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HomeMy WebLinkAboutcoa.lu.ca2012 Employee Growth Figures F4W THE CITY OF ASPEN City of Aspen Community Development Department CASE NUMBER 0008.2013.ASLU PARCEL ID NUMBERS PROJECTS ADDRESS 130 S GALENA PLANNER JESS GARROW CASE DESCRIPTION EMPLOYEE GROWTH FIGURES REPRESENTATIVE CITY HALL DATE OF FINAL ACTION 1.6.13 CLOSED BY ANGELA SCOREY ON: 5/10/13 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.070 AND CHAPTER 26.306 ASPEN LAND USE CODE ADDRESS OF PROPERTY: Aspen, CO STATE OF COLORADO ) ss. County of Pitkin ) I, (name,please print) being or repre nting an Applicant to thelCity of Aspen, Colorado, hereby personally certify that I have complied with the public notice requirements of Section 26.304.060 (E) or Section 26.306.010 (E) of the Aspen Land Use Code in the following manner: Publication of notice: By the publication in the legal notice section of an official paper or a paper of general circulation in the City of Aspen at least fourteen(14) days after final approval of a site specific development plan. A copy of the publication is attached hereto. Publication of notice: By the publication in the legal notice section of an official Paper or a paper of general circulation in the City of Aspen no later than fifteen (15) days after an Interpretation has been rendered. A copy of the publication is attached hereto. Signatufe The foregoing "Affidavit of Notice" was acknowled edbe ore me this__�l day of , 2013,by �o� Y PU,& WITNESS MY HAND AND OFFICIAL SEAL PUBLIC NOTICE • s, •e ��2�7 RE: ENDMENT TO THE CITY OF ASPEN M• • My mmission expires: l — LAN SE CODE NG. • NO iCE IS HEREBY GIVEN that an amendment to she Land Use Code related to employee genera- ; ti6fi figures was approved by City Council on Mon- ,••' day,February 25,2013. For further information, contact Jessica Garrow at the City of Aspen Notary Public Com- munity Development Department,130 B Galena CO jessica ga ow0cityofasoen9 7 01 429-2780, ,as OW14 a!Michael Ireland,Mayor INf (fJrL�r�1r 1 Aspen City Council Published in the Aspen Times Weekly on May 9, ATTACHMENTS: 2013.[91833941 COPY OF THE PUBLICATION ORDINANCE No. 4 (Series of 2013) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AN AMENDMENT TO THE CITY OF ASPEN LAND USE CODE OF THE CITY OF ASPEN MUNICIPAL CODE SECTION 26.470.100—GROWTH MANAGEMENT QUOTA SYSTEM- CALCULATIONS. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to explore code amendments related to the Employee Generation figures and the "double dip" employee mitigation provision in the Growth Management Chapter of the Land Use Code; and, WHEREAS,pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28,2013, the City Council approved Resolution No.15, Series of 2013,by a five to zero (5—0)vote,requesting code amendments to the employee generation figures in the Land Use Code; and' during a duly noticed public hearing WHEREAS, pursuant to Section 26.310.020(B)(2), g Y P on August 27, 2012, the City Council approved Resolution No. 28, Series of 2012, by a three to two (3—2)vote,requesting code amendments to the "double dip"employee mitigation provision in the Land Use Code; and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Sections 26.470.100 — Growth Management Quota System - Calculations; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; and, WHEREAS,the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety,and welfare;and NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN,COLORADO THAT: Section 1: Sec. 26.470.100(A), Growth Management Quota System-Calculations, shall be City Council Ord#4 of 2013 Growth Management Code Amendments Page 1 of 4 amended as follows: A. Employee generation and mitigation. Whenever employee housing or cash-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. 1. Employee generation. The following employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the fall and winter of 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space Commercial Core (CC) 4 7 Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge (L)commercial space Lodge Preservation(LP)commercial space Lodge Overlay (LO)commercial space Ski Base(SKI)commercials ace Mixed-Use (MU 3.6 Service Commercial Industrial S/C/I) 3.9 Public] 5.1 Lodge Preservation(LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski .6 per lodging bedroom Base (SKI) and other zone district lodge units For the Public Zone,the study evaluated only office-type public uses,and this number should not be considered typical for other non-office public facilities. Hence, each Essential Public Facility proposal shall be evaluated for actual employee generation. This Employee Generation Rate Schedule shall be used to determine employee generation of projects within the City. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced City Council Ord#4 of 2013 Growth Management Code Amendments Page 2 of 4 by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. Applicants may request an employee generation review with the Planning and Zoning Commission, pursuant to Section 26.470.110, Growth management review procedures, and according to the following criteria. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation. In establishing employee generation, the Planning and Zoning Commission shall consider the following: a) The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort economy. b) Any unique employment characteristics of the operation. c) The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. d) A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. e) Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. f) For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. [Sections 2-5 are Not Changed] 6. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, four(4) affordable housing units are required. Section 2: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. City Council Ord#4 of 2013 Growth Management Code Amendments Page 3 of 4 Section 3: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 4_Effective Date. In accordance with Section 4.9 of the City of As Home Rule Charter, this ordinance shall become effective thirty(30)days following final passage. Sec_ tion 5: A public hearing on this ordinance shall be held on the 25th day of February, 2013, at a meeting of the Aspen City-Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED,READ AND ORDERED PUBLISHED as provided by law,by the City Council of the City of Aspen on the 11 th day of February,2013. Attest: XKathrryn S. c ,City Clerk Michael C. Ireland,Mayor FINALLY,adopted,passed and approved this 25th day of February,2013. Attest: a Kathryn S. Ko , ity Clerk Michael C. Ire a d,Mayor Approved as to form: ity Attorney City Council Ord#4 of 2013 Growth Management Code Amendments Page 4 of 4 LEGAL NOTICE Ad Name: 8899353A ORDINANCE#4,2013 PUBLIC HEARING Ordinance s4,Series of 2013,was adopted on first Customer: Aspen (LEGALS) City of reading at the City Council meeting February 11, 2013.This ordinance,if adopted will amend the Your account number: 1013028 employee generation figures as address the dou- ble dip provision The public hearing on this ordi- nance is scheduled for February 25,2013,at 5 PM, City hall,130 South Galena PROOF OF PUBLICATION To see the entire texL go to the city's legal notice website http:Hwww.aspen pitkln.caaWDep&lmsnfs/Clerk/ Legal-Noticed If you would like a copy FA%ed,mailed or e-mailed to you,call the city clerk's office,4211-2086. T31 A2:1 TIMI: Published in the Aspen Times Weekly on February 14,2013.188 3531 STATE OF COLORADO, COUNTY OF PITKIN I,Jim Morgan,do solemnly swear that I am General Manager of the ASPEN TIMES WEEKLY, that the same weekly newspaper printed,in whole or in part and published in the County of Pitkin,State of Colorado,and has a general circulation therein;that said newspaper has been published continuously and uninterruptedly in said County of Pitkin for a period of more than fifty-two consecutive weeks next prior to the first publication of the annexed legal notice or advertisement. The Aspen Times is an accepted legal advertising medium, only for jurisdictions operating under Colorado's Home Rule provision. That the annexed legal notice or advertisement was published in the regular and entire issue of every number of said daily newspaper for the period of 1 consecutive insertions;and that the first publication of said notice was in the issue of said newspaper dated 2/21/2013 and that the last publication of said notice was in the issue of said newspaper dated 2/21/2013. In witness whereof,I have here unto set my hand this 03/15/2013. Jim Morgan,General Manager Subscribed and sworn to before me,a notary public in and for the County of Garfield,State of Colorado this 03/15/2013. Mary E.Borkenhagen,Notary Public iMy,,,Commission expires:September 12,2015 6oR 8 NOIgRY'•:m ri`: r'fMLIC ��pZ a �s'r.,0'r COIOaP?�.b r r'rEmnnd��q. �ro+ss o � MEMORANDUM TO: Mayor and City Council FROM: Jessica Garrow, Long Range Planner THRU: Chris Bendon, Community Development Director&W, RE: Employee Generation and Double Dip Code Amendment Ordinance 4, Series of 2013, eading S�C6 DATE OF MEMO: February 12, 2013 MEETING DATE: February 25, 2013 SUMMARY: The attached Ordinance includes proposed code amendments to the employee generation figures in the Growth Management Section of the Land Use Code, as well as the "double dip" provision in Growth Management that allows a developer to mitigate for only the largest of multiple affordable housing mitigation requirements if that mitigation is in the form of on-site units. The objective of the proposed code amendments is to update the employee generation figures since the 2002 study and to require affordable housing mitigation more closely related to the actual impact. STAFF RECOMMENDATION: Staff recommends approval of the proposed Ordinance. LAND USE REQUESTS AND REVIEW PROCEDURES: This is the 2" reading of proposed code amendments to update the Employee Generation figures in the land use code and to eliminate the "double dip" mitigation provision. Pursuant to Land Use Code Section 26.310, City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the third step in the process: 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should the pursued 3. Public Hearings on Ordinance outlining specific code amendments. BACKGROUND& OVERVIEW: Employee Generation Figures: The Land Use Code includes employee generation figures for commercial, lodging, and public uses. These figures are based on a 2002 survey of employers. Staff has worked with land use consultant Economic Planning Systems (EPS) to conduct an update to this study,which reflects the changed employment patterns since 2002. Staff presented the preliminary draft to City Council at the December l lch work session, and received direction to move forward with the code amendment. 2.25.2013—Second Reading Employee Generation Code Amendment Pagel of 3 0 EPS and city staff surveyed 128 managers and owners of local businesses and lodges during late September and early January. The businesses and lodges surveyed represent a statistically valid sample of business from the following categories: Hotel, Business/Professional Office, Non- profit Office, Real Estate, Restaurant/Bar, Retail, and Services. Using that information, as well as business license records and employment data from the State, EPS was able to provide updated employee generation figures. Based on the study, there have been minor fluctuations in all land uses, which is to be expected over a 10 year period. The table below outlines those changes. The entire report is attached as Exhibit C. Generation Rates by Zone District City of Aspen Employee Generation Study 2002 2012 Change Zone 01wict Commercial n1a 4.5 per 1,000 sqft n1a Commercial Core n1a 4.9 per 1,000 sqft n1a Neighborhood Commercial n1a 4.1 per 1,000 sqft Na Commercial Lodge Ilia 3 2 per 1,000 sgft Fla Zone Average 4.1 per 1,000 sqft 4.7 per 1,000 sqft 0.6 per 1,000 sqft Lodge Presertiation 0.3 per room 0.3 per room 0.0 per room Hotel/Lodge 0.5 per room 0.6 per room 0.1 per room Mixed-Use 3.7 per 1,000 sqft 3.6 per 1,000 sqft -0.1 per 1,000 sit Public 3.9 per 1,000 sqft 5.1 per 1,000 sqft 1.2 per 1,000 sqk Service l Commercial i Industrial 3.5 per 1,000 sqft 3.9 per 1,000 sqft 0.4 per 1,000 sq# Sake:Ecanam&PdmwV Syst m It is important to note that the land use code currently aggregates all similar businesses into general land use categories for purposes of mitigation and impacts fees — for instance, retail, restaurant, and galleries are all considered "commercial uses," and a small lodge and a large lodge are both considered "lodge uses." The generation rates are then based on geographic areas, with different generation rates in the downtown, SCI zone, and on Main Street (Mixed Use Zone). This standardization ensures that all businesses within specific geographic areas are treated fairly, and that the city is not in a position to require affordable housing mitigation every time a tenant changes in a particular space. "Double dip" provision: In addition to updating the commercial and lodge employee generation figures, the proposed code amendment would eliminate the "double dip" provision of growth management. The provision allows a development to only meet the larger of multiple affordable housing requirements when providing on-site affordable housing mitigation. This provision has been in the Land Use Code for approximately ten (10) years, and was originally added, in part, to encourage redevelopment after a period of little re-investment in the downtown. STAFF RECOMMENDATION: Staff recommends adoption of the attached Ordinance. 2.25.2013—Second Reading Employee Generation Code Amendment Page 2 of 3 RECOMMENDED MOTION(ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): "I move to approve Ordinance No. , Series of 2013, approving amendments related to the employee generation figures and the "double dip" mitigation provision in the Growth Management Chapter of the Land Use Code." CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A— Staff Findings Exhibit B— Proposed Employee Generation and"double dip" Code Amendment Language Exhibit C— Approved Policy Resolution 104, Series 2013 Exhibit D— Employee Generation Study 2.25.2013—Second Reading Employee Generation Code Amendment Page 3 of 3 ORDINANCE No. 4 (Series of 2013) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AN AMENDMNET TO THE CITY OF ASPEN LAND USE CODE OF THE CITY OF ASPEN MUNICIPAL CODE SECTION 26.470.100—GROWTH MANAGEMENT QUOTA SYSTEM - CALCULATIONS. