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HomeMy WebLinkAboutInformation Update 090925AGENDA INFORMATION UPDATE September 9, 2025 5:00 PM, I.Information Update I.A Follow-Up Memo: Grants Program Policy Changes I.B Overview of SB24-174 Housing Needs Assessment, Proposition 123 Rural Resort income Limit Petition, and Department of Local Affairs Grant I.C Follow-Up Memorandum - West End Congestion I.D August 2025 Destination Marketing Report from ACRA I.E Aspen Country Inn Budget Status 8.11.2025_Follow-Up_Memo.pdf Info Memo - Prop 123 SB174 and DOLA Grant 8.25.docx West End Congestion Follow-Up Summary Memo_Final.docx August2025_DMReport.pdf Info_Only_Memo_-_ACI-_APCHA_Finance_Consolidated.docx 1 1 FOLLOW-UP MEMORANDUM CITY COUNCIL WORK SESSION MEETING DATE: August 11, 2025 FOLLOW-UP MEMO DATE: August 18, 2025 AGENDA TOPIC: Grants Program Policy Changes PRESENTED BY: Strategy & Innovation Office John Barker, Director Arielle Lyons, Grants Administrator COUNCIL MEMBERS PRESENT: Mayor Rachael Richards, John Doyle, Bill Guth, Christine Benedetti _____________________________________________________________________ WORK SESSION DISCUSSION SUMMARY: Staff presented council with several policy recommendations developed by the Grants Steering Committee (GSC) along with two off-cycle funding request recommendations. The recommendations, all which were supported by council, were: Grants Program Policy Recommendations 1) Move Administration of HHS to a Community Partner a. Staff and the GSC will work with community partners to determine the best fit for HHS, while ensuring that City of Aspen priorities are considered in funding decisions. 2) Provide Focus for Community Nonprofit a. The GSC, during an upcoming retreat, will provide council with recommendations for the areas of potential priority in the community nonprofit division to narrow and deepen impact. 3) Provide Some Preference for Aspen-based Organizations a. The GSC will explore, and provide options for council considerations, different ways to accomplish this such as changes to eligibility, scoring weighting, or another mechanism. b. Staff and the GSC will explore alternatives to a physical presence requirement, such as a tightly defined operating presence requirement. 2 4) Multi-Year Funding a. Staff will inform local non-profits of the shift to all multi-year grants in the Arts & Culture fund. b. Staff and GSC will explore ways to consider urgent requests in off-years. Regional Off-Cycle Funding Request Recommendations 1) The Regional Grantors Collaborative (RGC) will explore the possibility of establishing an Intergovernmental Agreement to provide stable support for food insecurity services as an alternative to the funding of LIFT-UP's off-cycle request. 2) Due to a significant and sudden loss of funding which would lead to a reduction in core services, the RGC and GSC recommend funding Community Health Foundation’s $90,000 regional request in the amount of $8,901. a. Staff will prepare a resolution and memorandum for council’s consideration in an upcoming regular meeting. Questions for Council: 1) Does council wish to support the creation of a Capital grant program for Arts & Culture? a. With unanimous support of council, staff and the GSC will begin to work on creating general eligibility requirements and guidelines for the program and return to council with these recommendations prior to moving forward and engaging other stakeholders such as the Wheeler Board and other city departments. 2) Does council wish to support creating a fund dedicated to off-cycle funding requests? a. Due to the concern of inducing demand by creating an off-cycle fund, council did not support this. b. Staff will continue to bring off-cycle requests recommended for funding by the RGC to council for consideration as necessary. NEXT STEPS: In addition to the action items noted above, staff and the GSC will assess the current program philosophy and strategic focus areas and decide whether any additional updates to policy should be recommended for consideration by council. Additionally, staff will work closely with review committee members to provide concrete feedback on application quality for program participants at the close of the grant cycle. ATTACHMENTS: 3 CITY MANAGER COMMENTS: 4 INFORMATION ONLY MEMORANDUM TO: Mayor Richards and Aspen City Council FROM: Liz Axberg, Housing Policy Analyst THROUGH: Diane Foster, Deputy City Manager MEMO DATE: August 25th, 2025 RE: Overview of SB24-174 Housing Needs Assessment, Proposition 123 Rural Resort income Limit Petition, and Department of Local Affairs Grant PURPOSE: This memo provides a consolidated update on the City of Aspen’s work related to submission of a Proposition 123 Income Limit Petition, the