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HomeMy WebLinkAboutagenda.council.worksession.20130423 CITY COUNCIL WORK SESSION April 23, 2013 4:00 PM, City Council Chambers MEETING AGENDA I. Board Interviews II. Small Lodge Incentives III. SCI Zone Changes IV. Transportation & Development Process Improvement Update - Informational Only V. Cozy Point Improvements P1 I. P2 I. P3 I. P4 I. P5 I. P6 I. P7 I. P8 I. P9 I. P10 I. P11 I. 1 MEMORANDUM TO: Mayor and City Council FROM: Scott Miller, Capital Asset Director Jessica Garrow, Long Range Planner Tricia Aragon, City Engineer THRU: Steve Barwick, City Manager RE: Small Lodge Incentives DATE: April 18, 2013 MEETING DATE: April 23, 2013 ________________________________________________________________ SUMMARY AND REQUEST OF CITY COUNCIL City Council has expressed an interest in preserving the small, moderately priced bed base in Aspen, also known as “small lodges”. Staff proposes a package of incentives to help these lodges remain in business as small lodges instead of redeveloping into some other use, which will reduce this bed base. Also proposed is a definition of “small lodge” to be used in offering these incentives. PREVIOUS COUNCIL ACTION One of Council’s Top Ten Goals for 2012-2013 commissions a lodging study to look at the lodging base in Aspen. Council has discussed in several meetings the importance of preserving a wide range of lodging price points and amenities to make the Aspen experience available to as many customers as possible. BACKGROUND Over the last year, the owners of one of these lodges, The Hotel Durant, have proposed several levels of redevelopment of their property. The owners have expressed frustration that remodeling their building has led to the requirement that they must also provide improvements in the Right of Way adjacent to their building, such as concrete curb and gutter, sidewalks, drainage improvements, etc. They have further stated that at some point these increased requirements become a disincentive to redevelopment in the current use and an incentive to redevelop the property in a use that would be more beneficial to the owner. DISCUSSION P13 II. 2 The City Engineer and Capital Asset Director studied this permit application and the required Right of Way improvements and would like to discuss with Council the possibility of offering to relieve this applicant of certain requirements. We would also propose to offer these incentives to a certain number of other small lodges. Proposed incentives would be: • Relief from the obligation to make any Right of Way improvements as required in Chapter 21 of the city’s land use code. • Waivers of some or all permit fees for the proposed redevelopment. • Provision of certain licensed parking spaces in the Right of Way adjacent to the lodge property, to replace any spaces lost due to redevelopment. In return, we propose that the property owner be required to sign an agreement requiring the property owner to reimburse the city for the cost of these incentives if the property is sold or use of the property changed in any way. These incentives would be offered to lodges that fit the following criteria: • Less than 60 units in size. • Priced at the Economy or Moderate price points, as defined in the August 2012 Lodging Study commissioned by the City of Aspen Community Development Department. FINANCIAL IMPACT For this particular development, the cost to the city would be about $75,000. The cost for other lodges within the proposed definition would be to be determined as each lodge redevelops. ENVIRONMENTAL IMPACT Re-use of these properties vs. demolition and redevelopment has many benefits to the environment. ALTERNATIVES Council may decide not to pursue this program of incentives. ATTACHMENTS Attachment A: 2012 Lodging Study P14 II. 3 P15 II. Page 1 of 4 MEMORANDUM TO: Mayor and City Council FROM: Chris Bendon, Community Development Director Sara Nadolny, Planning Technician Jim Pomeroy, Code Enforcement Officer MEETING DATE: Tuesday, April 23, 4:00 pm Council Chambers RE: Service Commercial Industrial (SCI) zone district REQUEST OF COUNCIL: No action is requested at this time. Staff will present the initial public feedback from the community regarding changes to the Service Commercial Industrial zone district and will request City Council provide direction. Staff will return to City Council during a regular public hearing for any formal action needed. A brief history of the SCI district is attached as Exhibit A. A summary of recent business requests for SCI spaces is attached as Exhibit B. Maps of the five SCI parcels are attached as Exhibit C. Zoning text for the SCI zone and the Neighborhood Commercial (NC) zone are attached as Exhibit D Staff invited property and business owners to a few open houses and to tonight’s work session. By the time of the work session, staff will have held two open houses with interested parties and a check-in with the Planning and Zoning Commission. Staff can update Council regarding feedback during the work session. This memo outlines the main topics to be covered during the work session with specific questions for Council in bold italics at the end of each major topic. The attached history of SCI should address background questions, but staff will begin by answering any questions regarding the history or current administration of the district. How – Should we Re-Write or Rezone? The list of allowed business types in SCI is somewhat arcane. Specific business types are cited reflecting the status or desire of the zone at the time of the latest re-write. The process of stating every imaginable use to be allowed in a zone (and invariably missing something) was common zoning practice in Aspen for a long time. Starting in 2005, all commercial zones in Aspen (other than SCI) began utilizing generalized use definitions – retail/restaurant uses, office uses, service uses, etc. These generalized uses allow a broad set of business types with a ‘plus anything that is similar’ type use to accommodate business ideas that have not yet emerged. P17 III. Page 2 of 4 The zone most similar to SCI with regard to uses and dimensions is the Neighborhood Commercial zone (NC). The NC zone uses the generalized use zoning approach and it has proven to be far more accommodating to business trends than the SCI district. NC zoned areas include City Market, properties surrounding City Market and north to Main Street, and properties north of the Jerome Professional Building including the majority of the Clark’s Market building. Over the years, the SCI district has been reviewed in a use-by-use style. In each case, it has been lengthy, taking roughly a year, and has resulted in a new set of highly tailored uses. The resulting product has been responsive to the immediate needs of the community, allowing Council to hone-in on exactly the “right” uses. But, the uses quickly become dated and unresponsive to businesses that were not contemplated. Use-by-use reviews occurred in 2000, 2005, 2008 and 2010 – about twice as often as updates to other zones. Staff Comments: Staff supports a wholesale update and/or simply rezoning these properties to the NC zone. A use-by-use review of the zone will be time consuming and will likely result in prohibiting the next unforeseen use. Question – Should the City do a use-by-use review of the zone? Or, a wholesale update? Question – If a wholesale update is preferred, is the NC zone appropriate? (please consider both uses and dimensions.) Free-market residences are permitted in SCI today and were an important element to the Obermeyer Place redevelopment. The City has been concerned about residential uses ‘out- competing’ commercial uses. To that end, the city mandates certain minimum commercial to residential ratios. The presence of high-end residential within a project may still have a “chilling” effect on the types of commercial operations restricted through covenants or leasing practices. Staff Comments: Staff is comfortable with residential uses if properties remain predominantly commercial. Staff is concerned about the effect high-end residences can have on businesses. Question – Should free-market residential uses be allowed? Be allowed with a minimum commercial ratio? Not allowed at all? When – Amend Zoning Now or with a Redevelopment Application? Many redevelopment applications include a request to rezone the property. This gives the City more ‘leverage’ in reviewing a proposal. However, redevelopment may be delayed for many years or not come about at all, maintaining the current situation and possibly not serving the needs of the community. Staff Comments – Staff suggests pursuing a zoning update now. The changes may affect the likelihood of redevelopment on some properties, but these properties are underutilized. The current limitations on businesses are considerable and staff believes the community would be best served by relaxing the use limitations. The City has plenty of authority over the look and P18 III. Page 3 of 4 feel of redevelopment and updating the zoning will not diminish the City’s role in reviewing potential applications. Question – Should the City update the zoning for these properties now? Or, should the City wait for specific proposals? Where – Should a zoning update affect all SCI Parcels? Permitting NC uses in Obermeyer Place would not spur redevelopment. The project is new and the spaces are individually owned. Relaxing use limitations, however, would permit a greater variety of businesses to locate in Obermeyer. Likewise, relaxing the uses allowed in the basement of the Clark’s building would have a negligible impact on redevelopment options. Permitting NC uses in the Mill Street properties along the river would not drastically change the types of businesses allowed. These building are mostly professional offices already and significant redevelopment constraints exist, due to proximity to the river. Opportunities for free- market residences are likely the primary financially motivating factor for a redevelopment of these properties. Permitting NC uses in the Puppy Smith properties would enhance the redevelopment potential. These properties do have expansion capability and the existing buildings have functional issues. The properties have been cited previously by the city as capable of an “Obermeyer-style” redevelopment. Opportunities for free-market residential development would provide redevelopment motivation. Relaxing the allowed uses may increase the potential to ‘displace’ desired uses. Increasing the range of businesses could provide upward pressure on lease rates, possibly affecting marginal businesses. However, the extent of vacancy, the location of these properties, and the condition of some of the properties may curb upward lease pressures. The City-owned “BMC parcel” is also zoned SCI. Allowing a broader range of uses will not affect the likelihood of redevelopment. The property was purchased specifically for redevelopment, but many other factors affect the future of this property. Staff Comments: Staff suggests updating all of the SCI properties. Rezoning Obermeyer Place has the least chance to incur redevelopment or ‘displace’ current tenants. Rezoning the Clark’s property and the Mill Street (river side) properties also should not be expected to change the redevelopment potential. Rezoning of the Puppy Smith properties could make redevelopment more likely, although a redevelopment of these properties has been contemplated for the past 10 years and the City has significant authority over redevelopment. Question – Should the updates affect all SCI properties? Or, just some of the properties? P19 III. Page 4 of 4 NEXT STEPS: This work session is intended for City Council to provide staff with guidance on updating the SCI zone. If that direction is provided, staff will return to Council during a regular meeting with a draft resolution stating such direction. Upon adoption of the resolution, staff will begin drafting an ordinance containing proposed code amendments and/or properties to be rezoned. Both the resolution and the ordinance can only be considered during a public hearing. No dates have been set. Hearing dates should be expected in the summer or early fall. Information and updates can be accessed on the City’s web site under Long-Range Planning. [Under City departments, go to Community Development, Planning, Long-Range Planning.] Prior to ordinance hearings, staff will again send notice to property owners and hand-distribute notice to business owners. As always, staff can be contacted at 920-5090 or by email at chris.bendon@cityofaspen.com ATTACHMENTS: Exhibit A – SCI Zone History Exhibit B – Recent Requests in SCI Exhibit C – Maps of the Five SCI Areas of Aspen Exhibit D – SCI and NC Zone Texts P20 III. SCI History -- Page 1 Exhibit A SCI Zone History The SCI Zone District:1975 – Present The following is intended as a brief history of the City of Aspen’s planning efforts with regard to service commercial and industrial/light industrial uses. Some of the themes and patterns with regard to the history of this issue may be helpful as the City considers potential code changes to the Service/Commercial/Industrial (SCI) Zone District. In 1970, service commercial businesses, building materials supplies and industrial uses of various kinds were spread out throughout the City – the future Aspen Airport Business Center was only just being considered for approval by Pitkin County Commissioners. Gas stations, auto repair, electrical contractors, TV and appliance stores and building materials stores were located throughout downtown. A greater concentration of industrial uses was located north of Main Street, ranging from auto parts supply, a trucking company, Sport Obermeyer’s manufacturing warehouse, plumbing contractors, motorcycle sales and repair and a concrete mixing firm – to name a few. At the time, the City was operating under the 1966 Master Plan, which essentially supported the expansion of Aspen as resort, encouraging resort uses in the downtown and the base of the mountain. Industrial uses were to be located on what is now the eastern half of Rio Grande Park. The first attempts to set aside specific land areas for service commercial and industrial/light industrial uses occurred in the early 1970s – the new zone district encompassed land where the SCI Zone District is today. Code language proposed in 1971 and 1972 allowed uses that would generate “unusual traffic hazard, noise, dust, fumes, odors, smoke … ” through a conditional use review. Both times, Council rejected the proposal. Non-Polluting SCI The subject was revived in 1973 as part of The Aspen Land Use Plan, which included a series of policy statements -- similar to today’s Aspen Area Community Plan. The service commercial and industrial initiative was not a central aspect of the 1973 plan, and wasn’t mentioned under the “Policy” section. But under “Land Use Categories,” the document addressed the need for light industrial and service commercial uses while minimizing impacts. “Neighborhood Commercial and Limited Industrial: … Those areas where limited industrial use is indicated shall provide for non-polluting light industrial and service commercial needs of the community.” (Emphasis added) By 1975, the 25-acre AABC was well on its way to being the favored location for service commercial and industrial/light industrial uses. More than 30 businesses were already operating there in 1975. P21 III. SCI History -- Page 2 In 1975, City Council approved Ordinance No. 11, establishing a new set of zone districts, including Service/Commercial/Industrial (SCI) – located in two small pockets north of Main Street, where they are today. The new district abided by the “non-polluting” language of The Aspen Land Use Plan, simply prohibiting any “unusual traffic hazard, noise, dust, fumes …” At the same time, the two pockets of SCI were relatively small – about two acres at what is Obermeyer Place today (SCI East), and about 1 acre at Puppy Smith and N. Mill (SCI West). In large part, the list of permitted uses for the City’s new SCI district reflected the uses that were there at the time. Table I: Establishing the Service/Commercial/Industrial Zone District Service/ Commercial/ Industrial Zone District: 1975 Permitted Uses • Vehicle sales • Equipment rental, storage + repair • Gas service station • Car wash • Plumbing shop • Electrical shop • Building supply • Dry cleaning plant • Laundry • Fabrication/repair of building materials • Lumber yard • Manufacture/repair of sporting goods • Printing and publishing plants • Warehouse/storage • Shop craft industry Early Changes It didn’t take long to expand the underlying concept of service commercial and light industrial uses – by 1980, Council had added “Artist’s studio with accessory dwelling unit” as a permitted use, along with commercial bakery – and added martial arts as a conditional use, along with photography studio. They also made it harder to open a gas station, switching such a use from permitted to conditional. The 1980s marked the beginning of an influx of architects, after local architect Harry