HomeMy WebLinkAbout101 W Main_Molly Gibson_Ex Vest Rights_MEMO
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MEMORANDUM
TO: Mayor Torre and Aspen City Council
FROM: Mike Kraemer, Senior Planner
THRU: Phillip Supino, Community Development Director
MEMO DATE: January 24th, 2020
MEETING DATE: January 28th, 2020
RE: Extension of Vested Rights Request – Molly Gibson Lodge, 101 W.
Main St., Resolution No. 006, Series of 2020
APPLICANT: Haymax Lodging, LLC
REPRESENTATIVE: Stan Clauson
Associates
LOCATION: 101 W. Main Street.
Southwest corner of Main Street and
Garmisch Street.
CURRENT ZONING: Mixed Use (MU) and
Residential R-6 with a Lodge
Preservation and Planned
Development Overlay
SUMMARY OF REQUEST: The Applicant
seeks an extension of vested property
rights for the redevelopment of the
Molly Gibson Lodge and development
of two single-family residences. The
applicant is requesting a twenty-four
(24) month extension that would extend
vesting until June 24th, 2022. This
application represents the 2nd
extension of vested rights request by
the Applicant. A Minor Amendment to
Project Review to remove the onsite
affordable house unit is also requested.
Minor design changes on the alley side
of the development are also proposed
and will be reviewed administratively.
STAFF RECOMMENDATION: Staff recommends that
City Council deny Resolution No. 006, Series 2020
thereby denying the request for an extension of
vested rights and denying the request to remove
the approved onsite affordable house unit.
Image of the Molly Gibson Lodge
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REQUEST OF CITY COUNCIL: The Applicant is requesting a twenty-four (24) month
extensions of vested rights that approved redevelopment pursuant to Ordinance 3, Series
of 2015 and as extended pursuant to Resolution No. 008, Series 2018. The Applicant
also requests an amendment to remove the onsite affordable housing unit. This request
will be reviewed in accordance with Chapter 26.308.010.C, Extension or Reinstatement
of Vested Property Rights and Chapter 26.445.050: Project Review Criteria, of the Land
Use Code. City Council is the final review authority.
LOCATION/BACKGROUND:
The Molly Gibson Lodge Planned Development is a two-lot subdivision that was approved
for redevelopment in 2015. Lot 1 fronts Main Street and is approved to be redeveloped
with a sixty-eight (68) unit lodge and one onsite affordable housing unit. Lot 2 fronts along
West Hopkins and is approved for development of two free market single-family
residences.
The Historic Preservation Commission (HPC) reviewed and approved Resolution No. 35,
Series of 2014 granting Major Development Conceptual Approval, Growth Management,
Conceptual Commercial Design Approval and provided a recommendation to City Council
to grant Project Review and Subdivision approval. City Council approved the project via
Ordinance No. 3 (Series of 2015). The HPC also approved Resolution No. 18, Series of
2015 which granted Major Development Final Approval, Final Commercial Design
Approval and Planned Development, Detailed Review Approval for a site-specific
development plan for the Molly Gibson Lodge. The Final Plat of the Molly Gibson Lodge
Planned Development and Subdivision was recorded at Book 115, Page 1. Collectively,
these approvals granted PD variations for floor area and setbacks for the new project.
Most recently, Resolution No. 008, Series 2018, extended vesting for the Molly Gibson
redevelopment until June 24th, 2020. At this time, the project is currently vested.
The Applicant and ownership group also owns the Hotel Aspen, located across Main
Street from the Molly Gibson Lodge. The Hotel Aspen is currently in building permit
review for approved redevelopment and, of the two projects, is stated to be priority. The
Applicant states that construction at the Hotel Aspen will commence in April 2020 and is
anticipated to conclude in November/December of 2021.
REQUEST:
The Applicant requests a 24-month extension of vested rights. Approval of the request
would provide the Applicant the ability to continue to rely on the existing approvals in
place for the project and to submit for a building permit within the extended vesting period.
If a 24-month extension is granted, vesting would extend until June 24th, 2022. If the
extension request is not granted and the Applicant does not submit for a building permit
within the established vesting period, the existing approvals would expire on June 24th,
2020 and further City review under new Land Use Code standards would be required. An
extension of vested rights is a discretionary review by the City Council. Staff responses
to the required Code criterion for an extension can be viewed in Exhibit A.
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The Applicant has stated that it is undesirable to have two concurrent lodge
redevelopments occurring in close proximity due to potential impacts along Main Street
and the temporary reduction of a portion of the City’s bed base, among other reasons.
The Applicant states that an extension of vested rights would eliminate overlapping
construction impacts of the two lodges and help to minimize these impacts.
The Applicant also requests a Minor Amendment to a Project Review for removal of the
onsite one-bedroom affordable housing unit with the ability to provide the mitigation either
at an offsite location or through the provision of Housing Credits. The Applicant states
that with the removal of the affordable housing unit, two (2) approved basement lodge
units could be relocated to an above grade position which would then allow for additional
hotel conference room space. The Applicant further states that the Hotel Aspen
redevelopment exceeds the affordable housing mitigation requirements. While this
statement is technically correct, the Hotel Aspen and the Molly Gibson affordable housing
mitigation requirements are in no way relatable and were approved as separate and
distinct lodge redevelopment projects. Staff responses to the required Code criterion for
an amendment can be viewed in Exhibit B.
