential dwellings restricted to Affordable Housing Guidelines and Section 26.520.040. 8. Ski area administrative offices. 9. Restaurants and bars. 10. Special events associated with ski areas including such events as ski races, bicycle races and concerts; with special event committee review. 11. Parks, outdoor recreational uses and trails. 12. Recreational facility. 13. Retail establishments. 14. Public transportation stop. 15. Terminal building and transportation related facilities. 16. Medical clinic accessory to the ski area. 17. Fire, police and emergency services facilities. 18. Accessory buildings and uses. 19. Outdoor vendor carts or areas for food and beverages sales and preparation. 20. Timeshare lodge. 21. Exempt timesharing. 22. Vacation rentals. Pursuant to Section 26.575.220. FINALLY, adopted and approved this _ day of , 2011. Planning & Zoning Commission Reso # _ of 2011 Vacation Rental Code Amendment Page 18 of 19 P23 Stan Gibbs, Chairman Attest: Jackie, Lothian, City Clerk Approved as to form: James R. True, Special Counsel • • iaroir g ti lenir:g Ccrr 7 ±_;: P_aso # _ of 2011 Vacation Rent_i C.._ '. ndme °.t Page 19 of 19 P24 Exhibit A Sec. 26.310.040. Standards of review. In reviewing an amendment to the text of this Title or an amendment to the Official Zone District Map, the City Council and the Planning and Zoning Commission shall consider: A. Whether the proposed amendment is in conflict with any applicable portions of this Title. Staff Response: The proposed amendment is not in conflict with any applicable portions of the Municipal Code. B. Whether the proposed amendment is consistent with all elements of the Aspen Area Community Plan. Staff Response: Staff finds that the proposed amendment is consistent with the AACP, specifically the Economic Sustainability Chapter as outlined below: "Essential to long -term viability is the unique, varied, high quality, and welcoming experience Aspen offers to both residents and a diverse visitor population. They demand a lively, small -scale downtown with diverse and unique shops and varied choices of accommodations, including small lodges." (Philosophy, pg 31) Response: Allowing vacation rentals as a permitted use provides visitors with more diverse lodging options and provides some financial relief to long time residents. "Local ownership of business helps maintain our community's unusual character, tends to return more money to the local economy, and provides additional opportunities for upward mobility of people." (Philosophy, pg 31) Response: Vacation rentals return money to local property owners and will result in lodging and sales tax remittance. C. Whether the proposed amendment is compatible with surrounding zone districts and land uses, considering existing land use and neighborhood characteristics. Staff Response: The proposed amendment is compatible with the zone districts and land uses and the proposed standards intend to mitigate impacts on neighborhood characteristics. D. The effect of the proposed amendment on traffic generation and road safety. Staff Response: Vacation rentals should not have an additional impact on traffic generation and road safety. It can be assumed that the existing home already mitigated for traffic generation when it was constructed. V a c a t i o n August 2,2011 Page 2 of 2 P25 E. Whether and the extent to which the proposed amendment would result in demands on public facilities and whether and the extent to which the proposed amendment would exceed the capacity of such public facilities including, but not limited to, transportation facilities, sewage facilities, water supply, parks, drainage, schools and emergency medical facilities. Staff Response: Vacation rentals should not result in additional demand on public facilities. As mentioned above, it can be assumed that the existing home already mitigated for demand on public facilities when it was initially constructed. F. Whether and the extent to which the proposed amendment would result in significantly adverse impacts on the natural environment. Staff Response: n/a. G. Whether the proposed amendment is consistent and compatible with the community character in the City. Staff Response: Permitting vacation rentals is consistent and compatible with community character. Rentals have been occurring in Aspen for decades; the code amendment recognizes the existing conditions and proposes to legalize rentals through a permitting process. H. Whether there have been changed conditions affecting the subject parcel or the surrounding neighborhood which support the proposed amendment. Staff Response: n/a I. Whether the proposed amendment would be in conflict with the public interest and whether it is in harmony with the purpose and intent of this Title. Staff Response: Permitting vacation rentals is not in conflict with the public interest. Vacation rentals have been occurring in Aspen for many decades. The proposed amendment recognizes the current situation and legalizes it, which allows the rentals to apply for a business license and remit lodging and sales taxes. 