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HomeMy WebLinkAboutlanduse.code amendment.2012 Employee Growth Figures.0008.2013.ASLUA 0008.2013. ASLU 130 S. GALENA ST 2012 EMPLOYEE GROWTH FIGURES CODE AMENDMENT C 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: � -ego-vv��.lc- c=Calki Aspen, CO STATE OF COLORADO ) ) ss. County of Pitkin ) I, (name, please print) being or represl6nting an Applicant to th& City 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. Signatafe The foregoing "Affidavit of Notice" was acknowled ed before me this ' day of , 20►/, by o�PaY Pv'�-c� z; •�' INDA M. NNING My Commission Expires OY2912014 PUBLIC NOTICE RE: AMENDMENT TO THE CITY OF ASPEN LANC USE CODE NOTICE IS HEREBY GIVEN that an amendment to the Land Use Code related to employee genera- ti,n figures was approved by City Council on Mon- day, February 25, 2013. For further information, contact Jessica Garrow at the City of Aspen Com- munity Development Department, 130 S. Galena St., Aspen. CO, (970) 429-2780, [e ssi ca. daRnQw 9 ciryof aspen. WITNESS MY HAND AND OFFICIAL SEAL My rmmission expires: Notary Public ATTACHMENTS: COPY OF THE PUBLICATION a/ Michael Ireland, Mayor Aspen City Council Published in the Aspen Times Weekly on May 9. 2013. (91633941 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 a three to on August 27, 2012, the City Council approved Resolution No. 28, Series of 2012, by 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. 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. [S'ections 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 25t' 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 1lall, 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: Kathryn 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 Approved as to form: At torney Michael C. Ire a d, Mayor City Council Ord #4 of 2013 Growth Management Code Amendments Page 4 of 4 Ad Name: 8899353A Customer: Aspen (LEGALS) City of Your account number: 1013028 PROOF OF PUBLICATION T13 ARCI TIMIS STATE OF COLORADO, COUNTY OF PITKIN 1, 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 n My, Commission expires: September 12, 2015 3 eORKFNs�4 g a'•. CBE IC g Ei� Be,�1 GAL NOTICE ORDINANCE B4, 2013 PUBLIC NEARING Ordinance 94, Series of 2013, was atlopta' on tlrsl reading at the City Council meeting February 11, 2013. Thm ortlmance. U adopted will amend the employee generalion figures es address the dou- ble dip provision The public hearingg on this ordi- nance is scheduled for February 25, 2D13, at 5 PM, City hall, 130 South Galena To see the entire tent, go to the citys legal notice websile http:llwwwaSponpitkin.com/Dapwtments/C/arkl Legal-Nork;es/ If you would like a copy FAXed. mailed or e-mailed to you, cal the city clerk's office, 429-2686. Published in the Aspen Times Weekly on February 14, 2013.186993531 ,_-)-. -)_/3 MEMORANDUM TO: Mayor and City Council FROM: Jessica Garrow, Long Range Planner THRU: Chris Bendon, Community Development Director1/1/� RE: Employee Generation and Double Dip Code Amendment Ordinance 4, Series of 2013, FAM Reading 'ncr6r-r—A 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 1 I1h work session, and received direction to move forward with the code amendment. 2.25.2013 — Second 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 sgft 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 PreserraUon 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: Economc & Pfannng Systerim 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 (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/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 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 25t' 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 1 lth day of February, 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 Approved as to form: City Attorney Michael C. Ireland, Mayor 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. 1 1.12.2012 Downtown Zoning 1" 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 eefnmeFeial ,... ',.a,.:..,. aevelopment, 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. Employee generation. The following employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the sunHxer• 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 3-73.6 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 -S.