HomeMy WebLinkAboutminutes.council.20141212Regular Meeting Aspen City Council December 1, 2014
1
CITIZEN COMMENTS AND PETITION ................................................................................................... 2
COUNCILMEMBER COMMENTS ............................................................................................................ 2
CONSENT CALENDAR ............................................................................................................................. 2
Minutes – November 24, 2014 .......................................................................................................... 2
Resolution #136, Series of 2014 – Lodging Policy ...................................................................................... 2
Ordinance #39, Series of 2014 – 709 E Durant – Sky Hotel ...................................................................... 11
Regular Meeting Aspen City Council December 1, 2014
2
Mayor Skadron called the meeting to order at 5:00 p.m. with Councilmembers Daily, Frisch, Romero and
Mullins present.
CITIZEN COMMENTS AND PETITION
1. Ziska Childs stated in October there were bears in the trees on the mall and when the hockey
teams came in the boys were throwing rocks and a football at the bears. She said she knows what
the penalty for an aggressive bear is but what is the penalty for someone who gets stupid with a
bear. It needs to be more aggressive and the fines doubled or tripled.
She said that three people since Thanksgiving have asked for a place to go dancing in town. She
suggested a dancehall as a possible repurpose of the armory.
COUNCILMEMBER COMMENTS
1. Councilman Frisch said we need to remember what we are all thankful for and why we live here.
2. Mayor Skadron gave a thank you to the Hickory House for the Thanksgiving dinner.
3. Mayor Skadron thanked the Ski Company for hosting the world cup races.
CONSENT CALENDAR
Minutes – November 24, 2014
Councilman Frisch moved to adopt the consent calendar; seconded by Councilman Romero. All in favor,
motion carried.
Resolution #136, Series of 2014 – Lodging Policy
Jessica Garrow, community development, stated they are asking Council for direction to move forward
with the lodging policy. Ms. Garrow said Aspen has lost a lot of lodges over the past 20 years including
the Red Roof Inn, Cortina Lodge, Bavarian Inn and Copper Horse among others. Stay Aspen Snowmass
tracked lodging from 1995-2006 and reported a 27 percent decrease in the bed base. MTRiP married the
Stay Aspen Data with theirs and estimated a 3.25 percent decrease between 2006 and 2009. From 2009 to
2012 MTRiP reported a .5 percent decrease. The general message is there is a slow steady erosion of the
bed base. In 2012 the City adopted the Aspen Area Community Plan and included a philosophy
statement that a strategy that replenishes the lodging base and gives a divers inventory is important to the
long-term sustainability of a visitor based economy. City Council adopted a top ten goal in the same year
with the goal of studying lodging to look at the adequacy of lodging options in Aspen and suggest areas
for improvement. From this study they learned about 40 percent of the bed base is in condominium units.
Overall trends include the decline in the bed base will be a serious threat to the economic sustainability if
it continues and the code contains a strong bias in favor of traditional lodge projects over condominium
ones. Staff also learned that the most requested properties are ones with suites that include hotel
amenities and there is a gap in the market for units with flexible configurations. Overall booking trends
include more families requesting units with flexible configuration and condo style. Our competitors have
been investing in newer products in other resorts and Aspen is harder to get to than other resorts.
Aspen average rates are higher than the Colorado competitive set. Occupancy is returning to pre-
recession levels. On average the moderate economy room is in the 300 dollar per night price range.
The overall key findings include Aspen has a strong brand but we need to invest in lodging to matain our
market share. Our development process in unpredictable. The condo base is aging and in need of
Regular Meeting Aspen City Council December 1, 2014
3
upgrades. New or reinvigorated lodging likely requires additional height, free-market residential uses,
and lower mitigation.
In 2013 City Council adopted another top ten goal to implement an incentive program for the short-term
bed base. In August, Council approved a lodge incentive ordinance that was rescinded two weeks later
after a number of community concerns. At the time, Council directed staff to conduct additional outreach
and return with revisions.
Staff conducted additional public outreach via five different methods including small lodge outreach, city
board outreach, telephone survey, small group meetings and open City Hall. There were nine lodges that
responded to a survey. The main theme was the City effort to bolster the bed base will assist them, as
well as the bed base in general. The vast majority think the City should try to assist small lodges. The
most requested items include:
1. Free or reduced cost street parking passes
2. Building permit and impact fee reductions
3. An “express lane” in building and planning
4. Free building code and energy audits
5. Lodge ombudsman to assist small lodges through the process
6. Loans and/or grants
The City board outreach included the Planning & Zoning Commission, Historic Preservation
Commission, Housing Board, Commercial Core and Lodging Commission and the Next Generation
Advisory Board. Their comments included The City has a role in bolstering the bed base but should
focus on the small lodges. They agreed with the “express lane” for simple projects. There was not
support for reductions in affordable housing or parking. There was a split on if heights should be allowed
as an incentive. There was support for condo and vacation residences.
The City contracted with Venturoni Surveys & Research to design and implement a statistically accurate
telephone survey of registered voters. Interviews were conducted from November 7th through the 12th
with 280 responses tabulated. Participants were asked if the lodging issue was not a problem (1) to a
major problem (5) with the mean score a 3.21. When asked what kind of units and rooms should be
replaced there was more support for the economy and moderate sector (3.45) with low support for the
deluxe beds. Participants were also asked about incentives where allowing four story buildings received
the least support (1.96), maximum sizes for lodge rooms (2.61), reduce affordable housing mitigation
(2.82), allow free market residential units (3.10) and reduce building permit fees (3.15). Survey trends
include 70 percent “strongly disagree” with allowing four story buildings. 61 percent favored “doing
nothing” about replacing lost deluxe lodging units. 55 percent thought “vacation residences” should be
permitted. 53 percent favored “do anything possible” about replacing lost economy and moderate lodging
units. 44 percent indicated they “strongly disagree” that the City should incentivize replacement of lost
lodging beds through reduced affordable housing mitigation.