Teague convinced the City Council that he qualified as an artist who produced artistic models, etc. Thus the added definition of “artists studio” ultimately resulted in architectural offices. In 1988, the City Council responded to the digital age by adding computer product sales and service as a permitted use in SCI. Although about 10 such businesses were operating in the downtown area at that time, it would be almost 20 years before computer-related firms located in SCI, at the newly constructed Obermeyer Place. P22 III. SCI History -- Page 3 Also in 1988, Council added the manufacture and repair of electronic equipment, and telecommunications supply, effectively acknowledging that several such businesses had located there in the 1980s. In 1993, the first Aspen Area Community Plan had plenty to say on the subject of locally-owned and local-serving uses – but the emphasis was on local shopping opportunities and affordable office space. At that time, it appeared the SCI Zone District was a secondary concern. The only specific mention of SCI came in one of the 1993 AACP Action Items, which called for a revision of the NC and SCI districts to “ensure only locally-serving uses.” This Action Item was not implemented, probably because no working definition of “local- serving” was established. But by the end of the decade, the community’s focus turned again to the SCI Zone District, and a major overhaul of SCI uses was approved by Council in July 2000. The 2000 Amendments One underlying change in 2000 reflected a pattern for the SCI district: An ongoing tug of war over retail uses in the district. In the 1980s & ‘90s, a number of businesses were selling merchandise ranging from TVs to bicycles and telephones – even hot tubs. In July 2000, Council prohibited most SCI businesses from using more than 25% of their floor area for “retail sales, office, showroom or customer reception.” Council also eliminated “computer product sales” and “telecommunications supply” as permitted uses, and made “the sale of electronic equipment” a conditional use. At the same time, Council expanded the list of permitted uses and conditional uses. In some cases, the expanded list acknowledged uses that had already moved in, such as furniture repair and animal grooming. By allowing “Design Studio” as a permitted use, Council acknowledged the influx of about five architectural firms during the past decade. In other cases – such as coffee roasting, breweries, fabric supply and motorcycle parts – Council sought to accommodate and encourage new uses that had never previously materialized. Perhaps acknowledging the difficulty of establishing a list of specific uses that were both appropriate to the district and anticipated changes in the marketplace, the Council approved a new measure of flexibility for SCI: The Community Development Director was given the authority for the first time to permit uses that were “considered appropriate.” Table II: New SCI Uses, Circa July 2000 New Permitted Use New Conditional Use Sale of motorcycle parts Fabric and sewing supply Locksmith Animal grooming Building maintenance facility Manufacture, repair of furniture Appliance sales Furniture sales Clothing sales Sporting goods Coffee roasting and supply Brewery and brewing supply P23 III. SCI History -- Page 4 Manufacture, repair of clothing Design Studio Tattoo parlor Animal boarding Consignment sales Council also decided in 2000 that some SCI uses should be able to use 100% of their floor area for sales, office and showroom, such as building materials and equipment, a hardware store, the sale of auto and motorcycle parts, fabric and sewing supply, and consignment stores. Council also showed where its preferences lay by shifting some permitted uses to conditional uses, and some conditional uses to permitted uses. Table III: Reassigning SCI Uses, Circa July 2000 Was Conditional Use; Now a Permitted Use Was Permitted Use; Now Conditional Use Dance Studio Martial Arts Studio (No public performance) Vehicle sales Car wash Commercial dry cleaning Appliance rental Sale of electronic equipment (Previously termed ‘telecommunications supply; computer product sales’) The overhaul of the SCI Zone District in July 2000 was largely a self-contained effort – it was not driven by the adoption of the 2000 AACP in February of that year. The 2000 AACP Action Plan carried over several items from the 1993 version, including the revision of the NC and SCI zones to ensure only locally-serving uses, and to zone “undeveloped commercially zoned land” for NC and SCI uses. Although neither of these initiatives were carried forward in a significant manner, the 2000 AACP called for an Economic Sustainability Committee, which issued its report in 2002. Action Items relevant to the SCI district were: • Retain and expand through infill SCI facilities wherever possible to help counter downvalley economic leakage, and provide needed goods and services to Aspen residents and visitors. Obermeyer Place Regarding the future of SCI in Aspen, perhaps the most significant long range planning document came a year later, when the Civic Master Plan: Phase One Report was released in May 2001. The report acknowledged that “limited lease rates expected for SCI space” made “significant redevelopment by the private sector unlikely,” and suggested exploring “redevelopment potential under various partnership arrangements between adjacent landowners and the City of Aspen.” P24 III. SCI History -- Page 5 When Klaus Obermeyer became aware of this suggestion, he entered into a public-private partnership with the City that has since become Obermeyer Place – a project that revitalized about 38,000 square feet of SCI space. As Obermeyer Place was constructed, the City Council adopted another examination of uses in the SCI Zone District, largely focused on shifting a dozen different uses from conditional to permitted – and adding four new permitted uses. At the same time, Council limited the continuing expansion of architectural and related uses by establishing a cap of 9,000 square feet on Design Studios for the SCI Zone District. Table IV: Reassigning + Adding SCI Uses, Circa March 2005 Was A Conditional Use; Now A Permitted Use New Permitted Use Appliance sales and rental Auto and motorcycle sales Photo processing lab Car wash Catalogue sales store Laundromat Commercial dry cleaning Veterinary clinic Animal boarding facility Brewery and brewing supply Coffee roasting and supply Florist Landscape maintenance facility Copy center Shipping and receiving services Again, the code changes included some uses that didn’t exist there at the time, and others that acknowledged existing uses. For example, there had been no auto or motorcycle sales in the SCI district for more than 20 years. On the other hand, moped use in town was increasing. So far, no coffee supply, veterinarians or car washes are located in the district – while “florist” and “landscape maintenance facility” acknowledged existing businesses. (The florist has since relocated to the AABC.) In December 2006, City Council approved the Civic Master Plan as a regulatory document – meaning future land use applications must show “consistency” with the recommendations in the plan. The Civic Master Plan identified “SCI East” (Puppy Smith/N. Mill) as a site where future redevelopment should be modeled on the Obermeyer Place redevelopment. 2008 Amendments In May 2008, City Council adopted a number of code changes for the SCI Zone District, including: • Permitting bicycle rental/sale, which had occurred for many years; • Permitting rental of river-related recreational items; • “Catching up with the times” by eliminating “catalogue sales store” and adding “Internet auction consignment outlet” as a permitted use; P25 III. SCI History -- Page 6 • Limiting on-site consumption of beer/ale consumption at breweries. The Council also limited the “Design Studio” use to the Andrews-McFarlin Subdivision, which is the strip of SCI land right next to the Roaring Fork River. The intent was to limit this office- type use to an area next to the river where architect’s offices have tended to locate over the years, and where more industrial uses typically do not choose to locate due to a lack of parking, on- loading/off-loading and proximity to the river. In response to community concerns that Primary Care Physicians were being squeezed out of the downtown area due to high rents, the Council changed the code to allow a limited (3,500 sq. ft.) amount of this use at Obermeyer Place. Code changes also created incentives to build space for this use on upper floors in the future, but only if a minimum of .75:1 FAR of other SCI space is provided. This change was made in anticipation of redevelopment at the Puppy Smith SCI site. Code changes were also made to allow a limited amount (.25:1 FAR) of Free Market Multi- Family Housing, only if a significant amount of SCI space is built (.75:1 FAR). This change was made in anticipation of redevelopment at the Puppy Smith SCI site. The size of free market units was limited to 2,000 square feet, considerably less than what was allowed at Obermeyer Place, with the ability to buy one (1) TDR to raise the limit to 2,500 sq. ft. At the same time, there were concerns that in some cases, the physical location of commercial and residential uses at Obermeyer Place had limited the commercial sector’s ability to operate in an optimal way. The Council adopted a conditional use standard that requires residential and commercial uses to be “substantially removed and physically separated from Commercial Uses on the same parcel, to the extent practicable, so as to isolate residential uses from commercial impacts and to adequately provide for on-loading, off-loading, circulation and parking for commercial uses.” Finally, Council removed “Artist’s Studio with ancillary residence on Upper Floors” as a conditional use due to staff concerns that 1) It is difficult to define “artists,” and 2) If someone did, this allowance could provided for an “artist” to build a free-market residential unit. This had not occurred yet, but it was a concern. Further, Council adopted a new definition of “Artist’s Studio” that defines the use as “”light industrial,” such as carver, potter, etc. SCI Today Reviewing the history of the allowed uses, there seems to be a few themes that emerge. The strongest theme seems to be a desire to maintain certain types of threatened business that would otherwise be pushed to the Airport Business Center or downvalley – a commercial refugee camp of sorts. Another theme seems to be one of trying to attract businesses that would not come otherwise – an ‘if we zone it they will come’ approach. Staff experience, especially over the past 10 years, is that the list of permitted uses is confusing and antiquated. Commercial leasing agents cannot rely on a set of clearly defined uses, and find themselves reviewing each prospective business with planning staff. The allowed uses are so P26 III. SCI History -- Page 7 idiosyncratic that planning staff are reluctant to provide answers without a staff-wide discussion and clearance from the Director. Staff has also noticed that vacancy rates have been noticeably higher than in other areas and property owners struggle to rent SCI spaces. When it comes to the SCI district, staff (and City Council) are often asked ‘why are you being so restrictive?’ A strong theme has also been one of accommodation – changing the allowed uses in response to the actual needs of actual businesses. For example, medical offices are not allowed in SCI – however, a medical office which provides pediatrics, family care, internal medicine, or obstetrics-gynecology services, and which is not more than 3,500 square feet, and which accepts Medicare or Medicaid patients, and which is located in the Obermeyer development is permitted. The immediate pressure is met with an immediate (and highly specific) fix. This adds to the already perplexing set of very precise uses. The SCI zoning requires staff to examine the details of every new business or modification of an existing business. For example, a few years ago an artist was looking to open photography studio. Staff initially considered the use to be an artist studio, an allowed use. However, upon examination of the business plan the majority of activity involved portraiture. An artist studio prohibits the reception of the public and retail sales. The business was determined to be a service use, and not allowed. More recently a design studio, an allowed use in only certain buildings within SCI, wanted to sublet a small space (~200 square feet) to a contractor to prepare building material mock-ups for client review. This is typical of a design studio where an architect or interior designer may review materials, finishes, computer renderings, etc. with a client. However, a design studio must be primarily devoted to these activities whereas this activity is not typically the primary focus of a contractor. Staff was able to approve the sublet when it was realized that the contractor’s main office is downvalley and this space would indeed be primarily for the design and representation of built form for client review. A review of uses in the SCI Zone District since 1970 show a clear trend away from industrial/light industrial uses, and toward more office-type uses, specifically in the area of design. The door was first inched open by adding “Artist’s Studio,” and then burst open when architecture was interpreted to fall under that use. More recently the use was expanded to permit design studios, permitting a broader set of professions. However, the difference between a design studio and other professional offices can appear like hair-splitting at times. The experience with Obermeyer is generally positive but perhaps about 10-20 years too late. Several of the businesses that were temporarily relocated during construction to the Airport Business Center found they liked their alternate location better, found it easier to access, easier to retain employees, easier for their clients, etc. Some found that the market for their product/service was so marginal that closing shop was the best outcome. The spaces within Obermeyer zoned Neighborhood Commercial have done well. These spaces house professional offices – Obermeyer Asset, Studio B Architects, Michael Sailor Insurance. P27 III. SCI History -- Page 8 The SCI spaces have done okay, but not great – the Aspen Glass Company, Paragon, the Ski Service Center, Barking Beauties. However, there are SCI spaces in Obermeyer that have had no or minimal occupancy since the project was completed in 2005. The two Mill Street buildings along the river have enjoyed stable occupancy. Other than the Lighting Studio, these building house professional offices that fit within the design studio moniker. Both buildings have physical and logistical challenges. They were constructed for different uses than they currently support. Redevelopment of these buildings would be complicated by river setback, access, and coordination between multiple owners. The two Puppy Smith buildings have marginal occupancy. The buildings are older and conditions likely represent a barrier to leasing. Roughly 15% of the space is currently vacant. In speaking with the leasing agent, many of the occupied spaces are at substantially reduced lease rates, housing Lift Up and the Jewish Center for example. These two buildings have been identified as likely redevelopment candidates There are spaces in the Puppy Smith buildings that have not housed a traditional SCI use in decades. The current location of the Jewish Community Center, for example, has not contained a traditional SCI use since the mid 1970s. The basement of the Clark’s Market building is zoned SCI. Leases have been stable. The hardware store has been a long-term tenant while a few small spaces have seen turnover. Perhaps the only certainty in the SCI Zone District is that the uses permitted there are not those in highest demand. There is pressure on this limited zone district to expand to a wider variety of uses or to stretch currently definitions through interpretation. The nuanced and limited set of permitted uses has proven to be difficult for commercial brokers, planning staff, and prospective tenants. This market pressure, however, is also a useful insight into the needs in the community and how this area could better serve those requests. P28 III. Exhibit B Recent Requests in SCI The planning department initiated a service position to provide assistance to those who need answers on planning-related issues in the City between the hours of 9am-12pm and 1pm – 3:30 pm, every week day. This is a rotating position that is filled by a different member of the planning staff daily. In 2008 the department began tracking the questions received during these hours. Below is a breakdown by category of the requests that are commonly asked regarding the Service Commercial Industrial (SCI) zone district. These are requests that have been denied by the planning department due to their incompatibility with Section 26.710.160 of the Land Use Code. 1. Marijuana-related requests. A common request is for medical marijuana dispensaries that are looking to locate in this zone district. One such request involved becoming a joint tenant within the Aspen Laundry. Another request was for the cultivating of hydroponic “plants” and “flowers” in this zone district. 