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HomeMy WebLinkAboutMemo_St. Regis_PD Amendment_Second Reading Page | 1 MEMORANDUM TO: Mayor Torre and Aspen City Council FROM: Kevin Rayes, Principal Planner Haley Hart, Long-Range Planner THRU: Phillip Supino, Community Development Director MEETING DATE: October 30, 2023 RE: 2nd Reading | Ordinance #18 | The St. Regis (315 E. Dean St.) Minor Amendment to a Planned Development for Project Review | Commercial Design Review | Growth Management Review NOTE: On October 30th, Council is reviewing two separate and distinct requests relating to temporary/seasonal uses at the St. Regis. The requests are separated because they trigger different sections of the Land Use Code – one requires approval via ordinance and the other via resolution. APPLICANTS: Aspen Owner, LLC c/o St. Regis Aspen Resort LOCATION: The St. Regis Resort (315 E. Dean St.) CURRENT ZONING: Lodge (L) with a Planned development Overlay (PD) REQUEST OF COUNCIL: The Applicant is seeking a Minor Amendment to a Planned Development for Project review, Growth Management Review, and Commercial Design Review to allow for the ability to erect seasonal structures and to install fencing that exceeds height limitations prescribed pursuant to underlying zoning. SUMMARY FROM FIRST READING: On October 10th, Council approved Ordinance #18, Series of 2023 on First Reading and set a public hearing for October 30th. STAFF RECOMMENDATION: Staff supports the request to amend the PD to allow for seasonal structures and for the installation of renewable energy equipment subject to certain conditions. Staff does not support the proposed request for fencing and recommends all fence height be no greater than the minimum height required to meet building code. Figure 1: The St. Regis (315 E. Dean St.) Figure 2: Site Location Page | 2 REQUEST OF COUNCIL: The Applicant requests approval of the following land use reviews: Minor Amendment to Project Review (Land Use Code Section 26.445.110.D) The Applicant requests a Minor Amendment to a Planned Development for Project Review for the following: 1. Amend the PD to accommodate up to three seasonal structures for up to 150 days each year. 2. Install renewable energy equipment including solar panels and electric vehicle charging stations. 3. Install a fence that exceeds height limitations prescribed pursuant to Title 26 of the Land Use Code along Monarch Street. • Fences located between buildings and streets shall not be taller than 42 inches in height. The Applicant seeks a variation from this standard (triggering a PD amendment) and to set its own dimensional standards per a PD amendment to maintain existing fencing, erected without permits or land use approvals, ranging in height from 6 feet to 10 feet. Growth Management Review (Land Use Code Section 26.470.050) Applicants who believe the employee generation rate is different than what is prescribed in the Land Use Code may request an employee generation review. In this instance, the Applicant believes that the employees generated from the proposed seasonal structures vary from the mitigation required for commercial uses and temporary uses. Staff will address this topic in the discussion section of the memo. Commercial Design Review (Land Use Code Section 26.412) Temporary/seasonal structures located within the Lodge (L) zone district are subject to Commercial Design review. The standards are intended to ensure appropriate building mass and to foster well-designed and meaningful open space that conveys human scale, provides relief from the built environment, and preserves historic neighborhood context. Fencing design within the Mountain Base character area of the Commercial Design Standards is not explicitly called out, but standards around retaining walls and pedestrian experience along the street apply to this request. The standards are intended to integrate development proposals into neighborhood context and provide a sense of place for pedestrians. SUMMARY OF COUNCIL QUESTIONS FROM FIRST READING: On October 10th, Council approved Ordinance #18, Series of 2023 at First Reading to set a public hearing date for October 30th. Council requested additional information on several aspects of the application. Below are preliminary responses to Council’s inquiries. Staff and the Applicant team will be prepared to provide additional information at Second Reading. Council requested additional information on the following topics: 1. Seasonal enclosures: a. Affordable housing mitigation – What units did the St. Regis use as mitigation? Which of these units are still owned by the St. Regis? Staff response: The deed-restrictions associated with four of the affordable housing units – Alpina Haus (935 E. Durant), Copper Horse (330 W. Main), Grand Aspen (400 E. Dean), and Ute City Place (909 E. Cooper) – are set to expire in approximately twelve Page | 3 years (around 2035). These units represent the mitigation for 129.5 FTEs when the PD was developed. Following their expiration, only the mitigation from Hunter Longhouse (101 Lone Pine