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to explore code amendments related to the Employee Generation figures and the "double dip" employee mitigation provision in the Growth Management Chapter of the Land Use Code; and, WHEREAS,pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2013, the City Council approved Resolution No.15, Series of 2013, by a five to zero E (5—0)vote,requesting code amendments to the employee generation figures in the Land Use Code; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on August 27, 2012, the City Council approved Resolution No. 28, Series of 2012, by a three to two (3 —2) vote, requesting code amendments to the "double dip" employee mitigation provision in the Land Use Code; and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Sections 26.470.100 — Growth Management Quota System - Calculations; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; and, WHEREAS,the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT: Section 1: Sec. 26.470.100(A), Growth Management Quota System - Calculations, shall be City Council Ord#4 of 2013 Growth Management Code Amendments Page 1 of 4 amended as follows: A. Employee generation and mitigation. Whenever employee housing or cash-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. 1. Employee generation. The following employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the fall and winter of 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space Commercial Core (CC) 4.7 Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge (L) commercial space Lodge Preservation (LP) commercial space Lodge Overlay (LO) commercial space Ski Base (SKI) commercials ace Mixed-Use (MU) 3.6 Service Commercial Industrial (S/C/1) 3.9 Public] 5.1 Lodge Preservation(LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski .6 per lodging bedroom Base (SKI) and other zone district lodge units For the Public Zone,the study evaluated only office-type public uses,and this number should not be considered typical for other non-office public facilities. Hence, each Essential Public Facility proposal shall be evaluated for actual employee generation. This Employee Generation Rate Schedule shall be used to determine employee generation of projects within the City. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced City Council Ord#4 of 2013 Growth Management Code Amendments Page 2 of 4 by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. Applicants may request an employee generation review with the Planning and Zoning Commission, pursuant to Section 26.470.110, Growth management review procedures, and according to the following criteria. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation. In establishing employee generation, the Planning and Zoning Commission shall consider the following: a) The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort economy. b) Any unique employment characteristics of the operation. c) The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. d) A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. e) Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. f) For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. [Sections 2-5 are Not Changed] 6. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, four(4) affordable housing units are required. Section 2: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. City Council Ord#4 of 2013 Growth Management Code Amendments Page 3 of 4 Section 3: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 4: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty(30)days following final passage. Section 5• A public hearing on this ordinance shall be held on the 25th day of February, 2013, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the 11th day of February, 2013. Attest: 9 Kathryn S. Koch,City Clerk Michael C. Ireland,Mayor FINALLY,adopted,passed and approved this_day of ,2013. Attest: Kathryn S. Koch,City Clerk Michael C. Ireland,Mayor Approved as to form: City Attorney City Council Ord#4 of 2013 Growth Management Code Amendments Page 4 of 4 Exhibit A: Staff Findings 26.310.050 Amendments to the Land Use Code Standards of review -Adoption. In reviewing an application to amend the text of this Title, per Section 26.310.020(B)(3), Step Three—Public Hearing before City Council, the City Council shall consider: A. Whether the proposed amendment is in conflict with any applicable portions of this Title. Staff Findings: The proposed code amendment is consistent with the Land Use Code. It updates a code section that is already in place. Staff finds this criterion to be met. B. Whether the proposed amendment achieves the policy, community goal, or objective cited as reasons for the code amendment or achieves other public policy objectives. Staff Findings: Earlier this year, City Council identified a number of AACP implementation priorities. One of the top priorities was updating the ten-year old study of employee generation figures. The last study was completed in 2002, and this update ensures the employee generation numbers in the land use code account for the changes and fluctuations in the market since then. Staff finds this criterion to be met. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of this Title. Staff Findings: The intent of the proposed amendment is to ensure a predictable and fair review of land use applications. Staff finds this criterion to be met. 11.12.2012 Downtown Zoning I"Reading;Exhibit A Page 1 of 1 Exhibit B Chapter 26.470 GROWTH MANAGEMENT QUOTA SYSTEM(GMQS) Sections: Sec. 26.470.100. Calculations. 26.470.100. Calculations. A. Employee generation and mitigation. Whenever employee housing or cash-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. 1. Employee generation. The following employee generation rates are the result of the I Employee Generation Study, an analysis sponsored by the City during the sefiffnef and fall and winter of 2842-2012 considering the actual employment requirements of over one hundred(100)Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand(1,000) square feet of net leasable space or per lodge bedroom. Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space I Commercial Core(CC) 444.7 Commercial(C-1) Neighborhood Commercial(NC) Commercial Lodge(CL)commercial space Lodge(L) commercial space Lodge Preservation(LP) commercial space Lodge Overlay(LO)commercial space Ski Base(SKI)commercials ace Mixed-Use 343.6 Service Commercial Industrial S/C/I 343.9 Public 3-95.1 Lodge Preservation LP lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski 3.6 per lodging bedroom Base (SKI) and other zone district lodge units For the Public Zone,the study evaluated only office-type public uses,and this number should not be considered typical for other non-office public facilities. Hence, City of Aspen Land Use Code Part 400—GMQS Page 1 Exhibit B Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space each Essential Public Facility proposal shall be evaluated for actual employee generation. This Employee Generation Rate Schedule shall be used to determine employee generation of projects within the City. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. Applicants may request an employee generation review with the Planning and Zoning Commission, pursuant to Section 26.470.110, Growth management review procedures, and according to the following criteria. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation. In establishing employee generation, the Planning and Zoning Commission shall consider the following: a) The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort economy. b) Any unique employment characteristics of the operation. c) The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. d) A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. e) Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. f) For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2)complete years of operation of the lodge. [Sections 2-5 are Not Changed] City of Aspen Land Use Code Part 400—GMQS Page 2 0 • Exhibit B 6. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are re uq ired, each housing requirement shall be met. (with aetual units) in erdeF to safisb, en (1)fv einea+ e san:_c-vrrscc-a vrdable heasing may also be-used--to safisb, any other- a&rdable hetisi r ceaetiffefWy.-For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, previdin t?w four(244)en site affordable housing units are required. - required iiv uuva aav uvaais is Yiv v auva.s by means-v , stieh housing,-erpaymeiit in iett thereef�ll aeefue eenseeatively te i City of Aspen Land Use Code Part 400-GMQS Page 3 ? 7F xl� ibrtC. RESOLUTION N0. 15, (SERIES OF 2013) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL REQUESTING CODE AMENDMENTS TO THE EMPLOYEE GENERATION FIGURES IN THE LAND USE CODE. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City Council to explore code amendments related to the Employee Generation figures in the Growth Management Chapter of the Land Use Code; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, the Community Development Director recommended the Employee Generation figures in Growth Management be updated from the 2002 employee generation study; and, WHEREAS, City Council has reviewed the proposed code amendment policy direction,and finds it meets the criteria outlined in Section 26.310.040;and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2013, the City Council approved Resolution No.15, Series of 2013, by a five to zero (5 — 0) vote, requesting code amendments to the employee generation figures in the Land Use Code; and, WHEREAS, this Resolution does not amend the Land Use Code, but provides direction to staff for amending the Land Use Code; and, WHEREAS, the City Council finds that this Resolution furthers and is necessary i for the promotion of public health,safety, and welfare. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN AS FOLLOWS: Section 1: Code Amendment Objective The objective of the proposed code amendments is to update the employee generation figures in the Land Use Code to ensure they reflect current employment patterns. Section 2• This resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances Resolution No 15, Series 2013 Page 1 of 2 repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. . . . . Section 3• If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. FINALLY,adopted this 28th day of January 2013. /-3a-2o�,3 Michael 1U. freland,Mayor ATTEST: APPROVED AS TO FORM: �jwr�' Kathryn S och,City Clerk James R True,City Attorney Resolution No 15,Series 2013 'Page 2 of 2 � • �xhib�� MEMORANDUM To: Jessica Garrow, City of Aspen Long Range Planner From: David Schwartz and Andy Knudtsen, Economic & Planning Systems Subject: Employment Generation Rate Updates t pates Date: February 13, 2013 The Econom` LtaridUse Background The City of Aspen contracted with Economic & Planning Systems (EPS) (eel to update its 2002 employee generation rates for its Growth Management Quota System (GMQS). In addition to a need for updated rates, economic volatility during the last decade, such as the housing and financial crisis, contributed to substantial employment shifts in the City and raised further questions regarding the applicability of the 2002 rates. Maintaining effective housing policy solutions continues to be a critical component of Aspen's long-range planning efforts. The results of this analysis will be used to update development code standards in the GMQS with current employee generation rates. The timing of this effort allows for an update to the rates as well as a brief examination of the underlying trends. This memorandum is divided into four parts including: survey methodology, updated employment generation rates, comparable community implementation issues, and underlying trends. Methodology The 2002 employee generation rates were estimated using information Economic&Planning Systems,Inc. collected through a survey of 82 local businesses. An objective of this 730 17th Street,Suite 630 update was to obtain an equal or greater number of responses in a Denver, CO 80202-3511 survey of local businesses. There was also a need to survey a sample of 303 623 3557 tel businesses not only representative of existing commercial uses, but of 303 623 9049 fax those most likely to be included in redevelopment proposals. Berkeley Denver Los Angeles Sacramento www.epsys.com Memorandum February 13, 2013 Employment Generation Rates Page 2 In September 2012, EPS and City of Aspen staff surveyed 111 businesses and an additional 17 businesses in January 2013 (totaling 128 businesses). The survey sample represents an estimated 1,375 seasonally-adjusted jobs, as shown in Table 1, which accounts for approximately 13 percent of the City of Aspen's workforce. In the interest of capturing the widest range of staffing levels in industries with high seasonality, some business types were oversampled, such as hotels, restaurants, and retail. Table 1 Survey Sample Characteristics City of Aspen Employee Generation Study CDLE(2011) Survey(2012) as°/of CDLE Establishments Jobs Establishments Jobs Est. Jobs See Note[1] See Note[2] Business Type Hotel 28 2% 1,187 12% 11 9% 414 30% 39% 35% Office-Business/Professional 356 30% 1,905 19% 25 20% 212 15% 7% 11% Office-Nonprofit/Civic 29 2% 1,463 14% 6 5% 45 3% 21% 3% Real Estate 223 19% 848 8% 12 9% 89 6% 5% 10% Restaurant/Bar 101 8% 1,752 17% 16 13% 337 24% 16% 19% Retail 171 14% 937 9% 37 29% 160 12% 22% 17% services 290 24% 2,169 21% 21 16% 118 9% 7% 5% Total 1,198 100%, 10,261 100% 128 100% 1,375 100% 11% 13% Note[1]:These are seasonally-adjusted Wage&Salary jobs as reported by the Bureau of Labor Statistics;EPS has categorized them by the Qty's land use groups. Note[2]:These job counts have been seasonally adjusted and are reported as totals of Pr and FT jobs. Source:Colorado Department of Labor&Employment;Econorric&Fanning Systems H1123053-Aspen Employee Gmaatlon Study Dat r Survey De,g,q 123053-Survey-0129 Si.xlsm)11.Survey St- EPS and City staff conducted on-site interviews with managers or owners and asked a variety of questions regarding length of operation in the City, past, current, and planned staffing levels, and their perceptions on the extent that housing availability plays a role in hiring qualified staff. As shown in Figure 1, 45 percent of businesses surveyed have been in operation in Aspen for more than 20 years. (A copy of the survey instrument is included in the Appendix.) Figure 1 Survey Respondents,Years in Aspen Employee Generation Study 10% ®Less than 2 years 2 to 5 years 18% 5 to 10 years 10 to 20 years n More than 20 years Source:Economic&Planning Systems The following map in Figure 2 illustrates the location of businesses surveyed. Specific locations were targeted in the City to achieve desired response rates by business type and zone district. 