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O pL 5 w JD - ° O ZLL E QH1- o AEI- a) 3Q --__. . cV • • • • r • • • • • • lib P1 MEMORANDUM TO: Planning and Zoning Commission THRU: Jennifer Phelan, Community Development Deputy Director FROM: Drew Alexander, Planner DA RE: Code Amendments - Impact Fees (26.610) and School Land Dedication (26.620); Resolution No. -, Series of 2011 MEETING DATE: August 16"', 2011 (continued from August 2 " SUMMARY: The current City of Aspen Land Use Code imposes a number of impact fees and land dedication fees -in -lieu upon residential development to ensure that "development pay all or part of its way." These exactions are currently calculated and based upon the number of bedrooms proposed for the development. Staff is preparing amendments to the Land Use Code to eliminate the "bedroom game" and maintain a higher level of service. Amending the calculation methodology of the impact fees and land dedication fee -in -lieu should greatly simplify the zoning review process. The affected fees include Parks Development Impact Fee, Transportation Demand Management (TDM) /Air Quality Impact Fee, and School Land Dedication. These amendments reflect Land Use Code Chapters 26.610, Impact Fees and 26.620, School Land Dedication. The Impact Fee and School Land Dedication language was last amended in 2006 by Community Development Staff and BBC Research and Consulting out of Denver. It was during this time that the formula for using bedrooms for calculation was arrived at. No amendments have taken place since 2006. REVIEW PROCEDURE: Text Amendment. At a duly noticed public hearing, the Commission shall recommend by Resolution the City Council to approve, approve with conditions, or deny the application. BACKGROUND: For residential development, the impact fees and land dedication fees -in -lieu are calculated based upon the number of bedrooms in a residence. The Land Use Code has a definition of "bedroom" that the zoning officer uses when reviewing plans: Bedroom: A portion of a dwelling unit intended to be used for sleeping purposes, which may contain closets, and may have access to a bathroom. This definition is not precise and lends itself to varying interpretation. What frequently happens (because the fees can be large) is that architects and builders will begin the Page 1 of 4 P2 "bedroom game" with the zoning officer to try and lessen the fee amount. For example, a room with a closest may be labeled as a "study" on a plan set to avoid fees, but the zoning officer will calculate the room as a bedroom because it meets the definition in the code. Then, the architect will disagree with the decision and make small amendments. These resubmissions persist until the zoning officer determines the room is no longer a bedroom. These changes usually look like doors being removed, removal of closets, or eliminated bathrooms or access to bathrooms. In an effort to avoid the bedroom debate altogether; staff has prepared a new draft of the Impact Fees and School Lands Dedication language that uses floor area as the calculation variable for fees. Staff created a report from approximately 350 building permits dating back to 2004 and examined two categories: floor area and number of bedrooms. RRC Associates in Boulder, CO are acting as a consultant on the project and confirming any data that staff is using for statistical validity. RRC Associates specialize in research and analysis with an emphasis in land use planning. Converting the City's impact fee system to a floor area basis will simplify zoning review, eliminate time wasted debating about the purpose /use of each room., impose fees more predictably, and make the impact fee estimates more precise for prospective applicants. Using floor area rather than the number of bedrooms should result in a system that is more accurate. As stated, the "bedroom game" encourages building permits to have awkward amendments and Less than practical finished layouts. Floor area provides a simple metric that will accurately assess fees based on the size of home. These amendments will only alter the method of calculation, not the pre - determined fee schedules that have been in use since 2006. NEW CALCULATIONS: For TDM/Air Quality and Parks impact fees, staff has taken the total floor area from the building permit data and divided the number by the total fees paid for those permits. Based on the sample size, staff only used dwelling units with 6 bedrooms or less (there were only very few 7+ bedroom properties to sample from). The total floor area gathered for these permits was 1,022,427 square feet. The total amount of beds was 1,255. 1,255 bedrooms would have paid $5,558,395 for Parks Development. $5,558,395 divided by the floor area amount (1,022,427) equals approximately $5.45 per square foot. The same math was applied for the TDM/Air Quality Fee. For School Lands Dedication, staff had to identify the average size of a four bedroom home (being that was the basis of the previous calculation). After analyzing the date, the average size of a four bedroom home was identified as 3,475 square feet of floor area. Staff then took this number and divided the cap on student generation (.452) by it. This resulted in a per square foot student generation rate of .00013 students. Additionally, to address the type of increasing scale that is present in the current Code, staff identified a generation rate for the average sized two- bedroom home. Applying the same math as explained for the 4 bedroom mitigation rate, .00008 was identifying as the generation rate. Three and four Page 2 of 4 P3 bedroom homes were adjusted accordingly for this scale (.00016 instead of .00013). Please see Table 2 below. Throughout this drafting process, staff hag been in contact with the Aspen School District, the Transportation Dept., Parks Dept., and Environmental Health (groups that are impacted or receive funds from these fees). After this hearing, staff will continue this outreach and inform these entities of the Planning and Zoning Commission's recommendation. The new fees would include the following for residential development: Table 1: Parks and TDM/Air Quality