Department of Local Affairs (DOLA) Local Planning Capacity grant the city received, and implementation of Senate Bill 24-174 (SB-174) through the Regional Housing Needs Assessment (HNA). The three projects are interconnected and together position Aspen to meet state housing requirements, unlock new funding, and strengthen long-term grant capacity. SUMMARY: The Regional Housing Needs Assessment (required under SB24-174) provides the critical data foundation—both to comply with state law and to demonstrate the scale and scope of local housing needs over the next 10-years. The first phase of the housing needs assessment is the piece that directly feeds into Aspen’s Proposition 123 Rural Resort Income Limit Petition, enabling the City to access more flexibility in AMI requirements for the funding programs offered through Proposition 123 – specially more options to fund housing built for middle-income households. The current AMI thresholds within Proposition 123 guidance do not work for communities like Aspen due to our higher AMIs and the great need for housing for middle income households. Without the petition, Proposition 123 programs do not work for communities like Aspen. Meanwhile, the DOLA grant initiated the city to hire a grants consultant, KLJ Engineering, to provide technical expertise and a coordinated strategy to not only 5 pursue Proposition 123 dollars, but also expand citywide grant readiness across housing, infrastructure, and other priorities. Collectively, these efforts reinforce one another: the HNA supplies the data, the Prop 123 petition unlocks dedicated resources, and the grants coordination with KLJ builds the systems and capacity to capture those resources and beyond. At a high level, this integrated work strengthens Aspen’s ability to address its housing challenges, expand financial resources, and create lasting regional and community impact. Below is a summary and update of each individual initiative. 1. SB24-174 Housing Needs Assessment – SB24-174, passed in 2024, requires all Colorado local governments to complete and publish a Housing Needs Assessment by December 31, 2026, with updates every six years thereafter. To meet this requirement, Aspen is partnering with Pitkin County and the Town of Snowmass Village to complete a Regional HNA covering Aspen/Pitkin County through Garfield County. Economic and Planning Systems (EPS) is conducting the study in two phases:  Phase 1 (reaching completion): Data tables and analysis to support Proposition 123 Rural Resort Income Limit Petition.  Phase 2 (January 2026): Full build-out of the HNA for SB24-174 compliance, including housing problems, resources, policy recommendations, and a Housing Action Plan. The Memorandum of Understanding between Aspen, Pitkin County, and Snowmass Village that was approved by City Council on June 24th, 2025, formalizes cost-sharing and roles; Aspen serves as the contracting entity with EPS. The City remains on track to complete the SB-174 HNA requirement before the 2026 deadline . Upon completion of the housing needs assessment, findings and the required housing action plan will be presented to City Council for feedback, input, and questions. This assessment is funded by the 150- Housing Development Fund. The total project is estimated to cost $123,530 ($41,176 each split across the three cost sharing entities). 2. Proposition 123 Rural Resort Income Limit Petition Proposition 123, approved by Colorado voters in 2022, established the State Affordable Housing Financing Fund. Rural Resort communities, like Aspen, must petition to access funding for projects serving higher AMIs than the base legislation allows (60% AMI for rental and 100% AMI for ownership). Given that the APCHA program serves up to 240% AMI and RO, the price of free market homes, and the cost of construction in Aspen, the city of Aspen needs this 6 petition to be able to utilize Proposition 123 funds. Without it, the AMI limits just do not work for communities like Aspen. In order to submit a petition, the municipality needs a recent Housing Needs Assessment that demonstrates the local need for housing that serves higher AMIs. City staff have been meeting regularly with the DOLA staff overseeing Proposition 123 to ensure that we are on track for submission of a successful petition. The first phase of the Housing Needs Assessment provides the necessary data and tables for completing a Proposition 123 Income Limit Petition. This phase is nearing completion and will be used to submit Proposition 123 AMI waiver. 