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 3 Figure 2 Businesses Surveyed by Zone District Employee Generation Study h� SfiugBlerSt e 9�P �O Vine S� P"PPv Smith St 0 O 5t N h P o ~ 6 LC it ,a0f Aspen r Y * � � er St c E Halla Z" Mai St Wale ker W Main Al m C 81 eker AIY W Y E Sleeker St 4 °cap ��/ 9P� �c aav St al Q H n HOPki s Late y 82 = vPA� h °Pkins Ave 2 rme r' ^c ` E Main* F° ers 81eekP= ti r n H h HYmanAve c y f HOP ms Ave I ly Hw'82 Employee Generation W Study Update (2012) CO°Per4Ve ECOpPergv a Y *' Business Surveys e Q NCOO Aly ECOpPer Pergve E ``-� � \ Zone District rr'nPr E Dora t Aly Hy an E COOPer AlY Man Ave q� h O C-1 ag CC ® E� Ct ��c E Cooper.Ave CL Juan St h Q L asst '- } h De Q MC Gilbert St naS E po Alley Durant r�PUB H yGa�e -��.-� E Dean S A., E Durant St St Q SCI Snark St �� ^ Dean St Memorandum February 13, 2013 Employment Generation Rates Page 4 Employee Generation Businesses provided a breakdown of current staffing levels in part-time and full-time staff. The numbers were converted to full-time equivalents (FTE) to be consistent with the current GMQS. Rates by Business Type Businesses in Aspen generate an average of 4.4 FTEs per one thousand square feet, as shown in Figure 3. While shown in the chart, hotel uses are measured on a per-room basis, i.e., the rate shown means 0.5 FTEs per room (this average includes underlying data for both Lodge and Lodge Preservation businesses, which are broken down individually in Table 2). Among other business types, rates range from 2.7 FTEs (Retail) to 9.9 FTEs (Restaurant & Bar). The generation rate for Hotel and Lodge uses is 0.5 FTEs per room. Figure 3 Rates by Business Type Employee Generation Study Full-Time Equivalents per 1,000 square feet 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Office-Business/Professional 1, Office-Nonprofit/Civic - Real Estate 4.1 Restaurant/Bar Retail Services Hotel[1] Overall[2] Source:Economic&Planning Systems [Note 1]:The hotel generation rate is estimated on PER ROOM basis.This average includes both Lodge and Lodge Preservation statistics. [Note 2]:The overall average generation rate excludes hotels. These rates represent a slight increase over the rates estimated in 2002. As shown in Figure 4, the overall average increased 0.5 FTEs from 3.9 to 4.4 FTEs per thousand square feet. It is important to note that this does not indicate greater staffing levels; rather, more employees are being used in the same amount of space. Most noticeable are the changes to business/professional office uses, real estate, restaurant/bars, and services. Non-profit, retail, and hotel uses stayed fairly consistent with 2002 rates. i Memorandum February 13, 2013 Employment Generation Rates Page 5 Figure 4 Change in Rates by Business Type Employee Generation Study Full-Time Equivalents per 1,000 square feet -2.0 -1.0 0.0 1.0 2.0 3.0 Office-Business/Professional Office-Nonprofit/Civic Real Estate Restaurant/Bar Retail 1 Services Hotel Q, Overall Source:Economic&Planning Systems Seasonality Two factors contribute to variation in employee generation rates: seasonality and the level on which the business is located. The following illustration (Figure 5) is based on responses indicating staffing levels during high and low season. As with most resort-oriented economies, employment levels in the hospitality industry (hotels and lodges, as well as retailers, restaurants and bars) fluctuates greatly from high to low season. Figure 5 Seasonal Variations in Rates Employee Generation Study 14.0 -- -- .- ------- ■High Season a Low Season 12.0 ------------- -- ----- - - 10.0 -------------------- —--- -- Fulltime 8.0 -------------------------------- --------------------------------------------------------------- Equivalents per6.0 ------------- -- -------------- ---- ------—----------------------------------------- 1,000 sgft 4.0 -- ---- ------ -- ----- 2.0 ----------—----- ---- --- 0.0 Hotel[1] Retail Restaurant/ Office- Office- Real Estate Services Bar Nonprofit/ Business/ Source:Economic&Planning Systems Civic Professional [Note 1]:The employee generation rate for hotels is defined on a full-time equivalent"per room"basis. 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 6 Floor Level The City's GMQS currently allows for a 25 percent reduction in the employee generation number for a business located on either an upper level or the basement. The following Figure 6 illustrates the percent variation in rates for businesses located on either of these levels compared to the generation rates found in Figure 3. Overall, the generation rates of businesses on upper levels average 24 percent lower, while businesses operating on lower floors have rates 17 percent lower. In this analysis, businesses with operations solely in basement levels were grouped with businesses operating on the basement as well as street level (to preserve sample size). Businesses with operations solely on an upper level were also grouped with those operating on street and upper levels. In some instances, the sample size was not large enough to determine a reliable percentage difference (e.g., non-profit uses on the basement level, or service uses on an upper level). Figure 6 Generation Rates by Floor Level Employee Generation Study -80% -60% -40% -20% 0% 20% 40% 60% Office-Business/Professional -23% 53% Office-Nonprofit/Civic _62% N/A Real Estate - 190 -1% Restaurant/Bar -18% -26% Retail 6% -28% Services 0% N/A Total -17% -24% Source:Economic&Planning Systems ■Basement(and Street) a Upper Levels(and Street) Rates by Zone District Updated rates by zone district for 2012 contrasted against the 2002 rates are shown below in Table 2. Overall, there has been a slight increase in rates. In the City's GMQS, four zone districts are aggregated in a general commercial district (Commercial, Commercial Core, Neighborhood Commercial, and Commercial Lodge), which generate an average of 4.1 FTEs per 1,000 square feet. Using 2012 employment information, the aggregation of these same zone district businesses yields an average of 4.7 FTEs per 1,000 square feet. 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 7 Two rates have changed slightly, including the hotel and lodge rate, as well as the Mixed-Use zone rate. The Hotel / Lodge rate has increased slightly to 0.6 FTEs per room, and the Lodge Preservation rate has stayed the same at 0.3 FTEs per room, but the Mixed-Use rate has dropped to 3.6 FTEs. Rates in the SCI (service, commercial, industrial) district have increased 0.4 to 3.9 FTEs, and the rate in public uses has increased 1.2 FTEs to 5.1 FTEs per thousand square-feet. Table 2 Generation Rates by Zone District City of Aspen Employee Generation Study 2002 2012 Change Zone District Commercial n/a 4.5 per 1,000 sqft n/a Commercial Core n/a 4.9 per 1,000 sqft n/a Neighborhood Commercial n/a 4.1 per 1,000 sqft n/a Commercial Lodge n/a 3.2 per 1,000 sqft n/a Zone Average 4.1 per 1,000 sqft 4.7 per 1,000 sqft 0.6 per 1,000 sqft Lodge Preservation 0.3 per room 0.3 per room 0.0 per room Hotel/Lodge 0.5 per room 0.6 per room 0.1 per room Mixed-Use 3.7 per 1,000 sqft 3.6 per 1,000 sqft -0.1 per 1,000 sqft Public 3.9 per 1,000 sqft 5.1 per 1,000 sqft 1.2 per 1,000 sqft Service/Commercial/ Industrial 3.5 per 1,000 sqft 3.9 per 1,000 sqft 0.4 per 1,000 sqft Source:Econorrc&Planning Systems k\123053-Aspen Employee Generation Study\Data\Survey Design\[123053-Swey-012913.xlsmlt3-Rates by Zone 123053-DR-021313 o Memorandum February 13, 2013 Employment Generation Rates Page 8 Comparable Community Implementation Issues This section provides a general overview of several comparable mountain communities' commercial linkage implementation programs. Specifically, EPS tried to more clearly understand if these programs supply employee housing units required by the mitigation programs on-site, off-site, or whether developers often pay fees-in-lieu. In addition, of the off-site units being built, are they concentrated in just a few areas of the community or are they relatively dispersed? How does the community react to this? Finally, we asked whether each community has plans to significantly revise its commercial linkage program in the near future. For comparison purposes, the following Table 3 shows the employee generation rates by business type for a selection of comparable resort communities, including all communities that RRC Associates has surveyed between 1990 and 2010. Among the various uses, there is a wide variation in real estate rates, mostly the result of the year those generation rates were sampled (i.e., Eagle County's rate was more than 10 FTEs per thousand square feet in 2007, the height of the housing bubble). Table 3 Comparable Community Generation Rates City of Aspen Employee Generation Study All RRC Communities Teton County Eagle County San Miguel Aspen(2012) (1990-2010) (2006) (2007) County(2010) Business Type Office-Business/Professional 3.6 3.3 3.0 4.8 2.0 Office-Nonprofit/Civic 3.9 1.6 3.4 0.9 2.2 Real Estate 4.1 4.4 6.3 10.6 1.6 Restaurant/Bar 9.9 6.5 9.8 10.1 5.9 Retail 2.7 2.5 2.0 2.5 1.6 SeMces 4.3 1.7 1.6 2.0 1.5 Hotel 0_5 0_6 0_5 1_2 0_8 Overall 4.4 N/A N/A N/A N/A Source:RRC Associates;Economc&Fanning Systems H:\123053-Aspen Ei I,ye Generation StWy\Data\Sv yDesign\[123053-Survey-012913Asm]C,mpCortmurt- 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 9 Telluride The Town of Telluride is relatively successful in having employee housing units generated by its commercial linkage program built on-site. Several factors contribute to this success, including a code that makes it much more complicated to build such units off-site. Table 4 Town of Telluride Generation Rates City of Aspen Employee Generation Study Town of Telluride Employee Generation Rate Business Type Commercial/Public facility Uses 4.5 employees per 1,000 s.f.of Net Floor Area Hotels and Accomodations Uses 0.33 employees per unit Multi-family Dwelling and Mixed Use Residential 0.33 employees per dwelling unit One and Two-family Dwellings 0.07(e)(0.000322 X Gross SQFT) Source:Tow n of Telluride;Economic&Planning Systems HA 123053-Aspen Eoplo yee General ion Study\Data\Co ap prog spar earchq Enp loyee Gi—Ed ion Rate Inplen station Prog rans.xlsx)t2-Tdluide The Town's Land Use Code requires more burdensome guidelines for building employee units off- site, and in addition, developers often encounter unfriendly Home Owners Associations which must approve such units within their developments. Town zoning always allows for mixed use development; while the first 35 vertical feet has to be pure commercial use in certain zones, upper floors can always be used for residential, allowing developers to more easily include the required employee units on-site. In addition, commercial developers can only "buy out" of 10 percent of their total mitigation requirements or when the mitigation calls for less than the required minimum 500 square feet per employee unit, further encouraging the building of on- site units. Off-site units built or provided by developers tend to be scattered throughout the town, while the units built using the town's housing fund are more concentrated in a few developments, mostly toward the western end of town. In general the location and level of concentration of affordable units are not viewed as a problem by the community. In general, Telluride believes its commercial linkage program is working well and meeting its goals, although there is a slight imbalance between affordable units for sale (which are often not being purchased) and available affordable units for rent (which are very scarce). There are no plans to significantly modify the program in the near future. The Town of Telluride currently mitigates commercial and hotel uses consistently at 40 percent of the employee generation rate. San Miguel County The commercial linkage program in San Miguel County was last updated in 2012 and requires that 15 percent mitigation of the employee generation across all use categories. In spite of differentiable use categories, San Miguel County's generation rates are consistent across uses. 123053-DR-021313 a Memorandum February 13, 2013 Employment Generation Rates Page 10 Table 5 San Miguel County Generation Rates City of Aspen Employee Generation Study San Miguel County Employee Generation Rate Busi ne ss Type Office 3 per 1,000 square feet Restaurant 3 per 1,000 square feet Retail 3 per 1,000 square feet Hotel 1.5 per unit Source:San Niguel County;Economic&Ranning Systems H\43053-Aspen Er ployee Generation St W y\Dal a\Corp prograre research\[Enployee Generation Rate Irrplemat at ion Pro9raos.xlsx]t3-SM C The County also has a separate employee impact fee for residential construction jobs (based on floor area) as well as for construction employment. Vail The Town of Vail's employee housing mitigation program was established in 2007 and requires that at least 50 percent of employee housing mitigation be provided on-site unless the developer provides sufficient evidence that such units are not possible. The regulations governing such exemptions were modified somewhat in 2008 in response to the economic downturn which has limited commercial development in Vail over the past five years. To the extent that development has occurred, however, this basic requirement has been very successful, although there is a clear distinction between the types of development where on-site mitigation happens. Hotels provide almost all of their required mitigation on-site, while commercial/retail projects generally provide almost all required units off-site. Table 6 Town of Vail Generation Rates City of Aspen Employee Generation Study Town of Vail Employee Generation Rate Business Type