for residential Parks Development $5.45 per sq. ft of floor area TDM/Air Quality $0.61 per sq. ft of floor area Note: • Hotel development is calculated just as residential floor area. However, non -unit space will not be contributed to these units during the calculation for fees. • Net leasable square foot is already calculated per square foot and will remain the same. Table 2: School Land Dedication Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft 1,201— 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - For example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896 = 68). Also see Figure 620.1. RECOMMENDATION: Staff recommends the Planning and Zoning Commission recommend approval of the City - initiated amendments to Impact Fees and School Land Dedication as described in Resolution , Series of 2011. Page 3 of 4 P4 RECOMMENDED MOTION: "I move to approve Resolution , Series of 2011 recommending approval of the amendments to Impact Fees and School Land Dedication." Attachments: Resolution No. , Series of 2011 Exhibit A: Code language with mark -ups Exhibit B: PowerPoint handout Page 4 of 4 P5 RESOLUTION NO. _ (SERIES OF 2011) A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO, RECOMMENDING AMENDMENTS TO THE FOLLOWING SECTION OF THE CITY OF ASPEN LAND USE CODE: 26.610, IMPACT FEES, AND 26.620, SCHOOL LAND DEDICATION WHEREAS, the Community Development Director of the City of Aspen initiated an application proposing amendments to the Land Use Code, pursuant to Chapter 26.210; and, WHEREAS, the amendments relate to Section 26.610, Impact Fees, and 26.620, School Land Dedication, of Title 26 of the Aspen Municipal Code; and, WHEREAS, pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval with conditions, or denial by the Community Development Director and then by the Planning and Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and considering these recommendations; and, WHEREAS, the Community Development Director recommended approval of amendments to the above listed Sections as further described herein; and, WHEREAS, review of amendments to the official Land Use Code by the Planning and Zoning Commission require a public hearing and this application was reviewed at multiple public hearings were the recommendation of the Community Development Director and comments from the public were heard; and, WHEREAS, at regular meeting on July 5 2011, the Planning and Zoning Commission opened a duly noticed public hearing to consider the amendments as described herein and continued the hearing to July 19 2011 for further discussion. At the July 19 2011 meeting, the Planning and Zoning Commission opened a public hearing, took public comment, considered the recommendation from the Community Development Director and recommended City Council approve the Land Use Code amendments by a to _ (_ - _j vote, with findings and conditions listed hereafter; NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO, THAT: Planning and Zoning Commission Resolution No. _, Series of 2011 Page 1 P6 Section 1: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.610, Impact Fees, which section defines, describes, authorizes, and regulates the collection of Impact Fees of Parks Development and Transportation Demand Management (TDM) /Air Quality within the City of Aspen to read as follows: Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Defmitions 26.610.050 Imposition, calculation and collection of fees /charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City fmds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the City finds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. Planning and Zoning Commission Resolution No. , Series of 2011 Page 2 P7 This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains new residential floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non- historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in floor area, net Leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development project. Planning and Zoning Commission Resolution No. , Series of 2011 Page 3 P8 E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. II. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add additional floor area to an existing dwelling/lodge unit. (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest - bearing. Each impact fee account shall be interest - bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Planning and Zoning Commission Resolution No. , Series of 2011 Page 4 P9 Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) Sec. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. B. When additional residential floor area, hotel floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net Leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Planning and Zoning Commission Resolution No. , Series of 2011 Page 5 P10 Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.45 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. ft. floor area) $0.61 Nonresidential (per net leasable sq. ft.) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. Planning and Zoning Commission Resolution No. , Series of 2011 Page 6 P11 (Ord. No. 33, 2006, §1) Section 2: Pursuant to Section 26.310 of the Municipal Code, the Aspen Planning and Zoning Commission hereby recommends City Council amend Section 26.620, School Land Dedication, which section defines, describes, authorizes, and regulates the collection of School Land Dedication fee -in -lieu within the City of Aspen to read as follows: Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 26.620.