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HomeMy WebLinkAboutresolution.council.064-14 RESOLUTION NO. 64, (SERIES OF 2014) A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL REQUESTING CODE AMENDMENTS TO IMPLEMENT A LODGING INCENTIVE PROGRAM. WHEREAS, pursuant to Section 26.310.020(A), the Community Development Department received direction from City Council to explore code amendments related to the creation of a lodging incentive program to bolster the bed base in both traditional hotel units and condominium units; and, WHEREAS, the Community Development Department conducted existing conditions research to understand Aspen's existing lodge inventory, the occupancy and rate characteristics of Aspen's bed base, the economics of upgrading, expanding, or developing lodge products, the latest visitor demographics, and the types of lodging product most in demand; and, WHEREAS,pursuant to Section 26.310.020(B)(1), the Community Development Department conducted extensive Public Outreach with community members, the Aspen Chamber Resort Association, condominium and lodging owners, managers, and stakel, lders, the Planning& Zoning Commission, the Historic Preservation Commission, and City Council regarding a lodge incentive program code amendment; and, WHEREAS, implementing a Lodge Incentive Program that bolsters the bed base has been a City Council Top Ten Goal for two(2)years; and, WHEREAS, the Community Development Director recommended adoption of a Lodge Incentive Program; 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 May 27, 2014, and continued to June 9, 2014, the City Council approved Resolution No. 64, Series of 2014, by a three to two (3 — 2) vote, requesting code amendments to implement a Lodge Incentive Program; 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 implements the City's goals related replenishing and diversifying the lodging inventory, as articulated in the 2012 Aspen Area Community Plan; and Resolution No 64,Series 2014 Pagel of 3 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 goals and objectives of the code amendment are to: • Minimize further loss of our lodging inventory. • Increase the number and diversity of lodging options in Aspen. • Encourage and allow investment that bolsters the bed base. • Create incentives for existing lodges and condominiums that are on the short-term rental market to upgrade, expand, and redevelop. • Create incentives for new lodge and short-term condominium product. • Ensure investment in the bed base results in development that is compatible with City goals and community character. • Create development and non-development incentives that address the varying needs of Aspen's diverse lodge product. • Strengthen the Transferable Development Rights (TDR) Program by creating additional landing sites for TDRs. Section 2: Code Amendment Direction City Council provides the following general direction related to the code amendment: • Create a predictable incentive program that addresses both lodge and condominium- style units. • Include development and non-development based incentives to encourage participating from all of Aspen's lodges. • Allow four stories for lodge development in limited circumstances. This likely means only in certain areas in the Lodge Zone District and only with a heightened review through Planned Development and/or Special Review. • Establish a new land use category that is a hybrid between free-market residential units and lodge units. These"Vacation Residences"are free-market residential units with an owner and owner guest occupancy limitation of six (6) months in any calendar year, and must be available for short-term rentals the remaining six (6) months. • Limit the unit sizes of free-market residential units, vacation residence units, and lodge units with the ability for limited increases through landing of Transferable Development Rights (TDRs). • Allow reductions in affordable housing mitigation for lodge and vacation residence projects participating in the incentive program. • Reduce the barriers that the Multi-Family Replacement Program creates for condominium-style units to upgrade and expand if they are guaranteed to be available as short-term rentals. • Increase the number of lodge allotments available,including an unlimited number of allotments for 2014 and 2015 to encourage participation in the incentive program. Resolution No 64,Series 2014 Page 2 of 3 • Establish a system for city fee reductions of up to 50% of city fees for properties participating in the incentive program. The city should budget for or otherwise accounts for the fee reductions to ensure the impact to various funds is minimized. Section 3• 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 repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 4• 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 9th day of June 2014. Steven Ska ron,Mayor ATTEST: APPROVED AS TO FORM: Linda Manning,City Clerk James R True,City Attorney Resolution No 64,Series 2014 Page 3 of 3