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HomeMy WebLinkAboutresolution.council.043-22 RESOLUTION NO. 43 SERIES OF 2022 A RESOLUTION OF THE CITY OF ASPEN CITY COUNCIL ADOPTING POLICIES AUTHORIZING AMENDMENTS TO THE LAND USE CODE IN RESPONSE TO CITY COUNCIL'S SHORT-TERM RENTAL AND RESIDENTIAL DEVELOPMENT MORATORIUM WHEREAS,pursuant to Section 26.310.020(A),a Policy Resolution is required to initiate amendments to the City of Aspen Land Use Code; and, WHEREAS, pursuant to Section 26.310.020(A), during a regular City Council meeting on December 14, 2021, City Council adopted Ordinance No. 26, Series of 2022 by a unanimous affirmative vote extending 2021 Vacation Rental Permits issued as of December 8, 2021, until September 30, 2022 and terminating any new 2022 permits as of January 15, 2022; and, WHEREAS, pursuant to Section 4.11 of Aspen's Municipal Charter, during a special City Council meeting on March 15,2022, City Council adopted Ordinance No. 06, Series of 2022 by a unanimous affirmative vote reestablishing a moratorium on certain types of residential development until June 8, 2022; and, WHEREAS,at previous Council Meetings,including but not limited to December 8, 2021 and March 15,2022 Council meetings,Community Development Department received direction from City Council to draft targeted amendments to the Land Use Code related to short-term rentals, growth management, affordable housing, and development review processes; and, WHEREAS, the Land Use Code amendments requested by Council will advance specific policy statements in the Aspen Area Community Plan(AACP)related to affordable housing, environmental protection, climate action, residential sector development, lodging, community sustainability and character,and development review processes; and, WHEREAS, the Land Use Code is an essential tool for City Council and the community to ensure that Aspen's built environment supports the vision and policy objectives described in the AACP; and, WHEREAS,the Land Use Code requires periodic amendments to ensure it supports adopted City policy, is aligned with the community vision, and responds to changes in community, economic,and environmental conditions; and, WHEREAS, to ensure the Land Use Code supports AACP policies, delivers a built environment which supports community policies, economic needs, environmental stewardship obligations, responds to current community, economic, and environmental conditions,and supports to objectives of Ordinance No.26,Series of 2021 and Ordinance No. Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 1 of 7 6, Series of 2022, the Community Development Director recommends Council consider amendments to Land Use Code sections including, but not limited to: • 26.104 Definitions, • 26.200 Administration -Decision Making Bodies, • 26.300 General Procedures and Regulations, • 26.400 Development Review Standards and Procedures, • 26.540 Certificates of Affordable Housing Credit, • 26.575 Miscellaneous Regulations, ■ 26.610 Impact Fees, • 26.710 Zone Districts; and, WHEREAS, City Council has reviewed the proposed code amendment policy direction described in this resolution and finds it meets the criteria outlined in Section 26.310.040; and, WHEREAS, amending the Land Use Code as described below will ensure the ongoing effectiveness and viability of the regulations within the City of Aspen Land Use Code to achieve City Council's policy and regulatory goals as described in Ordinance No. 26, Series of 2021 and Ordinance No. 6, Series of 2022; and, WHEREAS, the regulations and standards in the Land Use Code provide important tools for the realization of Council's policy and regulatory objectives in response to Ordinance No. 26, Series of 2021 and Ordinance No. 6, Series of 2022; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department, following approval of this Policy Resolution will conduct Public Outreach with the public, property owners, and members of the development community; will receive recommendation from the Planning and Zoning Commission in a public hearing; and will propose an Ordinance to be considered at First and Second Reading; 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: Overall Cade Amendment Objectives The objectives of these code amendments are to: 1. Align regulations in the Land Use Code with policies in the Aspen Area Community Plan related to affordable housing, environmental protection, climate action, growth management quota system, residential sector development, lodging, community sustainability and character, and development review processes; and, Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 2 of 7 2. Amend the Land Use Code to support the development of more affordable housing in the City of Aspen;and, 3. More directly recognize and ensure proper mitigation of the employee generation impact of single family and duplex residential development; and, 4. More directly recognize and ensure proper mitigation of the employee generation impact of short-term rental in residential property within the City of Aspen; and, 5. Align land use review