Accomodation unit/limited service lodge unit 0.7 employee per unit Business office and professional office(excluding real estate office) 3.2 employees Conference facility 0.8 employee Eating and Drinking establishment 6.75 employees Health Club 0.96 employee Real estate office 5.1 employees Retail store/personal service/repair shop 2.4 employees Spa 2.1 employees Source:Tow n of Vail;Econorrc&Ranning Systems H\43053-Aspen Enptoyee Generation Study\Data\Cor p prograns reseach[Er ployee Generation Rate Irrplenwtation Progrars xlsx]11-Vail 123053-DR-021313 • o Memorandum February 13, 2013 Employment Generation Rates Page 11 Because the Town of Vail is almost completely built out, there are nearly no available sites for building off-site units. Instead, developers purchase individual condominiums which are then designated as deed-restricted employee housing. These tend to be concentrated in several condominium associations in West Vail. This concentration is generally not viewed as a problem by the community, as many of these buildings have long been employee housing. Thus, new affordable units represent a continuation of current use rather than a noticeable change in use. In general, Vail's commercial linkage and employee housing mitigation programs are not likely to change significantly in the near future. Two issues that might soon be addressed relate to balancing business needs (lowering development costs) against community needs (providing ample affordable housing), and the concern that the on-site requirement provides only the smallest type of housing units (often dormitory in nature), and fails to create more family- oriented units in the valley. The Town of Vail currently requires a consistent mitigation rate of 20 percent of employees generated by all types of uses. Steamboat Springs The Town of Steamboat Springs is illustrative of the challenges faced by mountain communities when balancing the needs of affordable housing options with economic vitality. The town implemented its first commercial linkage program in the mid-2000s, only to remove the program in the face of the economic crisis in 2008. The town council and planning leadership decided that the additional burdens such a program placed on developers and businesses impeded growth and negatively impacted the business climate. Due to the limited duration of the program's existence, town planners say it is difficult to ascertain whether the program would have successfully generated the levels of affordable housing needed in Steamboat. Given the still struggling economy and changes in the town council, there are no immediate plans to revive the program. 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 12 Trends & Issues This section provides additional contextual information about the City of Aspen's employment trends, as well as issues cited by businesses surveyed. Employment Trends Figure 7 illustrates the trend in wage and salary jobs for the City as well as number of establishments. Between 2002 and 2007, the increase in jobs outpaced the growth in establishments, implying more intense use of space (i.e., possibly higher employee generation rates than represented by the 2002 or 2012 survey data). The growth in employment was largely attributable to the increase of jobs in the office professional businesses, as shown in the Appendix Table Al. From the onset of the recession in 2007, employment fell more considerably than the number of establishments, bringing the two metrics in line proportionally, implying a rebalance of employment intensity per establishment. (It should be noted here that CDLE does not report on floor area of establishment.) Figure 7 Wage&Salary Job Trends Employee Generation Study 14,000 ------------------------------ -------------- 2,000 iiiiiiiiiiiiii.lobs ---Establishments 13,000 -------- ------- - --------------- 1,800 7%over 2001 12,000 - _. _.------------------------------------- -- --- 1,600 11,000 ------ ---------- + _ -- Jobs 10,000 ------ 1,200 Establishments ------- - - -- -- -- -- -- -- - 9,000 - -- -- -- -- -- - -- - -- -- - 1,000 8,000 - -- -- - -- -- -- -- -- - -- - 800 71000 - -- -- - -- -- - -- -- -- -- - 600 6,000 400 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 y Source:CDLE,Quarterly Census of Employment&Wages;Economic&Planning Systems Projection of Employment Employers were asked whether they planned to increase or decrease their workforce for next year or hold it constant. The net effect of those changes is illustrated in Figure S. Hotels and services indicated their intent to increase their workforces by approximately 16 percent in the following year, followed by real estate and business professional office users at approximately 8 percent. Nonprofits indicated they would increase jobs by approximately 2 percent, but retail and restaurants planned for no net change. 123053-DR-021313 o Memorandum February 13, 2013 Employment Generation Rates Page 13 Ninety of the 128 businesses responded that they planned to either reduce or increase their staffing level in the next year. The numbers shown are the anticipated net percent increases to staffing levels. Neither retailers nor restaurant owners gave indications they would hire or eliminate staff over the next year, thus their absence from the reporting. These industries are highly dependent on the growth and demand from other sectors of the economy. It should also be noted that the estimated increase in hotel staffing level for next year (15.4 percent) is primarily the result of a large increase in employment at the Hotel Jerome as a result of its remodel. Figure 8 Anticipated Staffing Change Employee Generation Study ■Services 8.6% ■Real Estate &will ■Office-Nonprofit/Civic ■Office-Business/Professional ■Hotel 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source:Economic&Planning Systems Employers were also asked whether they considered the availability of housing to be an impediment to hiring qualified staff. Interestingly, in 2002 more than half of businesses (54 percent) indicated that it was a major concern versus just 28 percent. Still, 24 percent viewed it then and now as a minor concern, but nearly half do not see it now as an issue today. Table 7 Impact of Housing on Ability to Hire City of Aspen Employee Generation Study Housing Availability as Problem Major Minor Concern Concern Not an Issue n= Busi ne ss Type Hotel 67% 0% 33% 6 Office-Business/ Professional 26% 32% 42% 19 Office-Nonprofit/Civic 25% 0% 75% 4 Real Estate 25% 38% 38% 8 Restaurant/Bar 33% 25% 42% 12 Retail 22% 17% 61% 23 Services 24% 29% 47% 17 Total 28% 24% 48% 89 in 2002 54% 22% 23% 81 Source:Economic&Planning Systems 1-h 123053-Aspen Employee Generation St Lid y\Dat a\Survey Design\[123053-Survey-04913.xlsm]t4-1-lousing Avail 123053-DR-021313 Memorandum February 13,2013 Employment Generation Rates Page 14 Implementation Based on these considerations, it is recommended that the City of Aspen to continue with the current system of requiring mitigation at time of development approval, using the updated generation rate data. This recommendation is based on the following considerations. • Use vs. Zone District: EPS recommends that the City continue to estimate employee generation on the basis of zone district as opposed to business type. Changing the administration of the program to mitigate on the basis of business type would require a complex administrative effort. • Mitigation Rate: It is recommended that the City of Aspen maintain a consistent mitigation requirement across all zone districts. Comparable communities, such as San Miguel County, the Town of Telluride, and the Town of Vail also maintain consistent mitigation rates across various commercial uses. Based on the evolution of local business activity over the past decade, average employee generation rates have increased by 12 percent. Accordingly, it is recommended that the City keep its standard current with business practices and increase its rates to reflect changes over the past decade. • Reduction for Upper Floor/Basement: EPS also recommends that the City maintains its current policy of giving a 25 percent reduction in the employee generation rate for uses in either an upper or lower floor. 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 15 Appendix Survey Instrument 9 Employer Survey—September 2012 1. Name of business: 7. For a typical week during the LOW season,how many employees do you have? 7_7 Full-Time Hours per Week #Employees Equivalent 15—25 hours 0.5 2. Type of business: 35-45 hours 1.0 7 Retail 55♦hours 1.5 Lj Off ice—Business/Professional ❑Office—Non-Profit/Civic Use 8. To what degree does housing availability affect your ability to ❑Real Estate hire a qualified staff? O Restaurant/Bar i 1 Not an issue Hotel&Lodge LJ A MINOR factor ❑Services(Repair,Personal,Business,etc.) U A MAJOR factor Q Other: 9. How does the number of employees you have today compare to the number of employees you had 5 YEARS AGO? 3. Floor level: I I MORE employees Approx.#: I —d LJ Basement/Lower Level U FEWER employees Approx.#: U Street Level LJ No change U 2"Floor or Higher ❑N/A—Not in business 5 years ago 4. flow long has this business been operating in Aspen? 10. If you have changed the number of employees,please choose the ONE main reason why there has been a change. ❑Less than 2 years ❑2 to 5 years ❑Fewer customers/reduction in sales/less business 115 to 30 years ❑Reduced the size of space in which you do business 71 10 to 20 years El Increased the size of space in which you do e rl More than 20 years (7 More employees in the same space U Other:(Please describe below) 5. Size of commercial space occupied: #Stores/Locat ions in Aspen Leasable SQFT 11. During the next year,will the number of person you employ... Gross SOFT ❑Stay the same Cl Increase Approx. #: #Rooms rF Hotel/Lodging/etc. ❑Decrease Approx.#: 6. For a typical week during the HIGH season,how many 12. Contact Information? employees do you have? Full-Time Contact Person: Hours per Week #Employees Equivalent Phone#: 15—25 hours 0.5 35—45 hours 1.0 Fax#: 55 a hours 1.5 Physical Address: 123053-DR-021313 Memorandum February 13, 2013 Employment Generation Rates Page 16 Table Al Employment Trends by Industry, 2000-2011 City of Aspen Employee Generation Study 2001-2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total Ann.#Ann.% Business Type Hotel/Lodge 918 856 1,453 1,372 1,495 1,402 1,523 1,366 1,346 1,194 1,187 269 27 2.6% Ofice-Business,Professional 1,590 1,219 1,692 2,086 2,480 2,671 3,152 2,802 2,074 1,918 1,905 315 32 1.8% Office-Nonprofit,Civic 1,236 1,248 1,309 1,279 1,265 1,278 1,367 1,368 1,459 1,520 1,463 227 23 1.7% Real Estate 994 820 823 888 1,043 1,122 1,075 1,224 1,000 917 848 -146 -15 -1.6% Restaurant,Bar 1,598 1,540 1,684 1,666 1,701 1,690 1,700 1,755 1,660 1,814 1,752 155 15 0.9% Retail 1,062 1,027 1,088 1,232 1,191 1,206 1,227 1,180 1,060 914 937 -124 -12 -1.2% Services 2,226 2,116 2,183 2,368 2,479 2,355 2,433 2,450 2,278 2,105 2,169 -57 -0 -0.3% Other 172 180 187 199 206 205 231 230 246 232 231 59 6 3.0% Total 9,796 9,006 10,419 11,090 11,860 11,930 12,709 12,375 11,123 10,614 10,493 697 70 0.7% Source:CDLE,oCEW;Economic&Planning Systems k\Q3M-Aspen Employee Ga,era-$tWy\Dale\[Q3M-A,pa CEW.1-J M1ee13 123053-DR-021313 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E),ASPEN LAND USE CODE ADDRESS OF PROPERTY: _ ,Aspen, CO SCHEDULED P BLIC HEARING DATE: 20 STATE OF COLORADO ) } ss. County of Pitkin ) (name, please print) being or representing an Applicant to the City of Aspen, Colorado, hereby personally certify that T have complied with the public notice requirements of Section 26.304.060 (E- /) of the Aspen Land Use Code in the following manner: U Publication of notice: By the publication in the legal notice section of an official paper or a paper of general circulation in the City of Aspen at least fifteen (15) days prior to the public hearing. A copy of the publication is attached hereto. Posting of notice: By posting of notice,which form was obtained from the Community Development Department, which was made of suitable, waterproof materials, which was not less than twenty-two (22) inches wide and twenty-six (26) inches high, and which was composed of letters not less than one inch in height. Said notice was posted at least fifteen(15) days prior to the public hearing and was continuously visible from the_day of , 20_, to and including the date and time of the public hearing. A photograph of the posted notice (sign) is attached hereto. Mailing of notice. By the mailing of a notice obtained from the Community Development Department, which contains the information described in Section 26.304.060(E)(2) of the Aspen Land Use Code. At least fifteen (15) days prior to the public hearing, notice was hand delivered or mailed by first class postage prepaid U.S. mail to all owners of property within three hundred (300) feet of the property subject to the development application. The names and addresses of property owners shall be those on the current tax records of Pitkin County as they appeared no more than sixty (60) days prior to the date of the public hearing. A copy of the owners and governmental agencies so noticed is attached hereto. (Continued on next page) V • 0 Rezoning or text amendment: Whenever the official zoning district map is in any way to be changed or amended incidental to or as part of a general revision of this Title, or whenever the text of this Title is to be amended, whether such revision be made by repeal of this Title and enactment of a new land use regulation, or otherwise,the requirement of an accurate survey map or other sufficient legal description of, and the notice to and listing of names and addresses of owners of real property in the area of the proposed change shall be waived. However,the proposed zoning map shall be available for public inspection in the planning agency during all business hours for fifteen (15) days prior to the public hearing on such amendments. Signature The foregoing "Affidavit of Notice"was acknowledged before me this day of T , 20[3 by PUBLIC-14 OTICE RE: AMENDMENT TO THE CITY OF ASPEN LAND USE CODE NOTICE IS HEREBY GIVEN that a public hearing WITNESS MY HAND AND OFFICIAL SEAL will be held on Monday,February 25,2013,at a meeting to begin at 5:00 p.m.before the Aspen City Council,Council Chambers,City Hall,130 S. Galena