Road) will remain (representing 69 FTEs). To the best of Staff’s knowledge, none of the units are currently owned by the St. Regis. b. Usage of the dome – what uses will be allowed within the dome? Staff response: The St. Regis is located within the Lodge (L) zone district. Staff supports the request to amend the PD to accommodate seasonal structures – including the dome – with the condition that use of the structures is limited to those allowed by- right pursuant to underlying zoning. This condition is intended to ensure that structures align with existing operations of the resort. One applicable use that is permitted by-right within the Lodge zone district includes “Accessory uses and structures. (Food service for onsite lodge guests is an accessory use)”. Accommodating this use within a seasonal structure would allow an existing restaurant to supplement operations or allow the resort to accommodate one-off events such as corporate retreats or weddings. Conversely, Conditional Uses in the Lodge zone district require additional board-level review and approval and are not part of this application. One such use includes “Retail and restaurant uses,” which would allow a third-party retail shop or restaurant to operate within one of the seasonal structures. Again, Staff does not support seasonal structures that accommodate uses that are unaffiliated with existing lodge operations without Conditional Use review. 2. Renewable energy Equipment – please provide more information about the renewable energy that is proposed. Staff response: The Applicant is prepared to provide additional information regarding the renewable energy that is proposed as part of the development at Second Reading. 3. Fence variation – Did the Applicant team contemplate or propose design alternatives for the fence? Staff response: A design alternative has not been proposed. The Applicant believes a taller fence is needed to discourage trespassers and prevent wildlife from entering the property. With that said, the Applicant is prepared to design a fence that meets the height limitations established by Council. Additional Information for Council Consideration: 1. Staffs proposed condition for affordable housing mitigation: The Applicant team disagrees with Staff’s assessment that additional mitigation should be exacted for seasonal structures, because as represented in the housing audit, the resort already meets mitigation requirements. Staff agrees with the Applicant that housing mitigation has been met for existing development. However, seasonal/temporary structures were never contemplated when the PD was originally conceived and are thus considered tantamount to new development. Staff also acknowledges the temporary nature of these structures – which differs from permanent commercial space or lodge facilities – and therefore calls for less rigorous mitigation requirements. Short of updating existing deed-restrictions associated with the original development of the resort, extinguishing affordable housing certificates, or building additional employee housing, Staff finds that paying the fee-in-lieu typically required for temporary/seasonal uses to be a reasonable alternative. Page | 4 Again, Staff appreciates that the St. Regis continues to meet mitigation requirements for existing development. However, as mentioned in the Application, temporary/seasonal structures were never contemplated when the PD was originally conceived and thus mitigation was never assessed. Requiring the payment of fee-in-lieu at the time of building permit is a reasonable alternative that meets mitigation requirements while also allowing for the ability to erect these structures for up to 150 days per year without the need to return to Council. Staff encourages additional dialogue with the Applicant on this topic at Second Reading. 2. Fence update: It has come to Staff’s attention that the dispute regarding a section of the subject fence has been resolved. A building permit was duly issued for the portion of fence that was erected along Juniata Street and no longer requires Council review. The remainder of the fence proposed along Monarch Street was denied as part of the permit. The Applicant remains interested in seeking a height variation for this section of fence as it is located between a structure and the street. Council is asked to make a final decision regarding this section of fence. SUMMARY AND BACKGROUND: The St. Regis is located on approximately three acres of land at the base of Aspen Mountain. The property is in the Lodge (L) zone district and contains a Planned Development (PD) overlay. The property is improved with a total of 179 hotel rooms, 25 timeshare units and a variety of accessory uses including conference/meeting space, ballrooms, a spa, multiple dining areas, outdoor pools, and several retail spaces. The Applicant requests a PD amendment to make several modifications to the site, triggering a Minor Amendment to a Planned Development for Project Review. The requests are described below: 1. Amend the PD to Allow Seasonal Structures: The St. Regis