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 Exhibit B 6. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing_ requirement shall be met. Whenever- a&r-dable he i ided en site (with etual units) in order- t, afis , 0 (1 oe o \ nt, the f site -A .-dable housing may also be used to satis6, any other- affeFdable housing r-equiremen eeneufFently. 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, pr-eviding twefour (24) on site affordable housing units "fall satin , both r-o 0 ents eeneu are required. Whenever- r-equifed a&r-dable housing is previded by means other- than on si and shall not sei=�,e Feqtmr-efnents eenetiiTenfly. in the above example, City of Aspen Land Use Code Part 400 — GMQS Page 3 7FKh ibrtL RESOLUTION NO. 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 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 Pagel 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-zai� Michael t. freland, Mayor ATTEST: Kathryn S och, City Clerk APPROVED AS TO FORM: James R True, City Attorney Resolution No 15, Series 2013 . Page 2of2 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 13, 2013 The h,cemornic. of band I.,, 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 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 Employment Generation Rates February 13, 2013 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) Establishments Jobs Survey (2012) as %of CDLE 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% 22,169 21 % 21 161/6 118 91/0 71/0 51/6 Total 1,198 100%' 10,261 100% 128 100% 1,375 100% 11% 13% NDte [1 ]: These are seasonally -adjusted Wage & Salary jobs as reported by the Bureau of Labor Statistics; EPS has categorized them by the Cdy's land use groups Note [2]: Thesejob counts have been seasonally adjusted and are reported as totals of Prand Frjobs. Source: Colorado Department of Labor & Employment; Econorric & Planning Systems H\123053-Aspen Er 1,o eGene Ay StuffyDaIAS,rvay Devpn\[123053-Svw 012913.zlsmlt1-Sway Stets 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 i Survey Respondents, Years in Aspen Employee Generation Study ■ Less than 2 years 2 to 5 years 5 to 10 years 10 to 20 years ■ More than 20 years wurce: tconomic s vlammng ]ystems 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 Employment Generation Rates Figure 2 Businesses Surveyed by Zone District Employee Generation Study February 13, 2013 Page 3 l 5� _r Srnugglef St o Vine 5� PUPPYSmrth st G;b � a so�q it rn St N of r yP 7 N y "6 Cit _,of As rely r St _ c � ,� E Hallam /l ' Mai St w81e kerF CBI ekerA/y Ri 3� c°p wMa"Aly / E Sleeker St ° G,d' P�e� -PP^` Q 8aV .St n tat h HOPki e H 82 / e J W OPkins Ave 2 rm Ma � FO Sleeker St c ers PI �- ti N n H N HyrnanAve F y SHOP �nsAve * ly HNY82 y y C Employee Generation Study Update (2012) wC°OPerA� ECOpPerAve ec E Y1AI`y Business Surveys ECo NCOpPergve —� � �, ° Zone District Per E pura t Al y �Y an E COpPer qn Man qve m — C r4 ers B c 0 C-1 ee �Qe Ct E COpPergvt ® CL 1uan St H 0 L _ h yen MU /-� �- ,qo Q NC / Gilbert St o 1 \e�a5 3 E Durant Ave Alley/� 0 PUB E Dean St ant ® SCE Shark St Dean St Memorandum Employment Generation Rates Employee Generation February 13, 2013 Page 4 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 Office - Business / Professional Office - Nonprofit / Civic Real Estate Restaurant / Bar Retail Services Hotel [1] Overall [2] 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 3.6 3.9 4.1 9.0 10.0 9.9 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. Memorandum Employment Generation Rates Figure 4 Change in Rates by Business Type Employee Generation Study February 13, 2013 Page 5 Full -Time Equivalents per 1,000 square feet -2.0 -1.0 0.0 1.0 2.0 3.0 Office - Business / Professional -0.8 j Office - Nonprofit / Civic 0.2 Real Estate -1.9 Restaurant / Bar 2.6 Retail 0.1 Services 1.0 Hotel 0,0 Overall a 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 Low Season 12.0 --- ---- 10.0 ---- Fulltime 8.0 Equivalents per6.0 ! _ — — — — - — -- —------------ ---- 2,000 sgft 4.0 2.0 0.0 Hotel [1] 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-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"/0 20% 40% 60% Office - Business / Professional -t1o' 53% Office - Nonprofit / Civic N/A -62% Real Estate -1%Restaurant / Bar 2Retail6% 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 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 Employment Generation Rates February 13, 2013 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: Economic & Planning Systems Ft\ 123053-Aspen Enployee Generation Study\DatalSirvey Desigri[123053-Suvey-012913.)dsm]t3 - Rates by Zone 123053-DR-021313 Memorandum Employment Generation Rates February 13, 2013 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 Aspen (2012) All RRC Communities (1990-2010) Teton County (2006) Eagle County (2007) San Miguel 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 NIA NIA N/A N/A Source: RRC Associates; Econorric & Ranning Systerrs W123053-Aspen E1 i,yee Ger ,,nStWy\DmMSwv Design\I1223053-Sav y-012gD.xJwlCorip0om+uvt- 123053-DR-021313 Memorandum Employment Generation Rates Telluride February 13, 2013 Page 9 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 Busi ne ss Type Commercial/Public facility Uses Hotels and Accomodations Uses Multi -family Dwelling and Mixed Use Residential One and Two-family Dwellings Town of Telluride Employee Generation Rate 4.5 employees per 1,000 s.f. of Net Floor Area 0.33 employees per unit 0.33 employees per dwelling unit 0.07(e)(0.000322 X Gross SQFT) Source: Tow n of Telluride; Econonic & Planning Systems H:\123053-AspwEnployeeGenergionStudy\Data\Corrp prograps reseercM[Errployee Generation Rat a Inplenwtation Rograne.xlsx]t2-Tdli ide 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. 113053-DR-011313 Memorandum Employment Generation Rates Table 5 San Miguel County Generation Rates City of Aspen Employee Generation Study Business Type Office Restaurant Retail Hotel San Miguel County Employee Generation Rate 3 per 1,000 square feet 3 per 1,000 square feet 3 per 1,000 square feet 1.5 per unit Source: San Mguel County; Economic & Planning Systems R\123053-Aspen Employee General ionSLudy\DatJ\Conp programsreseacM[Enployee Ce aion Rate lnplenwtation Prograns.xlu]t3-SMC February 13, 2013 Page 10 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; Economic & Planning Systerrs k\123053-Aspen Employee General ion StuiyMata\Conp programs rese K[Enployee General ion Rae lnpl—talion Prograns.xlu]t1-Vail 123053-DR-021313 Memorandum Employment Generation Rates February 13, 2013 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 Employment Generation Rates Trends & Issues February 13, 2013 Page 12 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 Jobs ---Establishments 13,000 ­------------- 12,000 11,000 Jobs 10,000 9,000 8,000 7,000 6,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: CDLE, Quarterly Census of Employment & Wages; Economic & Planning Systems Projection of Employment 2,000 1,800 J. 1,600 1,400 1,200 Establishments 1,000 800 600 400 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 8. 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-OR-021313 Memorandum Employment Generation Rates February 13, 2013 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 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 = Business 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 k\43053-Aspen Employee Generation Study\Data\Survey Design\[123053-Survey-012913.xlsmlt4 - Housing 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 Employment Generation Rates Appendix Survey Instrument Employer Survey - September 2012 1. Name of business 2. Typo of business: ❑ Retail ❑ Office - Business / Professional ❑ Office - Non Profit / Civic Use E1 Real Estate n Restaurant / Bar M Hotel & Lodge ❑ Services (Repair, Personal, Business. etc.) C] Other: 3. Floor level: U Basement / Lower Level ❑ Street Level El 2" Floor or Higher 4. How long has this business been operating in Aspen? ❑ Less than 2 years ❑ 2 to 5 years ❑ 5 to 10 years ❑ 10 to 20 years f1 More than 20 years s. size of commercial space occupied: rt Stores / Locations in Aspen Leasable SOFT Gross SOFT If Rooms 0 Hotel / Lodging / etc. 6. For a typical week during the HIGH season, how many employees do you have? Full -Time Hours per Week p Employees Equivalent 15 - 25 hours 0.5 35 - 45 hours 1.0 SS ♦ hours 1.5 February 13, 2013 Page 15 7. For a typical week during the LOW season, how many employees do you have? Full -Time Hours per Week is Employees Equivalent 15 - 25 hours 0.5 35-45 hours 1.0 55 ♦ hours 1.5 B. To what degree does housing availability affect your ability to hire a qualified staff? Not an issue A MINOR factor A MAJOR factor 9. How does the number of employees you have today compare to the number of employees you had 5 YEARS AGO? I MORE employees Approx. If: LJ FEWER employees Approx. 