Common themes in the write in comments were streamline the development process, no more tall
building, maintain diversity in the lodging sector, have some flexibility in the policy development, and
more affordable housing.
There were 85 participants in the small group meetings. The message was the City has a role in
bolstering the bed base. 75 percent felt the City should incentivize condominiums. Reduce building
permit fees and a split regarding heights and affordable housing mitigation.
Regular Meeting Aspen City Council December 1, 2014
4
There were 10 comments and 41 survey responses submitted to open city hall. There was less support for
the City playing a role in bolstering the bed base. The vast majority felt there is a benefit in preserving
the existing inventory as well as maintaining and encouraging a diverse and balanced lodging inventory.
The overall themes include support of condominiums as part of the bed base, assist existing lodges,
simplify the City process, do not incentivize lodging through added height, split on housing mitigation as
an incentive, and little support for lodge room size caps.
Staff has looked at nine policy areas:
1. Code amendment objective
a. Minimize further loss of our lodging inventory.
b. Increase the number and diversity of lodging options in Aspen.
c. Encourage and allow investment that bolsters the bed base.
d. Create incentives for existing lodges and condominiums that are on the short-term rental
market upgrade, expand and redevelop.
e. Ensure investment in the bed base results in development that is compatible with City goals
and community character.
f. Create development and non-development incentives that address the varying needs of
Aspen’s diverse lodge product.
2. Height
a. Little support for additional heights. Staff recommends existing heights be maintained with
no changes.
b. Council could consider to allow projects to request additional heights up to an overall cap or
allow additional height through a public vote.
3. Floor Area
a. General support for lodging as a use. Staff recommends no changes to overall floor areas but
do support allowing more of a building to be dedicated to lodge use.
b. Other options include allowing projects to request additional floor area up to an overall cap or
allow additional floor area through a public vote.
4. Residential Unit Size
a. Some support for free-market units in lodge projects. Staff suggests existing unit size caps be
maintained.
b. Other options include removing unit size caps and/or removing TDRs.
5. Lodge Unit Size
a. Little support for lodge unit size caps. Staff believes unit sizes are important to prevent
proliferation of extremely large lodge units. Staff recommends 1,500 sq ft unit size with the
ability to increase through Special Review.
b. Other options include no unit size cap.
6. City Process
a. Significant agreement that the City process in unwieldy, time-consuming, and expensive.
Staff recommends “express lane” for small lodges and minor projects and simplify timeshare,
growth management and multi-family replacement.
b. Other options include do nothing.
7. Condominium Units
a. 40 percent of the City’s bed base.
b. General support for these units to upgrade. Staff recommends simplification of multi-family
replacement, “express lane” for small projects, reduced permit fees for units that are rented.
c. Other options include do nothing.
8. Vacation Residences
a. General support for this new land use.
b. Units required to be available for short-term rentals six months a year.
c. Staff recommends moving forward with this new land use.
Regular Meeting Aspen City Council December 1, 2014
5
d. Other options include do nothing.
9. Small Lodges
a. Significant support for small lodges. Staff recommends the following incentives:
1. Free or reduced cost street parking passes.
2. Building permit and impact fee reductions.
3. An “express lane” in building and planning.
4. Free building code and energy audits.
5. Lodge ombudsman to assist small lodges through the process.
6. Loans and/or grants.
Ms. Garrow stated she received two letters from the public that were forwarded to Council from Chuck
Frias and Jeanine Kirk to enter into the record.
Councilman Frisch thanked Staff and said it is a good way to come back. He said he is lost on
maximizing the size of a hotel unit. There is a huge differences and economic incentives from a free
market builder and a lodge owner. His understanding is the hotel wants to fill up the beds. He said he
needs to be convinced why a hotel would build an 8,000 sq ft unit.
Ms. Garrow said the concern is related to unit size. The larger the room size the less desirable it is to the
typical traveler. They are concerned it is a run around the free market cap. Councilman Frisch said you
can only stay in a hotel for 30 days. Someone might stay for 30 days and move out for a day. Ms.
Garrow said they are open to talking about what the cap should be. 1,500 sq ft meets the demand of the
current traveler. Mr. Bendon said they need to be reminded that occasionally thing happen here that don’t
happen in other places. They are worried that it could happen. When Staff brought this forward before
you could exceed the room size by landing TDRs. That is off the table. Councilman Frisch said the
density argument is important.
Mayor Skadron asked which category you are asking about. Existing lodges, condos, small lodges and
new vacation residence category. Councilman Frisch said it is specific to the classic hotel room. There is
a valid reason why there can be a certain amount above 1,500 sq ft. Ms. Garrow said they are concerned
about existing smaller lodge owners changing ownership there is no code review that prevents them from
decreasing the number of lodge units. It could turn into a play to convert the lodge into a residential use.
Councilman Romero asked how much public outreach was done in the last three years compared to last
three months. Ms. Garrow said they did a significant amount in the first iteration. There was general
outreach with HPC and P&Z and a number of public hearings and work sessions.
Councilman Romero asked if the latest wave touched beyond the sphere of usual suspects and did
anything surprise you. Ms. Garrow replied she was surprised with how significant and clear the response
within the telephone survey was on height and affordable housing.
Councilman Romero asked if the concept of the vacation residence gets traction and air time for the
public to understand. Ms. Garrow said they asked a number of different question on condo units and
vacation residences and the general consensus was the condos should be rented if they are to get
incentives. They tried to provide background information as to what is a vacation residence and that it is
different than a condo unit.
Councilman Romero asked given additional time to focus more deeply what would you focus on to
strengthen the base of knowledge. Ms. Garrow said she is not sure, they have done almost everything
except a mail survey.
Regular Meeting Aspen City Council December 1, 2014
6
Mr. Bendon said the big difference to prior to Ordinance 19 is the phone survey. 280 people stuck
through it.