St.,Aspen,to consider an amendment to my co 'ssion.expires: �Z cl Z.Q the text of the Land Use Code. The amendment would update the employee generation figures in the Growth Management Quota System and elimi- nate the"double dip.'mitigation provision. For fur- ther information,contact Jessica Garrow at the City of Asppen Community Development Department, 130 S.Galena St.,Aspen,CO,(970)429-2780, iesstca garrow@ci.aspen.co.us. Notary Public. st Michael Ireland.Mavor Y P Aspen City Council U Published in the Aspen Times Weekly on February •• '• 7,2013. [8874672] i• e LINDA M. 42 ASPEN TIMES WEEKLY a MANNING ATTACHMENTS AS APPLICABLE: `�� •., * COPY OF THE PUBLICATION CCU * PHOTOGRAPH OF THE POSTED NOTICE (SIGN) MY CannpWn Expaes 0312912014 * LIST OF THE OWNERS AND GOVERNMENT AGENGIES NOTIED BY MAIL * APPLICANT CERTICICATION OF MINERAL ESTATE OWNERS NOTICE AS REQUIRED BY C.R.S. §24-65.5-103.3 MEMORANDUM TO: Mayor and City Council FROM: Jessica Garrow, Long Range Planner THRU: Chris Bendon, Community Development Director(4m RE: Employee Generation and Double Dip Code Amendment Ordinance_, Series of 2013, First Reading DATE OF MEMO: January 30, 2013 MEETING DATE: February 11, 2013 SUMMARY: The attached Ordinance includes proposed code amendments to the employee generation figures in the Growth Management Section of the Land Use Code, as well as the "double dip" provision in Growth Management that allows a developer to mitigate for only the largest of multiple affordable housing mitigation requirements if that mitigation is in the form of on-site units. The objective of the proposed code amendments is to update the employee generation figures since the 2002 study and to require affordable housing mitigation more closely related to the actual impact. STAFF RECOMMENDATION: Staff recommends approval of the proposed Ordinance. LAND USE REQUESTS AND REVIEW PROCEDURES: This is the 1St reading of proposed code amendments to update the Employee Generation figures in the land use code and to eliminate the "double dip" mitigation provision. Pursuant to Land Use Code Section 26.310, City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the second step in the process: 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should the pursued 3. Public Hearings on Ordinance outlining specific code amendments. BACKGROUND&OVERVIEW: Employee Generation Figures: The Land Use Code includes employee generation figures for commercial, lodging, and public uses. These figures are based on a 2002 survey of employers. Staff has worked with land use consultant Economic Planning Systems (EPS) to conduct an update to this study, which reflects the changed employment patterns since 2002. Staff presented the preliminary draft to City Council at the December I Ph work session, and received direction to move forward with the code amendment. 2.11.2013—First Reading Employee Generation Code Amendment Page 1 of 3 EPS and city staff surveyed 128 managers and owners of local businesses and lodges during late September and early January. The businesses and lodges surveyed represent a statistically valid sample of business from the following categories: Hotel, Business/Professional Office, Non- profit Office, Real Estate, Restaurant/Bar, Retail, and Services. Using that information, as well as business license records and employment data from the State, EPS was able to provide updated employee generation figures. Based on the study, there have been minor fluctuations in all land uses, which is to be expected over a 10 year period. The table below outlines those changes. The entire report is attached as Exhibit C. Generation Rates by Zone District City of Aspen Employee Generation Study 2002 2012 Change Zone District Commercial n/a 4.5 per 1,000 sqft n/a Commercial Core n/a 4.9 per 1,000 sqft rda Neighborhood Commercial n/a 4.1 per 1.000 sqft n/a Commercial Lodge n/a 3.2 per 1,000 sgft n/a Zone Average 4.1 per 1,000 sqft 4.7 per 1,000 sqft 0.6 per 1,000 sqft Lodge Preservation 0.3 per roan 0.3 per room 0.0 per room Hotel/Lodge 0.5 per roan 0.6 per roan 0.1 per roan Mixed-Use 3.7 per 1,000 sqft 3.6 per 1,000 sgft -0.1 per 1,000 sgft Public 3.9 per 1,000 sqft 5.1 per 1,000 sgft 1.2 per 1,000 sgft Senice/Commercial/kdustrial 3.5 per 1,0D0 sgft 3.9 per 1,000 sqft 0.4 per 1,000 so Source:Ecorwrk S Pbrw#N Systems It is important to note that the land use code currently aggregates all similar businesses into general land use categories for purposes of mitigation and impacts fees — for instance, retail, restaurant, and galleries are all considered "commercial uses," and a small lodge and a large lodge are both considered "lodge uses." The generation rates are then based on geographic areas, with different generation rates in the downtown, SCI zone, and on Main Street (Mixed Use Zone). This standardization ensures that all businesses within specific geographic areas are treated fairly, and that the city is not in a position to require affordable housing mitigation every time a tenant changes in a particular space. "Double dip" provision: In addition to updating the commercial and lodge employee generation figures, the proposed code amendment would eliminate the "double dip" provision of growth management. The provision allows a development to only meet the larger of multiple affordable housing requirements when providing on-site affordable housing mitigation. This provision has been in the Land Use Code for approximately ten (10) years, and was originally added, in part, to encourage redevelopment after a period of little re-investment in the downtown. STAFF RECOMMENDATION: Staff recommends adoption of the attached Ordinance. 2.11.2013—First Reading Employee Generation Code Amendment Page 2 of 3 RECOMMENDED MOTION(ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): "I move to approve Ordinance No. , Series of 2013, approving amendments related to the employee generation figures and the "double dip" mitigation provision in the Growth Management Chapter of the Land Use Code." CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A— Staff Findings Exhibit B— Proposed Employee Generation and "double dip" Code Amendment Language Exhibit C— Approved Policy Resolution 104, Series 2013 Exhibit D— Employee Generation Study 2.11.2013—First Reading Employee Generation Code Amendment Page 3 of 3 o ORDINANCE No. (Series of 2013) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING AN AMENDMNET TO THE CITY OF ASPEN LAND USE CODE OF THE CITY OF ASPEN MUNICIPAL CODE SECTION 26.470.100—GROWTH MANAGEMENT QUOTA SYSTEM - CALCULATIONS. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to explore code amendments related to the Employee Generation figures and the "double dip" employee mitigation provision in the Growth Management Chapter of the Land Use Code; and, WHEREAS,pursuant to Section 26.310, applications to amend the text of Title 26 of the Municipal Code shall begin with Public Outreach, a Policy Resolution reviewed and acted on by City Council, and then final action by City Council after reviewing and considering the recommendation from the Community Development; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2013, the City Council approved Resolution No.15, Series of 2013,by a five to zero (5 —0)vote,requesting code amendments to the employee generation figures in the Land Use Code; and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on August 27, 2012, the City Council approved Resolution No. 28, Series of 2012, by a three to two (3 —2) vote, requesting code amendments to the "double dip"employee mitigation provision in the Land Use Code; and, WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code Sections 26.470.100 — Growth Management Quota System - Calculations; and, WHEREAS, the Aspen City Council has reviewed the proposed code amendments and finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310.050; and, WHEREAS,the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT: Section 1: Sec. 26.470.100(A), Growth Management Quota System - Calculations, shall be City Council Ord#_of 2013 Growth Management Code Amendments Page 1 of 4 amended as follows: A. Employee generation and mitigation. Whenever employee housing or cash-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee Y generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. 9 1. Employe generation. The following employee generation rates are the result of the 9 Employee Generation Study, an analysis sponsored by the City during the fall and winter of 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space Commercial Core (CC) 4.7 Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge (L) commercial space Lodge Preservation (LP) commercial space Lodge Overlay (LO) commercial space Ski Base (SKI) commercials ace Mixed-Use (MU) 3.6 Service Commercial Industrial (S/C/I) 3.9 Publics 5.1 Lodge Preservation(LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski .6 per lodging bedroom Base (SKI) and other zone district lodge units For the Public Zone,the study evaluated only office-type public uses,and this number should not be considered typical for other non-office public facilities. Hence, each Essential Public Facility proposal shall be evaluated for actual employee generation. This Employee Generation Rate Schedule shall be used to determine employee generation of projects within the City. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced City Council Ord#_of 2013 Growth Management Code Amendments Page 2 of 4 by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. Applicants may request an employee generation review with the Planning and Zoning Commission, pursuant to Section 26.470.110, Growth management review procedures, and according to the following criteria. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation. In establishing employee generation, the Planning and Zoning Commission shall consider the following: a) The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort economy. b) Any unique employment characteristics of the operation. c) The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. d) A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. e) Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. f) For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. [Sections 2-5 are Not Changed] 6. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, four(4) affordable housing units are required. Section 7: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. City Council Ord#_of 2013 Growth Management Code Amendments Page 3 of 4 Section 8: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 9: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty(30) days following final passage. Section 10: A public hearing on this ordinance shall be held on the 25h day of February, 2013, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED,READ AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the day of , 2013. Attest: Kathryn S. Koch, City Clerk Michael C. Ireland,Mayor FINALLY, adopted,passed and approved this_day of ,2013. Attest: Kathryn S. Koch, City Clerk Michael C. Ireland,Mayor Approved as to form: City Attorney City Council Ord#_of 2013 Growth Management Code Amendments Page 4 of 4 0 Exhibit A: Staff Findings 26.310.050 Amendments to the Land Use Code Standards of review -Adoption. In reviewing an application to amend the text of this Title, per Section 26.310.020(B)(3), Step Three—Public Hearing before City Council,the City Council shall consider: A. Whether the proposed amendment is in conflict with any applicable portions of this Title. Staff Findings: The proposed code amendment is consistent with the Land Use Code. It updates a code section that is already in place. Staff finds this criterion to be met. B. Whether the proposed amendment achieves the policy, community goal, or objective cited as reasons for the code amendment or achieves other public policy objectives. Staff Findings: Earlier this year, City Council identified a number of AACP implementation priorities. One of the top priorities was updating the ten-year old study of employee generation figures. The last study was completed in 2002, and this update ensures the employee generation numbers in the land use code account for the changes and fluctuations in the market since then. Staff finds this criterion to be met. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of this Title. Staff Findings: The intent of the proposed amendment is to ensure a predictable and fair review of land use applications. Staff finds this criterion to be met. 11.12.2012 Downtown Zoning I"Reading;Exhibit A Page 1 of 1 • � �Xhibi t� Chapter 26.470 GROWTH MANAGEMENT QUOTA SYSTEM (GMQS) Sections: Sec. 26.470.100. Calculations. 26.470.100. Calculations. A. Employee generation and mitigation. Whenever employee housing or cash-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. 1. Employee generation. The following employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the stiffifnef and fall and winter of 2002 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space Commercial Core (CC) 444_7 Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge(L) commercial space Lodge Preservation(LP) commercial space Lodge Overlay(LO) commercial space Ski Base(SKI) commercials ace Mixed-Use MU 343.6 Service Commercial Industrial S/C/I 143.9 Publics 3-.95.1 Lodge Preservation (LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski 3.6 per lodging bedroom Base (SKI) and other zone district lodge units For the Public Zone,the study evaluated only office-type public uses,and this number should not be considered typical for other non-office public facilities. Hence, City of Aspen Land Use Code Part 400—GMQS Page 1 Employees Generated per 1,000 Square Feet of Net Zone District Leasable Space each Essential Public Facility proposal shall be evaluated for actual employee generation. This Employee Generation Rate Schedule shall be used to determine employee generation of projects within the City. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. Applicants may request an employee generation review with the Planning and Zoning Commission, pursuant to Section 26.470.110, Growth management review procedures, and according to the following criteria. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation. In establishing employee generation, the Planning and Zoning Commission shall consider the following: a) The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort economy. b) Any unique employment characteristics of the operation. c) The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. d) A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. e) Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. f) For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. [Sections 2-5 are Not Changed] City of Aspen Land Use Code Part 400—GMQS Page 2 6. On site L,,,,,sing sefyes No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required each housing requirement shall be met. Whey e er of efdable h * ° ided en sit-e 7`_,.:.1, aetual nits) erdef to satisfy 1) fe`7�°��° s ° t ff- a >^7 hattsi also be used to -safi1sf�, any ottier aff-er-dable heusi... gmrcrrccrrt eenetiffently. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, pfeviding twofour (24) on site affordable housing units shall satis6,beth r° eats ° end are required. payment Whenevef r-equifed a&fdable hatising is pfavided by means other-than an site pr-ovisiefl-, 1, � h 11 a• 'a 1 � , or- -iir-rreH-�I3L''�['6r,-�rrfrrrircC-�Li�E6irJCCistl�`el�t6� provision ° City of Aspen Land Use Code Part 400—GMQS Page 3 xhA0 C� RESOLUTION N0. 15, (SERIES OF 2013) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL REQUESTING CODE AMENDMENTS TO THE EMPLOYEE GENERATION FIGURES IN THE LAND USE CODE. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City Council to explore code amendments related to the Employee Generation figures in the Growth Management Chapter of the Land Use Code; and, WHEREAS,pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, the Community Development Director recommended the Employee Generation figures in Growth Management be updated from the 2002 employee generation study;and, WHEREAS, City Council has reviewed the proposed code amendment policy direction,and finds it meets the criteria outlined in Section 26.310.040;and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2013, the City Council approved Resolution No.15, Series of 2013, by a five to zero (5 — 0) vote, requesting code amendments to the employee generation figures in the Land Use Code; and, WHEREAS, this Resolution does not amend the Land Use Code, but provides direction to staff for amending the Land Use Code; and, WHEREAS, the City Council finds that this Resolution furthers and is necessary for the promotion of public health,safety, and welfare. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN AS FOLLOWS: Section 1: Code Amendment Obiective The objective of the proposed code amendments is to update the employee generation figures in the Land Use Code to ensure they reflect current employment patterns. Section 2: This resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances Resolution No 15,Series 2013 Page ! of 2 0 repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. . . . . Section 3• If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. FINALLY,adopted this 28th day of January 2013. /-3a-2'oi3 Michael t freland,Mayor ATTEST: APPROVED AS TO FORM: Kathryn S och,City Clerk James R True,City Attorney Resolution No 15,Series 2013 Page 2 of 2 • � �Xl�iloa-t � DRAFT MEMORANDUM To: Jessica Garrow, City of Aspen Long Range Planner From: David Schwartz and Andy Knudtsen, Economic & Planning Systems Subject: Employment Generation Rate Updates Date: February 1, 2013 The.Econontirs of f and ! Background The City of Aspen contracted with Economic & Planning Systems (EPS) to update its 2002 employee generation rates for its Growth Management Quota System (GMQS). In addition to a need for updated rates, economic volatility during the last decade, such as the housing and financial crisis, contributed to substantial employment shifts in the City and raised further questions regarding the applicability of the 2002 rates. Maintaining effective housing policy solutions continues to be a critical component of Aspen's long-range planning efforts. The results of this analysis will be used to update development code standards in the GMQS with current employee generation rates. The timing of this effort allows for an update to the rates as well as a brief examination of the underlying trends. This memorandum is divided into four parts including: survey methodology, updated employment generation rates, comparable community implementation issues, and underlying trends. Methodology Economic&Planning Systems,Inc. The 2002 employee generation rates were estimated using information 730 17th Street,Suite 630 Denver, co 80202-3511 collected through a survey of 82 local businesses. An objective of this 303 623 3557 tel update was to obtain an equal or greater number of responses in a 303 623 9049 fax survey of local businesses. There was also a need to survey a sample of Berkeley businesses not only representative of existing commercial uses, but of Denver those most likely to be included in redevelopment proposals. Los Angeles Sacramento www.epsys.com Revised Memorandum February 1, 2013 Employment Generation Rates Page 2 In September 2012, EPS and City of Aspen staff surveyed 111 businesses and an additional 17 businesses in January 2013 (totaling 128 businesses). The survey sample represents an estimated 1,375 seasonally-adjusted jobs, as shown in Table 1, which accounts for approximately 13 percent of the City of Aspen's workforce. Some business types were oversampled, such as hotels, restaurants, and retail in the interest of capturing the widest range of staffing levels in industries with high seasonality. Table i Survey Sample Characteristics City of Aspen Employee Generation Study CDLE(2011) Survey(2012) as%of CDLE Establishments Jobs Establishments Jobs Est. Jobs See Note[1] See We[2] Business Type Hotel 28 2% 1,187 12% 11 9% 414 30% 39% 35% Office-Business/Professional 356 30% 1,905 19% 25 20% 212 15% 7% 11% Office-Nonprofit/Civic 29 2% 1,463 14% 6 5% 45 3% 21% 3% Real Estate 223 19% 848 8% 12 9% 89 6% 5% 10% Restaurant/Bar 101 8% 1,752 17% 16 13% 337 24% 16% 19% Retail 171 14% 937 9% 37 29% 160 12% 22% 17% SeMces 290 24% 22 169 211/6 21 161/6 118 99% 7°/ 55 Total 1,198 100%' 10,261 100% 128 100% 1,375 100% 11% 13% Note[t]:These are seasonally-adjusted Wage&Salary jobs as reported by the Bureau of Labor Statistics;EPS has categorized them by the Oty's land use groups. Note[2]:These job counts have been seasonally adjusted and are reported as totals of PT and FTjobs. Source:Colorado Department of Labor&6-Tployment;Economic&Ranning Systems H\43053-Aspen Emp1,,eGen ,,n Stwy�Date\Swvey Dev9n\I 123053-Swvey-0 29 t3.xlemjt l-Swvey Stars EPS and City staff conducted on-site interviews with managers or owners and asked a variety of questions regarding length of operation in the City, past, current, and planned staffing levels, and their perceptions on the extent that housing availability plays a role in hiring qualified staff. As shown in Figure 1, 45 percent of businesses surveyed have been in operation in Aspen for more than 20 years. (A copy of the survey instrument is included in the Appendix.) Figure 1 Survey Respondents,Years in Aspen Employee Generation Study 10% a Less than 2 years 2 to 5 years 18% 5 to 10 774 10 to 20 years in More than 20 years Source:Economic&Planning Systems The following map illustrates the location of businesses surveyed. Specific locations were targeted in the City to achieve desired response rates by business type and zone district. 123053-DR-012913 Figure 2 Businesses Surveyed by Zone District Employee Generation Study Sfh, lerSt - a� gib O P�PPV Smith Sr Gibso r i 7Q r St c ti A C i t of Aspen rA'y r st Halla h Mai St W Ble-ker W m lyain Aly E c Bl eker Aly qi o c c ° W in 2 Q E Bleeker St m �a'a Pie 9PCy aQ Bay St ti %Pki s tate 82 Ppi ePOf 2 W h °Akins qv e r 2 m r b E Mal, FO Bleeker St ti 4 H n ers Pl r Hymangve SHOP insgve I ly HwY8Z Q H Employee Generation * a�eW. ro e Study Update (2012) W COOPerAv e fi E FCoopergve YA/y Business Surveys NCoO ECOpPer Aergve E � h Zone District Tr1 E Cora t Aly —V Hy an E CooAer ql Yman Ave Qo C 8iners y 0 C-1 dg a cc f De Ct h C CO'Ped s, 0 CL Juan St H Av 0 L y nC 0 MU `Gilbert Alley NC Si c * �' E Durant Ave E Dora PUB nt Q �, Et)ean St Spark S St Q SCI t Dean St Employee Generation Businesses provided a breakdown of current staffing levels in part-time and full-time staff. The numbers were converted to full-time equivalents (FTE) to be consistent with the current GMQS. Rates by Business Type Businesses in Aspen generate an average of 4.4 FTEs per one thousand square feet, as shown in Figure 3. While shown in the chart, hotel uses are measured on a per-room basis, i.e. the rate shown means 0.5 FTEs per room. Among other business types, rates range from 2.7 FTEs (Retail) to 9.9 FTEs (Restaurant & Bar). The generation rate for hotel and lodge uses is 0.5 FTEs per room. Figure 3 Rates by Business Type Employee Generation Study Full-Time Equivalents per 1,000 square feet 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0 Office-Business/Professional Office-Nonprofit/Civic Real Estate Restaurant/Bar Retail Services Hotel[1] >' YI1 Overall[2] ISource:Economic&Planning Systems [Note 1]:The hotel generation rate is estimated on PER ROOM basis. [Note 2]:The overall average generation rate excludes hotels. These rates represent a slight increase over the rates estimated in 2002. As shown in Figure 4, the overall average increased 0.5 FTEs from 3.9 to 4.4 FTEs per thousand square feet. It is important to note that this does not indicate greater staffing levels; rather, more employees are being used in the same amount of space. Most noticeable are the changes to business/professional office uses, real estate, restaurant/bars, and services. Non-profit, retail, and hotel uses stayed fairly consistent with 2002 rates. Revised Memorandum February 1, 2013 Employment Generation Rates Page 5 Figure 4 Change in Rates by Business Type Employee Generation Study Full-Time Equivalents per 1,000 square feet -2.0 -1.0 0.0 1.0 2.0 3.0 Office-Business/Professional Office-Nonprofit/Civic Real Estate -1.9 Restaurant/Bar Retail 1 Services Hotel 0, Overall 1 Source:Economic&Planning Systems Seasonality Two factors contribute to variation in employee generation rates - seasonality and the level on which the business is located. The following illustration (Figure 5) is based on responses indicating staffing levels during high and low season. As with most resort-oriented economies, employment levels in the hospitality industry (hotels and lodges, as well as retailers, restaurants and bars) fluctuates greatly from high to low season. Figure 4 Seasonal Variations in Rates Employee Generation Study 14.0 ——-- ---------------- ■High Season ■Low Season 12.0 --------- — --------------------- --- - ---------- -------------------------------- 10.0 ------------------------------- Fulltime8.0 -------------------------------- ------------------------------------------- Equivalents per6.0 -------------------------------- ---- ---------------------------- 1,000 sqft 4.0 -------------------------------- ---- ------------------- ----------------- 2.0 ---------------- ----- ---- ---- -----it- Hotel 0.0 [3] Retail Restaurant/ Office- Office- Rea[Estate Services Bar Nonprofit/ Business/ Source:Economic&Planning Systems Civic Professional [Note 11:The employee generation rate for hotels is defined on a full-time equivalent"per room"basis. 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 6 Floor Level The City's GMQS currently allows for a 25 percent reduction in the employee generation number for a business located on either an upper level or the basement. The following illustrates the percent variation in rates for businesses located on either of these levels compared to the generation rates found in Figure 3. Overall, the generation rates of businesses on upper levels average 24 percent lower, while businesses operating on lower floors have rates 17 percent lower. In this analysis, businesses with operations solely in basement levels were grouped with businesses operating on the basement as well as street level (to preserve sample size). Businesses with operations on solely on an upper level were also grouped with those operating on street and upper levels. In some instances, the sample size was not large enough to determine a reliable percentage difference (e.g. non-profit uses on the basement level, or service uses on an upper level). Figure 5 Generation Rates by Floor Level Employee Generation Study -80% -60% -40% -20% 0% 20% 40•5/o 60% Office-Business/Professional -23% 539'0 Office-Nonprofit/Civic N/A -62 Real Estate 41% -1% Restaurant/Bar -26% Retail 6% -28% Services 0% N/A Total -17% -24% Source:Economic&Planning Systems Basement(and Street) Upper Levels(and Street) Rates by Zone District Updated rates by zone district for 2012 are shown below in Table 1 contrasted against the 2002 rates. Overall, there has been a slight increase in rates. In the City's GMQS, four zone districts are aggregated in a general commercial district (commercial, commercial core, neighborhood commercial, and commercial lodge), which generate an average of 4.1 FTEs per 1,000 square feet. Using 2012 employment information, the aggregation of these same zone district businesses yields an average of 4.7 FTEs per 1,000 square feet. 123053-DR-012913 to WO Revised Memorandum February 1, 2013 Employment Generation Rates Page 7 Two rates have changed slightly, including the hotel and lodge rate, as well as the Mixed-Use zone rate. The hotel and lodge rate has increased slightly to 0.6 FTEs per room, and the lodge preservation rate has stayed the same at 0.3 FTEs per room, but the mixed-use rate has dropped to 3.6 FTEs. Rates in the SCI (service, commercial, industrial) district have increased 0.4 to 3.9 FTEs, and the rate in public uses has increased 1.2 FTEs to 5.1 FTEs per thousand square-feet. Table 3 Generation Rates by Zone District City of Aspen Employee Generation Study 2002 2012 Change Zone District Commercial n/a 4.5 per 1,000 sqft n/a Commercial Core n/a 4.9 per 1,000 sqft n/a Neighborhood Commercial n/a 4.1 per 1,000 sqft n/a Commercial Lodge n/a 3.2 per 1,000 sqft n/a Zone Average 4.1 per 1,000 sqft 4.7 per 1,000 sqft 0.6 per 1,000 sqft Lodge Preservation 0.3 per room 0.3 per room 0.0 per room Hotel/ Lodge 0.5 per room 0.6 per room 0.1 per room Mixed-Use 3.7 