processes with community development needs, including affordable housing, and the mitigation of the community impacts from free-market development; and, 6. Ensure the ongoing effectiveness of the Growth Management Quota System in managing growth from residential development and redevelopment and mitigating the community impacts from those activities; and 7. Leverage GMQS tools to better align land use regulations and policies with climate action and environmental stewardship policies;and, 8. Adequately mitigate for the impacts of short-term rentals to the community;and, 9. Support adopted community greenhouse gas emissions reductions targets through responsible land use and development regulations; and, 10. Ensure future development and redevelopment mitigates for its climate, solid waste, natural resource,and environmental impacts;and, 11. Ensure the pace and scale of residential sector development dose not unduly impact the health,safety,peace,and sustainability of the community. Section 2: Tonics for Potential Code Amendments A. Affordable Housing The Aspen Area Community Plan includes policies directing the City of Aspen to address affordable housing in the community, including: 1. VIII.1. Restore public confidence in the development process. (pg 27) 2. VIII.2. Create certainty in zoning and the land use process. (pg 27) 3. 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) 4. II.1. The housing inventory should bolster our socioeconomic diversity. (pg 41) 5. 11.2. Affordable housing should be prepared for the growing number of retiring Aspenites. (pg 41) 6. IV.2. All affordable housing must be located within the Urban Growth Boundary. (pg 42) 7. IV.3. On-site housing mitigation is preferred. (pg 42) 8. 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, City Council provides the following direction to guide the development of LUC amendments on this topic: 1. Analyze potential regulations to allow for the development of affordable housing by right in appropriate zone districts and with dimensional standards which support Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 3 of 7 neighborhood character and the financial viability of private sector affordable housing development; and, 2. Create more robust incentives for the development of affordable housing by the private sector; and, 3. Provide a necessary foundation on which to base other, future Land Use Code changes in the creation of additional opportunity for affordable housing development. B. Short-term Rentals The Aspen Area Community Plan includes policies directing the City of Aspen to address STRs in the community, including: 1. VIII.2. Create certainty in zoning and the land use process. (pg 27) 2. H..1. The housing inventory should bolster our socioeconomic diversity. (pg 41) 3. 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 4. 11. Achieve sustainable growth practices to ensure long-term vitality and stability of our community and diverse visitor -based economy. (pg 24); and 5. 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 6. IV.1 Minimize further loss of lodging inventory (pg 25); and 7. Zoning and land use processes should result in lodging development that is compatible and appropriate within the context of the neighborhood, in order to: a. Create certainty in land development... b. Protect small town character community character... c. Limit consumption of energy and building materials, d. Limit the burden on public infrastructure and ongoing public operating costs, e. Reduce short- and long-term job generation impacts, such as traffic congestion and affordable housing demand. 8. VII.1 Study and quantify all impacts that are directly related to all types of development. 9. VII.2 Ensure that new development and redevelopment mitigates all reasonable, directly related impacts. City Council provides the following direction to guide the development of LUC amendments on this topic: 1. Define short-term rentals (STRs) as a land use distinct from residential, commercial, and lodge uses; and, 2. Develop and implement a permitting and regulatory compliance system for STRs; and, 3. Use permit types to distinguish between STR types including owner -occupied, non - owner -occupied, and lodging -based STRs; and, 4. Use permit types to limit the duration (days per year) certain STR types may operate; and, 5. Develop and implement a neighborhood noticing system for STR permit applications; and, Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 4 of 7 6. Assess a permit fee on STR permits which mitigates the administrative and community costs for the STR permit system; and, 7. Assess the appropriateness of an impact or other nexus-based fee on STRs to mitigate the affordable housing demand, community infrastructure impacts, and costs associated with STRs; and, 8. Quantify the affordable housing demand generated by STRs in residential properties; and, 9. Use zone districts and concentration limits to limit the number of STRs in the community and focus the use in appropriate districts; and, 10. Develop comprehensive life safety standards for STRs; and, 11. Develop public information and"good neighbor"policies to assist STR occupants in supporting and following Aspen's regulations and cultural norms; and, 12. Development a system of inspections, audits, and enforcement for STRs; and C. Growth Management and Development Pace and Scale The Aspen Area Community Plan includes policies directing the City of Aspen to address growth management and development mitigation, including: 1. 