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sq. ft. of floor area per dwelling unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is exempt from the school land dedication. Planning and Zoning Commission Resolution No. , Series of 2011 Page 7 P12 (Ord. No. 33, 2006, §2) Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases residential floor area and/or changes of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School District's cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the amount of floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add additional floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. Planning and Zoning Commission Resolution No. , Series of 2011 Page 8 P13 B. Collection. Land dedications shall be finalized and completed prior to building permit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest - bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and/or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. Planning and Zoning Commission Resolution No. , Series of 2011 Page 9 P14 B. Cash -in -lieu payment. Payment of cash in lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash -in -lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August _, 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single - family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape- and - replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896. Also see Figure 620.1. Planning and Zoning Commission Resolution No. , Series of 2011 Page 10 P15 Figure 620.1, School Land Dedication Calculation Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated B. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in- lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per - Square -Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash - in - Lieu Payment Planning and Zoning Commission Resolution No. Series of 2011 Page 11 P16 Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3,200 sq. ft. (floor area) single- family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .416 equals Total Square Feet to be Dedicated 372.74 When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000 - square -foot lot containing the dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and Planning and Zoning Commission Resolution No. , Series of 2011 Page 12 P17 utilities, but excluding the value of residential dwelling units and other structures on the property. 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms - length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed Use Development. Properties containing mixed use development shall only pay the School Land Dedication fee -in -lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) Section 3: A public hearing on this Resolution was held on the 16 day of August, 2011, at 4:30 p.m. in the Sister Cities Room, Aspen City Hall, Aspen Colorado, and where more than fifteen (15) days prior a public notice of the same was published in a newspaper of general circulation within the City of Aspen. {Signatures on following page) Planning and Zoning Commission Resolution No. _ , Series of 2011 Page 13 P18 FINALLY, adopted, passed and approved this day of , 2011. Attest: Jackie Lothian, Deputy City Clerk Stan Gibbs, Chair Approved as to form: City Attorney Planning and Zoning Commission Resolution No. , Series of 2011 Page 14 r . - > C 1-4 1 (31 T ✓ J P19 Chapter 26.610 IMPACT FEES Sections: 26.610.010 Purpose and intent 26.610.020 Applicability 26.610.030 Exemptions 26.610.040 Definitions 26.610.050 Imposition, calculation and collection of fees/charges 26.610.060 Impact fee accounts 26.610.070 Use of impact fee proceeds 26.610.080 Credits 26.610.090 Current impact fees 26.610.100 Waiver of fees 26.610.110 Appeals 26.610.010. Purpose and intent. For residents and visitors, parks and recreation facilities make up a significant part of the community character of the City. As a result of growth, increased pressure is placed on existing parks and recreation facilities necessitating acquisition of new park lands and development of additional recreation facilities in order to maintain the current level of service. In order to maintain the current community standards for acquisition of open space and development of parks and recreation facilities, the City fmds it necessary to impose a Park Development impact fee on new development. Transportation demand management and air quality capital facilities ensure the mobility of residents, workers and visitors through multi -modal solutions, as well as clean air for the community. The Aspen Area Community Plan directs the City to maintain traffic levels at or below 1993 levels in order to protect our environment and quality of life, and the City has invested in capital facilities to do so. As new development and growth occur, increased pressure is placed upon our existing facilities, necessitating expansion of these capital facilities to maintain the current level of service. In order to maintain the current community standards for transportation demand management and air quality, the City fmds it necessary to impose a Transportation Demand Management/Air Quality impact fee on new development. This Chapter is enacted for the purpose of implementing the City's plans for capital facilities by requiring that new development pay for its fair share of such facilities through the imposition of impact fees that will be used to finance, defray or reimburse all or a portion of the costs incurred by the City to serve new development. (Ord. No. 33, 2006, §1) Sec. 26.610.020. Applicability. Unless expressly exempted, the Park Development impact fee and the Transportation Demand Management (TDM) /Air Quality impact fee shall be assessed upon all development within the City which contains new residential units floor area or net leasable space. (Ord. No. 33, 2006, §1)* P20 26.610.030. Exemptions. This Chapter does not apply to: A. Development involving a property listed on the Aspen Inventory of Historic Landmark Sites and Structures. This exemption is solely for an historic structure and its accessory structures. Development on an historic landmark property involving a non - historic or new building shall not be exempt. B. Alteration, expansion or replacement of a structure which does not create additional bedreems floor area or net leasable space. (Ord. No. 33, 2006, §1)* 26.610.