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HomeMy WebLinkAboutagenda.council.worksession.20251110AGENDA CITY COUNCIL WORK SESSION November 10, 2025 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Lumberyard Lottery Priorities I.B Recreation Facilities Master Plan Updates II.Council discussion of the items published in the most recent information update, as needed Zoom Meeting Instructions Join from PC, Mac, iPad, or Android: https://us06web.zoom.us/j/82067129648?pwd=IyBUncmnajpXVNiZ0hRWA4s5p5ikiF.1 Passcode:81611 Join via audio: +1 346 248 7799 US Webinar ID: 820 6712 9648 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kd2N5Shj22 Nov 10 WS Memo - Lumberyard Lottery Priorities r1.pdf Exhibit A - Presentation Slides r1.pdf Exhibit B - EPP Implementation Process r1.pdf 251110-Report_Recreation_Facilities_Master_Plan_Update - 1.docx 2025 1110 - Recreation Master Plan City with history.pdf 1 1 Page 1 of 5 MEMORANDUM TO: Mayor and City Council FROM: Chris Everson, Affordable Housing Development Project Mgr. THROUGH: Rob Schober, Capital Asset Director MEMO DATE: November 5, 2025 MEETING DATE: November 10, 2025 RE: Lumberyard Lottery Priorities REQUEST OF COUNCIL: Council is asked to provide direction for drafting a resolution to memorialize lottery priorities for the Lumberyard affordable housing project. BACKGROUND: Aspen’s Lumberyard affordable housing development will include 277 affordable rental units with 1, 2 and 3 bedrooms. APCHA restrictions apply, and leasing is expected to begin in 2028. The Lumberyard development agreement with Gorman & Company gives the City six months from mid-July to decide on any project-specific lottery priorities. Council decisions should be memorialized in a resolution so they can be included in a working deed restriction by mid-January. Staff proposes to draft and present a resolution by end of year for Council approval. At a work session on July 21, 2025, staff presented lottery priority possibilities for work location, work type/essential worker and employer partnerships. A majority of Council were in favor of a UGB work location priority. Council expressed concerns about a work type/essential worker priority and requested that staff return with information about the existing Emergency Worker priority in the APCHA Regulations. Council discussed the topic of employer partnerships and requested that staff return with additional information. DISCUSSION: Work Location Priority A majority of Council have previously expressed favor for a work location priority to be offered based on applicants who work inside Aspen’s Urban Growth Boundary (UGB). A similar provision was included in the City’s Burlingame Ranch Phase 3 affordable housing project. Other options include City limits or none. 2 Page 2 of 5 Work Type or Essential Worker Priority The 2025 APCHA Regulations include an Emergency Worker priority for APCHA- managed affordable rental units – offering qualified emergency responders top placement in the lottery. As currently written, this priority would not apply to the Lumberyard because the Lumberyard is not planned to be an “APCHA -managed” facility. The Lumberyard will instead be managed by Gorman & Company under agreement with the City. Council could choose to make the existing APCHA Emergency Worker provision applicable to the Lumberyard by including a reference to this provision in the Lumberyard deed restriction. Other options include creating a one -off definition for essential workers which would be applicable only to the Lumberyard or none. Per the APCHA Regulations, an “Emergency worker is defined as: (a) a career employee or volunteer law, fire, EMS, or Mountain Rescue personnel who are called out to emergencies; or (b) emergency dispatch staff; or (c) on-call responders that give on- scene emergency care to victims and who have on call shifts a minimum of eight (8) hours per day, 14 days a month on an ongoing basis throughout the calendar year; or (d) hospital medical personnel with a minimum emergency on -call response time of 30 minutes or less and who are scheduled a minimum of eight (8) hours per day, 14 days a month on an ongoing basis throughout the calendar year.” The APCHA Regulations continue: “To qualify as an Emergency Worker the Applicant’s supervisor or employer must verify emergency worker status by completing the Emergency Worker Verification Worker form. The form must be approved by the employer and then submitted to the Deputy Director, Compliance for APCHA for final approval. Once approved, they receive top lottery priority for APCHA-managed rentals regardless of work history.” Rental procedures described in the APCHA Regulations also include the following provisions: • “Emergency worker status must be verified at least every two (2) years as part of Tenant Requalification or sooner if required by APCHA.” • “After four (4) years, an Emergency Worker is not required to maintain emergency worker status and can remain in deed-restricted housing provided all other Qualification Requirements are maintained.” • “An Emergency Worker who no longer qualifies for this priority before to the end of the four (4) year period will be given until the end of the current lease period to vacate the unit unless APCHA otherwise decides.” 