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 2. I.1. Achieve sustainable growth practices to ensure long-term vitality and stability of our community and diverse visitor-based economy. (pg 24); and 3. 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 4. V.2. Facilitate the sustainability of essential businesses that provide basic community needs. (pg 26); and 5. 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: a. Create certainty in land development. b. Prioritize maintaining our mountain views. c. Protect our small-town community character and historical heritage. d. Limit consumption of energy and building materials. e. Limit the burden on public infrastructure and ongoing public operating costs. f. Reduce short- and long-term job generation impacts, such as traffic congestion and demand for affordable housing. (pg 26) and, City Council provides the following direction to guide the development of LUC amendments on this topic: 1. Conduct a generation and mitigation study to support updates to the employee generation and mitigation rates for single-family, duplex and multi-family residential uses within the City; and 2. Assess the adequacy of the current system of development allotments at managing growth through controls on residential development; and, 3. Analyze the relationship between residential demolition,the allotment system, and the pace and scale of residential development and redevelopment to determine Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 5 of 7 whether demolition constitutes residential development activity warranting and allotment under the GMQS; and, 4. Analyze appropriate performance standards for residential development seeking an allotment under the GMQS; and, 5. Analyze residential development standards to ensure the mass and scale of residential development and redevelopment reinforces neighborhood and community character; and, 6. Amend the standards for the calculation of development metrics to ensure residential development and redevelopment mitigate for their community impacts. D. Develonment Review Procedures The Aspen Area Community Plan includes policies directing the City of Aspen to address development review procedures, including: 1. 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 2. I.1. Achieve sustainable growth practices to ensure long-term vitality and stability of our community and diverse visitor -based economy. (pg 24); and 3. 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: a. Create certainty in land development. b. Prioritize maintaining our mountain views. c. Protect our small-town community character and historical heritage. d. Limit consumption of energy and building materials. e. Limit the burden on public infrastructure and ongoing public operating costs. f. Reduce short- and long-term job generation impacts, such as traffic congestion and demand for affordable housing. (pg 26); and, 4. VIII.1. Restore public confidence in the development prat (pg 27)" 5. VIII.2. Create certainty in zoning and the land use process-g 27j 6. IV.3. On -site housing mitigation is preferred. (pg 42) ' City Council provides the following direction to guide the development of LUC amendments on this topic: 1. Ensure that review processed for residential development and redevelopment, affordable and free market, support and deliver upon adopted City policies including analysis of by -right, administrative, and board review processes and the level of scrutiny and community involvement appropriate for different development types; and, 2. Modify review standards and processes to promote the development of additional affordable housing; and, 3. Modify review standards and procedures to better align the use of land, infrastructure, and resources for residential land uses supports City policy and economic, environmental, and community needs. Section 3: Other Amendments as Necessary Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 6 of 7 Other amendments may be required to ensure coordination between the sections identified above and other sections in the LUC which may not have been anticipated. The code sections identified in this resolution is not an exhaustive list and may be modified to ensure coordination between LUC sections and to follow subsequent Council direction on these topics. Section 4• 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 5• 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 22°d day of March,2022. Torre,Mayor ATTEST: APPROVED AS TO FORM: t Nicole Henning,City berk James R True, City Attorney Resolution No. 43, Series of 2022 Moratorium Code Amendments Policy Resolution Page 7 of 7