has traditionally facilitated events associated with a lodge use, such as conferences/seminars, weddings, Aspen Food and Wine, and corporate dinners. During winter months, these events are generally housed within seasonal structures such as tents and yurts, triggering City Council review for compliance with Temporary/Seasonal Uses, Commercial Design Review, and Growth Management. These are often Council review processes to permit seasonal and temporary uses beyond the 14 days allowed by code. Figure 3 depicts the locations where structures have been approved in the past. Table I provides a timeline of the most recent approvals Council has granted for seasonal structures at the St. Regis. Historically, Staff has supported the structures represented in Table I. The impetus of this new request is to permit the Applicant to move away from yearly (or semi-yearly) seasonal-use applications and provide long term predictability to the operations of the resort. Fountain Courtyard Mountain Plaza Mill Street Courtyard Figure 3: St. Regis Site Page | 5 Approval Location Improvement Length of Time Dimensions Resolution #158, Series 2017 Fountain Courtyard One Tent 40 days per year through 2027 3,960 sq. ft. Resolution #102, Series 2018 Chef’s Club Courtyard Ten dining yurts 135 days for one year Resolution #86, Series 2020 Waived Commercial Design and Growth Management Reviews as a response to public health orders related to social distancing when COVID-19 infection rates were elevated. Resolution #128, Series 2022 Fountain Courtyard One tent 48 days (in 2022) & 40 days per year thereafter through 2027 3,960 sq. ft. Four yurts 140 days for one year 707 sq. ft. Chef’s Club Courtyard One tent 121 days for one year 1,000 sq. ft. Mountain Plaza Courtyard One dome 60 days for one year 900 sq. ft. The difference between this application and those of previous years is how this request is approved. Instead of a “one-off” temporary/seasonal use request, this application seeks to memorialize seasonal structures as part of the Planned Development via the PD amendment process. Pending Council approval, the structures will be allowed by-right within the PD on a seasonal basis (up to 150 days per year) with no expiration date or sunset on the number of years. Specifically, the Applicant requests to amend the PD to allow for the following temporary/seasonal structures: Location Improvement Length of Time Per Year Dimensions Mill Street Courtyard One Tent 150 days per year Up to 1,000 sq. ft. Fountain Courtyard Four Yurts 150 days per year up to 848 sq. ft. (cumulative of all yurts) Mountain Plaza One dome 150 days per year up to 707 sq. ft. Table I: Recent Approvals of Temporary Structures at the St. Regis Table II: Proposed Seasonal Structures to be Memorialized in PD Page | 6 2. Amend the PD to Allow Fencing Ranging from Six Feet (6’) to Ten Feet (10’) in Height The applicant’s request is in direct response to staff being alerted to the non-compliant fencing constructed at the St. Regis during the winter season of 2022-2023. Staff requested the St. Regis submit for Land Use Approval, because the unpermitted fencing exceeded fence height limitations per underlying zoning. When the PD was created and approved in 1988 there was not a ‘Project Review’ step. Rather, the code at the time provided for a conceptual and final PD review, which were then documented on the recorded architectural and site plans for the hotel. There are no existing design, height, or materials recorded for the existing fence along Monarch Street. The applicant requests to increase the fence and gate height to deter human and wildlife along Monarch Street with an approximate range in height from 6’ to 10’ as identified in Figure 4. The requested section of fencing is approximately 290 linear feet along these two street fronts. DISCUSSION & STAFF FINDINGS: Seasonal Structures: Approving the request as a PD amendment has implications for affordable housing mitigation requirements that should be considered. Given the seasonal nature of these structures, the Applicant posits that the number of employees generated is inconsistent with the mitigation prescribed for new commercial net leasable space. Pursuant to Land Use Code Section 26.470.050.c, Employee Generation Review, any Applicant who believes the employee generation rate is different than code requirements may request an employee generation review. The application includes a full audit and thorough analysis of the number of employees generated by resort operations vs. the number of employees housed. According to the First Amended PUD Agreement from 1988, a total of 331 employees were generated from lodge operations, requiring mitigation for 198.5 FTEs (33 x 0.6 = 198.5)1. Although some aspects of the development have evolved overtime (e.g., in 2003 Council approved the conversion of multiple lodge rooms into timeshare units) the number of employees generated by the development has remained relatively Figure 4: Unpermitted and Requested Fencing Locations with Heights Page | 7 consistent. In 2010, the