3 Page 3 of 5 Employer Partnership Program (EPP) Priority To enable the City to recover some of its public investment in the development, an Employer Partnership Program (EPP) lottery priority could produce revenue for the City while allowing area employers to support their workers in accessing affordable housing. How an Employer Partnership Program (EPP) priority could work: • Local area employers could enter into an EPP agreement with the City of Aspen to give a number of their workers priority in the Lumberyard housing lottery. • Workers would need to meet APCHA requirements to apply, and upon obtaining a lease, would pay rent directly to the operator of the housing facilities. • Annual billing by the City of Aspen to the employer would occur separate from the worker’s rent. The annual EPP fee would be based on the number of employees housed through the EPP priority program during the year. • A cap on the number of EPP units should be set. A cap of 50 EPP units would create a strong program and revenue opportunity, although the full cap would not need to be entirely subscribed. With a max of 50 EPP units, this would leave a minimum of 227 units available to others (although the developer will reserve 6 for its on site staff). If a basic description of the EPP program is placed in the deed restriction right now, the City could then spend the next year or two conducting outreach with area employers to further define program details and fees. See Exhibit B – EPP Implementation Process. After completing employer outreach, EPP program details, terms, conditions and fees can be included in EPP agreements with participating area employers. Alternatively, Council could choose to omit any such provision to maintain more simplified operations at the Lumberyard. Downsizing Priority APCHA’s “Rightsizing Program” aims to increase bedroom utilization in the existing inventory, although it has seen very limited uptake. The current APCHA Regulations describe APCHA’s existing “Rightsizing Program” in Part V: Conveyance of an Ownership Unit as follows: “Rightsizing means the voluntary purchase and sale of deed -restricted properties in the APCHA inventory between two (2) Owners as co-applicants for the purpose of increasing the number of bedrooms for the Owner of a smaller unit and decreasing the number of bedrooms for the Owner of a larger unit.” The requirements of the Rightsizing Program in the APCHA Regulations are very specific to the purchase and sale process and would need to be customized for the sale of a unit and subsequent leasing of a unit in order to be a fit for the Lumberyard. Options to create 4 Page 4 of 5 a fit would require time and effort to formulate and might include some sort of incentive for households to consider downsizing. Council could choose to include a placeholder for a Downsizing Priority in the Lumberyard deed restriction and further program details could later customized which might include some incentive for downsizing which staff would expect to occur separately and in parallel with the leasing process for the household downsizing. FINANCIAL/BUDGET IMPACTS: A UGB or emergency worker priority would not be expected to have budget impacts. An Employer Partnership Program (EPP) could allow the City to recover some of its public investment in the development. A Downsizing priority could have benefits in concept but based on past results would very likely not be impactful. RECOMMENDATIONS: Staff proposes to draft and present a resolution by end of year for Council approval to memorialize Council’s decisions on the following topics: Work Location Priority Staff recommends a work location priority based on Aspen’s Urban Growth Boundary (UGB). This is the same as was done for Burlingame Ranch Phase 3. Work Type or Essential Worker Priority Creating a policy for the Lumberyard which would utilize the Emergency Worker lottery priority in the APCHA Regulations may be a very efficient decision because this approach would ensure consistency with APCHA’s standards and