2. Office-related requests. Another very common request is to allow offices in the SCI zone district. These requests have ranged from a law office, property management/rental, insurance, and event production company offices. More general commercial office type requests are found throughout the request tracker spreadsheet. 3. Medical-related. Requests within this category have included psychotherapist and dental offices. Medical offices are allowed in Obermeyer Place, however these are limited to Primary Care Physician’s offices only, are limited to upper floors, and capped at 3,500 sq. ft. 4. Interior Design & Architecture. These requests can be difficult to permit or deny without a great deal of staff discussion. The Andrews-McFarlin Subdivision is the one space within the SCI zone district that allows design studios. Therefore staff cannot approve the majority of these requests. 5. General Retail & Related Services. Common requests are for those looking to locate their commercial retail businesses in the SCI zone district. Permitted uses within this zone district can be extremely specific and limiting. Due to the extent of retail activity, staff could not approve requests for a frame/framing shop, office supplies store, home consignment, and solar voltaic sales. 6. Other. Lastly, there are always a number of requests that staff receives which are found to be inconsistent with the SCI zone district. These include security systems, web design/IT, taxi business, child learning center, yoga studio and a distillery with a restaurant component. Also, a significant number of individuals have requested to use SCI spaces for personal storage of items, files, and vehicles. While storage is an allowed use, this is intended to allow for storage businesses, and not simply for personal storage. P29 III. Ex h i b i t  C:  Ma p s Fi v e  (5 )  Ar e a s  of  SC I  Zo n i n g On e  (1 )  SC I  ar e a  on  Hw y  82 Fo u r  (4 )  SC I  ar e a s  wi t h i n  Ci t y  li m i t s P30III. 1.  Pu p p y   Sm i t h  St r e e t  Pr o p e r t i e s P31III. 2.  Ri v e r s i d e  Mi l l  St r e e t  Pr o p e r t i e s ,   a. k . a .  An d r e w s ‐Mc F a r l i n S u b d i v i s i o n P32III. 3.  Po s t  Of f i c e  Pr o p e r t y   P33III. 4.  Ob e r m e y e r P l a c e  Pr o p e r t y P34III. 5.  BM C  Pa r c e l ,  a. k . a .  Lu m b e r   Ya r d  Ar e a P35III. City of Aspen Land Use Code Part 700, SCI zone Page 1 Exhibit D SCI and NC Zone Texts 26.710.160 Service/Commercial/Industrial (S/C/I). A. Purpose. The purpose of the Service/Commercial/Industrial (SCI) zone district is to preserve and enhance locally-serving, primarily non-retail small business areas to ensure a more balanced permanent community; to protect the few remaining such small business parks historically used primarily for light industrial uses, manufacturing, repair, storage and servicing of consumer goods, with limited retail, showroom, or customer reception areas. The SCI zone district contains uses that may not be appropriate in other zone districts or do not require or generate high customer traffic volumes, and permits customary accessory uses. B. Permitted Uses. The following uses are permitted as of right in the Service/Commercial/Industrial (SCI) zone district. Each of the permitted uses may have, in combination, a limited percent of the floor area, as noted below, devoted to retail sales, showroom, or customer reception, and such uses shall be ancillary to the primary commercial use. This floor area percentage may be increased through Special Review by the Planning and Zoning Commission, pursuant to Section 26.430.050, and according to the standards of Section 26.710.160(E)1. 1. SCI Uses which may use up to 100% of the floor area for retail sales, showroom, or customer reception include the manufacturing, repair, customizing, servicing, detailing, sales, and rental of consumer goods such as: a. Building materials, components, hardware, fixtures, interior finishes and equipment. b. Household appliances such as ranges, refrigerators, dishwashers, etc. c. Automobiles and motorcycles, Motor-driven cycles, and Motorized bicycles, including parts. d. Non-motorized vehicles such as bicycles and river-related recreational items, for rental or in combination with a service use related to guiding or touring. e. Fabric and sewing supply. 2. SCI Uses which may use, in combination, up to 25% of the floor area for accessory retail sales, showroom, or customer reception including the manufacturing, repair, alteration, tailoring, and servicing of consumer goods such as, electronic equipment; floral arrangements; furniture; clothing; or sporting goods: a. Typesetting and printing, including copy center. b. Photo processing laboratory. c. Locksmith. d. Post Office branch. e. Shipping and receiving services. f. Internet auction consignment outlet P36 III. City of Aspen Land Use Code Part 700, SCI zone Page 2 g. Laundromat. h. Commercial dry cleaning. i. Recycling center. j. Artist studio. k. Veterinary clinic. l. Animal boarding facility. m. Animal grooming establishment. n. Brewery and brewing supply, with on-site alcoholic beverage consumption limited to the hours of noon to 9 pm Mondays through Saturdays and noon through 6 pm on Sundays and limited to six samples of six ounces, or four samples of six ounces and one sample of 16 ounces, per person, per day; this consumption limitation to be suspended for wholesale buyers. o. Coffee roasting and supply p. Commercial Kitchen or Bakery. q. Design Studio, limited to the Andrews-McFarlin Subdivision. 3. SCI Uses which may use, in combination, up to 10% of the floor area for accessory retail sales, showroom, or customer reception: a. Building/landscape maintenance facility. b. Automobile washing facility. c. Warehousing and storage. 4. Primary Care Physician’s Office Uses permitted: a. On Upper Floors, pursuant to Section 26.710.160 (D)11(b). b. Limited to a cap of 3,500 square feet at the Obermeyer Place PUD, upon execution of an Insubstantial PUD Amendment. 5. Permitted Accessory Uses: a. Service yard accessory to a permitted use. b. Sales and rental accessory and incidental to a permitted use. c. Accessory buildings and uses. d. Home occupations. e. Offices, accessory to a permitted or conditional use, not to exceed 10% of a commercial unit. C. Conditional uses. The following uses are permitted as conditional uses in the Service/Commercial/ Industrial (SCI) zone district, subject to the procedures established in Chapter 26.425.050 Procedures for Review, and the standards established in Section 26.710.160(F). P37 III. City of Aspen Land Use Code Part 700, SCI zone Page 3 Under Section 26.710.160(C)1-3, the Commission shall establish the appropriate amount of floor area to be devoted to retail sales, showroom, or customer reception for each conditional use during the review, pursuant to the review standards of Section 26.710.160 (F)1. Under Section 26.710.160(C)4-5, the Commission shall review the site plan to determine compliance pursuant to the review standards of Section 26.710.160(F)2-3, and establish conditions of approval as needed. 1. Consignment retail establishment. 2. Commercial Parking Facility, pursuant to Section 26.515. 3. Gasoline service station. 4. Affordable Multi-Family Housing on Upper Floors. 5. Free Market Multi-Family Housing on Upper Floors D. Dimensional requirements. The following dimensional requirements shall apply to all permitted and conditional uses in the Service/Commercial/ Industrial (SCI) zone district: 1. Minimum Gross Lot Area (square feet): 3,000 2. Minimum Net Lot Area per dwelling unit (square feet): No requirement. 3. Minimum lot width (feet): No requirement. 4. Minimum front yard setback (feet): No requirement. 5. Minimum side yard setback (feet): No requirement. 6. Minimum rear yard setback (feet): No requirement. 7. Minimum Utility/Trash/Recycle area: Pursuant to Section 26.575.060. 8. Maximum height: 35 feet. 9. Minimum distance between buildings on the lot (feet): No Requirement. 10. Pedestrian Amenity Space: Pursuant to Section 26.575.030. 11. Floor Area Ratio (FAR): The following FAR schedule applies to uses cumulatively up to a total maximum FAR of 2.25:1. Achieving the maximum floor area ratio is subject to compliance with applicable design standards, view plane requirements, public amenity requirements and other dimensional standards. Accordingly, the maximum FAR is not an entitlement and is not achievable in all situations. a. Commercial Uses: 1.5:1. b. Primary Care Physician’s Office uses: .25:1 FAR, only if a minimum of .75:1 FAR of Commercial uses, listed in Section 26.710.160(B)1-3, exist on the same parcel. c. Affordable Multi-Family Housing: .5:1. P38 III. City of Aspen Land Use Code Part 700, SCI zone Page 4 d. Free-Market Multi-Family Housing: .25:1, only if a minimum of .75:1 FAR of Commercial Uses listed in Section 26.710.160(B)1-3 exist on the same parcel. e. Free-Market Multi-Family Housing: .5:1, only if a minimum of .75:1 FAR of Commercial Uses listed in Section 26.710.160(B)1-3 exist on the same parcel, and a minimum of .25:1 FAR of Primary Care Physician’s Office Uses exist on the same parcel. 12. Maximum multi-family residential dwelling unit size (square feet): 2,000 sq. ft. of net livable area. a. The property owner may increase individual multi-family unit size by extinguishing Historic Transferable Development Right Certificates (“certificate” or “certificates”), subject to the following: 1) The transfer ratio is 500 sq. ft. of net livable area for each certificate that is extinguished. 2) The additional square footage accrued may be applied to multiple units. However, the maximum individual unit size attainable by transferring development rights is 2,500 sq. ft. of net livable area (i.e., no more than 500 additional square feet may be applied per unit). 3) This incentive applies only to individual unit size. Transferring development rights does not allow an increase in the Floor Area Ratio (FAR) of the lot. Commentary: Refer to Chapter 26.535 for the procedures for extinguishing certificates. E. Special Review Standards. Whenever the dimensional standards of a proposed development within the SCI Zone District are subject to Special Review, the development application shall be processed as a Special Review, pursuant to Section 26.430.050, and shall be approved, approved with conditions, or denied based on conformance with the following criteria: 1. To increase the allowable percentage of interior space assigned to retail, showroom, or customer reception area, the applicant shall demonstrate the need and appropriateness for such additional space and shall demonstrate consistency with the purpose of the SCI Zone District. The additional approved percentage for a specific use shall be limited to that use and not applicable to subsequent uses in the same space. F. Conditional Use Review Standards. 1. To establish the allowable percentage of interior space assigned to retail, showroom, or customer reception area, the applicant shall demonstrate the need and appropriateness for the space and shall demonstrate consistency with the purpose of the SCI Zone District. The approved percentage for a specific use shall be limited to that use and not applicable to subsequent uses in the same space. 2. Applicant must demonstrate that the affordable housing and/or free market housing is substantially removed and physically separated from Commercial Uses on the same parcel, to the extent practicable, so as to isolate residential uses from commercial P39 III. City of Aspen Land Use Code Part 700, SCI zone Page 5 impacts and to adequately provide for on-loading, off-loading, circulation and parking for commercial uses. 3. Applicant must implement a prohibition on the cross-ownership of free market residential units and commercial space, to be reviewed and accepted by the City Attorney. (Ord. No. 2-1999, §1; Ord. No. 22-2005, §1; Ord. No. 4-2008; Ord. No. 27-2010, §4) P40 III. City of Aspen Land Use Code Part 700, NC zone Page 1 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. 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). C. Conditional uses. The following uses are permitted as conditional uses in the Neighborhood Commercial (NC) Zone District, subject to the standards and procedures established in Chapter 26.425: 1. Lodging, affordable multi-family housing, free-market multi-family housing or home occupations on the ground floor. 2. Commercial parking facility, pursuant to Chapter 26.515. D. Dimensional requirements. The following dimensional requirements shall apply to all permitted and conditional uses in the Neighborhood Commercial (NC) Zone District: 1. Minimum Gross Lot Area (square feet): No requirement. 2. Minimum Net Lot Area per dwelling unit (square feet): No requirement. 3. Minimum lot width (feet): No requirement. 4. Minimum front yard setback (feet): five (5). 5. Minimum side yard setback (feet): five (5). 6. Minimum rear yard setback (feet): five (5). 7. Minimum utility/trash/recycle area: Pursuant to Section 26.575.060. 8. Maximum height: twenty-eight (28) feet, which may be increased to thirty-two (32) feet through commercial design review. See Chapter 26.412. P41 III. City of Aspen Land Use Code Part 700, NC zone Page 2 9. Minimum distance between buildings on the lot (feet): No requirement. 10. Public amenity space: Pursuant to Section 26.575.030. 11. Floor area ratio (FAR): The following FAR schedule applies to uses cumulatively up to a total maximum FAR of 1.5:1. Achieving the maximum floor area ratio is subject to compliance with applicable design standards, view plane requirements, public amenity requirements and other dimensional standards. Accordingly, the maximum FAR is not an entitlement and is not achievable in all situations. a. Commercial uses: 1:1. b. Lodging, arts, cultural and civic uses, public uses, recreational uses, academic uses, child care center and similar uses: 1:1. c. Affordable multi-family housing: .5:1. d. Free-market multi-family housing: .25:1, which may be increased to .5:1 if affordable housing floor area equal to 100% of the free-market residential floor area is developed on the same parcel. 12. Maximum multi-family residential dwelling size (square feet): one thousand five hundred (1,500) square feet of net livable area. a. The property owner may increase individual multi-family unit size by extinguishing historic transferable development right certificates ("certificate" or "certificates"), subject to the following: 1) The transfer ratio is 500 sq. ft. of net livable area for each certificate that is purchased. 2) The additional square footage accrued may be applied to multiple units. However, the maximum individual unit size attainable by transferring development rights is 2,000 sq. ft. of net livable area (i.e., no more than 500 additional square feet may be applied per unit). 3) This incentive applies only to individual unit size. Transferring development rights does not allow an increase in the Floor Area Ratio (FAR) of the lot. Commentary: Refer to Chapter 26.535 for the procedures for extinguishing certificates. 