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning. Other words and terms shall be defined under the Definition section of this Title: A. Building permit means any City permit that involves increases in the number of bedrooms floor area, net leasable square footage and/or changes to land use. B. Capital facilities means land, structures or equipment for purposes of parks and recreation, transportation demand management and air quality. Capital facilities also includes design, engineering, inspection, testing, planning, legal review, land acquisition and all other costs associated with the construction or purchase of land, structures or equipment. C. Collection means the point at which the impact fee /charge is actually paid to the City. D. Impact fee means a monetary exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the City's cost for capital facilities associated with that development project. E. Impose means to determine that a particular development project is subject to the collection of impact fees as a condition of development approval. F. New development or development project means any project undertaken for the purpose of development, including without limitation a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the number amount of bedrooms floor area, amount of net leasable space, density or intensity of use. G. Nonresidential development project means all development other than residential development projects. H. Residential development project means any development, inclusive of hotel development, undertaken to create a new dwelling/lodge unit or add one (1) or more additional bedrooms floor area to an existing dwelling/lodge unit. 2 P21 (Ord. No. 33, 2006, §1)* 26.610.050. Imposition, calculation and collection of fees /charges. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose impact fees as a condition of approval of all new development projects. B. Updated annually. The base amount of each impact fee for each type of development project may be calculated annually and adopted by City Council ordinance. The City may choose to update its fee schedule based on the change in the Engineering News Record inflation index that occurs between annual updates. C. Collection. Impact fees shall be collected by the Building Department at the time and as a condition for issuance of a building permit. (Ord. No. 33, 2006, §1) 26.610.060. Impact fee accounts. A. Individual accounts. The City shall establish an impact fee account for each type of capital facility for which an impact fee is imposed. The impact fees collected shall be deposited in each such account according to type of improvement. The funds of the account shall not be commingled with other funds of the City. B. Interest - bearing. Each impact fee account shall be interest - bearing, and the accumulated interest shall become part of the account. (Ord. No. 33, 2006, §1) 26.610.070. Use of impact fee proceeds. Impact fees may be expended only for the type of capital facilities for which they were imposed, calculated and collected and according to procedures established in this Chapter. Impact fees may be used to pay the principal, interest and other costs of bonds, notes and other obligations issued or undertaken by or on behalf of the City to finance such improvements. (Ord. No. 33, 2006, §1) Sec. 26.610.080. Credits. A. A property owner who dedicates land or improvements, agrees to participate in an improvement district or otherwise contributes funds for capital facilities as defined in this '1 Chapter may be eligible for a credit for such contribution against the impact fee paid. 1. The City Council shall determine: a. The value of the developer contribution; b. Whether the contribution meets capital facilities' needs for which the particular impact fee has been imposed; and c. Whether the contribution will substitute or otherwise reduce the need for capital facilities anticipated to be provided with impact fee funds. In no event, however, shall the credit exceed the amount of the applicable impact fee. J 1 P22 B. When additional residential bedrooms floor area, hotel bedrooms floor area or net leasable space are proposed after the demolition of a dwelling unit, lodge unit, or net leasable space, either individually or in combination, a credit for the existing floor area or net leasable space shall be credited towards the replacement development. A credit may only be allocated towards the development on an individual lot and cannot be assigned towards development on a separate lot. C. Any application for credit must be submitted on forms provided by the City before development project approval. The application shall contain a declaration under oath of those facts which qualify the property owner for the credit, accompanied by the relevant documentary evidence. (Ord. No. 33, 2006, §1)* 26.610.090. Current impact fees. The following impact fees are the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City