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HomeMy WebLinkAboutordinance.council.027-2021 ORDINANCE NO. 27 (Series of 2021) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, IMPOSING A TEMPORARY MORATORIUM ON THE ACCEPTANCE OF ANY NEW LAND USE APPLICATION SEEKING A DEVELOPMENT ORDER OR NOTICE OF APPROVAL, AND ON THE ACCEPTANCE OF CERTAIN BUILDING PERMIT APPLICATIONS FOR ALL RESIDENTIAL USES IN ALL ZONE DISTRICTS WITHIN THE CITY; AND ON THE ISSUANCE OF NEW VACATION RENTAL PERMITS; AND, DECLARING AN EMERGENCY. WHEREAS, the City of Aspen (the "City") is a legally and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the Home Rule Charter for the City(the"Charter"); and WHEREAS, the zoning and land use powers conferred upon the City by the State of Colorado as a Home Rule Municipality empower the City to manage land use to ensure the public health, safety, and welfare; and, WHEREAS, the City of Aspen currently regulates land uses within the City limits in accordance with the Aspen Land Use Code (hereinafter "Land Use Code"), Title 26 of the Aspen Municipal Code, adopted pursuant to its Home Rule Constitutional authority and the Local Government Land Use Control Enabling Act of 1974,as amended, §§29-20-101, et seq. C.R.S;and WHEREAS, the character of certain development activities in the City of Aspen is having a negative impact upon the health,peace, safety,and general wellbeing of the residents and visitors of Aspen; and WHEREAS,recent land use applications seeking Development Orders in various City Zone Districts do not appear to be consistent with the goals and vision as expressed by the 2012 Aspen Area Community Plan,including: • We must pursue more aggressive measures to ensure the needs of the community are met, and to preserve our unique community character. (pg 20); and • I.1. Achieve sustainable growth practices to ensure long-term vitality and stability of our community and diverse visitor-based economy.(pg 24); and • V.1. Encourage a commercial mix that is balanced, diverse and vital and meets the needs of year-round residents and visitors. (pg 26);and • V.2. Facilitate the sustainability of essential businesses that provide basic community needs. (pg 26); and • V.3. Ensure that the City Land Use Code results in development that reflects our architectural heritage in terms of site coverage, mass, scale, density and a diversity of heights, in order to: ■ Create certainty in land development. ■ Prioritize maintaining our mountain views. ■ Protect our small-town community character and historical heritage. ■ Limit consumption of energy and building materials. ■ Limit the burden on public infrastructure and ongoing public operating costs. ■ Reduce short- and long-term job generation impacts, such as traffic congestion and demand for affordable housing. (pg 26) and, WHEREAS, the City of Aspen depends on a lived-in community of year-round locals to support community culture, provide labor and capital to support the local economy, ensure public safety and peace through the presence of first responders, health care and essential service workers in the community,and ensure the long-term viability of the community and tourist economy; and, WHEREAS, due to unprecedented increases in home prices and a lack of supply over time, the residential real estate market in Aspen no longer delivers meaningful housing for local residents, therefore, the affordable housing system is relied upon to provide the vast majority of housing for locals and workers; and, WHEREAS, the availability of housing for local workers and residents including first responders, health care workers, and other essential service workers is diminishing, the system for delivering affordable housing is not keeping pace with need, and the housing market in the region and state of Colorado are in crisis; and. WHEREAS, recent evolutions in the residential real estate market and economy, including new financial dynamics, the proliferation of short-term rentals, have rendered elements of the Land Use Code inadequate to respond to local affordable housing needs;and, WHEREAS,the current regulatory structure to deliver affordable housing to the community is inadequate to meet the needs of current residents and provide affordable housing to meet the future needs, and to ensure the presences of first responders, health care and essential workers, and an adequate labor force to support the economy; and, WHEREAS, the Aspen Area Community Plan includes policies directing the City of Aspen to address affordable housing in the community,including: • VIII.1. Restore public confidence in the development process. (pg 27) • VI1I.2. Create certainty in zoning and the land use process. (pg 27) • VIII.3. Ensure that the Planned Development process results in tangible, long-term community befits and does not degrade the built or natural environment through mass and scale that exceeds the Land Use Code standards. (pg 27) • I1.1. The housing inventory should bolster our socioeconomic diversity. (pg 41) • II.2. Affordable housing should be prepared for the growing number of retiring Aspenites. (pg 41) • IV.2.All affordable housing must be located within the Urban Growth Boundary. (pg 42) • IV.3. On-site housing mitigation is preferred. (pg 42) • IV.5. The design of new affordable housing should optimize density while demonstrating compatibility with the massing, scale,and character of the neighborhood; (pg 42) and, 2 WHEREAS, a functional residential housing sector is essential to sheltering Aspen's populations, supporting a stable economy, maintaining the health, peace and safety of the City of Aspen for its residents and visitors;and, WHEREAS, a pause in certain types of residential development is necessary in order