4: ,_J No change -1 N/A - Not in business 5 years ago 10. If you have changed the number of employees, please choose the ONE main reason why there has been a change. ❑ Fewer customers/reduction in sales/less business ❑ Reduced the site of space In which you do business C I Increased the size of space in which you do C I More employees in the same space LJ Other (Please describe below) 11. During the next year, will the number of person you employ... 1 Stay the same Increase Approx. H: 7 Decrease Approx. h: 12. Contact Information? Contact Person: Phone k: Fax p: 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 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2001-2011 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% Office - 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,Ciuc 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% SeNces 2,226 2,116 2,183 2,368 2,479 2,355 2,433 2,450 2,278 2,105 2,169 -57 -6 -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: CCLE QCEW, Economic 8 RannN System HI V 30W-Aspen Empbyee Dena 1- SI W y\u-I-DW-Aep-OCE W A.. 123053-DR-011313 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE Aspen, CO SCHEDULED P BLIC HEARING DATE: 201.9 STATE OF COLORADO ) ) ss. County of Pitkin ) I, Avv',-e� <E>C ` - J (name, please print) being or representing an Applicant to the City of Aspen, Colorado, hereby personally certify that I 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 owners 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. Signature The foregoing "Affidavit of Notice" was acknowledged before me this F day of , 20(3 by �,1�-✓lam, t�� 5 :: 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 Ouota System and elimi• nate the 'double dip' mitigation provision. For fur- ther information, contact Jessica Garrow at the City of As Community Development Department. 130 S. Galena St., Aspen. CO. (970) 429-2780, less k; a. carrow9ci. aspen. co.1!§, d Michael Ireland. Mayor Aspen City Council Published in the Aspen Times Weekly on February 7, 2013. [8874672] 4.2 I ASPEN TIMES WEEKLY 4 WITNESS MY HAND AND OFFICIAL SEAL Myq fission expires: 21 — 7 n Notary Public YP ATTACHMENTS AS APPLICABLE: * COPY OF THE PUBLICATION i •� • s LINDA M. a MANNING Y COS- * PHOTOGRAPH OF THE POSTED NOTICE (SIGN) My Compnuion Expires 03012014 * 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(4W 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 1 S` 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 11 th work session, and received direction to move forward with the code amendment. 2.11.2013 — First Reading Employee Generation Code Amendment Pagel 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.ra 4 5 per 1,000 sqft Na Commercial Core n/a 4.9 per 1,000 sqft nia Neighborhood Commercial n/a 4.1 per 1,000 sqft n?a Commercial Lodge nla 3 2 per 1,000 sqft nia Zone Average 4.1 per 1,000 sqft 4.7 per 1,D00 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 sgft -0 1 per 1.000 sqft Public 3.9 per 1,000 sqft 5.1 per 1,000 sgft 1.2 per 1,000 sqft SeNce / Commercial ; Industrial 3.5 per 1,000 sqft 3.9 per 1,000 sqft 0.4 per 1.000 sqft Source. Economic & Plannng Systeno 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 i 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 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 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 2501 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 Approved as to form: City Attorney Michael C. Ireland, Mayor City Council Ord #_ 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. 