would allow any future updates to the APCHA Emergency Worker criteria to automatically apply to the Lumberyard for the life of the project. Staff recommends this approach in place of either omitting any such provision or creating a one-off policy applicable only to the Lumberyard. Employer Partnership Program (EPP) Priority Staff recommends including a basic description of the EPP program into the Lumberyard deed restriction – including a cap of 50 EPP units. Program details, terms, conditions and fees can be worked out over the next year or two through an employer outreach program, and when finalized, program details, terms, conditions and fees can be included in EPP agreements with interested area employers. 5 Page 5 of 5 Downsizing Priority APCHA’s Rightsizing program is customized for ownership units and would be a difficult fit for the developer leasing model. If a Downsizing Priority were included in the Lumberyard deed restriction, it would require a great deal of customized definition which would be applicable only to the Lumberyard, and experience suggests that it would have very limited benefit. Staff recommends that Council not continue to add complexity which would apply only to the Lumberyard management operations and instead allow the APCHA Regulations to evolve and possibly include future downsizing capability for rental units in the inventory. ATTACHMENTS: Exhibit A – Presentation Slides Exhibit B – EPP Implementation Process 6 Aspen Lumberyard Affordable Housing Lumberyard Lottery Priories November 10, 2025 7 Background 2 of 6 Developer Gorman & Company is making pre-development progress City should define project-specific lottery priorities by end of year Priorities to be considered: •Work location •Work type or Essential worker •Employer partnership •Downsizing to a rental unit 8 Work Location Priority 3 of 6 Options include: •City limits •UGB •None Staff recommendation: •Urban Growth Boundary (UGB) •Same as was done for Burlingame Ranch Phase 3 9 Work Type or Essential Worker Priority 4 of 6 Options include: •Emergency Worker per APCHA Regulations •One-off definition applicable only to Lumberyard •None Staff recommendation: •Emergency Worker per APCHA Re gulations •Allow criteria to evolve per APCHA 10 Employer Partnership Program (EPP) Priority 5 of 6 Options include: •Include in Deed Restriction (DR) •Do not include 11 Employer Partnership Program (EPP) Priority 6 of 6 Options include: •Include in Deed Restriction (DR) •Do not include Staff recommendation: •2025 Include basic description in DR •2025 Cap of 50 units •2026 Employer outreach to work out program details & fees •2026-2027 EPP employer agreements include details and fees later 12 Downsizing (to a rental unit) Priority 7 of 6 Options include: •Create a new customized operational process for downsizing to a renal at Lumberyard project •Do not include customized process Staff recommendation: •A customized process applicable only to the Lumberyard creates unique operational complexity •By choosing to do nothing, Council essentially allows the APCHA Regulations to respond to this in the future based on demand 13 Council Discussion 8 of 6 •Discussion •Q & A •Direction Next work session: •Developer update •Early 2026 14 Implementing Employer-Partnership Priority (EPP) Include EPP Priority in Lumberyard Deed Restriction? (Yes or No) EPP Unit Cap? (50 units or other) WHAT EPP DECISIONS ARE NEEDED NOW IN 2025? Employer Outreach EPP Program Details Operational Sequence Terms & Conditions Fee Structure & Billing City-Employer Agreements WHAT NEEDS TO BE WORKED OUT IN 2026 & 2027? Emergency Worker Priority? (Yes or No) UGB Priority (Yes or No) Downsizing Priority (Yes or No) Related Items Needed Now 15 STAFF REPORT TO: Mayor and City Council FROM: Scott Chism, Business Services Director Desiree Whitehead, Recreation Director THROUGH: Austin Weiss, Parks and Recreation Director MEETING DATE: November 10, 2025 SUBJECT: Recreation Facilities Master Plan Update: Aspen Recreation Center and Aspen Ice Garden __________________________________________________________________ INTENDED OUTCOME: The Business Services and Recreation Departments are seeking to provide Council with an update on the Recreation Facilities Master Plan. Staff are requesting guidance from Council regarding the potential development of expanded facilities at the Aspen Recreation Center. This initiative aims to address both current and projected community recreation needs and ensure long-term service sustainability. Additionally, staff seek the Council’s direction on the strategic importance of maintaining an in-town ice sheet at the Aspen Ice Garden. This