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DOC CODE: ORDINANCE
Pg 1 of 4, 03/28/2024 at 02:12:18 PM
Ingrid K. Grueter, Pitkin County, CO
ORDINANCE #O1
SERIES OF 2024
AN ORDINANCE OF THE ASPEN CITY COUNCIL AMENDING CITY OF ASPEN
LAND USE CODE SECTION 26.470.050 — CALCULATIONS TO ADOPT A REVISED
AFFORDABLE HOUSING MITIAGTION FEE -IN -LIEU RATE SCHEDULE
WHEREAS, in 1985 Pitkin County and the City of Aspen instituted fee -in -lieu as an
alternative tool in the provision of affordable housing; and,
WHEREAS, pursuant to chapter 26.470, Growth Management Quota System, of the City
of Aspen Municipal Code, applicants may, under conditions specified by the Chapter, pay fees to
satisfy requirements to provide affordable or employee housing; and,
WHEREAS, pursuant to prior resolutions and ordinances of the City, the City Council has
historically established these fees, referred to in Chapter 26.470 as an affordable housing impact
Fee, affordable housing mitigation fees, and cash -in -lieu payments; and,
WHEREAS, in 2019 and 2020 Community Development Staff worked with consultants
White and Smith Planning Law Group and TischlerBise in the drafting of the Affordable Housing
Fee -in -Lieu Study, Phase I, a study that provided recommendations for improving the
methodology in calculating and updating the Affordable Housing Fee -in -Lieu; and,
WHEREAS, The City elected to enact a new fee -in -lieu schedule and methodology for
update utilizing calculations and recommendation provided in the Affordable Housing Fee -in -Lieu
Study, Phase II, completed in April of 2021 by White and Smith Planning and Law Group and
TischlerBise; and,
WHEREAS, in Ordinance #10, Series of 2021, City Council adopted a new fee -in -lieu
schedule reflective of the recommendation presented in the Affordable Housing Fee -in -Lieu Study,
Phase II and,
WHEREAS,- Land Use Code Section 26.470.050(E), Calculations -Employee housing fee -
in -lieu payment; prescribes that the fee -in -lieu rates shall be updated every five years and adopted
by city council ordinance, and that during intermediate years, the City may choose to update the
fee -in -lieu schedule, by ordinance, based on the change in the Engineering News Record National
Construction Cost Index; and,
WHEREAS, in Ordinance #14, Series of 2022, City Council adopted an updated fee -in -
lieu schedule to reflect a 8.47% change in the National Construction Cost Index; and,
WHEREAS, the City is electing to update the fee -in -lieu schedule based on the change in
the Engineering News Record, National Construction Cost Index, which shows a 3.9% increase
from the time of the fee -in -lieu adoption in May 2022 to January 2024; and,
Ordinance #Ol, Series of 2024
Affordable Housing Fee -in -Lieu Increase
Page 1 of 4
WHEREAS, at a regular meeting on February 13, 20243 City Council by a five to zero (5-0) vote,
approved Ordinance #01, Series of 2024 on First Reading; and,
WHEREAS, at a regular scheduled meeting and properly noticed public hearing on February 27,
2024, Council heard presentation from city staff, considered public comment, and, City Council by a X -
X (X-X), approved Ordinance #01, Series of 2024 on Second Reading; and,
WHEREAS, the Aspen City Council finds that this Ordinance fiuthers and is necessary for the
promotion of public health, safety, and welfare; and
NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
ASPEN, COLORADO THAT.
Section 1: Adoption of updated Fee -in -Lieu rates.
Section 26.470.050.E shall be rescinded and readopted as follows.
26.470.050. Calculations
E. Employee housing fee -in -lieu payment. Whenever a project provides employee housing via
a fee -in -lieu payment, in part or in total, the amount of the payment shall be based upon the
following (fee -in -lieu is only allowed for Categories 1.4, Category 5 is included for any necessary
conversions between affordable housing unit types or for the purpose of conversions in the value
of Certificates of Affordable Housing Credits):
Fee -in -Lieu (per FTE):
Category l: $459,878
Category 2: $424,288
Category 3: $3895595
Category 4. $341,346
Category 5: $2823174
Payment shall be calculated on afull-time-equivalent employee (FTE) basis according to the
Affordable Housing Category designation required by this Title. Unless otherwise stated in this
Title or in a Development Order, Fee -in -Lieu payments shall be collected by the City of Aspen
Building Department prior to and as a condition of Building Permit issuance.
The Fee -In -Lieu rates shall be updated every five years and adopted by City Council ordinance.
This 5-year update shall evaluate and include cost analysis of new private and public sector
affordable housing projects that have been completed or are otherwise appropriate since the
previous update. During the intermediate years, Community Development staff shall propose to
City Council an annual update (in January) to the Fee -in -Lieu schedule via Ordinance, utilizing
the most recent National Construction Cost Index provided by the Engineering News Record. If
the annual increase is approved, updated Fee -in -Lieu figures shall be rounded to the nearest dollar.
The annual update proposed in the intermediate years does not require a Policy Resolution prior
to First and Second Reading.
Ordinance #Ol, Series of 2024
Affordable Housing Fee -in -Lieu Increase
Page 2 of 4
The following methodology (as depicted in a comprehensive report conducted by I ischlerBise,
Affordable Housing Fee -in -Lieu Study, Phase II in Spring of 2021) was used to determine the
above Fee -in -Lieu schedule:
1) Utilizing recent public sector, private sector, and public private partnership affordable
housing projects, staff and the consultant team identified actual land and construction (hard
and soft) costs for a number of recent projects and land purchases.
2) Costs for both land and construction were analyzed by project to the square foot of net
livable development and averaged across the projects. Using the Code determined
calculation of 400 square feet per full time equivalent (FTE) employee, a total cost of
constructing affordable housing per FTE was identified.
3) Utilizing the Aspen Pitkin County Housing Authority (APCHA) Guidelines, established
sales and rental rates by Category and bedroom count were used in a calculation to identify
the revenue per FTE. Two important assumptions were included for the rental revenue
stream: a) revenue (rental income) was calculated over a 15-year period with a 2% annual
increase in the rental rate; and b) rental revenue was reduced by 50% to acknowledge
common maintenance and operations costs. Sales and Rental Revenue were then averaged
per FTE.
4) The per FTE revenue amount for each Category (identified in #3 above) was subtracted
from the total development cost per FTE (identified in #2 above). The remainder of each
calculation subtracting the Category revenue from the total cost per FTE results in the
Category Fee -in -Lieu schedule above.
Section 2:
Any scrivener's errors contained in the code amendments herein, including but not limited to
mislabeled subsections or titles, may be corrected administratively following adoption of the
Ordinance.
Section 3:
This ordinance 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 A
If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held
invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a
separate, distinct and independent provision and shall not affect the validity of the remaining portions
thereof.
Ordinance #O1, Series of 2024
Affordable Housing Fee -in -Lieu Increase
Page 3 of 4
Section 5.
A public hearing on this ordinance was held on the 27th day of February, 2024, at a meeting of the
Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen,
Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be
published in a newspaper of general circulation within the City of Aspen.
INTRODUCED AND READ, as provided by law, by the City Council of the City of Aspen on the
13th day of February 2024.
ATTEST:
Nicole Henning, City Clerk
Torre, Mayor
FINALLY, adopted, passed and approved this 27th day of February 2024.
EST:
Nicole Henning, City Clerk
APPROVED AS TO FORM:
times R. True, City Attorney
Torre, Mayor
Ordinance #O1, Series of 2024
Affordable Housing Fee -in -Lieu Increase
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