Councilman Daily stated he appreciates the effort. It is a significant shift in the last approach. It is more
modest focused and more responsive to public outreach. He said he respects that the proposal is not
suggesting height or parking or affordable housing incentives. It makes it easier to address the
fundamental question of do we want to incentivize and minimize the loss of the bed base and encourage
refreshing the bed base. It is easier to approach and generate support of the community. He agrees that
smart caps on unit sizes are important. He recognizes variances are a broader conversation and a
conversation we need to have. He asked what role variances play in the redevelopment incentives. Ms.
Garrow replied steep slopes sites are challenging and applicants may need to ask for variances for height.
Downtown flat sites may be achievable and it is up to the developer if they can make it work. Mr.
Bendon said it is a matter of tradeoffs. There are general design components where aesthetics can be
improved by using flexibility in the zoning dimensions. There is an upside to allowing the discussion to
occur. Should there be a top set to the ask? The ask can drive people crazy and generate a lot of anxiety.
Councilman Daily said those that can be shown to have community benefits merit consideration.
Councilwoman Mullins said it is an impressive amount of work in a small time. She appreciates the
variety of outreach. It is encouraging to see the consistency in responses. In support of maximum lodge
unit size if we don’t put a cap on it will it be moving toward deluxe. She asked if existing heights be
maintained is for the lodge or zone district. Ms. Garrow replied zone districts. Councilwoman Mullins
asked if Staff only ask about parking passes to the small lodge groups. Ms. Garrow said they did not
focus the questions on parking but received a lot of write in comments. For a vast majority it is not really
an issue but an overwhelming issue for the small lodges.
Mayor Skadron said there are three categories; small lodges, existing lodges, and condos which contains
vacation residences and short term rentals. Ms. Garrow said our existing condo stock does not have a
rental requirement. At any time an owner can pull out of the program. The vacation residence would
have a rental requirement. Mr. Bendon said this came up in the small group meetings. It is helpful to talk
about vacation residence in context of new development.
Mayor Skadron said the bigger question may be why are the lodge rooms lost. Free market residential is
a more attractive investment than a lodge. The incentives should address the underlying economics,
sticks and carrots. Sticks – change the underlying zoning to limit residential uses in a lodge zones.
Carrots - may be some of the incentives. It is important that the underlying economics be addressed.
Mayor Skaddron said the summer of 2014 was tantamount to gridlock in this town. The streets were
overwhelmed. There were lots of people in town and they were staying someplace. Up zoning will
loosening the code to allow more of something equating to increasing impacts we saw this summer. Ms.
Garrow said what is before you is a much more refined and narrow scope of code amendment and focuses
on small and existing lodes. It is not encouraging new development. No height or floor area changes.
They do need a definition for what is a minor project. The focus is not new product entering but existing
lodges.
Regular Meeting Aspen City Council December 1, 2014
7
Mayor Skadron asked if we know or what degree can Council know what our town would look like
should these incentives be granted. Ms. Garrow said part is do we want to move forward with reduced
permit fees or a quickened process. We may see a lodge come in today that may not have.
Mayor Skadron said the fundamental underlying question is how strong the current economy is and with
the application pipeline that exists without any code revisions, how many applications will go away with
no incentive and how to justify the incentives that are needed. Mr. Bendon said they heard across the
board the review process is painful and unpredictable and very expensive. The community and applicants
are spending a lot of time and energy on the review process instead of what are the results of
development. They need to spend less time arguing on a case by case basis and more time defining
results you would like to see. One of the challenging aspects of long range planning is the acuteness of
focus needs to be broader. They see trends and are not sure when to do something about it. Do we need
to do something about this. It is still an underlying trend that is disturbing.
Mayor Skadron said it is fair to assume applicants in the pipeline see a profit potential without additional
incentives. Mr. Bendon said they did not submit the application without a profit motive and there are
multiple motivations. Mayor Skadron said if that is the case there is no need for new incentives.
Councilman Romero said the small lodge and condo owner is the part of the community this will help.
Mayor Skadron said it is more moderate than before but still complex. He wants to be certain that should
Council find favor they be applied appropriately.
Mayor Skasron said Aspen is an attractive investment alternative. Are incentives icing on the cake. Ms.
Garrow said it depends on what group you are looking at. They are not seeing small lodges coming in to
do upgrades they say they want to do. It makes sense to incentives them by changing the process. Mr.
Bendon said it’s the cake. Icing would be legitimate if we saw an increase. This is encouraging action
that is not taking place today.
Councilwoman Mullins said a couple months ago there was discussion of small lodges being land rich
and cash poor and incentives are the only thing to improve their stock. She would like to see an
ordinance focus on small lodges and separate from new development. Every one of these incentives is
vital to the existing small lodges.
She said what she would like to envision in 10 years is a very robust small lodge market with everything
from deluxe to economical and that is what would maintain Aspen character.
Mayor Skadron opened the public comment.
1. Marsha Goshorn said the way the original ordinance was written it was a disincentive to the small lodges.
They are charged too many fees especially the water and sewer tap fees. These fees are being charged
retroactively when these fees used to be grandfathered in. The list of fees is more than the renovation. It
is prohibitive for small lodges to renovate. These are the kind of properties this town can’t lose. A lot of
condo declarations don’t allow short term rentals. The current process is part of the reason we are losing
some of the lodges. The permit to bulldoze is quicker than the permit to renovate.
2. Debbie Braun said the summer was busy due to day trippers who are staying in Vale and heading out.
We will see an impact in traffic. Over the last five years the City and county haven spent considerable
resources in purchasing open space and affordable housing. A lot of effort has been spent on
understanding the bed base. Lodging renewal is at our doorsteps and she supports the incentive program
specifically for small lodges. It is a step in the right direction.
Regular Meeting Aspen City Council December 1, 2014
8
3. Norma Dolle said the Snow Queen is doing very well. She was concerned with the fellow from Chicago
who wants to build a lodge with no parking. There is trouble parking and finding parking for guests.
Limelight guests park in front of her place. It is cheaper to park in front of her lodge then at the limelight.