3. DOLA Grant and KLJ Consulting Contract In November 2024, Aspen was awarded a $114,000 DOLA Local Planning Capacity grant (with a 20%/$30,000 City match) to hire a consultant to provide technical assistance in navigating Proposition 123 funding opportunities. When going to bid, the city expanded the project to include additional efforts outside of the pursuit of Prop 123 dollars. This includes grant writing for all departments and grant strategy development for the city as a whole. In April 2025, Council approved a one- year, $170,000 contract with KLJ Engineering LLC. The full scope includes:  Develop a coordinated grant strategy.  Research and identify funding opportunities.  Write grants across key areas, including (but not limited to) housing, infrastructure, environmental health, utilities, and parks.  Provide targeted technical assistance and community engagement for affordable housing grants (specific requirement of the DOLA grant). KLJ is actively working with City staff to identify and pursue grant opportunities, with monthly coordination meetings and on call grant support. This fall, KLJ will also be facilitating a series of engagement workshops with potential regional and business partners. These workshops are an opportunity for the city to brainstorm solutions in partnership with the community, build relationships that can bolster potential grant opportunities, and direction for a future housing summit in 2026. This project is jointly funded by the $114,000 of DOLA grant funds, the City Manager’s Office, and the Renewable Energy Mitigation Program (REMP). NEXT STEPS:  Continue advancing the Regional HNA in coordination with partners.  Proceed with Proposition 123 petition submission upon completion of Phase 1 of the HNA. 7  Maintain alignment between grant strategy development (KLJ) and SB -174 deliverables to maximize funding opportunities for Aspen’s housing and community priorities. ATTACHMENTS:  Attachment A – Resolution #089, Series of 2025, Memorandum of Understanding between TOSV, Pitkin County, and City of Aspen to Support Regional Housing Needs Assessment  Attachment B – Resolution #053, Series of 2025, Approval of Contract with KLJ to Provide Grant Consultative Services  Attachment C – Resolution #018, Series of 2025, Approval of Contract with EPS to Conduct Housing Needs Assessment  Attachment D – Resolution #141, Series of 2024, Acceptance of Local Planning Capacity Grant CITY MANAGER NOTES: Please contact the City Manager if there are questions or follow-up needed regarding the information provided. 8 FOLLOW-UP MEMORANDUM CITY COUNCIL WORK SESSION WORK SESSION MEETING DATE: August 18, 2025 FOLLOW-UP MEMO DATE: September 4, 2025 AGENDA TOPIC: West End Congestion Follow-Up Summary Memo PRESENTED BY: Kyla Smits, CFM, Project Manager Tricia Aragon, PE, City Engineer Kim Ferber, Chief of Police Lynn Rumbaugh, Transportation Director COUNCIL MEMBERS PRESENT: All City Council Members ______________________________________________________________________ WORK SESSION DISCUSSION SUMMARY: Residents of the West End Neighborhood raised their continued concerns around safety and congestion to City Council and to staff members. Specifically, residents reached out about the following concerns: 1. Vehicle Speeds 2. Stop signs being violated/ignored 3. Stop signs were not placed in all locations on 3 rd & 56th streets 4. Vehicles violating the noise ordinance 5. Vehicles utilizing the alleys as through streets 6. Yellow Double Line on W Smuggler St creates a sense of a “major roadway” 7. No sidewalks and lack of other pedestrian areas 8. 7th Street is closed to right-hand turns at State Highway 82, pushes vehicles further into the West End neighborhood Staff informed City Council of current efforts being pursued in the West End Neighborhood which included multiple Transportation Demand Management (TDM) and police enforcement measures. 9 Staff presented six recommendations to Council. 1. Vehicle Barriers on W Hallam St. 2. Additional Pedestrian Areas 3. One-Way Alley Sign Installations 4. Installation of additional Speed Limit Signs and Painted Stop Bars 5. Bulb outs at key intersections 6. Restrictions on Power Plant Rd. NEXT STEPS: Council Members directed staff to pursue all 6 recommendations presented by staff as well as the following: 1. Additional enforcement of observed traffic violations 2. Neighborhood Signing Plan 3. Investigate School Zone signage at the Yellow Brick 4. Review technology and methodology for noise code and noise violation enforcement 5. Review signal timing with CDOT for the SH 82 Corridor 6. Investigate potential signaled pedestrian crossing at 8th street in place of the rapid flash beacons 7. Analysis of a no right turn onto E Bleeker from Mill Street during the PM peak 8. Investigate the feasibility of congestion pricing in the West End 9. Investigate the feasibility of cordoning off west end Staff will follow up with an informational memorandum later this