13. Commercial/residential ratio: The total free-market residential net livable area shall be no greater than the total floor area associated with the uses described in Subparagraphs 26.710.170.D.11.a and b combined on the same parcel. (Ord. No. 38-2000, §2; Ord. No. 12-2005, §1; Ord. No. 12-2006, §14, 15; Ord. No. 11, 2007; Ord. No. 27-2010, §4; Ord. NO. 34-2011, §15) P42 III. Page 1 of 4 MEMORANDUM TO: Mayor Ireland and Aspen City Council FROM: Jessica Garrow, Long Range Planner Trish Aragon, PE, City Engineer Lynn Rumbaugh, Transportation Manager Jannette Whitcomb, Environmental Health Program Coordinator RE: Transportation & Development Process Improvement Update ____________________________________________________________________________ REQUEST OF COUNCIL: No Council action is required at this time. This is an informational memo to provide Council with an update on the City’s Transportation & Development Process Improvement. The project is focused on creating a fair, equitable, and clear process related to understanding and mitigation transportation impacts associated with development. No presentation or discussion is scheduled at this time. Staff is available to answer any questions Council members may have about the project. Please contact any of the staff listed above if you have questions. PROJECT BACKGROUND: This project was one of the top priorities identified by City Council as part of implementation of the AACP. City Council was interested in ensuring fairness and consistency in the development process, particularly as it relates to transportation impacts. Determining a development’s share of mitigation is currently done on a case-by-case basis, starting with meetings of the City’s Development Review Committee which reviews applications and informally discusses impacts and possible mitigation strategies. Because there is no set of clear guidelines regarding potential mitigation methods, the applicant often relies on the Transportation and Engineering Departments to provide a mitigation strategy for the review process. Currently, a mix of mitigation options is worked out between the applicant, staff, the P&Z and City Council. There are no clear standards that indicate when a traffic study is required and what information it should include. Likewise, there are no set standards for the types of improvements that mitigate transportation impacts. While the city has requested studies for PUDs and SPAs, there is no consistent scope of work for such studies, and the Land Use Code does not provide clear direction that a non-PUD/SPA project in the downtown is required to provide such information. In December, City Council approved a contract with consultant team Fehr & Peers to examine the existing system and update it to be clearer, fairer, and easier to manage and understand. City Council asked staff and the consultant to study the impacts development has on our transportation system, and look to create a system to mitigate those impacts. In addition, Council expressed interest in creating a reliable, defensible system that results in actual improvements, not simply charging an additional fee on development. PROJECT OVERVIEW: The purpose of this project is to create a standardized system for development to mitigate its transportation and air quality impacts, including determining an P43 IV. Page 2 of 4 appropriate “trigger point” for development to mitigate these impacts, determining when a development should provide a traffic study, outlining the parameters for an effective traffic study, and creating a system to ensure proper Transportation Demand Management (TDM) and Quality of Service techniques are implemented. The project includes five steps that result in standardizing the development review process by: 1. Establishing a trigger point for the requirement of traffic impact studies; 2. Developing standardized parameters for traffic impact studies; 3. Creating a trip generation model specific to Aspen’s land uses and development pattern; 4. Creating a menu of Transportation Demand Management (TDM) mitigation options coupled with a scoring system; and 5. Creating a menu of Multi-Modal Quality of Service and Level of Service (MMLOS) mitigation options coupled with a scoring system. At the end of the project, the City will be in a position to adopt code amendments that identify the trigger point for development to conduct a traffic study, outline the required elements of a traffic study, and adopt a mitigation menu and scoring tool for TDM and MMLOS. Project completion is anticipated in mid-to-late summer, following the completion of summer traffic counts. PROJECT UPDATE: Progress has been made on each aspect of this project. The key findings are outlined below. It is important to note that Single-family and Duplex development is currently exempt from any physical transportation related requirement, and will remain exempt under any new system. INTERVIEWS WITH LOCAL LAND USE PROFESSIONALS/DEVELOPERS: Part of the data gathering that Fehr & Peers is conducting are interviews with land owners and planners who have recently been in the development review process. The goal is to hear what’s working and what’s not working with the current system. These interviews are still taking place, but the initial feedback is that a set of clear, written standards outlining what’s required related to transportation mitigation would be a significant improvement. They feel the current process is unpredictable, so a set of written requirements will help a land owner know what is expected of them from the outset rather than in the middle of the process as sometimes happens today. ASPEN SPECIFIC TRAFFIC STUDY: In February, a three day traffic counting study was conducted throughout town and was based on Aspen’s different land uses – commercial, lodging, affordable housing, free-market housing, and essential public facilities. Nine (9) different locations were part of the traffic counts, representing all the land uses. This traffic study was a key first step in the process to ensure that any system the City creates is based on Aspen-specific traffic numbers, not national or international standards that may not be relevant. The study found that, with the exception of the affordable housing and essential public facility uses, the initial local traffic counts did vary from the industry standard ITE (Institute of Transportation Engineers) generation numbers. Some of the larger differences from the ITE generation numbers included 53% higher AM peak trips for one lodge site and 74% lower AM P44 IV. Page 3 of 4 peak trips for one commercial site. Staff is working with the consultant to schedule a summer traffic counting study to ensure any new program or mitigation requirements are based on a complete and accurate data set. Any requirements for mitigation will be based off of the Aspen- specific numbers. In addition, the consultant is training staff on how to conduct counts in the future, so the numbers can more easily be updated on an annual or bi-annual basis as needed. PROJECT FRAMEWORK: One of the City’s longstanding goals is maintaining traffic levels at the Castle Creek Bridge at 1993 levels. This informs many of the City’s transportation projects and goals, and was reiterated in the 2012 Aspen Area Community Plan. The Primary Transportation Goal in the AACP is “Continue to limit Average Annual Daily Trips (AADT) to 1993 levels at the Castle Creek Bridge, and strive to reduce peak-hour vehicle trips to below 1993 levels.” This project supports this goal by creating a system that ensures new trips and new impacts created by development are mitigated. Mitigation will be achieved through Transportation Demand Measures (TDM) and by establishing a Transportation Level of Service (LOS) and Multi Modal Level of Service (MMLOS). Transportation Demand Management (TDM) refers to programs or services that maximize the use of alternative transportation, including buses, carpools, biking, walking, and carshare modes. TDM techniques include programs such as compressed workweeks and telework, as well as outreach and education programs. Built alternatives such as Park and Rides, bike lanes, and bike racks that encourage alternative modes of transportation are also an important element of TDM programs. Finally, economic incentives and disincentives are part of the TDM tool-box, including things like parking cash-out programs where an employee trades the right to free parking at their workplace for a cash payment from the employer. Level of Service (LOS) is a measurement that determines the effectiveness of transportation infrastructure. LOS A would refer to an area has free-flow of traffic with almost no traffic. LOS F would refer to an area where the flow of traffic is backed up and frequent slowing occurs. Typical Level of Service figures only takes vehicle drivers into account. In recent years, Level of Service has expanded to include multiple modes, called Multi-Modal Level of Service (MMLOS). MMLOS takes all mode types – auto, bicycle, transit, walking - into account. Staff is proposing to use both traditional LOS and the newer MMLOS as the basis for mitigating project impacts. LAND USE TRIGGERS FOR TRAFFIC IMPACT STUDIES: An important aspect of this project is establishing the framework for which projects are exempt from the requirements and which need to mitigate their transportation impacts. Staff is working with the consultant team to refine the triggers, but the existing Land Use Code as well as the Aspen-specific traffic counts are being used as a basis. The current direction is to create a tiered system of requirements that would be broken down as: exempt development, minor development, and major development. More work is needed to establish the exact triggers, but the general direction of the work is outlined below. Currently the Land Use Code exempts many minor developments from Growth Management Reviews, including adding 250 sq ft or less of commercial space, adding a single residential unit, or adding 2 lodge units to a project. At this time, staff is proposing these developments be P45 IV. Page 4 of 4 exempt from any new transportation requirements, as they are not subject to any other Land Use Review requirements today and the initial traffic counts indicate these relatively small expansions do not have a significant impact on the transportation system. At this time, staff does not have specific triggers for minor and major developments, as more research is needed to establish the precise thresholds. The initial direction is that minor development would not be required to conduct any traffic studies, but would use the Aspen- specific generation numbers to determine how many new trips are generated and need to be mitigated. Then they would use a TDM and MMLOS “mitigation menu” of various infrastructure, programmatic or operational improvements to mitigate those trips. Examples of menu items include bike rack installation, carshare memberships, bus pass provision, etc. Major developments would be required to conduct a Traffic Impact Study that examines the LOS and MMLOS impacts on the surrounding area and mitigate for those impacts using the TDM and MMLOS “mitigation menu.” The larger and more impactful the development, the more menu items would be required. The final work product from the consultant will outline the Land Use Triggers, Transportation Impact Study requirements, and the TDM and MMLOS mitigation menu. The goal is that these are clear, easy to use, and reduce the amount of “process” a project needs to go through when they apply for redevelopment. MMLOS TRIGGERS: It is possible that MMLOS will have additional or different triggers because MMLOS focuses on ensuring alternative modes of transportation operate at a level that does not impact transit, bikes, pedestrians, etc. For instance, a project that changes an access point but does not expand square footage could have a significant impact (positive or negative) on pedestrian safety. Staff believes it is important to ensure the triggers capture these types of infrastructure changes as part of the MMLOS program. NEXT STEPS: Staff and the consultant will meet with City Council in a work session near the end of the project to review specific aspects of the triggers, Transportation Impact Study requirements, and the TDM and MMLOS mitigation menu. Once Council is comfortable with the direction, staff will return with code amendments to incorporate the system into the Land Use Code. If Council has any questions about this project, please contact one of the staff members listed as the beginning of this memo. P46 IV. 1 MEMORANDUM DATE: April 16, 2013 TO: Mayor and Council THRU: Stephen Ellsperman, Director Parks and Open Space FROM : Brian Flynn, Open Space and Natural Resource Manager CC: Steve Barwick, City Manager MEETING DATE: April 23, 2013 RE: Aspen T.R.E.E. Four Season Education Greenhouse at Cozy Point Ranch SUMMARY: Monroe Summers, Cozy Point Ranch, LLC and Eden Vardy, Aspen T.R.E.E. will be presenting to City Council their request to install a four season greenhouse located on Cozy Point Ranch. Aspen TREE and Cozy Point Ranch, LLC presented the concept and request for the greenhouse to the City of Aspen Open Space and Trails Board during a regular Open Space meeting held March 7, 2013. The Board moved to support the request for the installation of the greenhouse and set up a site visit. The site visit to Aspen T.R.E.E.’s community farmyard classroom was held on March 13, 2013. Open Space Staff and the Open Space and Trails Board are requesting City Council support Aspen TREE’s request to install a four season green house within the agreement requirements set forth by Cozy Point Ranch, LLC. PREVIOUS COUNCIL ACTION: Approved the 2010 Cozy Point Ranch Long Term Lease Agreement, (Attachment 1). The approved long term lease required the lease holder to expand its operations beyond equestrian operations. Page 10 of the lease, under the Recreational and Educational Opportunities section of the lease calls for increased public involvement through non-horse related activities such as sporting activities, competitions, fund-raising events, hiking, P47 V. 2 biking, and interpretive and educational outreach programs including opportunities for other entities to hold classes or create experiences for adults and children to learn the history of ranching in the valley and/or experience life on a operating ranch facility, lead guided hikes, summer camps, self-guided tours, etc… BACKGROUND: Aspen TREE is a 501(c) 3 Roaring Fork Valley non-profit dedicated to the education of growing foods sustainably. Aspen TREE further describes the program and the request for the greenhouse in Attachment 2. DISCUSSION: As required by the long term lease agreement, page 4 section B, any capital improvement requires that the lease holder seek the consent of the City. Aspen TREE is proposing to install a geodesic dome as the greenhouse structure. Grow domes are non- traditional in style but provide far better space, efficiency and cost compared to a traditional rectangular greenhouse. (Attachment 3) Due to the non-traditional style of a geodesic grow dome, City Staff requested the work session in order to keep City Council informed of the proposed improvement and confirm City Council’s support for the improvement. FINANCIAL IMPLICATIONS: None. ENVIRONMENTAL IMPLICATIONS: The addition of a four season greenhouse will support the desire and interest to supply locally grown foods. A greenhouse located on city land reaffirms the City’s goal towards the reduction of its environmental impact and meets the requirements of the long term lease under Section F – Environmental Protection, “Cozy Point Ranch is a City of Aspen facility and as such the day-to- day activities and capital improvements must be actively working towards the City’s goal of the reduction of Green House Gases (GHG).” CITY MANAGER COMMENTS: Attachment(s): 1. Aspen TREE Proposal 2. 2010 Cozy Point Lease 3. Construction and Energy Comparisons 4. Sub-lease Agreement between Lease Holder and Aspen TREE P48 V. LONG-TERM STEWARDSHIP LEASE AGREEMENT FOR THE COZY POINT RANCH AND EQUESTRIAN CENTER THIS LEASE AGREEMENT entered into at Aspen, Colorado, this ____ day of _______________, 2009, by and between the CITY OF ASPEN, COLORADO, a municipal corporation and home-rule city (“City”), and COZY POINT RANCH, LLC, a Colorado limited liability company (“Tenant”). W I T N E S S E T H: WHEREAS, the City is the owner of the Cozy Point Ranch and Equestrian Center in Pitkin County, Colorado, which property is described on the map attached hereto as Exhibit A (the “Premises”), and desires to lease to Tenant that portion of said Premises containing 93.5 acres described on Exhibit A as "Cozy Point Long-Term Stewardship Lease Area" on the terms and conditions set forth herein; and WHEREAS, Tenant has experience in ranch and equestrian center management and desires to lease the Premises from City on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the mutual terms, covenants and conditions contained herein, the parties agree as follows: 1. Term. The term of this Lease is ten (10) years. This Lease shall be effective at noon, Mountain time, on April 15, 2010 and shall terminate at noon, Mountain time, on April 15, 2020. 2. Use. Tenant may use the Premises solely for the purpose of managing and operating a ranch and equestrian center and providing related services to third parties. Tenant shall not use the premises for any other purposes without City’s written consent. Tenant’s use and occupancy of the above-described Premises shall comply with the rules, regulations and ordinances of any governmental authority having jurisdiction over the Premises or the activities performed thereon. Additionally, Tenant shall not use the Premises in any manner that will create an increase in the rate of insurance or a cancellation of any insurance policy. Tenant shall not keep, use or sell anything prohibited by any policy of fire insurance covering the Premises. In the event that any change in law takes place that, in Tenant’s reasonable discretion, would make it materially more difficult or more expensive for the Tenant to use the Premises as provided for hereunder, then Tenant may, upon not less than sixty (60 days prior written notice to City, terminate this Agreement; for purposes of this Agreement, the term “change in law” shall include, without limitation: (a) any change to the Pitkin County Land Use Code; (b) any change to the zoning underlying the Premises; (c) any laws, condemnation proceedings, ordinances and/or regulations of any kind or nature adopted by the government of Pitkin County or the City (or any of their respective agencies); or (d) any court ruling of any kind by a court of competent jurisdiction, P49 V. 2 which would negatively impact the water rights appurtenant to the Premises, condemn all or any portion of the Premises, or otherwise negatively impact the Premises, or remove any portion of the premises from potentially productive ranch, agricultural or equestrian uses. The premises to which this lease pertains are described as that portion of the City of Aspen's Cozy Point Ranch containing approximately 93.5 acres as described on the attached map (Exhibit A). 