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HomeMy WebLinkAboutminutes.council.20220628 1 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 At 5:00 p.m. Mayor Torre called the regular meeting to order with Councilors Doyle, Hauenstein, Richards, and Mesirow present. CITIZEN COMMENTS: Chris Bryan – Mr. Bryan said he noticed that council wants to increase the design fees for the Lumberyard. He reminded council that this project is getting very expensive and it’s not clear how this is being paid for. He also mentioned the two employee housing units being purchased by the city. He said he will also be giving public comment later regarding the two ordinances. Mike Ireland – Mr. Ireland said today is election day. He wants to encourage everyone to vote. He said the STR regulations are fundamentally flawed. He spoke about the decline in community members happiness according to the survey. We’re making the housing problem worse. His suggestion is to restrict the STR permits to 500 and 90 days. He said to cut it back and said STR’s don’t belong in residential neighborhoods. Peter Fornell – Mr. Fornell said he wants to be clear about the source of the 505 fund dollars are. He spoke about city departments use of these funds. Councilor Richards said that he doesn’t have the correct information. Lorrie Winnerman – Ms. Winnerman said when she rents her place out, she doesn’t hire extra people. There has never been a complaint from her neighbors for renting her place out. Julieann Keil – Ms. Keil said she is dependent on her STR’s. Mayor Torre said they will take public comment on the ordinances later. COUNCILMEMBER COMMENTS: Councilor Mesirow said today is election day, so please get out and vote. The meeting tonight that the real governing happens in your backyard. He just got back from a small trip and saw Torre at the farmer’s market. If you want to fall in love with Aspen again, you should leave momentarily. We are so fortunate to live here. He was in Chamonix, and they are one of our Sister Cities. It was really wonderful and eye opening. Their issues are also affordable housing, transportation, etc. They want to rebuild relationships after COVID. Councilor Doyle echoed Councilor Mesirow’s sentiments about leaving Aspen. He was in Breckenridge last week for a Municipal League Conference and said that Breckenridge is really nice. But it’s not Aspen. We still have a lived-in community, and he is grateful. Councilor Hauenstein spoke about the Municipal League Conference and said there were a lot of interesting comments about Aspen being the gold standard for building codes. If you value the environment, Aspen is the leader. He said congratulations to the Avalanche as Stanley Cup winners for the first time in 21 years. Councilor Richards said she believed the conference was very valuable. Summit County had a moratorium on STRs last year and on May 24th they went back into a moratorium for nine months. It was fairly surprising information. 2 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 Mayor Torre asked for patience during the Cooper and Galena experiment. The team implementing this is carrying out a policy direction from council. We want to see our community safer and address having more foot traffic downtown. Some comments we’ve heard are now about the pedestrians and bikes. We want it to be safe and usable. AGENDA AMENDMENTS: None. CITY MANAGER COMMENTS: None. BOARD REPORTS: Councilor Hauenstein said CORE is very close to choosing a new executive director. He’s proud for where they are now and it’s a big improvement from last year. Mayor Torre had the ACRA board meeting. They had a staff presentation regarding the Galena Cooper project. We are moving in the right direction and are interested in this trial. There was a comment made from someone in the real estate sector and he said it’s great to get these ordinances in the books and that he’s looking forward to seeing the new codes in place. CONSENT CALENDAR: Councilor Mesirow said he has a brief comment about the purchases. He is going to support them, and he has had concerns regarding the 505 funds in the past. He is a runner and a barefoot runner. He has found that the 505 fund is like wearing a giant shoe. Councilor Doyle moved to approve the consent calendar; Councilor Richards seconded. Councilor Richards said she feels we are forced into this because we need to provide services to the public that they deserve and expect. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. PUBLIC HEARINGS: Ordinance #09, Series of 2022 – Short-Term Rental Regulations – Phillip Supino, Community Development Director & Haley Hart, Zoning Enforcement Officer Mr. Supino described the process constraints and the process in numbers. He summarized what led to the moratorium and how they made the sausage. The moratorium is a means and not an end. The moratorium was a necessary tool. The result is a leading edge set of regulations tailored to our unique set of circumstances in our community. We can’t judge the success of this for months and even years. The land use code, however, cannot resolve these bigger community issues. He said there are likely unintended consequences, and this is an evolving document, but this shouldn’t prevent council from taking the action that you want to take. Staff has taken this process very seriously and we do realize it could have positive and negative impacts on people in our community. It has been a humbling experience that we are grateful for. Ms. Hart pointed out the changes since first reading regarding occupancy limits, administrative fees, and in-unit messaging. Mayor Torre opened public comment. 