Current Land Use Code Analysis for the Approved Project:
Since the 2015 Molly Gibson approval, a moratorium was enacted resulting in several
Land Use Code amendments that changed parking requirements, commercial design
standards, affordable housing mitigation requirements, and dimensional standards in
certain zone districts, including changes to the MU zone district. The following provides
an outline of Land Use Code amendments that have been enacted since the Molly Gibson
approvals and their possible effect on the project when vesting expires:
Dimensions and Uses:
• The MU zone districts dimensional standards changed at the conclusion of the
moratorium. The current MU zone district has an established height requirement
of 28’. The Molly Gibson Lodge redevelopment was approved with a 32’ height
limit which exceeds the current Code limitation by 4’.
• Current MU zoning establishes an overall floor area limitation of 1.25:1. The 2015
Molly Gibson approval granted a 1.5:1 overall floor area limitation which exceeds
current Code standards.
Parking:
• The 2015 lodge approvals permitted the Molly Gibson redevelopment to maintain
an existing offstreet parking deficit for the project. 12 parking spaces are currently
approved for the lodge. The current Land Use Code would require 34 parking
spaces with the ability to offset this requirement through cash in lieu and mobility
commitments. If reviewed under today’s Code, off street parking is deficient.
Affordable Housing:
• The 2015 Molly Gibson approvals granted the ability for the existing one-bedroom
affordable housing unit to be replaced onsite. This unit represents a 1.75 Full Time
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Equivalent (FTE) Credit. The current Land Use Code states that a residential unit
within a commercial building, by definition, is considered a multi-family dwelling.
As such, the current Land Use Code multi-family replacement standards require
that should an existing unit be redeveloped, that unit must be replaced on the
subject property. The Applicant’s proposal to provide an offsite unit or housing
credit does not meet this current Code requirement.
Staff notes that Housing Credits are created and issued to a developer when
affordable housing units are delivered in final form. At this time, the supply of
Affordable Housing Credits available to use as mitigation for future projects is
unknown and, as such, the commitment for a project to use Affordable Housing
Credits is predicated on their availability.
• The 2015 lodge portion of the Molly Gibson redevelopment is required to mitigate
for 0.45 FTEs. This mitigation amount represents an existing lodge unit credit and
factors in the Land Use Code incentive for reduced mitigation for small lodge unit
size (Molly Gibson = 300sq. ft./lodge unit). The current Land Use Code affordable
housing mitigation standards represent no change in required AH lodge unit
mitigation.
• The free market portion of the Molly Gibson redevelopment is required to mitigate
for 2.78 FTE’s. The current Land Use Code affordable housing mitigation
standards represent no change in required AH free market mitigation for the
approved project.
STAFF FINDINGS AND DISCUSSION: Staff has reviewed the Applicant’s request against the
relevant review criteria and finds the following:
Since approval was granted, the Applicant has recorded the Final Plat documents and
has stated that construction quality documents are being pursued. The Applicant has
indicated that they have pursued financing for the project and continue to work with
consultants. The Hotel Aspen is stated to be the priority project for the ownership group,
which received redevelopment approval prior to the Molly Gibson Lodge approvals.
With vesting for the Molly Gibson expiring in June, building permit submittal is imminent
if an extension is not granted. Given that Hotel Aspen construction is stated to begin in
April 2020 and continue for 18 months, and that a June Molly Gibson building permit
submittal will require multiple months of City Building Department review, overlapping
construction of the two projects could be minimal.
If both the Molly Gibson and Hotel Aspen lodges were concurrently under construction, it
can reasonably be anticipated that there may be some disruption to Main Street. Staff
also acknowledges that there would be a reduction in a portion of the City’s bed base for
a period of time. Staff notes that while disruption to traffic may occur, the City of Aspen
requires construction management plans for projects, including construction access
plans, to help minimize impacts to the greatest extent possible. Given that both the Molly
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Gibson and Hotel Aspen have dedicated alley access, it can reasonably be anticipated
that alley construction access would aid in alleviating disruptions to Main Street.
The previous two year extension for the Molly Gibson was granted based on unwanted
concurrent redevelopment impacts and bed base reduction from two construction projects
in close proximity to each other. Today’s request for an extension is identical to the
previous 2018 request. Staff notes that City Council is not required to grant today’s
extension request based on the previous extension approval. At this time, Staff does not
believe that an extension of vested rights serves the needs of the City. Staff will be
available to speak to alternative approaches to a potential extension should City Council
desire this discussion.
With regard to the request to eliminate the one bedroom onsite affordable housing unit
within the Molly Gibson Lodge (1.75 FTEs) and provide that mitigation in the form of an
offsite unit or housing credits, Staff finds that the request is inconsistent with the Land
Use Code which requires compliance with APCHA Guidelines. Current APCHA
Guidelines place priority on construction of onsite affordable housing mitigation. The
referral comments from APCHA (Exhibit C) do not support the amendment as proposed
and the future redeveloped affordable housing unit should remain onsite as approved in
2015.
STAFF RECOMMENDATION: Staff recommends denial of the request for an Extension of
Vested Rights, finding that the application does not comply with the applicable review
criteria. Staff further recommends denial of the Minor Amendment to a Project Review to
provide an alternative form of mitigation for the onsite affordable housing unit previously
approved in 2015.
PROPOSED MOTION (WORDED IN THE AFFIRMATIVE): “I move to deny Resolution No. 6, Series
of 2020 granting a twenty-four (24) month extension of vested property rights for the Molly
Gibson Lodge Redevelopment and a Minor Amendment to Project Approval to provide
an alternative form of mitigation for the onsite affordable housing unit.”
Attachments:
Exhibit A – Staff Findings – Extension of Vested Rights
Exhibit B – Staff Findings – Project Review Criteria
Exhibit C – APCHA referral
Exhibit D - Ordinance No. 3, Series of 2015
Exhibit E – Application