3. Time of Occupancy, Acceptance and Surrender of Premises. Tenant shall be entitled to manage, use and occupy the premises as set forth in Paragraph 1, above. Occupancy of the Premises by the Tenant shall be construed as recognition that the Premises are in their “as is” condition, but shall not be construed as a waiver by Tenant of any of the City’s agreements to conduct certain repairs to the Premises. 4. Payment. Tenant agrees to pay as rent to the City for use and occupancy of the Premises an amount equal to seven and one-half percent (7.5%) of the total annual gross receipts up to $500,000 and ten percent (10%) of annual gross receipts over $500,000 of any business conducted by Tenant on the demised Premises through the term of this agreement. Said rent shall be payable quarterly in arrears. The Gross Receipts calculation, which is reported quarterly on the tenant’s profit and loss statement, shall be adjusted annually and retroactively to reflect the actual Gross Receipts calculated by the Tenant’s licensed Certified Public Accountant and reported on Tenant’s IRS Corporate tax return for the previous fiscal year. “Gross receipts” as used in this Agreement shall include all money or things of value received or paid to Cozy Point Ranch, LLC (Tenant) or to others for Tenant’s benefit. “Gross receipts” shall include, but not necessarily be limited to, the following: all sales of merchandise; receipts from rentals of stalls, runs, fields, or other boarding facilities; receipts of any payments from trainers or other third party users of the facility; receipts from reimbursements of expenditures made for others; receipts from any special events not dedicated to non-profit sponsors or beneficiaries; or other receipts from any commercial activity conducted on the Premises for which Cozy Point Ranch, LLC (Tenant) is compensated. “Gross receipts” shall not include direct taxes on the merchandise or services sold that are passed on to and paid by consumers, clients, or customers of such services or merchandise, or by Tenant as a tax, and shall also not include any receipts for expenses incurred by Tenant in connection with providing a venue for benefits or other fund raising activities for non-profit organizations. Gross receipts shall also not include the sale of any of Tenant’s assets. A reconciliation shall accompany a copy of the Tenant's corporate tax return showing adjustments by month for items either included or excluded from the previously reported "Gross receipts" calculations for the period covered by the tax return. Within thirty (30) days after the end of each calendar quarter, Tenant shall furnish the P50 V. 3 City of Aspen Finance Department with a statement to be certified as correct by Tenant or an employee of Tenant authorized so to certify, which shall set forth the gross receipts for the quarter just concluded, and the authorized deductions, if any, from such amount. With each statement, Tenant shall pay to the City the amount of rent that is payable to the City as shown thereby. Tenant's accounting books and records, including supporting documentation, shall be open to the City during the term of this lease and for three years after the termination of the lease for the City's inspection, verification or audit. Such inspection, verification or audit shall be conducted either by City employees or independent contractors engaged by the City at City's expense. In the event that this lease agreement or any subsequent extension thereof is terminated, for any reason, by either party, then any rent balance due the City shall become due and payable within thirty (30) days of the date that either party presents to the other a statement indicating the balance owed, together with any supporting documents reasonably necessary to provide backup information regarding such statement items. City will fund capital improvements fully through the capital asset management process. No capital maintenance will be undertaken without budgetary approval from City Council on a per project basis. Repairs and/or maintenance will be the responsibility of the Tenant and may be effected by Cozy Point Ranch, LLC, Tenant, or by an entity that is affiliated with the Tenant. 5. Access to Premises. City shall be entitled to enter upon the Premises at all reasonable hours for the purpose of inspecting the same, preventing waste or loss, or enforcing any of City’s rights hereunder. Tenant shall be responsible to insure that the facilities of the property covered under this lease agreement are open and safe for the enjoyment of the public. 6. Duties of Tenant Relative to Operation and Management of the Ranch and Equestrian Center. During the term of this Agreement the Tenant agrees to the following terms and conditions: a. Equestrian Center Tenant shall operate a public equestrian boarding, exercising and training facilitiy, accommodating both English and Western disciplines. Regular public office hours for the Tenant and Cozy Point Ranch staff will be 8:00 a.m. to 5:00 p.m., Monday through Friday, except for holidays. The equestrian facilities will be available for use by the boarders and the general public from 8:00 a.m. to 5:00 p.m., seven days per week, 52 weeks per year. Before and after hours use may be arranged with Tenant by waiver and on an individual, case-by-case basis; however, Tenant shall not be obligated to provide any after-hours use, but such use shall not be arbitrarily limited. Boarders will be permitted twenty-four hour per day/seven days per week access to their horses for medical, health, or dietary purposes. Tenant reserves the right to restrict access to the indoor and outdoor arenas during special events, clinics, schools, or competitions. The facility shall be operated so as to accommodate without discrimination the exercising and training needs of the public, both boarders and non-boarders of all ages, subject to equitable barn rules and fees. Tenant shall arrange to have instruction and training P51 V. 4 available in both Western and English disciplines and to accommodate without discrimination, instruction and training provided by outside trainers, not directly employed by Tenant, to both boarders and non-boarders subject to equitable barn rules and fees. Tenant shall make the arenas, either indoor or outdoor depending upon the weather, available without charge for up to four (4) hours per week, on weekends during the school year, for charitable youth-oriented activities. The Tenant shall encourage the development of a riding school for children as well as promote various equestrian clinics and competitions. The public shall not be arbitrarily or unnecessarily excluded from the use of, or access to, the exercise and training facilities during such clinics, schools or competitions. Tenant shall manage and maintain buildings, improvements, and equipment “as is” and to make commercially reasonable efforts to make improvements as funds are available. Management and maintenance of the equestrian facility shall include grass cutting and snow removal, routine maintenance of the barns, houses, arenas and fencing, refuse disposal, purchase of needed supplies; and other work reasonably required to maintain and operate the property. Tenant shall develop and utilize suitable horse board agreements, release agreements, sublease agreements, incident reports and other grievance procedures documentation, and any other documents necessary and appropriate to protect the City and Tenant, and to collect all horse board, rents, deposits, fees and other income derived from the operations of the ranch and the equestrian center. Tenant shall provide a copy of all such documents to the City for its approval before their use in the management of the property. The City’s review of such documents shall be conducted within seven (7) working days and approval shall not be unreasonably withheld. b. Capital Improvements Capital improvements, which are recognized as an important element of the long- term viability of the leased premises, shall be accomplished through the City of Aspen Asset Management Plan Process. This process, which includes the recommendation, approval, and appropriation of funds for capital maintenance and improvements for facilities within the City of Aspen, will be the mechanism that the City of Aspen will follow to provide funding to the facility. Tenant shall be responsible to maintain a capital maintenance and improvement list which will be reviewed annually with City of Aspen staff. Staff will then prioritize specific items for inclusion in the Asset Management Plan Process contingent upon available funding. Tenant shall work with City in creating, for each calendar year, a schedule of capital improvement, repair and/or maintenance items that Tenant may effect. No P52 V. 5 such capital improvements, repairs and/or maintenance shall be conducted without the City’s prior written consent. All capital improvements, repairs and/or maintenance, including any funded solely by Tenant, of a permanent and fixed nature shall become the property of the City upon termination of this Agreement; provided, however, that any portable, modular, and/or temporary structures paid for by Tenant shall remain the property of Tenant; provided, however, that portable, modular, and/or temporary structures are identified in writing as such before they are constructed or placed into service. c. Repair and Maintenance Tenant shall, at its expense, be required to do all general maintenance of the property, including, but not limited to, trash removal, cleaning of ditches, painting, clean up of storage areas, including snow storage areas, and any other reasonable maintenance to keep the property in a visually-pleasing condition while maintaining a fully functional and safe working environment. Tenant shall make commercially reasonable efforts to improve the condition of the pastures, fields, and fencing and to cooperate with City to ensure that the irrigation systems do not deteriorate from their current condition. This section includes normal day- to-day operations of a working ranch. Examples include, but are not limited to, field disking and seeding, fence repair and cross fencing, irrigation operations and repair, manure management, haying, minor building repairs and general land management. The parties hereto agree that Tenant’s duties set forth in this subsection, and elsewhere in this Agreement, shall not require Tenant to repair or maintain any portion of the Premises, other than the pasture, fields or fencing, in a condition better than that which existed on the date of this Agreement or on the date an improvement is placed into service. Tenant also, at its sole expense, shall keep the premises, including roadway, outdoor walks and access ways, in a good, clean and safe condition and do all work and repair necessary to maintain same and to keep it from deteriorating; provided, however, that the parties hereto agree that Tenant’s duties set forth in the preceding sentence shall not require Tenant to repair or maintain any portion of the Premises in a condition better than that which existed on the date of this Agreement, or on the date that an improvement is placed into service. All areas used to board horses shall be maintained in a safe, sanitary, and clean condition to properly ensure the health and safety of all animals boarded on the premises. The standards of health, safety, and welfare for the animals shall be those that are common and usual in the business of horse boarding and the operation of an equestrian center. Repairs and replacement of capital infrastructure shall be undertaken by the City P53 V. 6 as needed and will be effected through the City of Aspen Asset Management Plan Process or on an emergency basis if required to protect the City's assets and/or the Tenant's property and safety. This will be done solely upon City Council's appropriation of necessary funds. d. Noxious Vegetation Tenant shall be required to accomplish all noxious vegetation control work on all property contained within the lease boundaries. Tenant shall, at its expense, accomplish noxious vegetation control work that includes control of all listed noxious weeds on the Colorado Department of Agriculture Noxious Weed Lists A, B, and C. (Exhibit B ). Tenant will meet annually with the City of Aspen Parks and Recreation Department to outline annual noxious vegetation control efforts. The City of Aspen Parks and Recreation Department will provide specific technical assistance on Integrated Pest Management strategies for noxious vegetation control efforts to the Tenant. e. Conservation Values Tenant shall maintain the facilities and property in concert with the Aspen Valley Land Trust Deed of Conservation Easement in Gross as described in the attached Exhibit C. f. Environmental Protection Tenant shall meet with the City's Environmental Health Department and will comply with all environmental protection recommendations and guidelines as set forth by the Environmental Health Department. Any and all activities and events on the ranch will address environmental considerations at every stage and will include environmental factors in every decision to purchase a product or contract a service, in accordance with the City's ZGreen event standards. Tenant will make efforts to minimize water and energy consumption, waste generation, and air pollution emissions. No magnesium chloride will be used in any area of Cozy Point Ranch properties. Within six months from the beginning of this lease period an action plan for the environmental initiative portion of this section will be completed by the City and the Tenant. Energy Use and Greenhouse Gas Reduction Requirements are as follows: Cozy Point Ranch is a City of Aspen facility and as such the day-to- day activities and capital improvements must be actively working towards the City’s goal of the reduction of Green House Gases (GHG). It is the Tenant's responsibility to P54 V. 7 identify, upgrade, install, operate and manage the property toward achieving this goal. Tenant is responsible for meeting with The City of Aspen’s Energy Efficiency Manager to develop short-term and long-term goals for accomplishing those goals set forth in the City's Canary Initiative. Tenant agrees to achieve these goals, as follows: Buildings: ● Reduce greenhouse gas emissions by 20% below 2004 levels in all City of Aspen facilities. ● Require all new construction (commercial & residential) to be 50% more energy efficient than the International Energy Conservation Code. ● Upgrade existing facilities with the most energy efficient systems, utilities and amenities. ● Require all remodel projects to exceed the International Energy Conservation Code by 15 % on retrofits. ● Require Energy Star® or equivalent products, when available, for any new equipment that uses electricity or natural gas. Transportation: Increase the use of highly fuel-efficient and low emissions-fuel engines and machinery in on-road and off-road vehicles used in the day to day operations of the facility, when new equipment is purchased as needed. Electricity: Generate and/or purchase 45% of the facilities power from renewable sources. Waste Reduction & Recycling: ● Increase the facilities and operations overall solid waste recycling rate by 20%. ● Decrease the amount of solid waste generated at the site. Bear-Proof Trash Facilities will be installed and maintained according to the following: It is Tenant's responsibility to manage solid waste according to City of Aspen ordinances. All solid waste that falls under the guidelines of the Wildlife Protection Ordinance is required to be managed according to the guidelines of the ordinance. Tenant may choose a method of wildlife resistance that best suits the needs of the ranch and its operations. This is more fully described below. Wildlife-resistant refuse container means a fully enclosed container that can be constructed of pliable materials, but must be reinforced to deter access by P55 V. 8 wildlife. The container must employ a sturdy lid that has a latching mechanism preventing access to its contents by wildlife. Wildlife Resistant Containers must meet the standards of testing by the Living With Wildlife Foundation and approved by the Interagency Grizzly Bear Committee (IGBC) as bear resistant for 90 minutes or otherwise be approved by a City-designated official. (Ord. No. 27- 2005, §1; Ord. No. 8-2008) Wildlife-resistant dumpster enclosure means an enclosed structure consisting of four (4) sides and a secure door or cover, which shall have a latching device of sufficient design and strength to prevent access by wildlife. The enclosure shall not be larger than necessary to enclose