St. Regis submitted an audit to the City showing employment numbers from 2006 to 2009. According to the audit, employment at the St. Regis never exceeded 331 FTEs during that time. The most recent audit covers employment numbers for winter 2022-2023, which comes to a total of 330.6 FTEs – 0.4 FTEs below 331 for which mitigation has been provided. Staff agrees with the application’s analysis that no new FTEs will be generated from the new structures, with two caveats. First, the uses allowed within the structures should be limited to those allowed by-right within the Lodge (L) zone district such as one-off events like weddings and corporate retreats. Such uses are appropriate as the staff and infrastructure required to host these events are integral to existing resort operations and comply with underlying zoning. Conversely, using the structures to accommodate uses unrelated to lodge operations such as third-party retail or restaurant operations generates additional vehicular and customer foot traffic, employee demand, and other infrastructure-related impacts without the mitigation typically exacted for adding commercial space. Retail use is allowed only within certain designated areas of the PD (none of which are included in this application). If the Applicant wishes to accommodate retail use in the future, a subsequent application requesting Conditional Use Review, or a PD amendment should be required. Second, Staff remains concerned about future mitigation constraints. The deed-restrictions associated with four of the affordable housing units – Alpina Haus, Copper Horse, Grand Aspen, and Ute City Place – are set to expire in approximately twelve years (around 2035). These units represent the mitigation provided for 129.5 FTEs when the PD was developed. Following their expiration, only the mitigation from Hunter Longhouse will remain (representing 69 FTEs). Without additional action, the mitigation provided for the St. Regis will fall from 60 percent to 21 percent. Unless the St. Regis voluntarily agrees to work with the City to amend existing development agreements to top off mitigation, it will likely be difficult to require additional mitigation when no development is proposed. Staff recommends follow-up analyses (i.e. audits) be included as a condition of this approval. If future audits determine that more than 331 FTEs are generated from resort operations, additional mitigation may be assessed. Given the seasonal nature of the proposed structures, annual tent permit approval is required. If Council desires, Staff may withhold the issuance of future tent permits until mitigation is provided. Staff encourages Council to discuss this topic with the Applicant at Second Reading. As for Commercial Design Review – although the materials associated with seasonal structures tend to fall short of meeting Commercial Design Standards, the prominent walls, large courtyards, and robust landscaping throughout the resort shield these structures from view from surrounding streets and rights of way. Like previous years, the presence of these structures will likely have little to no impact on the character of the surrounding area. Staff finds the Commercial Design Standards to be met. Renewable Energy Equipment One of Councils goals is to take meaningful action and provide leadership in reducing the Aspen community’s contribution to greenhouse gas emissions. Reducing energy consumption and carbon emissions in all emissions sectors is essential to achieving this goal. Minimizing impacts from the built environment is particularly important, as 57 percent of Aspen’s carbon emissions come from the building sector alone. The energy required to heat seasonal enclosures, which are carbon emissions not counted in the community emissions inventory and not included in the 57 percent attributed to the building sector, is in direct conflict with this goal. Seasonal structures do not have a thermal envelope, which means heating these spaces is highly inefficient, consumes Page | 8 exponentially more energy, and emits more carbon compared to a permanent structure. The Applicant proposes installation of renewable energy equipment in various locations of the resort to offset the impacts from these structures. Outdoor events are currently heated by propane outdoor heaters and tented events are heated by portable natural gas fired furnaces. The Applicant intends to replace existing natural gas furnaces with electric forced air furnaces. The St. Regis must first replace existing outdoor receptacles and install additional dedicated adapters for powering the furnaces. To offset the extra energy load, the resort plans to install renewable energy equipment onsite. The rooftop is currently covered with abandoned solar thermal tubes on a previously installed steel beam racking system. The existing system will be replaced with new solar photovoltaic panels which are projected to produce approximately 80,000 kwh’s annually. The resort also plans to install a battery storage facility to capture and utilize the energy derived from the rooftop solar