to assess the current state of the affordable housing program, assess gaps and opportunities in the regulations and delivery of units relative to need, and consider future community needs in the housing sector in the context of larger Land Use Code issues;and, WHEREAS, the City of Aspen recognizes that anthropogenic climate change and the impacts to the ecological and economic health of the community constitutes an emergency and a threat to the health and safety of the residents of the City of Aspen and the global community; and, WHEREAS, the City of Aspen is a signatory to the US Mayors' Climate Protection Agreement, the Chicago Climate Exchange, and the Global Covenant of Mayors for Climate and Energy,and WHEREAS, the City committed to the Race to Zero campaign, requiring the City to publicly endorse the following principles: • Recognize the global climate emergency. • Commit to keeping global heating below the 1.5°Celsius goal of the Paris Agreement. • Commit to putting inclusive climate action at the center of all urban decision-making, to create thriving and equitable communities for everyone. • Invite our partners political leaders, CEOs, trade unions, investors, and civil society —to join us in recognizing the global climate emergency and help us deliver on science-based action to overcome it; and, WHEREAS, the City has adopted an Ecological Bill of Rights establishing ten inalienable ecological rights for all,including: • The right to ensure the efficient use of energy and of natural resources, • The right to expect from our governments active and consistent enforcement of land use and development regulations;and, WHEREAS, the Aspen Area Community Plan includes policies directing the City of Aspen to address climate change and environmental stewardship, including: I.I. By 2020, reduce the carbon footprint of the Aspen Area from 2004 levels by 30% (to 588,612.5 tons CO2-e). (pg 52) I.2. All existing development and uses should minimize their greenhouse gas emissions. (pg 52) 1.3. Incentivize alternative forms of transportation to reduce reliance on fossil fuels. (pg 52) I.4.All new development and uses should minimize their greenhouse gas emissions. (pg 52) II.3. All existing development and uses should minimize their air pollution emissions. (pg 52) IIA. All new development and uses should minimize their air pollution emissions. (pg 52) 3 IV.1. Maximize recycling, implement waste reduction and environmentally responsible purchasing programs, and encourage behavior that moves the Aspen Area toward being a zero-waste community and extends the life of the landfill. (pg 53) IVA. Increase the practice of deconstruction and increase the amount of materials that are diverted from the landfill,reused or recycled. (pg 53) VA. Require new development and redevelopment to minimize their energy usage and use on-site renewable energies as the site allows. (pg 53) V.5. Existing development should minimize energy usage and use on-site renewable energies as the site allows; and,(pg 53) WHEREAS, residential development contributes to climate change through transportation required to construct and service residential properties, the energy and impacts inherent in creating and sourcing the materials necessary for residential development, the natural resource consumption required for the operation of residential structures, and the production of solid waste and associated disposal impacts from the construction and operation of residential structures;and, WHEREAS, the City's current residential development regulations are not sufficiently aligned with its adopted climate and environmental protection policies and regulations,undermining the community's ability to effectively reduce greenhouse gas emissions and avoid the worst effects of climate change; and, WHEREAS, a pause in certain types of residential development is necessary in order to ensure that residential development supports the City's adopted climate and environmental policies and does not unnecessarily contribute to further climate and environmental impacts; and, WHEREAS, the processes and procedures described in the Land Use Code, including but not limited to Chapter 26.300 determine how development is reviewed and permitted in the City; and, WHEREAS, those processes and procedures are designed to balance the right to the use of private real property in the City with community input and preservation of history and character to ensure the orderly use of land within the City limits; and, WHEREAS, in certain circumstances,those processes and procedures are not delivering the development outcomes described in the AACP or Land Use Code, warranting a pause to certain residential development applications to align those processes and procedures with adopted community policies;and, WHEREAS, the rapid proliferation of vacation rentals in Aspen's neighborhoods, Commercial, and Lodge zone districts has altered the orderly use of land uses and balance of community needs described in the Aspen Area Community Plan and City of Aspen Land Use Code; and, WHEREAS, the City's current permitting system for vacation rentals does not provide the City or community with sufficient data or context to fully understand the location, extent, operations, and impacts of vacation rentals to inform policy and regulatory decision making; and, 4 WHEREAS, it is evident that the vacation rental market in its current form and regulatory structure has impacted the actual and perceived value of real estate in Aspen, incentivizing new development dynamics, which require analysis to understand, and a regulatory response to align with City policies in the Aspen Area Community Plan; and, WHEREAS, a pause on the issuance of new vacation rental permits is necessary