of Aspen and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. On August _, 2011, the Impact Fees were amended by the City of Aspen in order to make floor area the calculation variable instead of bedrooms. Impact fees are hereby established as follows: Table 610.1, Impact Fee Schedule Parks Development Fee Residential and Hotel (per sq. ft. floor area) $5.54 Nonresidential (per net leasable sq. ft.) 4.10 TDM/Air Quality Fee Residential and Hotel (per sq. ft. floor area) $0.61 Nonresidential (per net leasable sq. ft.) 0.46 Notes: - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of a single - family or duplex dwelling. - The calculation for hotel units shall include only the floor area associated with the individual lodging units. The payment of Parks Development and TDM/Air Quality fees shall not include non -unit space. (Ord. No. 33, 2006, §1)* 26.610.100. Waiver of fees. Whenever the City Council determines that any part of a proposed development constitutes an affordable housing development or an essential public facility, as defined by this Title, and wishes to 4 P23 subsidize the construction, the City Council may exempt that part of the development from the application of the impact fees or may reduce by any amount the fees imposed by this Chapter. As an economic development incentive, a lodging development may apply for a waiver of the impact fees. An application for a waiver must be made and acted upon by the City Council prior to the submission of a building permit application. Retroactive waivers are not permitted. (Ord. No. 33, 2006, §1) Sec. 26.610.110. Appeals. Prior to issuance of a building permit, the applicant may challenge the imposition of a fee imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the impact fee /charge is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §1) Chapter 26.620 SCHOOL LAND DEDICATION Sections: 26.620.010 Purpose and intent 26.620.020 Applicability 26.620.030 Exemptions 26.620.040 Definitions 26.620.050 Imposition, calculation and collection of dedications 26.620.060 Procedures for land dedication and/or cash payment 26.620.070 Current land dedication and cash -in -lieu fees 26.620.080 Appeals 26.620.010. Purpose and intent. The Aspen School District requires land for necessary school functions which may include, but are not limited to, school buildings, support facilities, open space and recreation areas and housing for employees and their immediate families. The purpose of this provision is to ensure that, as development occurs and enrollment in the schools grows, the current level of service provided to students can be maintained. This is accomplished by the adoption of standards for new development to provide land, or cash in lieu thereof, to the City, for use by the Aspen School District. The standards are based on the number of students the development generates and the current level of service standard within the Aspen School District for land area provided per student. (Ord. No. 33, 2006, §2) 1 P24 26.620.020. Applicability. Unless expressly exempted, the school land dedication standard shall be assessed upon all development within the City which contains residential units dwelling units or additional floor area. The school land dedication standard shall only be assessed on the first 3,475 sq. ft. of floor area per dwelling unit. (Ord. No. 33, 2006, §2)* Sec. 26.620.030. Exemptions. Any development considered nonresidential development, as defined by this Chapter, is exempt from the school land dedication. (Ord. No. 33, 2006, §2) Sec. 26.620.040. Definitions. When used in this Chapter, the following words, terms and phrases, and their derivations, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning: A. Building permit means any City permit that increases residential floor area and/or changes to of land use. B. Collection means the point at which land or a cash payment in lieu is actually transferred or paid to the City. C. Impose means to determine that a particular development project is subject to the collection of a land dedication as a condition of development approval. D. Land dedication means a land exaction imposed by the City pursuant to this Chapter as a condition of or in connection with approval of a development project for the purpose of defraying all or some of the Aspen School District's cost for capital facilities associated with that development project. E. New development or development project means any project undertaken for the purpose of development, including without limitation, a project involving the issuance of a permit for construction, reconstruction or change of use but not a project involving the issuance of a permit to operate or to remodel, rehabilitate, reconstruct or improve an existing structure, which does not change the number amount of bedrooms floor area. F. Nonresidential development project means all development other than residential development. G. Residential development project means any development undertaken to create a new dwelling unit or to add one (1) or more additional bedreems -floor area to an existing dwelling unit, excluding hotel units. (Ord. No. 33, 2006, §2) 6 P25 26.620.050. Imposition, calculation and collection of dedications. A. Imposition. Except as provided in this Chapter and any amendment to this Chapter, the City may impose a school land dedication as a condition of approval of all new development projects. All lands dedicated to the City pursuant to this Section shall be held by the City for the Aspen School District, until such time as they shall be requested by the School District for school purposes. The Aspen School District shall be responsible for maintenance of said lands in a reasonable manner while they are being held by the City. B. Collection. Land dedications shall be finalized and completed prior to building permit application. A cash payment in lieu, however, shall be collected by the Building Department at the time and as a condition for issuance of a building permit. 