decision will inform future planning efforts and resource allocation related to ice-based recreation. EXECUTIVE SUMMARY: The consulting team, Perkins & Will / Rowland + Broughton has been engaged on the Recreation Facilities Master Plan effort since early 2021. Following City Council and City Manager direction in late 2022, the project was paused due to other Organization priorities. In 2024 the Recreation Department completed an updated Business Plan. This updated Business Plan helped refine the Recreation Facility Master Plan recommendations you see today. Adult fitness and wellness, senior programming and community events/space were top needs coming from the Business Plan community member surveys. These types of needs have been addressed with this updated proposed facility expansion concept at the Aspen Recreation Center. 16 DISCUSSION: In 2022, four primary phases of work associated with the Recreation Facilities Master Plan were established by the consultant and staff team. Those phase s of work include:  Discovery;  Big Ideas;  Making Decisions;  Recommendations; By December 2022, the Discovery phase of work had been completed and ‘Big Ideas’ were presented to Council regarding the future of the Aspen Recreation Center (ARC) and the Aspen Ice Garden (AIG). The ‘Big Ideas’ for the two facilities all connect to the fundamental question of whether the community’s two sheets of publicly accessible ice are located separately or together in the 20-50 year future of Aspen. At the time of the presentation, there were other community priorities, so staff were directed to keep facilities functioning as they are. Staff took the direction and focused the 2023-2026 Capital improvement work for the Aspen Recreation Center and Aspen Ice Garden on maintaining and retaining the existing systems and infrastructure at each facility. The existing conditions at the Aspen Ice Garden are especially challenging to maintain a comfortable and high -quality customer experience as this building is over 50 years old. The current long-range plan for Capital project work at the Aspen Ice Garden and Aspen Recreation Center includes increasingly expensive repair and renovation work to retain essentially the present level of amenity. Following the completion of the 2024 Recreation Business Plan and the request of an update from the newly appointed City Council, staff collaborated with the consulting team to update the Recreation Facilities Master Plan. This update incorporated previously gathered information and focused on identifying both current and anticipated community recreation needs and preferences. Key findings from the Business Plan highlight a significant demographic shift in Aspen’s population. In 2023, the median age in Aspen was 43.6 years, notably higher than the U.S. median age of 38.5 years. Projections indicate that by 2038, approximately 40% of Aspen’s residents will be aged 55 and older, underscoring the importance of planning facilities that support an aging community. 17 Community survey data from the Business Plan indicates that Adult Fitness and Wellness is the community’s greatest unmet need: The Business Plan has also recommended prioritized recreation program areas for investment based on community survey data. This information has informed the development of design concepts for the Aspen Recreation Center intended to provide recreational facility space to better meet current and future recreation needs for the community. 18 RECOMMENDATIONS: The Recreation Facilities Master Plan update reflects a comprehensive effort to align future facility development with the evolving needs of Aspen’s community. With clear demographic trends indicating a growing senior population and survey data highlighting unmet needs in adult fitness, wellness, and community gathering spaces, the proposed expansion of the Aspen Recreation Center offers a strategic response to these priorities. Staff respectfully request City Council’s guidance on two critical decisions: the potential expansion of the Aspen Recreation Center to meet long-term recreation demands, and the value of retaining an in-town ice sheet at the Aspen Ice Garden. City Council’s direction will inform future capital planning, resource allocation, and program development to ensure Aspen’s recreation infrastructure remains responsive, inclusive, and sustainable for decades to come. CITY MANAGER COMMENTS: While input from Council is being sought to guide future planning for these facilities, the specific timing around possible facility expansion and/or changes in programming / use are not suggested to be tackled in the near term. This is in recognition that there are many other generational projects being advanced in and around the community and the impacts that those efforts have on our residents, workforce and visitors. Therefore, t his is only to assist staff to further plan for and advance recreation offerings over the long- term horizon. 