the trash receptacles, shall not be attached to an historic structure, shall not be located in a public right-of-way and shall be located adjacent to the alley where an alley borders the property. An enclosure of less than one hundred twenty (120) square feet shall not require a building permit or Community Development review; however, plans for the dumpster are required to be reviewed and approved by a City Community Safety Officer or an Environmental Ranger prior to the commencement of construction. An enclosure of one hundred twenty (120) square feet or larger requires a building permit. Facility Recycling Requirements are described below: It is Tenant's responsibility to manage solid waste according to City of Aspen ordinances. The facility will have to provide recycling for its own operations and for the operations of any of its tenants or subleases. Recyclable Materials means any materials that are designated by the City Manager in the "Recyclable Materials List" which may include, but are not limited to, newspaper, office paper, cardboard, glass containers, plastic containers, steel cans and aluminum cans. Yard Waste shall mean materials generated from the maintenance of the vegetation on a property that have been designated by the City Manager in the "Banned Yard Waste List" which may include, but are not limited to, grass clippings, leaves, weeds, holiday trees and other plant materials. All recyclables and yard waste accumulated on any premises shall be placed in a container separate from garbage, or in a suitable manner such as cardboard broken down and placed on a shelf. g. Riparian Area Protection Tenant shall be required, at its expense, to implement a Riparian Area Protection Zone adjacent to all riparian and wetland areas identified within the boundaries of P56 V. 9 the leased area. This Riparian Area Protection Zone will consist of a 100-foot setback protection zone from all riparian and wetland areas identified within the leased portions of the property. h. Agricultural Activities Tenant shall, at its expense, provide to the City of Aspen Parks and Recreation Department an annual report which outlines specific agricultural activities proposed for the leased property. This report will include specific information related to all agricultural activities proposed for the facility. This report will also specify proposed improvements to the quality of the agricultural lands for review by the City of Aspen. i. Storage of Vehicles and Miscellaneous Items Tenant shall allow only those vehicles and other miscellaneous items that are associated with direct facility operations to be stored on the property described in this lease agreement. The facility shall not be operated as a storage facility for any vehicles or other miscellaneous items that are not directly related to equestrian facility operations or agricultural operations. Storage of horse trailers at the facility is allowable. j. Emergency Plans and Safety Procedures In compliance with instructions from the Aspen Fire Protection District, Tenant shall create, submit and implement specific emergency plans to address the possibility of a fire or other emergency and shall post emergency evacuation plans and educate all employees and inform boarders of these procedures. Fire extinguishers and smoke detectors will be installed and kept in working order in compliance with Aspen Fire Protection District regulations, including in the residences on the property. In addition, an annual safety inspection and audit will be conducted by the Colorado Intergovernmental Risk Sharing Agency (CIRSA), and Tenant agrees to implement any and all recommendations for improvements that may arise from such audit, including but not limited to electrical, mechanicals, and any other utilities. The City may contribute to these improvements, based upon their cost and size. If an inspection uncovers a significant capital expenditure that is needed, the City of Aspen and Tenant shall work together to incorporate these necessary improvements into the City of Aspen Asset Management Process. k. Signage P57 V. 10 The City of Aspen and Tenant shall work together to implement a specific signage plan at the facility that clearly and specifically identifies that the leased property is owned by the City of Aspen. This signage plan shall be designed to provide information to the public about general directions, hours of operations, emergency contact information, recreational opportunities, and other specific information about the facility and property as is deemed appropriate. Tenant shall not place any signs upon the Premises or upon the buildings except of such design and construction as may be permitted by City. It is understood by the parties that placement of an identification sign or signs is important and necessary to Tenant’s business, and permission shall not be unreasonably withheld for the posting of a sign for Tenant’s business provided that such sign complies with all applicable laws and regulations. Any sign permitted by City shall at all times comply with applicable ordinances, rules and regulations. Directional and all other signage within the ranch property shall be the responsibility and expense of Tenant upon review and approval by the City. The City of Aspen shall bear the responsibility for creating and installing adequate signage to identify Cozy Point Ranch as a City of Aspen Open Space facility. l. Recreational and Educational Opportunities Increased public involvement on Cozy Point Ranch is important to the City of Aspen. Tenant shall contact the City of Aspen Recreation Department and the Special Events Department annually to identify additional opportunities which may exist for developing recreational programming and events at the ranch. Horse-riding experiences for non-horse owners are encouraged. In addition, non- horse related activities at the facility need to be expanded for children and young adults such as sporting activities, competitions, fund-raising events, hiking, biking, etc Tenant shall develop interpretive and educational outreach programs designed to embrace the community in areas not only relating to the equine experience, but opportunities for other entities to hold classes or create experiences for adults and children to learn the history of ranching in the valley and/or experience life on a operating ranch facility as it exists today. Guided hikes, summer camps, self- guided tours, etc., may be included in such efforts. A report of such activities will be sent annually to the City of Aspen Parks and Open Space Director. Tenant shall annually report on all newly created outreach educational and recreational activities on the ranch, specifically addressing non-equestrian activities. Tenant shall report on efforts to offer and advertise the ranch as a P58 V. 11 public facility available for use by the general public and non-profit organizations alike. During the first year of the term of this lease, Tenant shall create a baseline record of all outreach activities which will be reported to the City of Aspen Parks and Open Space Director. Tenant shall document both the number of days and people served during each and every activity or event held on the ranch and shall report these annually to the City's Parks and Open Space Director. During all subsequent years of the term of this lease, Tenant will annually achieve a reasonable increase in these and other non-equestrian activities occurring at the ranch. Tenant's anticipated marketing plan for effecting these increases will be reviewed by the City's Parks and Open Space Director and will be revised as necessary by the Tenant. Tenant and the City shall annually assess the success of the educational and recreational outreach activities on the ranch and will make adjustments based upon the measured success of these activities. The level of success will be measured in many arenas including advertising efforts, marketing activities, percentage of increase in the use of the ranch, and increase in the diversity of users on the ranch. m. Financial Reporting Tenant shall submit quarterly financial reports including income and expense statements to the City of Aspen Finance Department and maintain normal books of account on all operations for review upon request by City officials or staff. n. Status Reports . Tenant shall submit annual status reports to the City of Aspen Director of Parks and Open Space for distribution to City officials and staff in order to facilitate City monitoring of all activities of the Property. These reports include a narrative detailing the status of ranch land management activities, and equine facility management and business management updates, with an overview of specific plans in each area moving forward. o. Complaints and Incident Reports Any incidents of complaints and all issues requiring City action or decisions need to be submitted to the Director of Parks and Open Space. Further, City shall promptly notify Tenant of any complaints received by City regarding the operation of the facility. Tenant shall not discourage the reporting of complaints or issues directly to the City of Aspen which may arise from any source. p. Permits P59 V. 12 Tenant shall secure such permits as may be required by Pitkin County, if any, for uses of and activities on the ranch and equestrian center property and notify the City Manager and other organizations and agencies (e.g., Sheriff, Brush Creek Homeowners Association, Snowmass Village, etc.), where appropriate, in advance of all special events on, or uses of, the Premises. q. Liability Insurance Tenant shall maintain such general liability insurance coverage for persons and animals under Tenant’s care as shall be required by the City on all uses of and activities on the property and obtain signed Releases of Liability of both the City and the management entity from all boarders and all participants in all equestrian activities on the property, to be preserved for not less than three (3) years. Notwithstanding the foregoing, however, in the event that Tenant is unable to obtain and/or maintain insurance at a reasonable cost, then Tenant may, in its discretion, terminate this Agreement by providing City with not less than sixty (60) days prior written notice of termination. For purposes of this subsection, unreasonable cost shall mean either a 100% annual increase in the cost of premiums or a total cost of insurance premiums in excess of $10,000.00 in any single calendar year. r. Annual Performance Measures Tenant shall be required to meet or exceed the following annual performance measures as outlined below: 1. Through an annual survey of Tenant's clients, the City shall acquire customer service data to assess the level of satisfaction with Tenant's staff, including dispute resolution process, and the overall general condition of facilities and services provided at Cozy Point Ranch. The City and Tenant shall agree on a survey instrument to be used for this purpose. The survey shall solicit responses that can be graded on a scale of 0 to 10. A successful “level of satisfaction” shall include a total average score of seven (7) or better. 2. The City shall annually engage an equine specialist to provide a professional inspection and assessment of the equine facilities at Cozy Point Ranch. The City and the Tenant shall mutually agree on the selection of the equine specialist. The specialist will certify that the operations are meeting the standard of professionalism and safety as it relates to the overall equine operations. The specialist will inspect and report on the footing, fencing, safety and any other items that may be deficient regarding the operations or general maintenance of the facility. Tenant shall act as project manager to remedy immediately any deficiencies that may be uncovered. For any and all items that require a significant capital investment, Tenant shall prepare a summary of improvements, costs, and completion schedule to present to the P60 V. 13 City to correct the deficiencies. If approved, funding will be effected through the City of Aspen Asset Management Plan Process at the discretion of City Council. 3. The Tenant in conjunction with the City shall meet annually with both the Aspen Valley Land Trust (AVLT) and Roaring Fork Conservancy (RFC) to craft an inventory and action plan of sustainable agricultural practices and environmental stewardship actions. AVLT and RFC shall certify that the environmental standards are being met and that Tenant is meeting the standards of good environmental stewardship on the property. Any deficiencies noted in AVLT's or RFC's reports shall be corrected by Tenant within a reasonable time. s. Business Plan Tenant's business plan as submitted during the Request For Proposals process is attached hereto as Exhibit D and made a part of this lease. Non-compliance with any goals or objectives set forth herein shall place Tenant on probation effective immediately for one (1) year, during which time Tenant shall cure any and all deficiencies. The City, at its sole discretion, may terminate this lease with ninety (90) days' notice, if Tenant fails to cure any terms and conditions set forth herein and above within the one (1) year probation period. The City shall use objective standards, when available or possible, to determine Tenant’s compliance; however, the City shall be the sole judge of Tenant’s compliance with the performance standards set forth above. 7. Duties of the City Relative to the Ranch and Equestrian Center. During the term of this Agreement the City agrees to the following: a. City shall grant to Tenant the right of quiet enjoyment of the Premises, and to permit Tenant to use the Premises for Tenant’s sole use and occupancy, and to manage the Premises, and conduct Tenant’s equestrian business on the Premises, in a commercially reasonable manner as may be determined by Tenant in Tenant’s sole discretion for so long as Tenant shall abide by the terms of this Agreement. b. In the event that City decides to sell the Premises during the term of this Agreement, then Tenant shall have a right of first refusal to purchase the Premises. Tenant’s right shall run for a period of thirty (30) days from the date that City presents to Tenant an executed contract to purchase the Premises. Tenant may exercise such right within such time period by providing City with a written notice stating that Tenant desires to purchase the Premises on the same terms as set forth in said contract. Tenant’s failure to send such a notice within the thirty (30) day time period shall constitute a waiver of Tenant’s right. P61 V. 14 c. In the event that Tenant has performed its obligations hereunder, and in the event that the term of this Agreement expires, then Tenant shall be given the opportunity to match any competing bids that City may receive to operate the Premises subsequent to the term hereof. Such right shall run for a period of thirty (30) days from the date that City presents to Tenant a document stating the terms upon which a competitor of Tenant desires to operate the Premises. Tenant may exercise such right within such time period by providing City with a written notice stating that Tenant desires to operate the Premises on the same terms as set forth in said contract. Tenant’s failure to send such a notice within the thirty (30) day time period shall constitute a waiver of Tenant’s right. 8. Utilities and Security System. Tenant shall, at its own expense, provide all water, heat and electric utilities, and telephone service for the buildings and ranch operation. 9. Personal Property. All personal property and trade fixtures placed on the Premises shall be at Tenant’s sole risk and City shall not be liable for damage to or loss of such personal property or trade fixtures arising from the acts or neglect of Tenant, its agents or employees. Any personal property or trade fixtures of Tenant or anyone claiming under Tenant, which shall remain on the Premises after the date upon which the Premises shall be surrendered, shall be deemed to have been abandoned and may be retained by City as its property or disposed of by City in such a manner as City sees fit. 10. Taxes. In the event any taxes are levied and assessed upon Tenant’s leasehold interest in the Premises or upon the improvements, fixtures or personal property of the Tenant during the term of Tenant’s occupancy of the Premises or arising therefrom, or upon the leasehold or possessory interests as created through this lease, Tenant shall be solely responsible to satisfy and pay all such taxes in a timely fashion. Tenant shall not allow any liens for taxes or assessments to exist with respect to the Premises, except that Tenant may permit such taxes or assessment to remain unpaid while pursuing any good faith contest or appeal of same. 11. Indemnification. Tenant agrees to indemnify and hold harmless the City, its officers and employees, from and against all liability, claims, and demands, on account of injury, loss, or damage, including, without limitation, claims arising from bodily injury, personal injury, sickness, disease, death, property loss or damage, or any other similar loss, which arise out of or are in any manner connected with this Agreement, if such injury, loss, or damage is caused in whole or in part by, the omission, error, or negligence of the Tenant, any subcontractor of the Tenant, or which arises out of any workmen’s compensation claim of any employee of the Tenant or of any employee of any subcontractor of the Tenant. 