fall with a comprehensive budget, a schedule that outlines all items requested during the West End Work Session, and results of the traffic pilot position. This will include cost estimates, timelines, and resource implications for each proposed measure, enabling Council to make informed decisions about prioritization and feasibility of the 15 requested action items. CITY MANAGER NOTES: ______________________________________________________________________ ______________________________________________________________________ __________________________________________________________ 10 August 2025 Des,na,on Marke,ng Report for Council Destination Marketing: Eliza attended and presented at US Travel’s Annual Conference ESTO in Phoenix this month. She was on the “Reframing Resident Sentiment” panel along with colleagues from Visit Tucson and Visit Loudon County Virginia. We continue our work with the Public Lands and Waters Forum, which is most likely to become a sub-committee of the Roaring Fork Outdoor Coalition, the video is live & will be shown at the airport. We are working with our agency BVK to plan a shoot to capture some summer content prior to season’s end to be used in next summer’s campaign. We are partnering with Snowmass Tourism and Aspen One on a Sales Blitz to get ahead of slowing winter pace. The blitz will be live September 15-25th. Work on the website redesign continues with the Information Architecture step nearing completion. The July PR report can be found here, and the Month at a Glance Data report is available here. ACRA hosted the CTO Gold Rush Media Fam. The group enjoyed a public art walk, lunch and tour at Hotel Jerome, historic walking tour and Wheeler Opera House tour, a visit to Herbert Bayer Center, and dinner at Sway Thai. Many partners were introduced and connected with the media from France, UK, Germany, Mexico, Canada, and Australia. Wedding fam success! ACRA hosted 7 fabulous destination wedding planners for a multi-day fam experience including hotel and venue tours, networking events with local partners, local restaurants including Casa Tua and Caribou Club, and a bike activity with Blazing Adventures. ACRA sponsored and Liz attended the Meeting Professionals International Regional education event in Chicago. Liz sent follow up SendSites to 35 new contacts she met at the event. The sales team also hosted Destination Colorado’s film production team to capture footage of both the wedding fam and the CTO media fam. Sarah was location scout, writer, co-producer, and talent. We will purchase broll from the videographer to use for our own purposes. Nichole represented Aspen hotels and ACRA at the Smart Meetings Incentive event. She participated in 23 one-on-one meetings, networking events and meals. Nichole completed a video interview about Aspen for incentive trips that we will receive to repost on our LinkedIn and website. Sarah met with Snowmass tourism and our PR agencies to review the group media fams and hear feedback from the 6 participating journalists. Interesting to learn Mexican media is shifting more towards pay to play for coverage and they are very video focused when asking for destination content for the fam stories. Black Diamond shared their trade teams that handle US accounts are seeing steady bookings still and haven’t seen a drop off due to federal administration travel policies. The sales team worked on the Information Architecture for the new website. They reviewed all group pages as well as all the marketing pages on the website. Special Events: Special Events has been diving into Wintersköl (Dec 11 – 14) planning as well as planning for Food & Wine 2026. The Slogan Contest will be live Sept 1 – 12, so please get your creative juices flowing and participate in this little part of Aspen’s tradition! We are looking for lodging donations for our vendors; please contact tsmith@aspenchamber.org for more information. Our August e-newsletter shared opportunities for Wintersköl sponsorships and Royalty nominations. Please reach out to our team if you are interested in adding an event on the Wintersköl calendar this year. The events team will be travelling to Palm Springs in August for the IFEA Conference (International Festivals & Events Assoc) 11 and South Carolina in November for the Food & Wine Classic to represent Aspen as exhibitors. In the meantime, we are enjoying our extended summer! Airport Guest Services: The flight diversions and cancellations have gone down thankfully this August as the winds have calmed. ASE is now accepting RFPs for the transportation booth. Visitor numbers have stayed high at 300 a day. Visitor Centers: Casey and Debbie attended the Destination International Conference in Chicago which was informative and