in order to ensure the regulation of this industry aligns with adopted community policies;and, WHEREAS,the community has a Growth Management Quota System(GMQS)designed to manage the pace, type, location, and extent of development. That system was developed prior to recent evolutions in Aspen's development environment including the proliferation of private, vacation rentals, current trends in development finance and ownership,and the further build-out of Aspen's zone districts. To provide for the ongoing viability of the GMQS system, it is necessary to assess the applicability and effectiveness of GMQS relative to adopted City policies in the context of the pause on residential development established by this ordinance; and, WHEREAS, the City Council and the Community Development Department require a period of time in which to review all existing land use codes and regulations as they affect land use development in certain Zone Districts within the City of Aspen to ensure that all land use development proceeds in a manner that is consistent with the Aspen Area Community Plan;and WHEREAS, the City Council desires that the staff of the Community Development Department conduct a thorough analysis and assessment of the Land Use Code and regulations affecting the development of land within certain Zone Districts of the City of Aspen, with particular attention to zoning, Growth Management Quota System, affordable housing, solid waste, environmental stewardship, climate action, vacation rentals, development review procedures, calculations and measurements, and related regulations to ensure consistency with the Aspen Area Community Plan and Climate Action Plan; and WHEREAS, Section 4.11 of the Charter authorizes the City Council to enact emergency ordinances for the preservation of public property, health,peace, or safety upon the unanimous vote of City Council members present or upon a vote of four (4) Council members, whichever is less; and WHEREAS, a moratorium through an emergency ordinance on all development applications will enable a reasoned discussion and consideration of desired amendments to the Land Use Code without creating a rush of development applications and the related impacts upon the community; and WHEREAS, the Community Development Department may need assistance from third party consultants to complete the task of analyzing the current Land Use Code and regulations as contemplated herein, the City Council hereby authorizes the expenditure of City funds and directs the City Manager to engage one or more consultants to assist the Community Development Department pursuant to her procurement emergency authority; and 5 WHEREAS, the City Council has determined that it is necessary to declare an emergency for the preservation of public property, health, peace, and safety with the imposition of a temporary moratorium on the acceptance, processing, and approval of land use applications for development orders by the City of Aspen Community Development Department and City Council and on the acceptance of certain building permit applications. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN,COLORADO,THAT: Section 1. Moratorium on new land use applications within certain zone districts. There is hereby imposed a temporary moratorium on the acceptance by the Community Development Department of new land use applications for a Development Order or Notice of Approval affecting all residential uses, changes in use from commercial or lodge to residential, or residential development, as defined in Section 26.104.100, in all zone districts within the City, including, but not limited, approvals sought pursuant to Chapters 26.410, Residential Design Standards, 26.415, Historic Preservation, 26.435,Development in Environmentally Sensitive Areas (ESA), 26.445, Planned Development, 26.470, Growth Management Quota System (GMQS), and 26.480, Subdivision. Any application for a major amendment, as defined in Section 26.304.070 A.2., of the Aspen Municipal Code, to an existing development order or pending application shall be considered a new application under this ordinance. Section 2. Moratorium on certain building permit applications. There is hereby imposed a temporary moratorium on the acceptance by the Community Development Department of any building permit application for all residential uses and development, as defined in Section 26.104.100, in all zone districts within the City that meet the definition of demolition or would have the effect of increasing the height, gross square footage,Net leasable area, or Net livable area of any building. The terms shall have the same meaning in this ordinance as the definition of those terms as set forth at §26.104.100 of the Aspen Municipal Code. Section 3. Exemptions from Moratorium. Land use applications exempt from this temporary moratorium shall be as follows: • Any land use application for a Development Order or Notice of Approval submitted to the Community Development Department prior to final passage of this ordinance and deemed to be complete by the Community Development Department Director. • Any land use application seeking a Development Order or Notice of Approval for a project consisting of 100%Affordable Housing as that term is defined at§26.104.100 of the Aspen Municipal Code,or as may be deemed necessary for the issuance of Certificates of Affordable Housing for a 100%Affordable Housing project,or as determined by the Community Development Director. • Voluntary AspenModern designation processes that meet the requirements of Section 26.415.025.0 and 26.415.030. 