12. Public Liability Insurance. Tenant agrees to furnish City with certificate(s) of insurance as proof that it has secured and paid for a policy of public liability insurance covering all public risks related to the leasing, use, occupancy, maintenance, operation or location of the Premises. P62 V. 15 The insurance shall be procured from a company authorized to do business in the State of Colorado and be satisfactory to City. The amount of this insurance, without co-insurance clauses, shall not be less than the maximum liability that can be imposed upon the City of Aspen under the laws of the State of Colorado found at C.R.S. 24-10-101 et seq., as amended. At present, such amounts shall be as follows: $150,000.00 for any injury to one person in any single occurrence; $600,000.00 for any injury to two or more persons in any single occurrence. In no event shall such insurance amounts fall below those maximum liability limits as set forth at C.R.S. 24-10-114, as amended. City shall notify Tenant of any changes in the above referenced amounts. 13. Termination Due to Fire or Similar Catastrophe. If, absent negligence or fault on the part of Tenant, the Premises shall be damaged by fire or other catastrophe so as to render said Premises wholly untenable, and if such damage is so great that a competent licensed architect in good standing in Pitkin County, Colorado, as selected by both the City and Tenant, within fourteen (14) days from the date of loss, shall certify in writing to the City and Tenant that the Premises, with reasonable diligence, cannot be made fit for occupancy within ninety (90) days from the happening of the occurrence of the damage, then Tenant may elect in writing (no later than ten (10) days from the date of the architect’s certificate) to either continue this Agreement or terminate this Agreement. If Tenant elects to continue this Agreement, then Tenant and City shall meet and attempt to negotiate in good faith a reduction in rent so as to compensate Tenant for the damage caused to the Premises; in the event that such negotiations fail, then Tenant may terminate this Agreement by providing to City a written termination notice. In the event that the Premises were damaged absent negligence or fault on the part of Tenant, then Tenant shall be released from Tenant’s obligations set forth herein to return the Premises to City in the same condition (ordinary wear and tear excepted) as existed on the date hereof for those portions of the Premises damaged by fire. If, however, the damage is not such as to prevent reoccupation and use of the Premises within ninety (90) days, then repairs thereto shall be undertaken by Tenant (to be offset against rents otherwise due to City) with all reasonable speed to restore the Premises to its former condition and the Agreement shall remain in effect. Tenant’s duties and obligations to provide services as herein set forth shall be suspended during those time periods wherein the Premises are unfit for normal business activities due to fire or other catastrophe, and/or repair activities associated therewith. 14. City to be Named a Co-Insured or Additional Insurance. Tenant shall name City as co- insured or additional insured on all insurance policies and such policies shall include a provision that written notice of any non-renewal, cancellation or material change in a policy by the insurer shall be delivered to City thirty (30) days in advance of the effective date. 15. Repairs and Alterations by Tenant. Tenant, upon city’s written consent, may, at its own P63 V. 16 expense, make reasonable and necessary alterations or improvements to the Premises. All alterations, additions and improvements shall be performed in a workmanlike manner, in accordance with all applicable building and safety codes, and shall not weaken or impair the structural strength or lessen the value of the Premises. All permanent, fixed alterations, additions and improvements made in or to the Premises shall be the property of City and remain and be surrendered with the Premises upon termination of this Agreement; provided, however, that any portable, modular, or temporary structures paid for by Tenant shall remain the property of Tenant; provided, however, that they are identified as such in writing prior to their construction or placement into service. Tenant agrees that prior to any construction or installation of alterations, additions or improvements, Tenant shall post on the Premises in a conspicuous place a notice of non-liability for mechanic’s lien as specified at C.R.S. Section 38-22-105 on behalf of the City and shall notify City of such posting and the exact location of same. Perfection of a mechanic’s lien against the Premises as a result of Tenant’s acts or omissions may be treated as a material breach of this Agreement. 16. Repairs and Alterations by City. City reserves the right, from time to time, at its own expense and by its officials, employees and contractors, to make such alterations, renovations or repairs in and about the Premises. City shall provide reasonable notice to Tenant in advance of any intent to undertake alterations or repairs as authorized in this paragraph and all work shall be performed at such times as mutually agreed to between the parties so as to eliminate or minimize any disruption of Tenant’s business and protect the health and safety of the animals. 17. Condemnation. If during the term of this Agreement, or any renewal of it, the whole or part of the Premises, or such portion as will make the Premises unusable for the purpose leased, or the leasehold interest, be condemned by public authority, for public use, then this Agreement shall cease as of the date of the vesting of title in the Premises in such condemning authority, or when possession is given to such authority, whichever event occurs first. Tenant shall be entitled to that part of any condemnation award for the value of the unexpired term of this Agreement or for any other estate or interest in the Premises. 18. Assignment of Agreement. Tenant shall not assign, pledge, sublease or otherwise dispose of or encumber this Agreement, or the Premises, without the prior written consent of the City. Notwithstanding the foregoing, however, Tenant may sublease portions of the Premises to third parties, from time to time; no such sublet shall relieve Tenant of its obligations hereunder. Tenant shall notify City of all subleases for portions of the Premises. 19. Breach. a. Breach by Tenant: If Tenant shall fail to timely comply with any of the terms or conditions of this Agreement, including, but not limited to, maintaining the premises used by animals in a safe, healthy and sanitary condition, or any notice given under it, or shall become insolvent, or shall have or attempt to make an P64 V. 17 assignment for the benefit of creditors, or if any of its property be attached and such attachment is not promptly released, or if an execution be issued against it, or, if a petition be filed by or against it, to have it adjudicated a bankrupt, or if a trustee or receiver shall be created or appointed to take charge of its assets, or if it shall abandon the Premises for a period of more than seventy-two (72) hours, then at any time afterwards City may treat such act or omission as a breach of this Agreement. In the event of any such breach, City shall send to Tenant a written notice stating the grounds of such breach. Tenant shall then have thirty (30) days within which to cure such breach. Failure to so cure any such breach shall constitute an “Event of Default” hereunder. b. Breach by City: If City shall fail to timely comply with any of the terms or conditions of this Agreement, or in any way disturbs Tenant’s quiet enjoyment of the Premises, then Tenant may treat such act or omission as a breach of this Agreement. In the event of any such breach, Tenant shall send to City a written notice stating the grounds of such breach. City shall then have thirty (30) days within which to cure such breach. Failure to so cure any such breach shall constitute an “Event of Default” hereunder. 20. Remedies: a. City’s Remedy for Event of Default: Any Event of Default by Tenant shall be cause for termination of the Agreement by City in the manner set forth in this paragraph. City shall deliver to Tenant three (3) business days’ prior written notice of its intention to terminate this Agreement. City shall have the right to declare this Agreement terminated upon the end of such three (3) business day period, and all rights powers and privileges of Tenant as provided through the Agreement shall cease, and Tenant shall immediately vacate the entire Premises. In addition to the above stated remedy, if in the reasonable opinion of the City, Tenant has failed to maintain the premises in a safe, healthy and sanitary condition which threatens the well being of any animals boarded on the premises following notice of such condition(s) by the City and failure to cure by Tenant in a reasonable period of time, City shall have the right to terminate this Agreement upon seventy-two (72) hours written notice as provided above; and, at its option, enter into the Premises and remove all persons and take and retain possession thereof either with or without process of law. The City shall retain the services of a qualified veterinarian to assist the City in determining the safety and well being of any animals boarded at the facilities. b. Tenant’s Remedy for Event of Default: Any Event of Default by City shall be cause for Tenant’s recourse to the remedies set forth in this paragraph. Tenant may elect to either terminate this Agreement or continue this Agreement if any P65 V. 18 Event of Default by the City shall occur. If Tenant desires to terminate this Agreement, then Tenant shall deliver to City three (3) business days’ prior written notice of its intention to terminate this Agreement. Tenant shall have the right to declare this Agreement terminated upon the end of such three (3) business day period, and all obligations of Tenant as provided through the Agreement shall cease. Furthermore, notwithstanding any such termination, Tenant may seek to recover in a court of law any lost profits or any other costs and/or expenses incurred by Tenant as a result of the City’s breach of this Agreement. If Tenant desires to continue this Agreement, then Tenant may send to City a written notice indicating that Tenant intends to continue this Agreement, but which notice shall also state any amounts of rent that Tenant intends to withhold for lost profits, or other costs, which Tenant may seek to recover in order to compensate Tenant for the damage caused to Tenant by City’s breach of this Agreement. 21. Non-Waiver of Rights. Any failure by City or Tenant to so terminate this Agreement as herein provided after the breach, default or failure by Tenant or City, as the case may be, to adhere to the terms of the Agreement shall not be deemed or construed to be a waiver or continuing waiver by City or Tenant of any their respective rights to terminate the Agreement for any present or subsequent breach, default or failure. 22. Non-Discrimination. Tenant agrees to comply with all laws, ordinances, rules and regulations that may pertain or apply to the Premises and its use. In performing under the Agreement, job applicant, or any member of the public, because of race, color, creed, religion, ancestry, national origin, sex, age, marital status, physical handicap, affectional or sexual orientation, family responsibility or political affiliation, nor otherwise commit an unfair employment practice. 23. Independent Contractor Status. It is expressly acknowledged and understood by the parties that nothing contained in this Agreement shall result in, or be construed as establishing an employment relationship. To the extent that this Agreement may be construed as requiring Tenant to provide services to or on behalf of City, Tenant shall be, and shall perform as, an independent contractor who agrees to use his or her best efforts to provide the said services on behalf of the City. No agent, employee, or servant of Tenant shall be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this Agreement. The manner and means of conducting the work are under the sole control of Tenant. None of the benefits provided by City to its employees including, but not limited to, worker’s compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Tenant. Tenant shall be solely and entirely responsible for its acts and for the acts of Tenant’s agents, employees, servants and subcontractors during the term of this Agreement. Tenant shall not be, or shall be deemed to be, the employee, agent or servant of the City. City is interested only in the results obtained under this Agreement. The manner and means of conducting the work are under the sole control of Tenant. None of the benefits P66 V. 19 provided by City to its employees including, but not limited to, worker’s compensation insurance and unemployment insurance, are available from City to the employees, agents or servants of Tenant. Tenant shall indemnify City against all liability and loss in connection with, and shall assume full responsibility for, payment of all federal, state and local taxes or contributions imposed or required under unemployment insurance, social security and income tax law, with respect to Tenant and/or Tenant’s employees engaged in the performance of the services agreed to herein. 24. Notice. Whenever this Agreement calls for or provides for notice and notice is not otherwise specified, the same shall be provided in writing and shall be served on the person(s) as designated by the parties below, either in person or by certified mail, postage prepaid and return receipt requested. For City: Aspen City Manager 130 South Galena Street Aspen, Colorado 81611 For Tenant: Monroe Summers COZY POINT RANCH, LLC 111K AABC Aspen, CO 81611 The parties may change or add such designated person(s) or addresses as may be necessary from time to time in writing. 25. Binding Effect. All of the terms and conditions as contained in this Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. 26. Controlling Law. This Agreement shall be enforced and interpreted in accordance with the laws of the State of Colorado. Any action brought to enforce or interpret this Agreement shall be brought in the District Court in and for Pitkin County, Colorado. In the event of litigation between the parties concerning this Agreement or matters arising therefrom, the prevailing party shall be awarded its costs and reasonable attorney’s fees. 27. Entire Agreement. This instrument constitutes the entire agreement by the parties concerning the Premises and shall supplant and supersede any previous agreements between the parties pertinent to the Premises. Any prior or contemporaneous oral or written agreement that purports to vary from the terms as set forth herein shall be void and of no effect. 