inspiring with innovative ideas and networking with colleagues. Later in the month Casey presented to CTO the updates and branding refresh of the visitor center locations at the Armory and ASE. Casey is also participating in the Destination International Beta Testing Mentor Group. She will have a mentor and be a mentor before providing feedback before the program is launched nationally. This August was a very busy month at each visitor center with numbers of guests a day around 20 at the Wheeler, 25 at the Armory and 175 at Cooper Mall. The staff stayed busy as the town is still bustling with guests and activities, yet it has been a very smooth operation, and we are grateful for the dedicated and positive staff. Save The Date: September 4: Member Education “From Insight to Impact: Financial Know-How" presented by Matt Helm, Community Banks of Colorado September 5: Chamber Ski Pass opt-in deadline September 12: Chamber Ski Pass Super Early purchase deadline Sales Tax Reports: As of the June 2025 Consumption Tax Report, released in August, the 2025 Tourism Promotion Fund came in 4.65% above projections and 4% ahead of 2024 collections.      Recent Press Coverage      Occupancy statistics and commentary, as well as visitor center counts, website data and air service information can now be found on the following page in the Defy Ordinary Dashboard. All data points are sourced from our monthly report with Blue Room Research and can be found in the Data Center on the website.    12 HOTEL OCCUPANCY ASE PASSENGER DATA VISITOR CENTER COUNTS KEY TAKEAWAYS WEBSITE STATS ACRA's 4 Visitor Information Centers experienced a 10.5% decrease in traffic in July 2025 compared to July 2024. Staff assisted 13,096 individuals this month. AUGUST 2025 properties reported the following: •Occupancy decreased by 0.1% YOY to 76.3% •Average Daily Rate grew by 3.6% YOY to $867 •Room Nights Available were down 0.1% YOY •Room Nights Booked were also down 0.1% YOY July completions were at 92.8% versus 98.5% last year, largely due to high winds. Reliability has improved month to date. July total passengers were down 2.7% YOY, while total passenger numbers YTD are pacing 2.0% ahead of 2024. YOY capacity will remain flat in September with slight decreases in October and November. Aspen website top performing blogs and pages for July 2025 Blogs: 1.5 Reasons To Visit Aspen This Summer (9,012 views) 2. Everything You Need To Know About Independence Pass (4,122 views) 3.Hiking Around Maroon Bells (3,897 views) 4. Creating A Sustainable Aspen Event: Tips and Strategies (3,358 views) 5. Eloping in Aspen: Love in the Rocky Mountains (2,790 views) Pages: 1.Maroon Bells Reservations (38,205 views) 2. Maroon Bells (13,616 views) 3. Aspen Event Calendar (12,209 views) 4. Summer (10,008 views) 5.5 Reasons To Visit Aspen This Summer (9,010 views) o “The mountain lodging performance was good, and this can be the start of a sustainable balance for the remainder of the season. But the persistent economic uncertainty can’t be overlooked.” o “Economic turmoil and uncertainty rule: Consumer Confidence gained, Sentiment stuttered, Wall Street was flat, Inflation is showing some cracks, and Jobs made headlines for all sorts of bad reasons.” o “Recent data releases through June confirm our forecast of an 8.2% decline in international overnight arrivals to the US for 2025, as sentiment headwinds persist.” Source: Destimetrics & Blue Room Research Report Regional Insights and U.S. Market Review In July 2025, Aspen's lodging 13 INFORMATION ONLY MEMORANDUM TO: Aspen City Council FROM: Tyler Sexton, Interim Finance Director Matthew Gillen, APCHA Executive Director THROUGH: Tyler Sexton, Interim Finance Director MEMO DATE: 09/02/2025 RE: Aspen County Inn (ACI) Financial Situation PURPOSE: This memorandum is for informational purposes and provides an update on the current financial situation at Aspen Country Inn (ACI). SUMMARY: Strict income limits on Aspen Country Inn rental qualifications make it hard to fill vacancies and these vacant units are having a negative impact on Aspen Country Inn finances. Aspen Country Inn Context: Aspen Country Inn (ACI) is a City of Aspen-owned, APCHA-managed property with 40 long-term rental units. ACI is a Low-Income Housing Tax Credit (LIHTC) property developed in 1999 with over $6 million investment from investor Boston Capital (now Boston Financial Investment Management). The Land Use Restriction Agreement (LURA) for ACI was placed in service on 09/23/1999, and updated in 2017 (after a remodel) and is operation for 30 years until 2047. Following the terms of the LURA, ACI residents’ income cannot exceed 50% of Area Median Income (AMI) per year. Rental priority is given to qualified res idents over 65 years of