1. Funds. All funds collected pursuant to this Chapter shall be transferred by the Community Development Director to the Finance Director. All funds so collected shall be properly identified and promptly deposited in a designated account. Funds withdrawn from this fund shall be used exclusively for the purposes specified herein. 2. City shall transfer funds to School District. Funds collected pursuant to this Chapter shall be remitted monthly to the Aspen School District. The Aspen School District shall deposit said funds into an interest- bearing account authorized by law. The Aspen School District shall be the owner of the funds in the account, but the signature of the chief financial officer of the Aspen School District, or his or her designee, and the signature of the Finance Director of the City shall be required for the withdrawal of monies from the account. 3. Administrative Fee. The City shall be entitled to retain two percent (2 %) of the funds collected to compensate it for its administrative expenses of collecting the fees. Said fees shall be deposited in the City's general revenue fund to be expended as the City shall determine in its sole discretion. C. Updated Annually. The land dedication standard imposed may be updated annually and adopted by City Council ordinance. (Ord. No. 33, 2006, §2) 26.620.060. Procedures for land dedication and /or cash payment. A. Land Dedication. Lands to be dedicated to the City to fulfill the standards of this Chapter shall be identified on the subdivision plat and shall be dedicated to the City at the time of final plat approval. 1. Acceptance. Acceptance of the lands to be dedicated shall be at the discretion of the City Council. 2. Criteria. Prior to acceptance, the City shall consider the comments of the Aspen School District to determine whether the lands proposed to be dedicated are of adequate size and can be suitably developed for school purposes or whether the lands have the capability of being sold, with the proceeds being used for school purposes. The City shall also consider the probable impacts on neighboring properties of the development of the lands P26 for school purposes. When the lands proposed to be dedicated are not adequate or suitable for school purposes and cannot feasibly be sold, the City shall require a cash payment in lieu of the land dedication. B. Cash - in - lieu payment. Payment of cash in lieu of a land dedication shall be made to the City prior to and on a proportional basis to the issuance of any building permits for the residential dwelling units. (Ord. No. 33, 2006, §2) 26.620.070. Current land dedication and cash - in - lieu fees. A. The following land dedication is the result of the "City of Aspen Impact Fee Study and Update of School Lands Dedication" study, which was sponsored by the City and completed by BBC Research and Consulting on August 7, 2006. This study is available at the Community Development Department. The land dedication was amended on August _, 2011 to implement a change that began using floor area as a basis of calculation instead of bedrooms. The current land area required per student equals 896 square feet. Table 620.1 provides the student generation rates as follows: Table 620.1, Student Generation Rates Floor area (sq. ft.) Student Generation Rate First 1,200 .00008 per sq. ft. 1,201 — 3,425 .00016 per sq. ft. Above 3,425 0 Notes: - The calculation of the School Land Dedication shall be access per dwelling unit. For example, duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as additional floor area of the single - family or duplex dwelling it is associated with. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the number of students generated. - When a scrape -and- replace project is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to more than one replacement dwelling unit or to development on a different lot. - For a general example, a 950 square foot residential unit would be required to mitigate for 68 square feet of land (950 *.00008) *896. Also see Figure 620.1. 8 P27 Figure 620.1, School Land Dedication Calculation Land Area per Student Standard (square feet) multiplied by Total Students Generated (Provided in Table 620.1, Student Generation Rates) equals Total Square Feet to be Dedicated B. Cash payment in lieu. An applicant may make a cash payment in lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Chapter. Because of the extraordinary cost of land within the City, the School District and the City agreed to require payment of a cash -in -lieu amount which is less than the full market value of the land area. The formula to determine the amount of cash -in -lieu payment for each residential dwelling unit is as follows: Figure 620.2, Cash -in -Lieu Formula Total Square Feet to be Dedicated multiplied by Appraised Per - Square -Foot Value of Land Being Developed multiplied by Percentage of Fee to be Charged (0.33) equals Cash -in -Lieu Payment P28 Figure 620.3, Cash Payment in Lieu Example The following example provides a development scenario to display how the fee is calculated. The scenario includes a new 3200 sq. ft. (floor area) single - family residential home on a 6,000 sq. ft. lot with an actual lot