6 • Land use application and administrative requests that may be necessary to issue exempt building permits as described below, and as determined by the Community Development Director. Applications for building permits exempt from this temporary moratorium shall be as follows: • Building permits for projects that will not increase the gross square footage of development, Net leasable area, or Net livable area of any building and do not meet the definition of demolition. • Building permits for projects that will not increase the Height of any building. This includes additions to or replacement of mechanical equipment or energy efficiency systems pursuant to height exemptions as set forth at §26.575.020 of the Aspen Municipal Code,or as determined by the Community Development Director. • Building permits for commercial and lodge development as stand-alone uses on a parcel or property. • Any project that has received or is eligible to receive a Development Order or Notice of Approval on the effective date of this ordinance. • Building permits for 100% affordable housing projects as that term is defined at §26.104.100 of the Aspen Municipal Code. • Building permits for demolition or repair of non-habitable structures. Section 4. Effect on Existing Development Applications A. A land use development application shall be defined for the purpose of this ordinance as the initial land use application determined to be complete by the Community Development Director, pursuant to §26.304.050(A) of the Aspen Municipal Code ("Determination of Completeness"). All land use applications filed subsequent to the initial application for the same development project, except for a major amendment excluded in Section 1, above, that are necessary to obtain a final Development Order may proceed pursuant to the review procedures and standards as set forth in Title 26 of the City of Aspen Municipal Code. Land use applications determined complete shall be reviewed and processed according to the provisions of the Land Use Code and building code, as applicable,in effect on the date of submission. B. Pre-Application Conferences, Pre-Application Conference Summary reports, pre-submittal conferences,or formal or informal discussions with Community Development staff or review Boards shall not constitute a complete application or any other official status. Applications submitted after the effective date of this ordinance shall be subject to the terms of this ordinance and of the Land Use Code and building code, as amended. C. Any project with vested rights for a site-specific development which are scheduled to expire during the effective period of this temporary moratorium, and which seeks an extension of vested rights beyond the period of vesting described in the Development Order may apply for an extension of vested rights following the expiration of the temporary moratorium period. Such applications shall be made in accordance with the standards set forth in Chapter 26.308 of the Land Use Code. Section 5. Vacation rental permits. 7 Valid 2021 City of Aspen vacation rental permits issued prior to the effective date of this ordinance and in accordance with the standards in Title 26 of the Municipal Code shall be automatically extended and remain valid until September 30, 2022, or the expiration of this emergency ordinance, whichever is later. Holders of valid 2021 vacation rental permits shall be required to obtain a 2022 City of Aspen business license in accordance with the standards set forth in Title 14 of the Municipal Code. No new vacation rental permits shall be issued in 2022 during the term of this ordinance and any extensions thereof. All licenses issued pursuant to Section 26.575.220 prior to the effective date of this Ordinance are site specific and may be transferred with the transfer of title to the property but may not be transferred to another property. Section 6. Appeals Concerning Moratorium. Appeals to the applicability of this moratorium to specific projects or properties shall be heard by the City Council pursuant to Chapter 26.316 of the Aspen Municipal Code ("Appeals"). Section 7. Emergency Declaration Pursuant to declarations set forth above and evidence presented at the public meetings considering this matter, it is hereby declared that, in the opinion of the City Council, an emergency exists; there is a need for the preservation of public property, health, peace, or safety of the City of Aspen, its residents, and guests; and, this temporary moratorium adopted as an emergency ordinance provides the time necessary to prepare a review of all pertinent land use,permitting, and financial regulations and for the City Council and staff of the City of Aspen to consider amendments, if any are required, to the Aspen Municipal Code. Section 8. Effective Date and Duration of Moratorium. This ordinance shall become effective immediately upon passage and shall terminate on June 8, 2022,unless extended by a duly adopted ordinance of the City Council. Section 9. Publication. The City Clerk is directed that publication of this ordinance shall be made as soon as practical and no later than ten(10)days following final passage. Section 10. 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 11. Existing Liti ate 8 This ordinance shall not have any effect on existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances amended as herein provided, and the same shall be construed and concluded under such prior ordinances. INTRODUCED AND READ as provided by law as an emergency ordinance by the City Council of the City of Aspen on the �ay of ,2021. 70W-,I - Torre,Mayor A)TTEST: Nicole Henning,City Clerk FINALLY adopted,passed and approved this ' day of , 2021,by ❑the unanimous vote of all City Council members present; or ❑a vote of four(4)council members. Aw" Torre,Mayor ATTEST: Nicole Henning, City C rk Approved as to form: Jam . True, City Attorney 9