age. Currently the Pitkin County AMI as assessed by the federal government is $96,150 for a one-person household and $137,300 for a four-person household. The AMI is updated by the Department of Housing and Urban Development (HUD) a nnually and is calculated from information gathered by the American Community Survey run by the Census Bureau. Hard to Fill Vacancies 14 There are currently seven one-bedroom vacant units at Aspen Country Inn. Most of the units were vacated this year, but two have been vacant for more than a year. Structurally, the income limits at ACI make it difficult to find qualified tenants. Many full - time workers in Pitkin Couty exceed these income limits even in entry-level jobs. High wages in Pitkin Couty, fueled by tourism and hospitality, often put workers above the LIHTC limits. Applicants’ income levels are projected, per HUD regulations, for the expected next 12 months (forward not backward looking). ACI Income Limits: 1-person household: $48,050 2-person household: $54,900 3-person household: $61,750 4-person household: $68,650 Net Assets not in excess of $485,000 Financial Impact: The loss of rental income from vacant units has created significant strain on the Aspen Country Inn Affordable Housing Fund. To manage cash flow, we have temporarily drawn on available resources including tenant deposit balances and internal float to ensure ACI could meet its obligations while awaiting monthly rent collections. While this approach has stabilized operations in the short term, it is not a sustainable long-term solution. If ACI was fully rented it would generate $40,130 in rental income per month. In August 2025, income generated was only $31,948 - a loss in income of $7,182. As of now, ACI holds $45,000 in its operating account and $11,000 in its security deposit account. Outstanding accounts payable total $70,000, leaving the fund with a cash shortfall of ($25,000). In addition, the required security deposit liability is $72,000, resulting in an unfunded balance of ($61,000). To restore the deposit account, cover current obligations, and provide a modest operating buffer, the City has transferred $125,000 into the ACI fund from the Housing Development Fund. NEXT STEPS: Attempts to Fill Units: Previous advertisement and social media campaigns have successfully increased the number of filled units. APCHA is aggressively engaging in a strategic communications 15 plan to alert the greater Roaring Fork Valley community of the availability of these apartments. This effort is intended to increase awareness of available rental units at Aspen Country Inn and Truscott II among eligible residents throughout the Roaring Fork Valley, and encourage applications from qualified individuals to fill these units . This includes:  Newspaper Ads: Aspen Daily News, Glenwood Post Independent, Sol del Valle, Rifle Citizen Telegram  Paid Social Media: Facebook, Instagram (boosted posts targeting Roaring Fork Valley)  Flyers: Posted at RFTA hubs, libraries, coffee shops, community boards, and partner organizations throughout the valley.  Community Outreach: Direct emails and flyers to nonprofit partners and workforce centers  Website: Updated listing on APCHA.org with clear application instructions  Word of Mouth: Encouraging current tenants and staff to spread the word Policy Adjustments: APCHA has taken, and will continue to explore, policy adjustments to make it easier to fill these units, including:  Reduced the minimum work requirement for ACI by one-third, from 1,500 hours to 1,000 hours per year.  Removed the requirement that residents be U.S. citizens or legal permanent residents.  Identifying current APCHA residents in other developments who may qualify for ACI and offering them a unit.  Exploring, with Pitkin County Social Services, offering units to long-term unhoused working adults (no prohibition currently exists).  Following up with Boston Financial, ACI’s tax credit partner, after the August 13 meeting to discuss potential options for addressing the current financial challenges.  Reviewing whether the “replacement reserve” maintained with the Colorado Housing and Finance Authority (CHFA), which currently exceeds $100,000 may be used to offset ACI operating expenses. 16  Reducing the financial impact by deferring non-essential maintenance and reducing amount outsourced services e.g. snow removal and common area cleaning will now be done by APCHA maintenance staff .  APCHA staff reviewed the LURA and is confirming analysis with CHFA: ACI rents can be raised to 60% of AMI in 2030 which will have a small but significant improvement. ATTACHMENTS: None CITY MANAGER NOTES: Please contact the City Manager if there are questions or follow-up needed regarding the information provided. 17