value of $2,400,000. This lot value would mean a per sq. ft. lot value of $400. Floor Area Students Generated 3,200 (first 1,200 sq. ft. x .00008) .096 (remaining 2,000 sq. ft. x .00016) .32 Total Student Generation Rate .416 Land Dedication Calculation Land Area per Student Standard (sq. ft.) 896 multiplied by Total Students Generated (from above calculation) .416 equals Total Square Feet to be Dedicated 372.74 When calculating a cash payment in lieu of a land dedication (assuming a total land value of $2,400,000 for a 6,000 square - foot lot containing the single dwelling unit), the following calculation would be used to determine the cash payment in lieu: Market Value of Land per sq. ft. $400 per sq. ft. multiplied by Total Square Feet to be Dedicated 372.74 multiplied by Percentage of Fee to be Charged 0.33 equals Cash Payment in Lieu $49,201.68 1. Current market value. Current market value means the value of the land at the time of the cash -in -lieu payment, including site improvements such as streets and utilities, but excluding the value of residential dwelling units and other structures on the property. 10 P29 2. Substantiation. Market value may be substantiated by a documented purchase price (if an arms - length transaction no more than two [2] years old) or other mutually agreed -upon recognized means. 3. Appraisal. In the event the developer and the City fail to agree on market value, such value shall be established by a qualified real estate appraiser acceptable to both parties. The developer shall pay for the appraisal. C. Mixed use developments. When the proposed development contains a mix of residential, commercial or other uses, the required dedication shall be based on the number of proposed residential units. The cstimat- : ... .. - - - - - .. - • - - - - if a new building proposcs a mix of uses and the net livable area or net lcasablc ar s are as : - • . - :! ! ! - , lodging (20,000 sq. ft.) and commercial (3,000 sq. ft.), the Properties containing mixed use development shall only pay the School Land Dedication fee -in- lieu for the floor area associated with the residential component of the development. Non -unit space shall not contribute to the payment of School Land Dedication. 26.620.080. Appeals. A. Prior to issuance of a building permit, the applicant may challenge the imposition of a land dedication imposed pursuant to this Chapter by filing with the Community Development Director a written notice of appeal as provided in Section 26.316.030, Appeals procedures, with a full statement of the grounds and an appeal fee as may be fixed from time to time by ordinance by the City Council. The City may continue processing the building permit application. If the building permit is available for issuance by the City and the appeal has not been heard, the building permit may be issued if a bond or other security in an amount equal to the challenged/unpaid portion of the land dedication is provided to the City. The appeal shall be heard by the City Council. (Ord. No. 33, 2006, §2) P30 X ' L (3 F'} I /3 8/11/2011 Code Amendments Impact Fees and School Land Dedication Planning and Zoning Commission August 4th, 2011 Introduction • These examples will all use the same development scenario: — Single Family Residence — 3,200 square feet of floor area — 6,000 square foot lot — Lot value of $2,500,000 — Per square foot lot value of $400.00 2 Proposed Fee Schedule FeeType FeeAmaan {p rsq•ft FeeAmaunt (per sq. res. Saar area) net leasable/ Parks Development $5.45 $4.10 TOM /Air quality Fee 50.61 $.046 SainnalemdiDedf®tian Student eene ti°4 .. First 1,200 sq. ft. of dwelling unit 0.00008 1,201 -3,425 sq. ft. 0.00016 Over 3,425 0 s 1 8/11 /20gi Parks Development and TDM /Air Quality Fees • Fee is calculated based on floor area with no cap. • Example: A 3,200 sq. ft. (floor area) home would result in the following calculation: — Parks Dev.: (3,200 x $5.45) = $17,440 — TDM/Air Quality: (3,200 x $0.61) = $1,952 • Total Impact Fees: $19,392 School Land Dedication • Fee is derived from a floor area /student generation conversion with a cap at .452 students. • 3,200 sq. ft. home would generate 0.416 students — First 1,200 equals .096 students (1,200 x .00008) — Remaining 2,000 sq. ft. equals .32 students (2,000 x .00016) School Land Dedication • The Code explains that 1 student requires 896 square feet of land. • 0.416 student generation equals a requirement of 372 sq. ft. land dedication. — (896 x 0.416) = 372 sq. ft. 2 P32 8/11 /2011 School Land Dedication • The land dedication amount must be multiplied by the per sq. ft. value of the lot ($400). o 372 o x $400 o = $148,800 • The Code explains that only 33% of the fee should be imposed — $49,104 is the resulting School Land Dedication Fee. 7 • Total fee for this project: — $68,496 • School Land Dedication - 72% (549,104) • Parks Development - 25% (517,440) • TDM /Air Quality - 3% (51,952) • Old Program (4 Bedrooms) — $73,166 • School Land — 74% (553,458) • Parks Development — 24% ($17,716) • TDM /Air Quality — 3% (51,992) e • Total fee for this project (3,400 sq. ft. home): — $73,604 • School Land Dedication - $53,0DD • Parks Development - 518,530 • TDM /Air Quality - 52,074 • Old Program (4 Bedrooms) — $73,166 • School Land — $53,458 • Parks Development— $17,716 • TDM/Air Quality-$1,992 9 3 8/11/211:153 Fee Credits • Scrape -and Replace Development — Credit issued for redevelopment — For example: A 3,000 sq. ft. demolished dwelling unit would provide 3,000 sq. ft. of credit to the replacement dwelling unit. —This would be .384 Student Generation Credit — Prevents double- dipping of the fees 4