4. Dave Corbin, aspen skiing company, encouraged Council to take up this matter. It was a great
disappointment to see the ordinance rescinded. We need code revisions specific to process simplification,
condo refurbishment and vacation residence properties as well as address the small lodges. He
encouraged Council to address small lodges in an ordinance by themselves. Find manageable topics and
ones easier to address that they can pass and move on.
Mayor Skadron asked why see incentives passed for vacation residence. Mr. Corbin replied 40 percent of
the bed base is in condo multi-family product. The constraints on those properties to do simple upgrades
is critically important and most easily addressed. New lodging is a red herring. Important those beds
remain hot.
5. Phyllis Bronson said she is confused by city development and left feeling they have to have tentacles in
everything. It is hard for a citizen to understand that heights won’t be touched. It is concerning that
incentivizing everything ignores a segment of Aspen that is renting condos. What happens to long time
citizens who are living in rentals and don’t want to see that happen. The revision was made for small
lodges and only one person is here and not asking for anything. We don’t have a vision.
Councilman Frisch said a lot of people live in condos, do they need help. Ms. Bronson said they could be
forced out.
6. Ward Howenstein thanked staff for the outreach. It was a sincere effort. He said a lot of time shares and
fractional ownerships were created during the survey period. It doesn’t seem like 27 percent less maxed
out. How do they fit in. Mr. Bendon said they were counted just like lodge rooms. There was an
increase in the number of fractional and timeshare units over the last 10 years.
7. LJ Erspamer stated he serves on P&Z. Fractionals are only available 30 days before the date. A lodge is
a lodge. P&Z is out of the code process and should be involved. Six months available to the public is a
waste and don’t bother with it. They will only be available during the off season and will undercut the
small lodges. Define the language to get rid of ambiguity. What role does Snowmass Village lodging
play in Aspen. Current parking system in inadequate. We have a parking system but need a plan.
Streamlining the building process starts with P&Z. They might not have the direction Council wants
them to go. Council should give a general review then go to P&Z. If we create incentives today what
will happen in five years.
8. Susan Welsch stated she lives at Obermeyer. Parking is so much of a problem visitors need to come after
5:30. Parking is so important. Aspen is so wonderful and we all moved here because of the way it looks.
Don’t give in on heights.
Councilman Frisch asked if there should be more parking. Ms. Welsch replied off street parking. Hotels
should provide off street parking.
9. Ziska Childs stated she couldn’t agree with what Councilwoman Mullins said more. It should be looked
at as two different and separate issues renovations to existing and new development. Floor space and
heights don’t matter with existing. Parking probably doesn’t matter. We need to focus on what it takes to
renovate, upgrade and modernize what is here now. 40 percent are condos and outreach to individual
condo owners has not been done. They are not registered voters and don’t live here full time. Please do
not put deed restrictions into a package for condos that are currently free market. It is a big incentive of
buying a condo. No one will ever opt to do 30 day rentals instead of 31 for a tax break.
Regular Meeting Aspen City Council December 1, 2014
9
10. David Perry, aspen ski company, said he had the opportunity to speak to different groups about this issue.
He has been speaking at employee orientations lately. There is lots of interest in this subject. Staff asked
what has the City done about it. He replies nothing then they ask why. There are groups in the
community who don’t want it. What are the consequences. How busy is busy enough. What is the
carrying capacity. We are still 15-20 percent below in skier visits in the winter than peak year in 1998.
This is partly due to the decline in lodging. If we continue to do nothing or do very little we are allowing
the erosion of the bed base to continue and will end up with a more exclusive more expensive Aspen.
This is not what we want. We have not started to stem the tide. We want to see a community that
welcomes the next generation of visitors. There are lots of reasons to say no but we need to find the path
to yes.
11. Jeff Gorsuch said we have got a good systems in place but we can’t keep losing the lodging base. There
will be distrust if it goes to areas away from council to a public vote. A lot of people who live here can’t
vote in Aspen. We need to trust Council and Staff to uphold the codes. He believes in council and Aspen
and our best days are now.
12. Mick Ireland said the small lodges and vacation rental numbers are based on untested data. He is
concerned there is a rush to do things without fundamental data. There needs to be some finality in actual
units declined and why. No one buys free market and converts to lodging. 70 percent are owned as
second homes and not rented. It makes no sense to rent. Condo blocks are losing population and being
converted to second home use. The elephant in the room is the multi family replacement program. This
program needs to have a cost accounting that requires council to make an approval from the general fund
to cover the cost. You can’t cut fees without getting the money from somewhere. Caps on lodging unit
size is something he can support. If size is not capped they will be converted into free market residences.
Rather than a grant program why not give a loan. If the lodge converts they must repay with interest.
Leave multifamily residential in place until the impact has been studied. Upgrades don’t lead to rental
housing. No one is renting in the west end. There is no enforcement provision that requires rentals. The
problem with variances is the current expectation is they will be obtained. There is an expectation of up
zoning. Have zoning that means what it says.
13. Bill Stirling said there is confusion that this is an ordinance but it’s the process. P&Z is not taken out of
the process because it would not go to them. Council is on the right track but they have to determine what
are the goals. Expand the bed base, remodel antiquated bed base, rehabilitate facades of old buildings.
Fees are so beyond and economically impossible to start the process. Speed, clarify and involve people in
the process. Participation will grow. Fees paid will not be as much per application but more people will
be paying. Staff recommended taking out the debated issues. Don’t go 180 degrees away from the other
ordinance. Don’t make it so reactive and conservative that it won’t be helpful enough. Fees are waived
for the historic projects and AspenModern. It has not negatively affected the production of affordable
housing by doing so. Preservation is in the long term best interest of the community. Variances range
from geography to aesthetic to economics to community benefits. It could be described as up zoning. We
don’t want to be voting on variances all the time. Council should do that. 60 percent of real estate is
owned by second home owners. He urged council to continue the process.