28. Amendments. Except as otherwise provided herein, this Agreement and all of its terms and conditions may not be amended or modified absent a written agreement duly executed by the parties. P67 V. 20 WHEREFORE, the parties, through their duly authorized representatives, have executed this Agreement upon the dates as set forth herein. LESSOR: THE CITY OF ASPEN, COLORADO By: __________________________ Name: Stephen Barwick Title: City Manager ATTEST: ___________________________ Kathryn S. Koch, City Clerk LESSEE (Tenant): COZY POINT RANCH, LLC By: ______________________ Name: Monroe Summers Title: Manager ATTEST: _______________________________ P68 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org ASPEN TREE FOUR SEASONS EDUCATION GREENHOUSE Organization Overview Aspen TREE is a Roaring Fork Valley based 501(c) 3 that focuses on empowering youth and inspiring community through positive, solution-oriented sustainability education, particularly around a healthy food-shed. The organization runs a diversity of programs including family festivals and events such as Aspen EcoFest, a mobile farmyard with alpacas at the Aspen Saturday Market, and the FREE Farm to Table thanksgiving meal. The Farm to Table Meal serves a free 100% locally grown and organic meal to over 1,000 annually with 200+ volunteers and seven participating gourmet chefs. The organization also facilitates a community farmyard demonstration / ecological classroom space at Cozy Point Ranch with cooperative farmyard and garden demonstrations and whole system tours open to the public. Aspen TREE is preparing to ramp up local food production as part of demonstration and education efforts, as well as to contribute to a localized food system and offset resources required to get food to Aspen. In the long term, Aspen TREE plans to demonstrate that the Roaring Fork Valley community has its act together, visibly growing much of it’s own food in Aspen! Project Overview Aspen TREE’s Four Seasons Community Education Greenhouse (42’ diameter geodesic dome) is envisioned as a public education, production, destination, demonstration, and research facility focused on increasing community understanding of growing food in Aspen year round, exclusively with renewable energy. The project is designed to have minimal environmental impact and to demonstrate energy efficiency. Both traditional and state of the art technologies are implemented. A subterranean climate battery system (series of underground pipes circulating air to the soil and from the soil to the air) and (aquaponic) large fish tank help to regulate the climate within the greenhouse. When outdoor temperatures drop below 9 degrees Fahrenheit (generally a dozen nights per year), a fuel efficient back up propane heater fires up. As compared to a conventional “rectangle” greenhouse, a growing dome is 1/3 the cost P69 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org (per square foot) to build, and utilizes 1/3 less energy to heat it (per square foot). It also takes much less time to construct. See cost comparison chart for more details. A four seasons community greenhouse and season extending row covers fills the need for a localized, non- industrial food system, as well as for greater awareness of healthy food production and overall sustainable living at our altitude. Aspen is currently very limited in local food production, though the demand for local foods and backyard farming is tremendous. Hosting a demonstration model of a working neighborhood scale greenhouse and extended season row covers at Cozy Point Ranch (on public land) is a great place to start a viable agriculture education model for the Aspen area, and a great model for Roaring Fork Valley residents and neighborhoods ready to grow food in their backyards. Though production will initially be limited, this project is a tremendous first step in assessing the viability of a local food shed. Financial Sustainability of Aspen TREE’s Four Season Community Education Greenhouse Beyond demonstrating sustainable agriculture and energy use, Aspen TREE’s Four Seasons Community Education Greenhouse is a financially sustainable model, paying for it’s own annualized needs and management through yields from the greenhouse itself. The management plan is financed through a combination of membership dues from a CSA (Community Supported Agriculture) and a greenhouse member cooperative. A small financial surplus is generated annually for unforeseen costs. Annual Budget Aspen TREE’s Four Season Community Education Greenhouse cost $875 annually for materials and utilities, and $7,300 / year for management (labor). Greenhouse manager is paid $20 / hour, and will work seven hours per week (1 hour per day). The additional seven hours per week required for managing the greenhouse (14 hours total, based on the budget from the Roaring Fork High School Greenhouse Dome) is made up by dedicated cooperative labor, at 1.25 hours per week required by each of the seven greenhouse coop members. P70 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org ITEM COST / YEAR Seeds $150 Starts $200 Electricity (1,402 annual kWh @ $.09) $125 Irrigation $0 (mix of rain and ditch) Propane (back up heat) $400 Management ($20 / hour, 14 hours / week) $14,600 Cooperative member labor (7 members 1.25 hours / week) -$7,300 Total: $8,175.00 Total funds generated from Greenhouse Cooperative ($25 / month X 7) and CSA ($25/ week X 5): $8,600.00 Total Annual Revenue: $425.00 CSA (Community Supported Agriculture) CSA’s have become a very popular farming practice over the past decade. Essentially, A CSA is a farm membership where the farmer distributes weekly produce yields to a limited number of members that have paid for a season’s worth of harvest in advance. The member receives a box / sack of produce once per week. The model is a great tool for educating the consumer about seasonality and what grows when, and a great way to connect the customer with the farmers. Members are “investing” in the farm, and reap the yields of both very productive seasons (when produce in a CSA share may be worth much more than paid dues) and in poor harvest seasons when yield is low. Farmers appreciate the model as they get a valuable initial investment at the start of the season (when most costs for the year are incurred and often before there is any harvest to sell). Aspen TREE’s Four Season Education Greenhouse will initially offer a five member CSA at the rate of $25/ week (with a three month commitment). Greenhouse Cooperative P71 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org The Greenhouse cooperative operates like a cooperative food store might. Members sign up to be part of the cooperative, pay monthly dues, and are accountable for 1.25 hours of work per week. Initially, members will work under and together with the greenhouse manager. Members receive an equivalent to a CSA share on a weekly basis, though their labor discounts the share to 25% of the regular cost (Valuing their labor at about $15/ hour). The cooperative is set up for individuals very interested in learning and participating in a greenhouse / garden system, but that do not have the time / finance / space to set up their own. Selection Process Aspen TREE Four Season’s Education Greenhouse will select CSA and Cooperative members through a standardized application, reviewed by Aspen TREE board and a volunteer committee. Selected members will be year round residents of the Roaring Fork Valley that express a clear interest in the food movement and being part of modeling / trialing this exciting community effort. Membership will expire and new members will be selected on a bi- annual basis. proposed growing dome in context P72 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org Project Partners Eden Vardy: Project Coordinator • Successfully manages grant funds and project budgets for nearly a dozen projects within Aspen TREE • Successfully fund raises for, designs, manages, and implements youth programs for 250+ youth, 50+ of which are enrolled in multiple programs annually! • Manages Sustainable Farmyard at Cozy Point Ranch and associated cooperative chicken coop, garden cooperative, farmyard / wilderness programs, and growing systems. • Coordinates over 200 volunteers annually for free “all locally grown all organic” community meal at Aspen High School (serving over 1,200 guests!) • 7 years experience teaching Ecological programs to youth • Management experience of over 45 garden systems locally • 10 years experience coordinating start- up eco- projects • 5 Years experience managing a staff of 7+ interns and 3+ educators. Monroe Summers: Project Supervisor • Director of Cozy Point Ranch LLC and lease holder of Cozy Point Ranch • Over 25 years experience managing Ranch systems locally Michael Thompson: lead designer • Experience designing and building over a dozen eco-friendly greenhouses in Colorado • Experience working with municipal bureaucracy and permitting process • Experience with Permaculture design and the design of systems for education models Jerome Osentowski: ground coordinator / permaculture designer • Over 26 years experience in High Altitude Permaculture • Planted and maintained over 12 greenhouses in Colorado • Teaches Permaculture Design Courses for 25 years to young adults P73 V. Board of Directors: ~ Eden Vardy ~ Jason Haber~ Piper Foster ~ Judy Lovins~ River Morgan ~ Kathy McDevitt www.aspen-tree.org Darin Rainks, lead contractor • Built all other structures in Aspen TREE sustainable farmyard • Licensed with over 7 years local experience building custom homes and projects. Besides aforementioned team, hired Summer Educators (3) summer interns (7) Youth Program volunteers (3) and the Greenhouse Manager Support Executive Director in execution and initial management of four season’s greenhouse. P74 V. SF : 2, 1 6 0 Co s t : $/ S F SF : 1, 3 8 6 Co s t : $/ S F GC C o s t , P e r m i t s : $1 2 , 6 9 0 $5 . 8 8 GC C o s t , P e r m i t s : $3 , 9 8 0 . 0 $1 . 8 4 Ex c a v a t i o n : $1 1 , 6 9 0 $5 . 4 1 Ex c a v a t i o n : $6 , 7 5 0 $3 . 1 3 Fo u n d a t i o n : $1 9 , 4 0 4 $8 . 9 8 Fo u n d a t i o n : $6 , 8 8 3 $3 . 1 9 Cl i m a t e B a t t e r y : $3 0 , 6 6 4 $1 4 . 2 0 Cl i m a t e B a t t e r y : $1 1 , 5 0 0 $5 . 3 2 GH F r a m e & G l a z i n g : $5 0 , 5 3 3 $2 3 . 3 9 GH F r a m e & G l a z i n g : $3 7 , 6 5 2 $1 7 . 4 3 In s u l a t i o n : $1 0 , 9 0 5 $5 . 0 5 In s u l a t i o n : $1 , 8 5 0 $0 . 8 6 Ex t e r i o r F i n i s h : $1 9 , 2 0 6 $8 . 8 9 Ex t e r i o r F i n i s h : $0 $0 . 0 0 In t e r i o r F i n i s h : $7 , 1 5 2 $3 . 3 1 In t e r i o r F i n i s h : $0 $0 . 0 0 Po w e r & L i g h t i n g : $1 0 , 8 0 0 $5 . 0 0 Po w e r & L i g h t i n g : $2 , 5 0 0 $1 . 1 6 Co n t r o l s : $3 , 2 4 0 $1 . 5 0 Co n t r o l s : $1 , 8 5 0 $0 . 8 6 Ba c k u p H e a t e r : $6 , 0 0 0 $2 . 7 8 Ba c k u p H e a t e r : $2 , 2 5 0 $1 . 0 4 Pl a n t i n g B e d s : $7 , 4 5 4 $3 . 4 5 Pl a n t i n g B e d s : $4 , 3 5 0 $2 . 0 1 Pl a n t i n g B e d S o i l : $4 , 0 0 0 $1 . 8 5 Pl a n t i n g B e d S o i l : $2 , 5 0 0 $1 . 1 6 Wa t e r T a n k s : $6 , 9 7 6 $3 . 2 3 Wa t e r T a n k s : $0 $0 . 0 0 Ir r i g a t i o n : $7 , 7 3 0 $3 . 5 8 Ir r i g a t i o n : $2 , 5 0 0 $1 . 1 6 $2 0 8 , 4 4 4 $9 6 . 5 0 $8 0 , 5 8 5 $3 7 . 3 1 Co m p a r e d t o T C I L a n e R a n c h G H : 38 . 6 6 % An n u a l B a c k u p H e a t C o s t : $1 , 0 5 0 An n u a l B a c k u p H e a t C o s t : $4 2 5 An n u a l B a c k u p H e a t C o s t / S F : $0 . 4 9 An n u a l B a c k u p H e a t C o s t / S F : $0 . 3 1 2, 1 6 0 : T C I L a n e R a n c h G H F l o o r A r e a S F 1, 3 8 6 : G r o w i n g D o m e F l o o r A r e a S F 25 , 4 2 5 : T C I L a n e R a n c h G H V o l u m e C F 19 , 4 0 4 : G r o w i n g D o m e V o l u m e C F 4, 3 2 8 : T C I G H S u r f a c e A r e a S F 2, 7 7 2 : G r o w i n g D o m e S u r f a c e A r e a S F 5. 8 7 Vo l u m e / S u r f a c e A r e a ( C F / S F ) 7. 0 0 Vo l u m e / S u r f a c e A r e a ( C F / S F ) TC I R a n c h G r e e n h o u s e Co s t E s t i m a t e De r r e k H a f t G r o w i n g D o m e Co s t E s t i m a t e PDF Created with deskPDF PDF Writer - Trial :: http://www.docudesk.com P75V. LETTER OF UNDERSTANDING/AGREEMENT BETWEEN ASPEN T.R.E.E. AND COZY POINT RANCH, LLC. This agreement defines the terms and sets forth the conditions of an agreement between COZY POINT RANCH, LLC (hereafter referred to as “the Ranch”) represented by Monroe Summers as the primary lease holder of the property, and ASPEN T.R.E.E. (also doing business as CAMP REGENERATION) a 501 (c)((3) non profit (hereafter referred to as Aspen Tree) represented by Eden Vardy, whose purpose is to collaborate with the Ranch in the annual Camp Cozy Point summer riding program, and whose mission is to Support and Encourage Creative, Sustainable, and Regenerative Education and Living Practices in the Roaring Fork Valley and Beyond through Practical Demonstration. TERMS The term “summer riding camp” describes the variety of supervised activities provided for children on the ranch during the summer months of June, July and August. Daily activities may include, but are not limited to: riding lessons, instruction in horse care, classroom assignments, art projects, guest speakers, riding demonstrations, pony rides, and the various horticultural, ecological and animal husbandry demonstrations provided for campers in the ASPEN T.R.E.E. “sustainable farmyard.” The Ranch and Aspen Tree agree that this understanding is for a period of one calendar year and will automatically renew every subsequent year, assuming both parties remain in agreement. Rent for the “Sustainable Farmyard” for the Calendar year 20 will be $ . This agreement may be revised or edited annually with the mutual agreement of both parties. Either party may cancel this agreement with 60 days written notice. CONDITIONS The conditions for both parties regarding the use of the property are hereby defined and agreed to as follows. The Ranch will provide the following: 1. Use of the “Sustainable Farmyard” plot, its buildings, fencing, infrastructure, gardens and surrounding paddock. 2. Public Restrooms, registration desk, snack shop and picnic area during the summer months. Occasional use of the tack shop meeting hall year round with advanced reservations. 3. Utilities necessary to operate the “sustainable farmyard” including electricity and water. 4. Parking and storage for Aspen Tree’s vehicles and equipment. 5. General maintenance of the property used for the summer camp program including but not limited to buildings, fences, roads, gates, tie rails, arenas, footing, trails on the property, etc. Aspen Tree will provide the following: 1. A supervisor whose on-site responsibilities are: daily supervision of the children entrusted to their care during the yearly agreed to times allotted including sign-in and registration with parents; scheduling daily activities; developing the daily learning plan; dispensing and enforcing the “sustainable farmyard rules”; supervising additional staff or volunteer help; and communicating and cooperating with ranch management about issues germane to a safe, successful, educational and enjoyable camper experience. 2. On and off-site management of the Aspen Tree Programs includes monthly bookkeeping and yearly accounting records, donor/client billing and collections, advertising and marketing, accounts payable and good credit relations, payroll expenses and taxes, employee records and benefits, Tax return preparation, insurance for general liability and workman’s compensation 3. Aspen Tree will provide its own tools and equipment necessary to maintain and operate the gardens, and the poultry house. P76 V. 4. Aspen Tree will provide daily cleaning and maintenance of all mutually agreed upon areas under its responsibility including trash collection, manure collection and composting, tool storage and tidying up of all areas of the “sustainable farmyard” ADDITIONAL STIPULATIONS. 1. Aspen Tree will identify the City of Aspen and Cozy Point Ranch, LLC as additionally named insured on its general liability and workman’s compensation policies and will furnish copies of the policies or riders to Ranch Management. 2. Rules of the “sustainable farmyard” will be conspicuously posted by Aspen TREE so that all parents and children will be aware of and will abide by them. 3. Any and all new improvements, fencing, or changes to existing infrastructure (with the exception of gardens) must be reviewed and approved in advance by Ranch Management. 4. Ranch Management reserves the right to undertake any mutually agreed upon changes or improvements with its own personnel, equipment and supplies and be reimbursed for same in a timely manner through its parent company Summers Properties West, Inc... 5. Any improvements attached to the land automatically become the property of the City of Aspen and subject to the control of the leaseholder, Cozy Point Ranch, LLC. If for any reason, this agreement is not renewed; Aspen TREE abandons the site; or becomes unable physically or financially to successfully manage this attached infrastructure: Aspen TREE further agrees that it will, within a period of 60 days and upon the city and/or leaseholder’s direction , remove at its expense, any attached structures that they wish removed. 6. Aspen TREE and the Ranch have an agreement for boarding of two alpacas in the hutch built by Aspen TREE Any additional animals, other than poultry, boarded at the ranch by Aspen tree or It’s supporters will require prior approval and be subject to the Ranch boarding contract with fees paid for their care, custody and control by Cozy Point Ranch, LLC under the same terms and conditions listed in the Cozy Point Ranch LLC Boarding Agreement as our equine guests.. 7. Aspen tree will insure that it’s Board of Directors, employees, volunteers and donors are fully apprised of its relationship with the Ranch and the terms and intent of this agreement. 8. Aspen Tree agrees to indemnify and hold the Ranch and the City of Aspen harmless from liability for claims for damages arising directly or indirectly out of, or in connection with, any of its programs or activities, and from liability from injuries suffered by any employee or other person in connection therewith. This indemnification and hold harmless provision shall extend to and include all attorney's fees and costs incurred by the ranch or the City of Aspen in connection with such actions or claims. Aspen Tree agrees to defend any suits that are brought against the Ranch or the City of Aspen in connection with the “sustainable farmyard” or this agreement. AGREED TO THIS DAY, _____________________________ 20_____, BY THE PARTIES REPRESENTED IN THIS AGREEMENT AND WITNESSED BELOW: ASPEN T.R.E.E. COZY POINT RANCH, LLC by: _______________________________ by: _____________________________ Eden Vardy Monroe Summers P77 V.