1 1.12.2012 Downtown Zoning 1" Reading; Exhibit A Page 1 of 1 F-Xhi6,t 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 ,,enifner-ei ,' or- !edging 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 stifliffler- 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 3-73.6 Service Commercial Industrial (S/C/I) 333.9 Public' 3-35.1 Lod e 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 hou No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. Whenever- affordable be] ided en sit (with aetual units) in order- to satisfy one (1) r Sfflnf.�_ A-B. site afferdabl-e eeneurfentl—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, providing twefour (24) en site affordable housing units are required. Whenever- required a&r-dable housing is pr-e-,,ided by fneans ethef than on site pr-evisien-, provision of four- (4) units weuld be fequifed. City of Aspen Land Use Code Part 400 - GMQS Page 3 XhI�01t � RESOLUTION NO. 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 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 I of 2 repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 3• 1f 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 freland, Mayor ATTEST: Kathryn S och, City Clerk APPROVED AS TO FORM: James R True, City Attorney Resolution No 15, Series 2013 Page 2 of 2 — Xv� .Ib)+ i) 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 77ic Ecnnotuir•s cJ*1wnd (si• ak� 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, Cos0202-3511 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 businesses not only representative of existing commercial uses, but of Berkeley Denver those most likely to be included in redevelopment proposals. Los Angeles Sacramento www.epsys.com Revised Memorandum Employment Generation Rates February 1, 2013 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 1 Survey Sample Characteristics City of Aspen Employee Generation Study CDLE (2011) Establishments Jobs Survey (2012) as%of CDLE 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% 22,169 21g/6 21 161/6 118 9o/0 71/6 5"/0 Total 1,198 100%r 10,261 100% 128 100% 1,375 100% 11% 13% Note [t]: These are seasonally -adjusted Wage d Salary jobs as reported by the Bureau of Labor Statistics; EPS has categorized them by the City's land use groups Note [2]: These job counts have been seasonally adjusted and are reported as totals of Fr and FT jobs. Source: Colorado Department of Labor 8 BTpbyment; Economic 8 Fanning Systems W43053-Aapan Enployaa Gana*t StW0Dat9Su "D-gry,[R3053-Sv y-04913dsm111-Sway Stale 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 ■ Less than 2 years 2 to 5 years 5 to 10 years ■ 10 to 20 years ■ More than 20 years Source: LCMO ll[ s Planning Sys[ems 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 Smu88ler St o 9� �O St PUPPY Smith St Crb so' � A St ti VP O la C i t �,of Aspen 'A'Y S r St 7 E Hallam Mai St W Ble ker W Mai" Al y y& eker A/y vW he E Bleeker St r°CrdOd ps`�� 9Pry "a Bay St ain statHOPkie 2 Q 82 " YV °Pkins Ave 2 rrn r n E llgar F° n ers q Blpeker St H N Hyena f ltoP insgve * ly HWy8Z n qve ` ° ro Employee Generation Study Update (2012) WCooPerAve c E j fCooPergve Q V Business Surveys NCOOPer Zone District f COpPer E pura t Aly qve f Hy a" E CoOPer qly yman Ave o0 C Tr1iners c � �C1 8 "a Q CC E pe Ct " E CooPeraq,, 3 CL Juan St L Mu N r Q NC Gilbert St `* eca5 l EE p�v Ailey st e Q PUB S 7 I E pPa" St Q SCI S"ark St _ man 5t 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 9.9 Retail Services Hotel [1] Overall [2] Source: 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 Employment Generation Rates 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 Office - Business / Professional Office - Nonprofit / Civic Real Estate Restaurant / Bar Retail services Hotel Overall Source: Economic & Planning Systems Seasonality 1.0 2.0 February 1, 2013 Page 5 E 3.0 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 12.0 10.0 Fulltime 8.0 Equivalents per 6.0 1,000 sqft 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-012913 Revised Memorandum Employment Generation Rates Floor Level February 1, 2013 Page 6 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 -80oh Office - Business / Professional Office - Nonprofit / Civic Real Estate Restaurant / Bar Retail Services Tota l Rates by Zone District -60% -40ok -20% -23% -62% . -1% -26% -28% Source: Economic & Planning Systems Basement (and Street) 0% 20% 40% N/A 6% 0% N/A -17% -24% Upper Levels (and Street) 60% 53k 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 