facility. The battery storage is intended to bolster the resort’s overall energy resiliency, provide a source of emergency power backup, and allow for a reduction in the resort’s peak energy demands. Lastly, the St. Regis plans to install EV charging stations and battery storage facilities in its parking garage. The St. Regis currently has two EV charging stations onsite. The number of additional EV stations installed will depend on the final calculations of the amount of energy that will be supplied by the solar array as well as the availability of garage space. Installing this renewable energy equipment in a timely manner is integral to Staff’s recommendation of approval for seasonal structures. Staff will work with the Applicant to ensure PD dimensional standards and underlying zoning requirements are met. If Council desires, a condition of approval to install the photovoltaic system and battery storage prior to next Winter (2024-2025) is included in the ordinance. Fence Height The fences along Monarch Street and Juanita Street are existing. The applicant requests to significantly increase the height of the fencing to deter animal and human trespass. The applicant proposes a deviation from underlying zoning, resulting in an increase in fence scale and height. Therefore, Project Review is an appropriate procedure for review to amend the PD. The Project Review focuses on the general concept for the development and outlines any dimensional requirements that vary from those allowed in the underlying zone district. Typically, fence height greater than what the Land Use Code allows is reviewed as a Dimensional Variance under Chapter 26.314, yet as this is a PD, a minor amendment through Project Review provides the review path for dimensional flexibility contrary to that of underlying zoning. At the time the hotel was approved, in 1988, there were no limitations on fence height. Ordinance #22, Series of 1995, set height limitations for fences for the first time in the Land Use Code. There are no existing design, height, or materials recorded for the existing fence along Monarch Street and Juniata Street within the PD. Per Section 26.575.020.e.5.q, the fence should be no greater than 42” in height as measured from finished grade as it is not entirely recessed behind the vertical plane of the building’s façade and is within a street-facing side yard setback. When a PD is silent on a topic, the LUC directs Staff to use underlying zoning as a guide to set zoning standards for the development. Based on the location of the current fencing, the underlying zoning would allow for a fence up to Page | 9 42” in height. As this fence serves as a semi- barrier to a pool, staff believes the Building Code could apply, which allows for a fence to be up to 48” in height (2015 ISPSC). The requested fence height, ranging from 6’ to 10’, increases due to change of grade along Monarch Street. There is an existing retention wall/planter that currently ranges from finished grade to 5’-3” in height along Monarch Street as seen in Figures 5 and Figure 6, below. The requested fence height, ranging from 6’ to 10’, increases due to change of grade along Monarch Street. There is an existing retention wall/planter that currently ranges from finished grade to 5’-3” in height along Monarch Street as seen in Figures 5 and Figure 6. The addition of a ‘6 fence in height on top of the retention wall as seen in Figure 5 and a 42” fence in height on top of the retention wall as seen in Figure 6, in addition to retaining the unpermitted 6’ fence along the remaining parameter of Monarch Street and Juanita Street will significantly increase the visual impacts to the pedestrian experience. The request creates approximately 290 feet of approximately 6’-10’ tall fencing. This visual impact is clear through the existing fencing as juxtaposed to the existing retention wall/planter without fencing, see Figure 7. The City has set many standards within the LUC to ensure fences support neighborhood character and maintain a connection between pedestrians and neighborhoods. These standards are evident in chapters such as the Residential Design Standards and Calculations and Measurements. Tall fences create visual obstructions, which can negatively impact the pedestrian experience, undermine neighborhood character, and diminish a sense of place. As the St. Regis is a prominent building in the City’s core, the requested fence retracts from the historic, cultural, and visual contributions to the identify of town. Figure 5: Proposed Fencing along Monarch Street, 10’ in height Figure 6: Proposed Fencing along Monarch Street, 8’-11” in height Figure 7: Juxtaposition between requested fencing (right) and current fencing/retaining wall (left) Page | 10 Based on the Project Review Standards in Exhibit B, staff finds the height of the fencing contrary to neighborhood character and the use of the site. Staff finds that the applicant fails to provide sufficient justification as to why 6’ – 10’ fences are necessary and supported by the Land Use Code. This property is in