per 1,000 sqft 3.6 per 1,000 sqft -0.1 per 1,000 sqft Public 3.9 per 1,000 sqft 5.1 per 1,000 sqft 1.2 per 1,000 sqft Service/Commercial/ Industrial 3.5 per 1,000 sqft 3.9 per 1,000 sqft 0.4 per 1,000 sqft Source:Econorrc&Planning Systems k\123051-Aspen Enployee Geruation St Lid y\Data\Survey Design\[123053-Swey-012913 Asm]t3-Rates by Zone 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 8 Comparable Community Implementation Issues This section provides a general overview of several comparable mountain communities' commercial linkage implementation programs. Specifically, EPS tried to more clearly understand if these programs supply employee housing units required by the mitigation programs on-site, off-site, or whether developers often pay fees-in-lieu. In addition, of the off-site units being built, are they concentrated in just a few areas of the community or are they relatively dispersed? How does the community react to this? Finally, we asked whether each community has plans to significantly revise its commercial linkage program in the near future. For comparison purposes, the following Table 2 shows the employee generation rates by business type for a selection of comparable resort communities, including all communities that RRC Associates has surveyed between 1990 and 2010. Among the various uses, there is a wide variation in real estate rates, mostly the result of the year those generation rates were sampled (i.e. Eagle County's rate was more than 10 FTEs per thousand square feet in 2007, the height of the housing bubble). Table 2 Comparable Community Generation Rates City of Aspen Employee Generation Study All RRC Communities Teton County Eagle County San Miguel Aspen(2012) (1990-2010) (2006) (2007) County(2010) Business Type Office-Business/Professional 3.6 3.3 3.0 4.8 2.0 Office-Nonprofit/Civic 3.9 1.6 3.4 0.9 2.2 Real Estate 4.1 4.4 6.3 10.6 1.6 Restaurant/Bar 9.9 6.5 9.8 10.1 5.9 Retail 2.7 2.5 2.0 2.5 1.6 Services 4.3 1.7 1.6 2.0 1.5 Hotel 0_5 0_6 0_5 1.2 0_8 Overall 4.4 N/A N/A N/A N/A Source:FRC Associates;Econorrc 8 Ranning Systems H1123053-A span Em1,yw Genctl Study\DatalSu yDmg,\i 113053-Survey-012913 x1,,]C,M C-t- 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 9 Telluride The Town of Telluride is relatively successful in having employee housing units generated by its commercial linkage program built on-site. Several factors contribute to this success, including a code that makes it much more complicated to build such units off-site. The Town's Land Use Code requires more Employee Generation Rate burdensome guidelines for Business Type building employee Commercial/Public facility Uses 4.5 employees per 1,000 s.f. of Net Floor Area Hotels and Accomodations Uses 0.33 employees per unit units off-site, and In Multi-family Dwelling and Mixed Use Residential 0.33 employees per dwelling unit addition, developers One and Two-family Dwellings 0.07(e)(0.000322 X Gros s SQFT) often encounter Source:Town of Telluride;Economic&Ranning Systems unfriendly Home 1-:023053-Aspen Employee Generation St dy\Data\Cony pro grans re—K[Enployee Generation Rate lrrylenenlat ion Rogn—xlsx]l2-Tell vide Owners Associations which must approve such units within their developments. Town zoning always allows for mixed use development; while the first 35 vertical feet has to be pure commercial use in certain zones, upper floors can always be used for residential, allowing developers to more easily include the required employee units on-site. In addition, commercial developers can only "buy out" of 10 percent of their total mitigation requirements or when the mitigation calls for less than the required minimum 500 square feet per employee unit, further encouraging the building of on-site units. Off-site units built or provided by developers tend to be scattered throughout the town, while the units built using the town's housing fund are more concentrated in a few developments, mostly toward the western end of town. In general the location and level of concentration of affordable units are not viewed as a problem by the community. In general, Telluride feels its commercial linkage program is working well and meeting its goals, although there is a slight imbalance between affordable units for sale (which are often not being purchased) and available affordable units for rent (which are very scarce). There are no plans to significantly modify the program in the near future. The Town of Telluride currently mitigates commercial and hotel uses consistently at 40 percent of the employee generation rate. San Miguel County The commercial linkage program in San Miguel County was last updated Employee Generation Rate in 2012, and requires that 15 percent mitigation of the Business Type Office 3 per 1,000 square feet employee generation across all use Restaurant 3 per 1,000 square feet categories. In spite of differentiable Retail 3 per 1,000 square feet use categories, San Miguel County's Hotel 1.5 per unit generation rates are consistent Source:San Mguel County;Economic&Ranning Systems across Uses. H:\123053-Aspen Enployee Gereration Study\Date\Corry progransresearcN[Env loyee Generat ton Rate lnplernentanon Pro The County also has a separate employee impact fee for residential construction jobs (based on floor area) as well as for construction employment. Information is still being collected on this program and may be supplemented for a final memorandum. 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 10 Vail The Town of Vail's employee housing mitigation program was established in 2007 and requires that at least 50 percent of employee housing mitigation be provided on-site unless the developer provides sufficient evidence that such units are not possible. The regulations governing such exemptions were modified somewhat in 2008 in response to the economic downturn which has limited commercial development in Vail over the past five years. To the extent that development has occurred, however, this basic requirement has been very successful, although there is a clear distinction between the types of development where on-site mitigation happens. Hotels provide almost all of their required mitigation on-site, while commercial/retail projects generally provide almost all required units off-site. Because the Town of Vail is almost completely built out, there are nearly no available sites for building off-site units. Instead, developers purchase individual condominiums which are then designated as deed-restricted employee housing. These tend to be concentrated in several condominium associations in West Vail. This concentration is generally not viewed as a problem by the community, as many of these buildings have long been employee housing. Thus, new affordable units represent a continuation of current use rather than a noticeable change in use. In general, Vail's commercial linkage Employee Generation Rate and employee housing mitigation programs are not Business Type Accomodation unit/limited service lodge unit 0.7 employee per unit likely to change Business office and professional office(excluding real estate office) 3.2 employees significantly in the Conference facility 0.8 employee near future. Two Eating and Drinking establishment 6.75 employees Health Club 0.96 employee issues that might Real estate office 5.1 employees soon be addressed Retail store/personal service/repair shop 2.4 employees relate to balancing Spa 2.1 employees business needs Source:Town of Vail;Econornic&Planning Systerns (lowering H1 43053-Aspen Errployee Generation Study\Data\Corp grograps rese [Employee Ge—atio n Rata In 1l rtation Prograpsxls]t 1-Veil development costs) against community needs (providing ample affordable housing), and the concern that the on-site requirement provides only the smallest type of housing units (often dormitory in nature), and fails to create more family-oriented units in the valley. The Town of Vail currently requires a consistent mitigation rate of 20 percent of employees generated by all types of uses. Steamboat Springs The Town of Steamboat Springs is illustrative of the challenges faced by mountain communities when balancing the needs of affordable housing options with economic vitality. The town implemented its first commercial linkage program in the mid-2000s, only to remove the program in the face of the economic crisis in 2008. The town council and planning leadership decided that the additional burdens such a program placed on developers and businesses impeded growth and negatively impacted the business climate. Due to the limited duration of the program's existence, town planners say it is difficult to ascertain whether the program would have successfully generated the levels of affordable housing needed in Steamboat. Given the still struggling economy and changes in the town council, there are no immediate plans to revive the program. 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 11 Trends & Issues This section provides additional contextual information about the City of Aspen's employment trends, as well as issues cited by businesses surveyed. Employment Trends The following chart illustrates the trend in wage and salary jobs for the City as well as number of establishments. Between 2002 and 2007, the increase in jobs outpaced the growth in establishments, implying more intense use of space (i.e. possibly higher employee generation rates than represented by the 2002 or 2012 survey data). The growth in employment was largely attributable to the increase of jobs in the office professional businesses, as shown in the Appendix Figure Al). From the onset of the recession in 2007, employment fell more considerably than the number of establishments, bringing the two metrics in line proportionally, implying a rebalance of employment intensity per establishment. (It should be noted here that CDLE does not report on floor area of establishment.) Figure 6 wage&Salary Job Trends Employee Generation Study 14,000 ---------------------------- 2,000 Iiiiiiiiiii�Jobs ---Establishments 13,000 -------------------------------------------------------- 1,800 7%over 2001 12,000 --------------------------------------------------- - 1,600 11,000 -------------------------- '" __ __ '- '-- 1,400 Jobs 10,000 1,200 Establishments 9,000 - -- - -- -- -- -- -- — -- -- - 1,000 8,000 - -- -- --- -- -- -- -- -- -- -- - 800 7,000 - -' -- -- -- -- -- -- '- -' '- - 600 6,000 400 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source:CDLE,Quarterly Census of Employment&Wages;Economic&Planning Systems Projection of Employment Employers were asked whether they planned to increase or decrease their workforce for next year or hold it constant. The net effect of those changes is illustrated in Figure 7. Hotels and services indicated their intent to increase their workforces by approximately 16 percent in the following year, followed by real estate and business professional office users at approximately 8 percent. Nonprofits indicated they would increase jobs by approximately 2 percent, but retail and restaurants planned for no net change. 123053-DR-012913 Revised Memorandum February 1, 2013 Employment Generation Rates Page 12 Ninety of the 128 businesses responded that they planned to either reduce or increase their staffing level in the next year. The numbers shown in Figure 7 are the anticipated net percent increases to staffing levels. Neither retailers nor restaurant owners gave indications they would hire or eliminate staff over the next year, thus their absence from the reporting. These industries are highly dependent on the growth and demand from other sectors of the economy. It should also be noted that the estimated increase in hotel staffing level for next year (15.4 percent) is primarily the result of a large increase in employment at the Hotel Jerome as a result of its expansion. Figure 7 Anticipated Staffing Change Employee Generation Study ®Services 8.6% [ I I i Real Estate 2.4% ■Office-Nonprofit/Civic 10.0% ■Office-Business/Professional ■Hotel 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% Source:Economic&Planning Systems Employers were also asked whether they considered the availability of housing to be an impediment to hiring qualified staff. Interestingly, in 2002 more than half of businesses (54 percent) indicated that it was a major concern versus just 28 percent. Still, 24 percent viewed it then and now as a minor concern, but nearly half do not see it now as an issue today. Table 4 Impact of Housing on Ability to Hire City of Aspen Employee Generation Study Housing Availability as Problem Major Minor Concern Concern Not an Issue n = Busi ness Type Hotel 67% 0% 33% 6 Office-Business/ Professional 26% 32% 42% 19 Office- Nonprofit/Civic 25% 0% 75% 4 Real Estate 25% 38% 38% 8 Restaurant/Bar 33% 25% 42% 12 Retail 22% 17% 61% 23 Services 24% 29% 47% 17 Tota 1 28% 24% 48% 89 in 2002 54% 22% 23% 81 Source:Economic&Planning Systems R\123053-Aspen Employee Generation Study\Data\Survey Design\[123053-Survey-O 12913.xism]t4-Housing Avail 123053-DR-012913 40 Revised Memorandum February 1, 2013 Employment Generation Rates Page 13 Implementation Based on these considerations, it is recommended that the City of Aspen to continue with the current system of requiring mitigation at time of development approval, using the updated generation rate data. This recommendation is based on the following considerations. • Use vs. Zone District: EPS recommends that the City continue to estimate employee generation on the basis of zone district as opposed to business type. Changing the administration of the program to mitigate on the basis of business type would require a complex administrative effort. • Mitigation Rate: It is recommended that the City of Aspen maintain a consistent mitigation requirement across all zone districts. Comparable communities, such as San Miguel County, the Town of Telluride, and the Town of Vail also maintain consistent mitigation rates across various commercial uses. Based on the evolution of local business activity over the past decade, average employee generation rates have increased by 12 percent. Accordingly, it is recommended that the City keep its standard current with business practices and increase its rates to reflect changes over the past decade. • Reduction for Upper Floor/Basement: EPS also recommends that the City maintains its current policy of giving a 25 percent reduction in the employee generation rate for uses in either an upper or lower floor. 