3 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 Patrick Rawley – Mr. Rawley said he is here on behalf of Nicole Demetrius who has an STR on west Main Street. He said there was a limit put on the mixed-use zone district and said it’s already a buffer zone. Main Street is a perfect location for STR’s due to the activity and accessibility and provide vitality. Gordon Leddingham – Mr. Leddingham said he’s been in long conversations with council for the past six months. He we have a unique situation and have a condo in the RMF zone. We are unable to get a classic permit. If his mother heard that she was unable to get a permit, she would roll over in her grave. Chuck Frias – Mr. Frias asked where people can access all of the public comment which was submitted. Mr. True said they are all part of the public record and council has access to all of them. Mr. Frias said there are a number of condo buildings that have been historic rentals, so one of the flaws is to lump them together with residential rentals. He mentioned the slides and comparisons to Salida because he doesn’t feel that is the same type of resort town. We’re looking and blaming the wrong area. Tracy Sutton – Ms. Sutton said she’s supportive of everyone who has spoken. Due to Aspen’s unique inventory of private home rentals, a lot of contracts were written as nonrefundable. In the event of a sale, the rental should have the same stipulations as previous owner. Councilor Hauenstein asked how often this happens. Ms. Sutton said she dealt with it seven or eight times over the past year. Presley Swann – Mr. Swann asked if there was a poll of people who live in Aspen full time that this is supposed to benefit. Stephanie Holder – Ms. Holder said she has been an attorney in Aspen for the past ten years and lives in a free market unit in the core. She’s never rented her unit previously. Any regulations would be unfairly punitive because she is now looking into renting her place. She is against any regulations because she has to rent her place in order to stay in Aspen. Julianne Keil – Ms. Keil said she lives in Stephanie Holder’s building and she’s in the same boat. She depends on renting her place. She’s getting about $2000 a night for her unit, so if you guys limit the rentals, I’m just going to have to raise my price. She wants Aspen to make the most money possible and not have people going underground. Peter Fornell – Mr. Fornell said a lot of talk about our primary residence, and he can’t afford to be gone 90 days a year, so he’s wondering if people who depend on renting their place, if it’s really their primary residence. Phyllis Bronson – Ms. Bronson said she’s worried about the demise of the neighborhoods. The core is vital, and a lot of good things are happening there. She’s hearing the STR’s have taken away the long- term rentals. She echoes some of what Mick said. She mentioned the community tragedy with the fire and the travesty with Aspen Times. Good people are getting hurt. Some of the most vocal critics of the Aspen Times, are the biggest proponents of STR’s in the city and county. You need a healthy middle. The old mining town is going down. Jonathan Nickell – Mr. Nickell said the schools do need housing and we are losing teachers due to a lack of housing. His main worry is that only certain people get an economic benefit. You need to make this 4 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 fair and available to everyone. Make sure that everyone has access to this and not grandfathering people in. Ben Wolf – Mr. Wolf, of Frias Properties, said it’s quite simple and about the Aspen feel and not alienating a potential client of Aspen. It doesn’t make sense for a new owner to not have the permit if someone has already booked. This is kind of simple and a good way to continue to welcome people to Aspen. We’ve encountered it, but it’s not happening all the time. Chris Bendon – Mr. Bendon is supporting Patrick Rawley’s comments regarding Main Street. It does make sense and is a great area for STR’s. Bill Stirling – Mr. Stirling said addressing STR’s is happening in probably every ski town in Colorado. There is a lot of information out there and the different policies. He likes some of the regulations they have come up with, but not allowing any new licenses, he disagrees with. Many people who got the licenses last minute, have never rented, they just wanted the option. There should be a different process about bringing new people in. He thinks stripping a place of it’s permit when it sells isn’t fair and limiting to 90 days is too little. Alycin Bektesh – Ms. Bektesh is here representing ACRA. She commended the city on their outreach. They represent a very diverse group. Membership does have concerns about the 90-day cap and will adversely harm people who rely on rental income. LJ Erspamer – Mr. Erspamer said he’s a real estate broker. He served on Planning & Zoning commission for eight years. He congratulated staff on what a great job they’ve done. He lives on the 500 block of Spruce Street, and he has seen a lot of developments over the years. He has seen problems with every rental. He’s had to deal with parking issues due to these rental properties and his own property value has gone down at his expense. We have no more room for STR’s. He said they’ve been living in a nightmare, and this is what’s happening to us, is that we are the ones who suffer. Alexandra George – Ms. George said she’s spoken several times over the past few months. She came up reluctantly because she’s not sure it will make a difference. Today is election day and March 2023 is an election month. She voted for all of you, and it’s been an interesting two years. She’s encouraging you to take some of these comments tonight and make your own vote. She’s been attending all of the public meetings and doesn’t feel heard because the vote is always 5 out of 5. Chris Bryan – Mr. Bryan said there is no reason you have to vote on this tonight. There is no reason you should feel rushed to vote on this tonight. He doesn’t feel this ordinance is ready. You’re about to do something you haven’t done before so please proceed with caution. James R. True, City Attorney, said council can continue this item because it doesn’t have a time restriction like ordinance #13 and #14. Mr. Supino said he wouldn’t feel comfortable making an amendment tonight. Councilor Richards agreed that they should not craft something on the fly. Council continued discussion on various questions and changes. Mayor Torre said there were a lot of great comments and a lot of concerns. He’s comfortable moving forward knowing they have the opportunity for amendment. 