14. Patrick Segal stated he agrees with Councilwoman Mullins that this should be two topics. Which lodges
are specifically targeted. Who is the target market in Aspen. Should City ask Skico to invest in more
lodging.
15. Bill Tomcich, stay aspen snowmass, said we don’t have a good handle on occupancy. It is an aging bed
base. A lot have reached the end of their lifespan here. We need to make things easier. Don’t give up on
this.
Mayor Skadron closed the public hearing.
Regular Meeting Aspen City Council December 1, 2014
10
Councilman Romero said he is sufficiently compelled this deserves continued forward progress. He
appreciates the work the community has done as well as staff. It reflects what is important. He concurs
with the outcomes of the public and push to continue support for the small lodges. He concurs that height
is out. The code amendment objectives are hard and stringent and don’t allow flexibility. The process
needs adjusted. Section seven and eight are great feedback. Section nine should be section one.
Councilman Daily stated he is generally supportive and feels better about it. There has been significant
public support tonight. It is a good direction and we need to continue. He endorses the policy and looks
forward to what Staff has next.
Councilwoman Mullins said we need to take action. It will become stale if we don’t do anything. The
less we do the more exclusive a community we become. The feedback from the community really helps.
There are two separate efforts, supporting small lodges and new development. It does not need to be two
different ordinances. This can be flexible enough to address both. Make small lodges number one. She
is glad height is out. She would like more discussion about housing mitigation. It may be appropriate to
waive for some projects and not for other. Same with parking. She is in agreement with the policy.
Councilman Frisch said 70 percent want no increase in height. 50 percent want to keep economy and
pricing the same. We have the best of both worlds. We are all subsidized. At some point we need to
choose two of the three. We can keep the status quo and tighten up what is existing. A lot of big
buildings have been built to code. He understands the community concerns. We have height, free market
and fee waivers. Keeping the same bulk and mass will be more expensive and more exclusive. There is
three times greater return on free market over lodging. We need to focus on current lodge upgrades,
mostly small then tackle condos next. New development will ask what they want to ask for. Condo
market is important but it is a mess due to so many different owners. Not opposed to focusing on current
lodge upgrade. We haven’t given enough time to the condo market.
Mayor Skadron said he is hearing condos be secondary to refurbishing small lodges.
Councilwoman Mullins said to put small lodge to the top of the list. It is the easiest part of the inventory
to address. Condos are complicated but 40 percent of the inventory. We need to have some successes
first.
Mayor Skadron said the resolution should focus on small lodges and continue to work on condos.
Councilman Romero said both are important but we have time. We can be more innovative in the condo
world but we haven’t solved it yet.
Mayor Skadron said he concurs to focus on small lodges. Point E is a concern with the loans and grants
program but he need an explanation of conditions and further discussion should the property sell in the
future.
Councilman Frisch said he needs to be really convinced that private sector lending has failed before
coming to council.
Councilwoman Mullins said she is for this program but much more supportive of a grant than a loan. The
improvement is great enough that the town will get that money back so no payback is required.
Mayor Skadron said for the vacation rentals and condos program he is not sufficiently persuaded that we
have a way to ensure rooms are rented at appropriate times and prices. He needs to be convinced that it
Regular Meeting Aspen City Council December 1, 2014
11
will actually work. He is uncomfortable with the free market residential multi family replacement
component. Individuals who are investing significantly in their unit will not be renting it. For floor area
he concurs with staff recommendations but cautions it doesn’t translate into height. For max lodge unit
he agrees on capping the sizes but wants assurances there is a way to prevent a lodge unit from being
condominiuzed. Mr. Bendon said they can’t do that but they can prohibit changing the use. If you own a
lodge unit it means you own a piece of the lodge but does not give you the right to live there. People buy
office space but doesn’t mean you can convert it into your home. It can’t be hinged on the style of
ownership.
Mayor Skadron said he agrees that the City process is too long and is all for the “express lane”
Mayor Skadron asked about fees and fee waivers. Ms. Garrow suggest they be budgeted for or council
make a policy statement. Mayor Skadron said the money gets recapture by the activity the fee waiver
generates. Councilman Romero said it has to be accounted for in the general fund. Councilman Romero
suggested they add a provision into the resolution for further examination. Councilman Frisch said they
should try to get a handle on what the fees are. Mayor Skadron said they need to provide to the
community what the fee waiver actually costs.
Mayor Skadron said that whatever we do needs to address the problem. There is no economic incentive
for lodges to remain in place. He needs to be convinced that the program isn’t in some way stoking the
fire of free market residential.
Councilman Frisch said a lot of the lodges we have are zoned lodging and there are some stopgaps in
place.
Mr. Bendon suggested continuing to December 8th.
Councilman Frisch moved to continue to December 8, 2014; seconded by Councilwoman Mullins. All in
favor, motion carried.
Ordinance #39, Series of 2014 – 709 E Durant – Sky Hotel
Jessica Garrow, community development, told the Council the applicant is North Ridge Capital
represented by John Sarpa, Rowland & Broughton, Vann Associates and Blue Green. The Sky Hotel is
located at the base of Aspen mountain adjacent to the Little Nell. The property is located in the lodge
zone district. There was a site visit today and all four Council members attended. City Council is the
final review authority for the planned development review, commercial design review, conditional use
review, special review, timeshare review, subdivision review, growth management review and proposed
amendments to three right-a-way vacation ordinances from the 1960’s. P&Z recommended 4 to1 in favor
of the project recommending Council approval.
The applicant is proposing 106 lodge units with 107 bedrooms. Currently there are 90 units and
bedrooms. It would be an increase of 17 bedrooms. There is just over 3,300 sq ft of commercial space
proposed, five affordable housing units all at category three, six free market residential units, 70 subgrade
parking spaces, and just over 12,500 sq ft of public amenity space. This is a combination of at grade
space, a second floor deck and roof deck spaces. The revised proposal, recommended by P&Z, proposes
just over 96,000 sq ft of floor area when 93,000 is allowed. This is one of the requested variations. This
equates to 65 percent of the building dedicated to lodge use and 14 percent to free market residential uses.