19 Recreation Facilities Master Plan Updates City Council Work Session Scott Chism,Desiree Whitehead November 10, 202520 Agenda •History of Recreation Facilities •Summarize 2022 Recreation Master Plan Conversation with Council •2024 Recreation Business Plan & Facility Needs •Current Council Thoughts 21 Recreation Facilities Aspen Ice Garden Aspen Recreation Center Red Brick Gym 22 Brown Ice Palace-1965 23 Aspen Ice Garden- 1979 24 James E. Moore Pool-1972 25 Aspen Recreation Center 26 Aspen Recreation Center: 2004-2006 27 Aspen Recreation Center: 2007-2009 28 Aspen Recreation Center: 2014-2020 29 2021 Master Planning Process Late 2022 Discovery Review of Previous Studies Program Priorities Existing Building Analysis Site Analysis Community Input Big Ideas Program Opportunities Initial Building Concepts Site Test Fits Cost Estimates Making Decisions Council Guidance from Dec 5, 2022 was low priority and focus on deferred maintenance of facilities. Recreation Advisory Committee Review and Approval Planning Council Guidance- 2025-2026 Cost Estimate Update New ARC massing concept based on community recreation priorities GOAL: Council Consensus Final Master Planning report We are here 30 Extensive Community Input •2009 ARC Advisory Committee Aspirations and Action •2015 Assessments and Capital Accumulations Plan •2015 PROS Aspen Recreation Business Plan Update •2019 Novak Organizational Parks and Recreation Assessment •2020 SFA Market Opportunity Report •2024 PROS Aspen Recreation Business Plan Update 31 Summary 2022 Options Ice Stays at Ice Garden •Replace Ice Garden Current Location •Add Subgrade Parking •Add Limited Housing •Improve player and spectator areas •Improve Gathering and Food Service ARC •Add gymnasium and fitness addition •Add outdoor spray ground / aquatics •Internal Renovation and Program Improvements Master Plan Option 1 Master Plan Option 2 Recreation Use Downtown •Recreational Uses at Ice Garden Site •Add Gymnasium, Fitness and Youth Activities •New Parking •Adds Housing ARC •Add second Ice sheet subgrade below rooftop fields •Add Gymnasium and Fitness Addition •Add outdoor spray ground / Aquatics •Internal Renovation and Program Improvements 32 Council Feedback from December 2022 meeting: •AIG and Red Brick would remain the same uses •AIG requires larger Capital projects to retain functionality as a public ice arena. o HVAC System Overhaul o Roof Replacement •Emphasis on a Capital Maintenance Plan for larger facility needs: AIG Replacement of Ammonia Refrigeration System (2026) ARC Replaster Lap Pool (2026) Pool Drains Remove & Replace (2026) Boiler Vessels Replacement (2026) Pool Ozone & Chlorine System Controls (2026) LIA Evaporative Condenser (2025) ARC Siding Replacement (2025) 33 2025 Concept for the ARC 34 2024 Recreation Business Plan Statistically Valid Survey Completed in 2023 (318 completed surveys) Recreation Program Importance: Below are the four most important programs to residents: •Adult fitness and wellness programs (41%) •Adult biking (24%) •Community events (19%) •Water fitness classes/lap swimming (19%) 35 How can the City best address the top (3) INDOOR Community Priorities? 1.Adult fitness and wellness programs 2.Community events and spaces 3.Senior Programming Recommendation: ARC building addition and renovation increasing multi-use recreational space for all ages supporting the three top priorities: •Gymnasium / Walking Track •Health / Wellness Fitness Areas •Group Exercise 36 Moving Forward 2024-2025 Program - ARC Addition and Renovation Gymnasium and Fitness Center Addition: 2-court gymnasium with elevated running track Larger entry with new control desk Staff Office Suite Cardio/Weight Room and Free Weight Area Wellness and Fitness Studio Support spaces Storage, Mechanical and Electrical Rooms Increase Housing on North side Renovate Existing ARC: Lobby/ Gathering Space at the new main entry with concessions or café Enhanced youth areas Additional community meeting and gathering spaces 37 Main Entry Upgrade 38 Gymnasium / Walking Track 39 Health / Wellness Fitness Areas 40 Group Exercise 41 Master Plan ARC Update Add/Enhance Community Recreational Opportunities at the ARC 42 Upper Level 43 Lower Level 44 Mechanical Basement Level 45 Proposed Recreation Center Expansion 46 Thank You 47 Supplemental 48 49 50 51 View of Entry from the Parking Lot 52