5 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 Councilor Hauenstein reassured Alexandra George that they do listen to all of the comments and respond to emails. We are trying to be accommodating. We are trying to identify the impacts and reign it in as much as possible. Councilor Doyle said business as usual isn’t working for our community and that is why staff has put in so many hours working on this for us, so thank you to staff. Councilor Richards said next March is our election. People will be debating these issues wonderfully and we’ll see where the community goes. It will be an exciting time. She thanked staff and the public for their comments. We’re trying to do a good job and all of the input is extremely helpful. Council Mesirow said we should not be scared of change. It’s always an opportunity for regrowth and improvement. Our responsibility is to respond to changing times. This has been clear-eyed, balanced, considerate and involving. He’s happy to support this. Mr. True read the motion with the amendment. Councilor Mesirow motioned to approve Ordinance #09, Series of 2022 with the amendment; Councilor Doyle seconded. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. Mayor Torre said they are taking a 30-minute break. Ordinance #13 and #14, Series of 2022 – Response to Moratorium – Residential Building - Ben Anderson, City Planner Mr. Anderson said the presentation is related to both ordinances. There have been some changes made since first reading to Ordinance #13: Formatting, grammar, new details on specific review path for affordable housing projects that are subject to HPC review, the inclusion of an employee generate rate of .107 FTE/1000 sf following Council direction at first reading, vertical circulation elements excluded from calculation of mitigation floor area, and refinements to appendix A of the Residential Demolition and Redevelopment standards. Jessica Garrow, of Design Workshop, gave an overview of when they got involved and their engagement summary. Mr. Anderson gave an overview of the primary policy proposals. Mayor Torre opened public comment. Mr. True said we can take comment on both ordinances at the same time. Haley Carmer – Ms. Carmer said she’s an attorney at Garfield & Hecht and submitted a letter this afternoon. She said even with updated studies, it’s premature to be looking at changes to the fee structure. She said Ordinance #13 is basically in the same state as it was at first reading and is a point of concern. She listed items that are not included in the updated study. We need more information; it’s more than a policy decision. Michael Verdone – Mr. Verdone said he is a director at BBC Research and Consulting in Denver, CO. We’ve been retained by Garfield & Hecht. A letter was sent earlier today, and he read an excerpt from it. He said there are a few areas of concern regarding impact fees. He listed some recommendations. 6 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 Jonathan Nickell – Mr. Nickell said that he knows this is really hard and thanked council for their service. He spoke about a change in fees and knows we’re trying to do the right thing, but we’ve completely gotten out of the realm of doing what is reasonable and logical. He feels targeted as a specific group of homeowners who would like to have the option of redeveloping their property. This isn’t the way to fix the problem. Chris Bryan – Mr. Bryan said he is a local attorney and said they gave public comment as soon as they could, but you didn’t give anyone notice of Ordinance #27 in December. He read key parts from a letter that was sent today. He spoke about fees and doubts among the community. The last time we went to court, the court agreed with us. Mr. True said he doesn’t want to get into an argument with Mr. Bryan. We disagree and they are entitled to their opinions. We believe we’ve done this analysis properly. If they wish to litigate that, it is their right. The letter that the expert provided was dated yesterday and we received it at 3:30 p.m. Peter Grenney – Mr. Grenney read an excerpt from the staff memo. He said it seems people are being punished for not scraping and replacing their homes. He said it seems to be the stick approach as opposed to the carrot. This seems counter to the point of trying to preserve smaller homes rather than giving them an incentive. Bill Stirling – Mr. Stirling said Aspen didn’t just become a commodity yesterday. He made that statement in the mid 80’s when more people came to Aspen to own, build, and profit by selling real estate. COVID caused the phenomenon of urbanites coming to Aspen and unexpectedly shot the prices up beyond imagination. Some of your reaction to wanting to make changes is because of this phenomenon. The natural ebbs and flows of our economy are already starting to slow things down. Limiting the number of demolitions a year to six seems quite unrealistic. He