12 percent is non-unit spaces, four percent commercial and five percent affordable housing.
Regular Meeting Aspen City Council December 1, 2014
12
In terms of dimensions, the proposal includes varying heights with the highest at 45 feet. They are
proposing an elevator overrun to the roof deck of 56 feet when 50 is allowed.
Some of the changes the applicants made based on comments during the process include the Dean Alley
Durant roof line to decrease the mass. The fourth floor footprint has also decreased. The main area
changed through the P&Z process include the fourth floor set back area along the east wing. This is the
wing adjacent to the Chateau Dumont and Chateau Chaumont and Aspen Alps. The original proposal had
too much mass. The fourth floor has been pulled back and the roof forms changed to more of a chalet
style.
The applicant is requesting a setback on the east yard for a 3.5 foot setback when five is required by code.
Net lot area dictates the allowed floor areas, bulk and mass. This is required to exclude access easements
and does not include the Aspen Alps parking area and easement. This does include the former vacated
rights-of-way the applicant is requesting changes to.
The variation requests include a floor area request of just over 96,000 sq ft equating to a floor area ratio of
2.59 to 1 when 2.5 is allowed. For height, they are requesting 45 feet at the highest point when 40 is
allowed. They are also requesting 56 feet for the elevator when 50 is allowed. The east yard setback is
requested at 3.5 feet when five is required.
The design is chalet inspired with varying roof forms. They are exceeding the public amenity
requirement where 30 percent of the site is included when ten is required. Staff believes this is an
appropriate location for additional massing for lodging. The applicant has addressed comments from
Staff and P&Z and members of the public concerning height and mass.
Growth management reviews are required for the affordable housing units, free market units and the
increase in the number of lodge pillows. Required mitigation is .57 FTEs for the increase in the lodge and
just over 2,600 sq ft of net livable for the free market residential component. The applicant is proposing
five category three rental units equating to more mitigation than required. They are proposing 3.5 FTEs
or 3 FTEs more than required.
A conditional use review is required for commercial spaces in the lodging zone district. Currently there is
just over 5,200 sq ft of commercial space on site including a restaurant, kitchen, ski shop and bar area, the
applicant is proposing 3,400 sq ft of commercial space to be replaced on site. Staff supports the proposed
replacement of the commercial space.
Special review is required for the parking calculation. The 13 Aspen Alps spaces are maintained. The
code requires 51 parking spaces for the project and the applicant has proposed 70 spaces in the garage. 22
are stacked so the garage is only counted as 48 spaces. The subgrade garage is proposed to be valet.
Staff believes the 65 lodge spaces will be available and this exceeds what is required and is supportive of
the proposal.
Subdivision and timeshare are intertwined. The subdivision review is required for the creation of
fractional interests. The applicant proposes five fractional units with one tenth interest or 50 total
interests. There will be five weeks of use per interest and rentals are required when the units are not in
use by the owner. Staff supports the timeshare proposal.
Regular Meeting Aspen City Council December 1, 2014
13
Other issues that have come up through the review include the vacated rights-of-way, noise, garage access
and valet parking and the Dean Alley. There are three right-of-way vacations that occurred in the 1960’s
relating to the property. The City gave up interest in the right-of-way in exchange for a new right-of-way
for Spring Street. Staff recommends these areas be included in the net lot area calculation. This includes
the Alley on Block 102 and a portion of Ute Avenue. In 1962 the current Sky location was vacated as
well as a sliver of Ute Avenue. When the hotel was developed it occurred after this exchange of property
happened. They were able to use the area as part of the calculation to get to the allowed floor area. The
land use code has changed and in the past this area would have been included in the calculation. Because
this is a site specific issue Staff is recommending these areas be included in the calculation. There are a
number of noise concerns related to the deck spaces. The applicant completed a noise study and Staff has
added some conditions in the ordinance to address some of the concerns. The project must meet the
City’s noise requirements, the applicant must install a sound system that prohibits outside sound systems
from being brought in for special events, Staff is also proposing a removable noise panel be installed.
The garage is currently accessed off of the alley from Durant and is proposed to be relocated to Spring
Street. It has been revised to meet engineering standards. There were questions as to if Dean Alley is an
alley or a street. It is an alley. The applicant is recommending the alley stay in the same direction as it is
today.
Staff is recommending approval with conditions.
John Sarpa told the Council thenewskyhotel.com website has been up and running since May. North
Ridge Capital has owned the hotel since 2001 and they get the young demographics. Kinton was brought
in in 2002. The local development team includes Rowland & Broughton and Blue Green.
The Aspen Area Community Plan central theme says replenish the lodging inventory to encourage a
diverse visitor base. The community goal section says replenish a declining lodging base with emphasis
on a balanced inventory and diverse price point. Mr. Sarpa said they are not talking about tearing the
hotel down but keeping it as it is as a mid-priced, young fun place that still reflects our community values.
The proposal is to increase to 106 rooms from the 90 rooms today. It will stay mid-priced. They want to
keep it as a place young people want to go.
Corey Enloe, general manager, said he came to the Sky in 2002. There are exterior corridors where you
have to go outside to get to your room. This tarnishes the guest experience. The roof has inefficient
systems for heating and cooling. They can’t fix the roof without peeling off the entire top of the building.
The plumbing system is from the 1960’s and there are leaks. The interior corridors are narrow and have
low ceilings. All of this tarnishes the guest experience. There is a lack of parking with only 32 spaces.
Noise travels between rooms and there are small bathrooms and guestrooms. The product doesn’t match
the experience.
Mr. Sarpa said the hotel should look like it belongs in Aspen with a strong tie to our historical past and a
nod to the future. The hotel will have bunk rooms. It will be mid-priced. The public components of the
hotel are important.