Revised Memorandum Employment Generation Rates February 1, 2013 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 FIFES 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: Economic & Planning Systerns Ft\123053-Aspen 13rployee Gawation Stuoy,Datal Srrvey Desigrd[123053-Swey-012913.xism]t3 -Rates by Zone 123053-DR-012913 Revised Memorandum Employment Generation Rates February 1, 2013 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 Aspen (2012) All RRC Communities (1990-2010) Teton County (2006) Eagle County (2007) San Miguel County (2010) Business Type Office - Business / Professional 3.6 3.3 3.0 4.8 2.0 Office - Nonprofit I 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 NIA N/A NIA N/A Source: FRCAssociates; Econonic & Ranning Systems R\123053-Apart Enployaa Cb *,.n SlWylD.MS-yD-9MJ 123053-Sway-0QB13.d-JCapC.-fl. 123053-DR-012913 Revised Memorandum Employment Generation Rates Telluride February 1, 2013 Page 9 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 building employee units off -site, and in addition, developers often encounter unfriendly Home Owners Associations 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 SOFT) Source: Town of Telluride; Economic & Ranning Systems W V3053-Aspen Errployos General ion Study\Dsla\Cony progrene reseacn\[Enployee Generation Rate Inplenentation Rogrars.x1sx]12 -Telluride 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 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 Employee Generation Rate Business 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 tvtiguel County; Economic 8 Planning Systems across uses. 14\23053-Aspen Employee Generation Study\Data\Conp pro gransresearch\[Enployee Generation Rate lrrplernertation Rog 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 Employment Generation Rates Vail February 1, 2013 Page 10 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 seNce 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 storelpersonal service/repair shop 2.4 employees Spa 2.1 employees relate to balancing business needs Source: Town of Vail, Economic & Ranning Systems (lowering H\123053-Aspen Employee0—atw s y1Daa\C.rp programs research[Erployee Generator Rate Irrplem,tation Programs xlsx]t1-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 Employment Generation Rates Trends & Issues February 1, 2013 Page 11 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 tow.Jobs ---Establishments 13,000------------ 12,000 11,000 Jobs 10,000 9,000 8,000 7,000 6,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source; CDLE, Quarterly Census of Employment & Wages; Economic & Planning Systems Projection of Employment 2,000 1,800 L 1,600 1,400 1,200 Establishments 1,000 800 600 400 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 Employment Generation Rates February 1, 2013 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% Real Estate w Office - Nonprofit / Civic ■ Office - Business / Professional 1 1'. IN Hotel 0.0% 2.0% 4.0% 6.01% 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 = Business 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 Ft\43053-Aspen Employee Generation Study\Data\Survey Design\[123053-Survey-012g .Asm)t4 - Housing Avail 123053-DR-012913 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 Revised Memorandum Employment Generation Rates Appendix Survey Instrument Employer Survey -September 2D12 1. Name of business: 2. Type of business: ❑ Retail ❑ Office - Business / Professional ❑ Office - Non -Profit / Civic Use 171 Real Estate ❑ Restaurant / Bar ❑ Hotel & Lodge I I Services (Repair, Personal, Business, etc.) ❑ Other: 3. Floor level: J Basement / Lower Level LJ Street Level i :2' 'Floor or Higher 4. How long has this business been operating in Aspen? ❑ Less than 2 years ❑ 2 to 5 years ❑ 5 to 10 years 1-1 10 to 20 years More than 20 years 5. Size of commercial space occupied: # Stores / locations in Aspen l� Leasable SQFT Gross SOFT # Rooms if Hotel / Lodging / etc. 6. For a typical week during the HIGH season, how many employees do you have? Full -Time Hours per Week # Employees Equivalent 15 - 25 hours 0.5 35 - 45 hou rs 1.0 SS ♦ hours 1.5 February 1, 2013 Page 14 7. For a typical week during the LOW season, how many employees do you have? Full -Time Hours per Week # Employees Equivalent 15 — 25 hours 0.5 35 — 45 hours 1.0 55 + hours 1.5 8. To what degree does housing availability affect your ability to hire a qualified staff? L I Not an issue U A MINOR factor LJ A MAJOR factor 9. How does the number of employees you have today compare to the number of employees you had 5 YEARS AGO? I MORE employees Approx, #: LJ FEWER employees Approx. It: iJ No change 7 N/A - Not in business 5 years ago 10. It you have changed the number of employees, please choose the ONE main reason why there has been a change. l Fewer customers/reduction in sales/less business l Reduced the size of space in which you do business I Increased the size of space in which you do I More employees in the same space J Other. (Please describe below) 11. During the next year, will the number of person you employ... j Stay the same !increase Approx. #: 1 Decrease Approx. #: 12. Contact Information? Contact Person: Phone #: Fax #: Physical Address: 123053-DR-012913 AFFIDAVIT OF PUBLIC NOTICE REQUIRED BY SECTION 26.304.060 (E), ASPEN LAND USE CODE ADDRESS OF PROPERTY: CoJ_SZ , Aspen, CO SCHEDULED PUBLIC HEARING DATE: Co 0 ✓rl , 20 13 STATE OF COLORADO ) ss. County of Pitkin ) 1, AZY4 '0 eel (name, please print) being or representing an Applicant to the City of Aspen, Colorado, hereby personally certify that I 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 owners and governmental agencies so noticed is attached hereto. (Continued on next page) 0 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. Signat e The foregoing "Affidavit of Notice" was acknowledged before me this _1CL day ofT04-\� , 20j;� by Gca f qM WITNESS MY HAND AND OFFICIAL SEAL O�PRY'pve! �; ''s•. •.% My commission expires: 22 2o INDA, M. � ,MANNING K� 40 tary Public MY Commission Expires 0301204 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 RE. AMENDM W f TO rME CITY OF ASPEN LAND USE CnOE- NOTICE IS :IEIEBY GIVEN that a public hearing will be held on Mondayy January 8, 2013, at a meeting to begin at 5:00 p.m, before the As Cityy Council, Council Chambers, City Hall, 130 S. to tena ex Aspen, to determine it an amendment to the text of the Lantl Use Code should be Pursue d. The potential andment would update the employee generation figures in the Growth Management Ouota System. For further information, contact Jessica Garrow at the City of Aspen Community Development Department, 130 S. Galena St., Aspen, CO, (970) 42g-2780, rV AlkhI Ind. Ma y or ArtPsn City Council Published in the Aspen Times Weekly on January 10, 2013 [87842751 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, mo THRU: Chris Bendon, Community Development Director C`� Y Y r ' RE: Policy Resolution: Employee Generation Resolution 1S , 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 Page 1 of 3 Council at the December 11 to 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 1 lth and Second Reading scheduled for February 251n 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 n/a 4.5 per 1,000 sqft n/a Commercial Core Na 4.8 per 1,000 sqft n/a Neighborhood Commercial n/a 4.1 per 1,000 sgft n/a Commercial Lodge Na 3.2 per 1.000 sqft n/a Zone Average 4.1 per 1,000 sgft 4.6 per 1,000 sqft 0.5 per 1,000 sqft Hotel / Lodge 0.5 per room 0.5 per room 0.0 per room 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 sqft 1.2 per 1,000 sgft Service / Commercial / Industrial 3.5 per 1,000 sgft 5.2 per 1,000 sqft 1.7 per 1,000 sgft Source: Economic 8 Farming Systerres 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. 115 , 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 NO. 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. l-3a—Zai3 Michael t. freland, Mayor ATTEST: Kathryn S och, City Clerk APPROVED AS TO FORM: James R True, City Attorney Resolution No 15, Series 2013 Page 2 of 2 000% - Zo 13 . 1.0 Ek EM Fm Repn Fmg Iab Lop 6 4"SWA ha F«Wmn I;�.JbM. Ae.MRUMPOR YA.W Ald,'x COW; sCN�ft �.«* wwbpa;a* ySW Lab"i '. we A; WC iCi?AS�U i�-- -- — D hddreg '17GEG4.EtR F7L'Sul MT'IWl 81' fennii won Mwo cemt--- 7�1 "pKer Ias1;A' !qM "?6Yti ------ 6e0s 0 ti Suensitsd j Oatk ^"a^9 OW "I Egeea u2-o17At1 tr�ra Lags t ^ffY OF1S?EH - Fr9 tirt ;,R1'Wl. ii_iA SGAL914 ASPEN CO 61611 Nan V lddres EDMrsombor! ❑anaecace ne Lag � ron 'S`"rJF pSPEH CfhhV!36Si✓dE1L1