the Mountain Base Character Area, which is surrounded by similar lodge and residential uses that do not need fencing of this height to address for human or wildlife issues. Staff finds the request to increase fence heights over 6’ and to its highest point at 10’ inconsistent with underlying zoning and out of context with the neighborhood and goals of the LUC. Although a PD amendment gives flexibility for dimensions, staff does not find that fences greater than the minimum height required to meet building code to be appropriate along this pedestrian corridor. RECOMMENDATION: Staff’s recommendation is broken into three parts based on the request: 1. Temporary Structures: Staff recommends approval of the request to amend the PD to allow for the temporary structures represented in the application with the following conditions: • A building permit is required on each occasion a seasonal structure is erected. o Affordable housing mitigation shall be assessed based on current code requirements and fee-in-lieu rates at the time of permit. A credit of fourteen (14) days shall be applied to one structure each twelve-month period. o The Applicant reserves the right to reduce the number of structures, size of structures and duration in which structures are erected each year. However, mitigation shall be paid as a lump sum for all three structures for 150 days per year, based on the dimensions set forth below, regardless of changes proposed in any given year: Location Improvement Length of Time Per Year Dimensions Mill Street Courtyard One Tent 150 days per year Up to 1,000 sq. ft. Fountain Courtyard Four Yurts 150 days per year up to 848 sq. ft. (cumulative of all yurts) Mountain Plaza One dome 150 days per year up to 707 sq. ft. • The Community Development Director is authorized to require periodic employee generation audits to confirm actual employee generation. If future audits determine that more than 331 FTEs are generated from resort operations, additional mitigation shall be assessed for sixty-five (65) percent of the number in excess. o If the total mitigation requirement resulting from an audit is less than 0.1 FTEs, a cash-in-lieu payment may be made by right. If the total mitigation requirement is 0.1 or more FTEs, a cash-in-lieu payment shall require City Council approval. o Mitigation exceeding 0.1 FTEs shall be in the form of affordable housing or certificates of affordable housing credits as prescribed in Title 26 of the Land Use Code. o In the event that additional housing mitigation is required, the Community Development Director reserves the right to withhold issuing tent permits for seasonal structures until mitigation requirements are met to the satisfaction of the Director. Page | 11 2. Fence Height Staff recommends that Council deny the request for a height variance of ten feet and instead grant the minimum variance from height required to meet building code. PROPOSED MOTION: Two ordinances are included with the packet. The first ordinance (Option A) reflects the request of the Applicant by amending the PD to accommodate temporary structures, renewable energy equipment and a fence height variance up to ten feet. The second ordinance (Option B) reflects Staff’s recommendation by amending the PD to accommodate seasonal structures, and renewable energy equipment but reduces the fence height variance to the minimum needed to meet building code requirements. If Council wishes to approve the Applicant’s request, the following motion can be made: 1. Option A: Reflects the Applicants request: “I move to approve Ordinance #18, Series of 2023 for an amendment to a Planned Development for Project Review, Growth Management Review, and Commercial Design Review, allowing the PD to accommodate temporary structures, the installation of renewable energy equipment, and a fence height variation of up to ten feet at the St. Regis Resort (315 E. Dean St.), subject to the conditions listed in the ordinance.” If Council wishes to approve Staff’s recommendation the following motion can be made: 2. Option B: Reflects Staff’s recommendation: “I move to approve Ordinance #18, Series of 2023 for an amendment to a Planned Development for Project Review, Growth Management Review, and Commercial Design Review, allowing the PD to accommodate temporary structures, the installation of renewable energy equipment, and the minimum fence height variation needed to meet building code requirements at the St. Regis Resort (315 E. Dean St.), subject to the conditions listed in the ordinance.” FINANCIAL IMPACTS: N/A ENVIRONMENTAL IMPACTS: N/A CITY MANAGER COMMENTS: _______________________________________________________________________ _______________________________________________________________________ _______________________________________________________________________ ATTACHMENTS: Ordinance #18, Series of 2023 Exhibit A.1 | Planned Development – Amendment for Project Review | Staff Findings Exhibit A.2 | Commercial Design Review | Staff Findings Exhibit A.3 | Growth Management Review | Staff Findings Exhibit B.1 | Application