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
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8 NOIgRY'•:m
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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
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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
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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
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Employee Generation * a�eW.
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Business Surveys NCoO
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Zone District Tr1 E Cora t Aly —V Hy an E CooAer ql Yman Ave Qo
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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
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