suggests they think about a workable group of exceptions. He advises they back off on such dramatic increases on affordable housing mitigation fees. Bill Guth – Mr. Guth said he lives on 8th Street. He thanked staff and council on their hard work. This is going to be another well intentioned mess in Skippy’s words. There are so many unintended consequences in this. This is not a solution to the problems our community is facing. This creates new problems. This is going to disadvantage locals. No one has suggested carrots or incentives. To try to penalize without solving the problems, makes no sense. Limiting demolitions will result in more extensive renovations, which will be highly impactful on the neighbors. It’s concerning how staff will delegate these demolitions totally fairly. Most upsetting will be the jobs that are lost because of these changes. It permeates the entire valley that is involved in the development industry. This is so rushed. It’s going to be a mess. He’s developed a lot of houses in the west end, he’s gotten six HPC awards for every project he’s ever done, he started a restaurant in town, he’s married with kids. Alycin Bektesh – Ms. Bektesh with ACRA said she’s here to summarize to what they’ve heard from their 700+ business members. She said congrats on passing the short-term rental ordinance. She’s appreciative of them taking public comment. With these ordinances, our membership is concerned with the impacts on locals especially those involved in the development industry. Jim Pomeroy – Mr. Pomeroy said he’s a lifelong citizen of Aspen and he is here as an independent citizen and not as an employee of the city. If democracy can be thought of as leaders doing the best for the majority of their citizens wellbeing, then approving the ordinances tonight will prove that democracy is 7 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 alive and well in Aspen. Over the years, he has heard multiple complaints about the development in Aspen. He’s heard this a million times over the past few years. He agrees with the sentiment. He voted for every member of this board and it’s nice to have a board make some positive changes in this town. We can’t predict everything that will come out of it, and he wishes we could always have perfect legislation, but he appreciates them finally trying to do something about this. He wishes that more locals who are in favor of these decisions, would come to these meetings too. Fred Pierce – Mr. Pierce has called Aspen home for 62 years. He’s heard comments from council about how the goal is to preserve the community and workforce. He’s one of those guys but doesn’t feel like they are worried about him. He’s familiar with what is being proposed and he’s reminding them again of where guys like him are coming from. His home would need to be demolished and said the deferral agreement is useless unless you include some sort of appreciation for those of us who live in our units after a certain period of time. Mike Maple – Mr. Maple brought in an old pipe and said it’s impossible to repair. He said he could talk for hours about this. It’s not been properly thought through. You don’t all understand the development process as it occurs by creating a lottery or roll of the dice. He spoke about January when the applications are received and blamed the people reviewing the applications for fumbling the process. We have no idea how many people will be playing the game and how fast they will be submitting. This is an absolute roll of the dice. That is a terrible place to be. He said the reason he is here is because he moved here with his parents in 1968. The house is now very old and tired. These two ordinances should have been on two separate nights. His parent’s house has him laser focused on the consequences of the lottery you all are creating. Please do not do this. Peter Fornell – Mr. Fornell said the demolition number needs to be rethought. He said Ben Anderson does a fantastic job and wondered if he’s gone through the exercise of used the new lower generation numbers and new higher mitigation numbers and figured the dollars and sense of this. Mr. Anderson said yes, the numbers are presented in the packet. Councilor Hauenstein said they’ve been here for six hours, and they need some time to think and evaluate everything and moved to continue this meeting. Councilor Richards said she’s hopeful they can continue to tomorrow night. Mayor Torre said he’d prefer Thursday. Mr. True said you continue the two ordinances and then continue the meeting in three separate motions. Mayor Torre closed the public hearing for both ordinances. Councilor Hauenstein motioned to continue Ordinance #13, Series of 2022 to Thursday June 30th at 2:00 p.m.; Councilor Mesirow seconded. Mayor Torre said what he’s hearing in the room tonight is for the locals and he’s looking for local’s sensitivity. The council members clarified for staff what they would like more information on and want to consider for Thursday. 8 REGULAR MEETING ASPEN CITY COUNCIL JUNE 28, 2022 Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. Councilor Hauenstein motioned to continue Ordinance #14, Series of 2022 to Thursday June 30th at 2:00 p.m.; Councilor Doyle seconded. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. Councilor Hauenstein motioned to continue this meeting to Thursday June 30th at 2:00 p.m.; Councilor Doyle seconded. Mayor Torre thanked members of the public for being present at 11:00 at night and for the council members for indulging the speakers tonight. Thank you for your patience. Roll call vote: Doyle, yes; Hauenstein, yes; Mesirow, yes; Richards, yes; Torre, yes. 5-0, motion carried. _____________________________ Nicole Henning, City Clerk