APCHA approved this already. P&Z approved 4 to 1. The challenge is how to replenish the broken
down hotel with the same kind of exciting mid prices place. The applicant has heard a lot about height
and is very aware of the height issues and are sensitive to them. 65 percent of the roof is 40 feet or below.
Regular Meeting Aspen City Council December 1, 2014
14
They have spent a lot of time talking to the neighbors, P&Z and Staff about noise. They know noise is a
key issue and have agreed to a number of ways of mitigating it.
What is the least amount of size and density for a mid priced lodge at the base of the mountain.
According to the Triumph report you would need to charge 870 dollars per night to make it work.
81 percent of the new building would be lodge, 14 percent would be non-lodge and 5 percent affordable
housing. The only reason the applicant is asking for an FAR variance is for the neighbor’s easement. No
one has a public roof and the 56 feet is needed for the elevator to access the roof.
Public outreach started in May with the website. There have been lots of one on one and group meetings.
They contacted the neighbors in April via go to meetings. There have been lots of letters, mostly
supportive.
Sara Broughton showed the 1896 Sanborn Map as a way to understand the pattern of development. She
showed a map with other hotels overlaid on the property and the Sky is consistent with other hotels and
appropriately sized for the lot. They compared room sizes to their competition. Other rooms are meeting
higher standards and accessibility codes.
Character of building is a mountain chalet style which is important and a nod to history. It is a modern
interpretation of the chalet style.
The proposed Sky hotel will have an enhanced pedestrian experience. The entrance will bring you in to a
two story community living room with a second level indoor outdoor public lounge. The roof is open to
the public. The west side has the main pool with roof deck inset and is the more active side of roof. The
east side is the rest and relaxation area and the far east is the spa area.
Ms. Broughton reviewed the floor plans.
Councilman Frisch asked if the applicant is honoring more affordable housing than what is required. Ms.
Garrow replied yes. Councilman Frisch said they are providing more parking than required. Per code for
public amenity space they owe 4,000 and are putting in 12,000.
Councilman Romero asked if the residential components will be part of the rental pool. Mr. Sarpa replied
it will be private ownership and have found from experience if the program is easy the owners are willing
to rent.
Mayor Skadron asked the applicant to comment on the east yard setback. Mr. Sarpa said the inside of the
building got very narrow and this will help the efficiency inside. It is in the corner for an area about 30
feet long. Mayor Skadron asked for the next meeting to show the line of the current building and how it
relates.
Councilwoman Mullin asked what the materials are. Ms. Broughton replied wood and stucco with stone
along the base.
Mayor Skadron asked the applicant to comment on the conversations with the neighbors.
Mr. Sarpa said it would include everything you would expect but could not elaborate for the possibility of
reaching an agreement.
Ms. Garrow entered additional public comment as exhibit G5.
Regular Meeting Aspen City Council December 1, 2014
15
Mayor Skadron asked what the dissenting P&Z vote was. Ms. Garrow replied overall height, massing
and shadowing of the alley.
Mayor Skadron opened the public comment
1. Ralph Melville, Mountain Chalet owner, said he was shocked when the Ritz was started. It was a
building with varying roof lines and provided a little variety. We don’t want everything the same
height. It isn’t the end of the world when something like the Ritz happens. We don’t want a
bunch of boxes with flat roofs. Real attribute to the town to have another building close to the
mountain with a barvarian look. Varying roof line makes for a more attractive building. The
height fits in with area. It is an asset to have lodging close to the mountain and right in town.
2. Garry Canter, Chateau Chaumont, said the applicant inadvertently missed the view down Dean
Street with shadow casting on Dumont and Chaumont. What degree does moderately priced
remain moderately priced. Glory hole and Chaumont and Dumont are working against the hotel.
It will destroy their market and rentals. The noise study shows noise going up the mountain but
not areas most concerned about. In 1986 he acquired his Chaumont condo with some protection
of height. Most condos have been redone and sidewalks and courtyard replaced. He is troubled
with the current application. The additional height is damaging and problematic. The wall will
create shadows on the front of the building and blocks view. Tremendous shadow on Dean
Street and a safety problem from ice. Noise from the rooftop is a major problem. The applicant
is not compatible with preserving the neighborhood. There will be a negative impact on values of
property and ability to rent. He strongly concurs with maintaining existing height. Changing the
code in conjunction of an application is a problem. Tenants have to have access to the area.
There is an average of 4-6 tenants per unit per season. 54 condos with 5 occupants equal 260 per
season. Some protection from height and pool and roof bar. People want to rent condos. He
strongly encourages Council to not approve requested heights and products on roof.
3. Bob Dillon stated he lives on the top floor closest to the Sky. He is an eight year owner. The
voice of the village is concerned about height and saving the condos. Only 5 units don’t rent. He
bought it for the view in a quiet part of town. Everything is being changed except for location.
All renters comment on the view. They are taking away from him to give to the Sky. It is a good
looking building. Dean Street is narrow and he appreciates backing up five feet. The view is
restricted. Density becomes an issue. It is not close to what is there now. Doubling height and
square footage. Noise is a concern especially with the rooftop bar. Alley noise carries a fair
amount. He didn’t buy into the place with what is going up now. He is suspect about the noise
survey and it not affecting neighbors. A hip hop bar will decrease value and wake them up.
There will be two years without rentals during construction. You have to listen to the
community.
4. Jim Perry said he lives at the Glory Hole condos and is concern with the Dean Street alley.
Trucks go through there and deliveries happen on that side of the street. Dean has garbage trucks
twice a week. There will be quite a lot of deliveries. We should ask Sky to reconsider delivery
pattern and go down Spring Street. Lots of traffic on Original and it will now have semi traffic
multiple times a day. He is a full time resident. He thanked Sky for communicating and doing
the changes.
5. Don Shuster, aspen ski company representing the Little Nell, said it is a much better improvement
than what is there today. He is supportive of the project. They did have concerns with the pool
on the roof and are fine with the sound attenuation measures. It will be an enhancement to the
whole town and hot beds. Communal spaces are important to the town.