123053-DR-012913 40 Revised Memorandum February 1, 2013 Employment Generation Rates Page 14 Appendix Survey Instrument Employer Survey-September 2012 1. Name of business: 7. For a typical week during the LOW season,how many employees do you have? Full-Time Hours per Week N Employees Equivalent 2. Type of business: 15-25 hours 0.5 35-45 hours 1.0 7 Retail 55+hours 1.5 (L Office-Business/Professional ❑Office-Non-Profit/Civic Use 81 To what degree does housing availability affect your ability to ❑Real Estate hire a qualified staff? ❑Restaurant/Bar I I Not an issue ❑Hotel&Lodge J A MINOR factor ❑Services(Repair,Personal,Business,etc.) J A MAJOR factor ❑Other: 9. How does the number of employees you have today compare to the number of employees you had 5 YEARS AGO? 3, Floor level: I 1 MORE employees Approx,N: U Basement/Lower Level J FEWER employees Approx.a: ❑Street Level J No change ❑2nd Floor or Higher ❑N/A-Not in business 5 years ago 4. How long has this business been operating in Aspen? 10. If you have changed the number of employees,please choose the ONE main reason why there has been a change. F7 Less than 2 years G 2 to 5 years ❑Fewer customers/reduction in sales/less business ❑5 to 10 years ❑Reduced the size of space in which you do business fl 10 to 20 years Cl Increased the size of space in which you do F.More than 20 years ❑More employees in the same space ❑Other:(Please describe below) 5. Size of commercial space occupied: it Stores/Locations in Aspen Leasable SOFT 11. During the next year,will the number of person you employ... Gross SOFT ❑Stay the same A Rooms 0 Hotel/Lodging/etc. ❑Increase Approx.A: ❑Decrease Approx.N; 6. Fora typical week during the HIGH season,how many 12. Contact Information? employees do you have? Hours per Week rr Employees Full-Time Contact Person: Equivalent 15-25 hours 0.5 Phoned: 35-45 hours 110 Fax p: 55+hours 1.5 Physical Address: 123053-DR-012913 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE ADDRESS OF PROPERTY: I'C' A C'0&� ,Aspen, CO SCHEDULED PUBLIC HEARING DATE: t j!U� z 2 4S P_ S:00 D vr> , 20 1"7-5 STATE OF COLORADO ) ss. County of Pitkin ) 1, CJe " (name, please print) being or representing an Applicant to the City of Aspen, Colorado, hereby personally certify that 1 have complied with the public notice requirements of Section 26.304.060 (E) of the Aspen Land Use Code in the following manner: V/Publication of notice: By the publication in the legal notice section of an official paper or a paper of general circulation in the City of Aspen at least fifteen (15) days prior to the public hearing. A copy of the publication is attached hereto. Posting of notice: By posting of notice, which form was obtained from the Community Development Department, which was made of suitable, waterproof materials, which was not less than twenty-two (22) inches wide and twenty-six (26) inches high, and which was composed of letters not less than one inch in height. Said notice was posted at least fifteen (15) days prior to the public hearing and was continuously visible from the_day of , 20_, to and including the date and time of the public hearing. A photograph of the posted notice (sign) is attached hereto. Mailing of notice. By the mailing of a notice obtained from the Community Development Department, which contains the information described in Section 26.304.060(E)(2) of the Aspen Land Use Code. At least fifteen (15) days prior to the public hearing, notice was hand delivered or mailed by first class postage prepaid U.S. mail to all owners of property within three hundred (300) feet of the property subject to the development application. The names and addresses of property owners shall be those on the current tax records of Pitkin County as they appeared no more than sixty (60) days prior to the date of the public hearing. A copy of the ommers and governmental agencies so noticed is attached hereto. (Continued on next page) Rezoning or text amendment: Whenever the official zoning district map is in any way to be changed or amended incidental to or as part of a general revision of this Title, or whenever the text of this Title is to be amended, whether such revision be made by repeal of this Title and enactment of a new land use regulation, or otherwise, the requirement of an accurate survey map or other sufficient legal description of, and the notice to and listing of names and addresses of owners of real property in the area of the proposed change shall be waived. However,the proposed zoning map shall be available for public inspection in the planning agency during all business hours for fifteen (15) days prior to the public hearing on such amendments. Signat e The foregoing "Affidavit of Notice" was acknowledged before me this C�_day of4-0j . , 20j_?2, by, n P a Gccyfe," ---------- PUBL NOTICE WITNESS MY HAND AND OFFICIAL SEAL RE: AMEND TO THE CITY OF ASPEN LAND USE Ct1 )AA NOTICE 1 REBY GIVEN that a public hearing will be held on Monday,Jam bolo a the Aspen meeting to begin at 5:00 p. My commission expires:City Council,spen Codetermine if an amendment Galena ex Aspen,to the text of the Land Use Code should be pursued. The potential amendment would update the employee generation f guerms i Ftohefurtheh Management Quota Sy information,contact Jessica Garrow at the City of tary Public Aspen Community DevelopmentD e0pa4men,S Galena St.,Aspen,CO,( ) 'essica earrow�ci asoen.co.us. st Mich rela time,Ind Mavor lty Aspen Published Aspen Times Weekly on January Kres 01291 M ATTACHMENTS AS APPLICABLE: • COPY OF THE PUBLICATION • PHOTOGRAPH OF THE POSTED NOTICE (SIGN) • LIST OF THE OWNERS AND GOVERNMENT AGENGIES NOTIED BY MAIL • APPLICANT CERTICICATION OF MINERAL ESTATE OWNERS NOTICE AS REQUIRED BY C.R.S. §24-65.5-103.3 PUBLIC NOTICE RE: AMENDMENT TO THE CITY OF ASPEN LAND USE CODE NOTICE IS HEREBY GIVEN that a public hearing will be held on Monday, February 25, 2013, at a meeting to begin at 5:00 p.m. before the Aspen City Council, Council Chambers, City Hall, 130 S. Galena St., Aspen, to consider an amendment to the text of the Land Use Code. The amendment would update the employee generation figures in the Growth Management Quota System and eliminate the "double dip" mitigation provision. For further information, contact Jessica Garrow at the City of Aspen Community Development Department, 130 S. Galena St., Aspen, CO, (970)429-2780,jessica.garrow @ci.aspen.co.us. s/Michael Ireland,Mayor Aspen City Council Published in the Aspen Times on February 7, 2013 City of Aspen Account MEMORANDUM TO: Mayor and City Council FROM: Jessica Garrow, Long Range Planner % _) THRU: Chris Bendon, Community Development Director am RE: Policy Resolution: Employee Generation Resolution IS , Series of 2013 MEETING DATE: January 28, 2013 SUMMARY: The attached Resolution outlines Council policy direction for code amendments related to the employee generation figures in the Growth Management Section of the Land Use Code. The objective of the proposed code amendments is to update the employee generation figures since the 2002 study. Once the Policy Resolution is approved, staff will bring an Ordinance to City Council that amends the employee generation figures to reflect updated employment figures. Staff has previously received policy direction from City Council regarding the "double-dip" provision in the growth management code. That change will be included in the forthcoming Ordinance. This memo and resolution summarize the policy direction received to date related to the employee generation figures. STAFF RECOMMENDATION: Staff recommends approval of the proposed resolution. LAND USE REQUESTS AND REVIEW PROCEDURES: This meeting is to review potential changes to the employee generation figures for commercial, lodge, and public uses included in the Growth Management portion of the Land Use Code. Pursuant to Land Use Code Section 26.310, City Council is the final review authority for all code amendments. All code amendments are subject to a three-step process. This is the second step in the process: 1. Public Outreach 2. Policy Resolution by City Council indicating if an amendment should the pursued 3. Public Hearings on Ordinance outlining specific code amendments. BACKGROUND& OVERVIEW: The Land Use Code includes employee generation figures for commercial, lodging, and public uses. These figures are based on a 2002 survey of employers. Staff has worked with land use consultant Economic Planning Systems (EPS) to conduct an update to this study, which reflects the changed employment patterns since 2002. Staff presented the preliminary draft to City 1.28.2013—Employee Generation Policy Direction Pagel of 3 Council at the December l lth work session, and received direction to move forward with the code amendment. A formal Policy Resolution is required before staff can present the code amendment to Council. Staff has streamlined the Ordinance review as much as possible, with First Reading Scheduled for February l I 1 and Second Reading scheduled for February 25tH EPS and city staff surveyed 110 managers and owners of local businesses and lodges during late September. The businesses and lodges surveyed represent a statistically valid sample of business from the following categories: Hotel, Business/Professional Office, Non-profit Office, Real Estate, Restaurant/Bar, Retail, and Services. Using that information, as well as business license records and employment data from the State, EPS was able to provide updated employee generation figures. Based on the study, there have been minor fluctuations in all land uses, which is to be expected over a 10 year period. The table below outlines those changes: Generation Rates by Zone District City of Aspen Employee Generation Study 2002 2012 Change Zone District Commercial ilia 4.5 per 1,000 sgft n/a Commercial Core n/a 4.8 per 1,000 sgft ilia Neighborhood Commercial n/a 4.1 per 1,000 sgft n/a Commercial Lodge n/a 12 per 1.000 sgft n/a Zane Average 4.1 per 1,000 sgft 4.6 per 1,000 sgft 0.5 per 1,000 sgft Hotel/Lodge 0.5 per room 0.5 per room 0.0 per room Mixed-Use 3.7 per 1.000 sgft 3.6 per 1,000 sqft -0.1 per 1,000 sgft Public 3.9 per 1,000 sgft 5.1 per 1,000 sgft 1.2 per 1,000 sgft Service/Commercial/Industrial 3.5 per 1,000 sgft 5.2 per 1,000 sgft 1.7 per 1,000 sgft Source:Economic&Planning Systems Staff is continuing to survey additional businesses to supplement the data. These additional surveys will be incorporated into the final figures presented as part of First and Second Readings. In addition, the final report will be included as part of those packets. Council previously passed a Policy Resolution that directed staff to come forward with a code amendment addressing the "double-dip" provision of growth management (that is, the ability to only meet the larger of multiple affordable housing requirements when providing on-site affordable housing mitigation). Staff will bring this change forward in conjunction with the First and Second Readings of the employee generation amendment. STAFF RECOMMENDATION: Staff recommends adoption of the attached Policy Resolution. 1.28.2013—Employee Generation Policy Direction Page 2 of 3 RECOMMENDED MOTION ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): "I move to approve Resolution No. IBS-, Series of 2013, approving a Policy Resolution outlining direction for code amendments related to the employee generation figures in the Land Use Code." CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A— Staff Findings 1.28.2013—Employee Generation Policy Direction Page 3 of 3 RESOLUTION N0. 15, (SERIES OF 2013) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL REQUESTING CODE AMENDMENTS TO THE EMPLOYEE GENERATION FIGURES IN THE LAND USE CODE. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City_ Council to explore code amendments related to the Employee Generation figures in the Growth Management Chapter of the Land Use Code; and, WHEREAS,pursuant to Section 26.310.020(B)(1), the Community Development Department conducted Public Outreach with City Council regarding the code amendment; and, WHEREAS, the Community Development Director recommended the Employee Generation figures in Growth Management be updated from the 2002 employee generation study; and, WHEREAS, City Council has reviewed the proposed code amendment policy direction,and finds it meets the criteria outlined in Section 26.310.040;and, WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on January 28, 2013, the City Council approved Resolution No.15, Series of 2013, by a five to zero (5 — 0) vote, requesting code amendments to the employee generation figures in the Land Use Code; and, WHEREAS, this Resolution does not amend the Land Use Code, but provides direction to staff for amending the Land Use Code; and, WHEREAS, the City Council finds that this Resolution furthers and is necessary for the promotion of public health,safety, and welfare. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN AS FOLLOWS: - - - - Section 1: Code Amendment Obiective The objective of the proposed code amendments is to update the employee generation figures in the Land Use Code to ensure they reflect current employment patterns. Section 2• This resolution shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances Resolution No 15, Series 2013 Page 1 of 2 repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 3• If any section, subsection, sentence, clause, phrase, or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. FINALLY,adopted this 28th day of January 2013. Michael t.Ireland,Mayor ATTEST: APPROVED AS TO FORM: Kathryn S och,City Clerk James R True,City Attorney Resolution No 15,Series 2013 Page 2 of 2 r Efle Ed geecord Navigate fgrm Reporj Fm no at lit E6 L>A„J R"St"s Fgs FeeSm-may Mdn+rays .arx^mM.:b,"H- r 4alvW kdJE% C19-9m £u.FemiP,s z Fmd*-11 Am Lwd Us_ n Bbke 13t SGP_E11P - t4.e:Me:G7""FIPJ1 Femut wrndwn _ g MaSS yemnt om asl�' ow z. ...—._...._. .. -- e '----' 9 , � DesR�On BSil6tt� 'j :as6d�'hra.f sun3t=d Cm fiun�^g�,!Days I "I Fr-0m6s,-t Las.amt;2h'OFF.S -! -I, FMMw!.Fy R4L MsGzl3Lq :�F-1J GGc1611 epplimir {±Qmierrs appkcem? '�,`CorNadoris epplicarfi? la4 nmm x''OF?•�EN rcrrre:^Hail -GcADL N11 AM- i Vmla LM rdme FSname P:b,e;i AGdr Cnsplasa Ne pertnttlandets address : Gald§servar en eps idl �a