Regular Meeting Aspen City Council December 1, 2014
16
6. Barb Frank, AVSC, said the communal space is huge and there are not a lot in town. Bunk beds
are a great thing to add. She said we need rooms and it will be a great addition to what we
already have.
7. Maleck Enloe said the project needs to happen. We are a tourist based economy and we are
losing to our competitors outside the valley. We need to improve our lodging. We are already
behind other resorts.
8. Bill Tomcich said he spent two months living in Dumont in 1998 in a basement unit. They send a
lot of business there through Frias with 17 properties. He strongly supports the project and
doesn’t see any flaws. It is one of the more brilliant projects he has seen presented.
9. Phyllis Bronson said she has mixed feelings. She was asked by Mr. Sarpa to come look at the
Sky. The building needs to be totally overhauled. Her son said they love the Kimpton brand and
mid price point. She has lots of empathy with the neighbors. She thinks it is too big and high but
the architecture is lovely. At what point with the penthouse do you make a profit and at what
point a killing. There is trouble with the pool and penthouse but she actually likes the
architecture.
10. David Corbin, aspen ski company, said there are few opportunities for a major development. It is
a unique situation, single owner, one parcel one existing hotel. It is the complete replacement of
90 units. The infrastructure is deteriorating. For sale product is necessary to make it work. No
one is making a killing on hotel product and the consultant said the same thing. What is proposed
is considerably better than what is there now. Is this property as proposed compatible with its
surrounding context. The building fits and looks really nice. She asked for support and approval.
11. Donnie Lee, GM of Gant and current chair of ACRA, said he moved here in the mid 80’s. Not all
change is bad. He has confidence and faith in this process and dialog with community in finding
a path to yes. This is not that far off and is architecturally beautiful. Reinvigorate and
remodernize. Stay open to a pathway to yes.
12. Maria Morrow said our community is about getting outside. She was so excited to see this
proposal for a mid priced hotel at the base of the mountain. There is interaction with the locals
and that is what we love about the Sky. The commitment to social spaces is great. The town has
a collective value and the feedback on lodging represents this. A pure lodge product is not
doable. The tools to allow this include variations in height, residential components and waivers.
There are some small variations we need to consider.
13. Bob Whipsits said there is a second opportunity here. It was tried seven years ago and it didn’t
work. It is a beautiful opportunity. Envision what the alternatives could be. The Sky needs to go
away because it doesn’t meet industry standards. It is not what we expect when we come to
Aspen and is a chance we ought to take.
Mayor Skadron closed the public hearing.
Councilman Frisch said he would like more information on deliveries and if Spring Street can be used
since it makes more sense. Some free market will be timeshares and is there any way it can be
incentivized. Mr. Sarpa said they can provide an attractive easy way to rent it but can’t mandate it.
Councilman Frisch said there is some tweaking that should and can be done. If people have huge
problems with 3.6 % variance in sq ft that is somewhat technical in nature. The clarity is there is a
problem with the code not this project. If we want to see that ban brought into lodging community we
Regular Meeting Aspen City Council December 1, 2014
17
can have that conversation. What is allowed by right and they are 3.65 feet away from that. It is worth
trying to get to. Height is a little farther away. If this is way too big and tall it is a code issue. He said
he is not a real fan of public amenities being in the code and is surprised how horrible they really are.
This will give the Limelight a serious run for its money and is a valuable community space. There is a
real home run here too. He said to continue to work with neighbors and bulk and mass. They are within
rounding errors of variances he hope they can get to.
Councilwoman Mullins said it is clear we need a new Sky hotel after the tour. Change is necessary to
maintain vitality and interest but it needs to be very carefully considered. It was a great presentation and
team. The bunk bed concept and range of room types is terrific and what the town needs. The five
affordable housing on site is so valuable. The communal areas are great. 81 percent lodging is great.
The footprint is consistent with similar facilities. The double parking is great. Councilwoman Mullins
said she can’t support the height. 40 feet is the maximum allowed. It is not the guaranteed or required
height but the maximum allowed and you work within that footprint. The message is clear the majority
don’t want to see four stories. It is out of context and dwarfs the surrounding buildings and is not
compatible. The grade elevation is seven feet across the lot where the St Regis can absorb more stories.
She said she would like to hear from City engineering and how an increase of rooms by 30 percent will
work with the City infrastructure. With the pool she is sympathetic to the noise and light concerns. At
street level it is expected but may not be as appropriate at a fourth story. The design of the north
elevation is great but needs more work if it is trying to emulate modern chalet. The views of the
mountain are very important and quite a bit of the base is blocked by the building. She said she would
love the city to look into view planes again. Her major objection is the height but there are a lot of good
things about the project.
Councilman Romero thanked everyone for their presentations. The three variances deserve better
description and justification from the applicant at the next meeting. He said he would expect to hear
some counter view to the origin of the FAR and vacation of the property. The applicant did not explain
why they are landing above the 2.5. He has not issues with the set backs on Dean and the right-of-way
issues. On height, at the next meeting he would like to spend time with the sections and analysis of the
top of finish floors and how they relate going up the building. He would like more description on
elevations.
Mayor Skadron thanked Bob and Gary for coming from out of town and thanked Jodi for holding his
comments to next week. He is concerned with the additional FAR from 92,000 to 96,000. At what point
can a penthouse be incorporated. This will be a threshold issue for him. He wants to see the project meet
the 2.5 to 1 ratio and see an option or thoughts on how we can make it 92,000 sq ft. The fourth floor
pyramid is imposing and touches on the character change in the built environment he is not warming up
to. Generally speaking there is a lot to love here. Something is really good here and it is his intention to
work towards something the community can love.
Councilman Frisch moved to continue to December 8th, 2014; seconded by Councilman Romero. All in
favor, motion carried.
Councilman Frisch moved to adjourn at 12:15 am; seconded by Councilwoman Mullins. All in favor,
motion carried.
Linda Manning - City Clerk