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HomeMy WebLinkAboutresolution.council.044-26RESOLUTION #044 (SERIES OF 2026) A RESOLUTION OF THE CITY OF ASPEN ACKNOWLEDGING THE INCORPORATION OF THE ASPEN AREA COMMUNITY TRUST (AACT) AND DEFINING SPECIFIC ASPECTS OF THE RELATIONSHIP BETWEEN THE CITY OF ASPEN AND THE AACT. WHEREAS, the City of Aspen on page 20 in the current Aspen Area Community Plan adopted the following language in describing the town's commercial sector: "There is a concern that businesses providing basic necessities will be replaced with businesses providing non -essential goods and services. High -profile locations in the downtown have steadily converted from restaurants to retail spaces, some retail spaces have transformed to offices, and high rents have resulted in a continuing shift towards exclusivity. The character of our community is bolstered by a diverse commercial mix. While we have taken some steps to increase retail diversity, we must pursue more aggressive measures to ensure the needs of the community are met, and to preserve our unique community character." WHEREAS, the City of Aspen also understands the clear nexus of commercial vitality, economic diversity, and the affordability of commercial spaces with housing affordability for employees; and, WHEREAS, the City of Aspen in response to concerns in the commercial sector and affordable housing, has long utilized creative and targeted amendments to the Land Use Code and conditions of approval in Site Specific Development Plans to attempt to improve in the Commercial Sector in this regard with little real impact (A History of Aspens Efforts on Affordability is included as Exhibit A); and, WHEREAS, the City of Aspen continues to seek out innovative responses to the unique challenges within the town's commercial and affordable housing sectors; and, WHEREAS, the City Council authorized the Community Development Department pursuant to Resolution #140, Series of 2023, to submit a grant to the State of Colorado's Department of Local Affairs (DOLA) to fund an investigation into the feasibility of a Community Land Trust (CLT) in Aspen's context; and, Resolution #044, Series of 2026 Aspen Area Community Trust Page 1 of 25 WHEREAS, the City of Aspen was awarded $13 5,000 from DOLA in support of the feasibility study; and, WHEREAS, the City of Aspen put forward matching funds of $15,000 towards the feasibility study though the City's budgeted Land Use Planning funds and the City's Affordable Housing Development fund; and, WHEREAS, the City Council approved a $150,000 contract per Resolution #079, Series of 2024 with Burlington and Associates in Community Development, LLC to conduct the feasibility study; and, WHEREAS, over a period of 18 months, Burlington and Associates in Community Development, LLC, in coordination with City of Aspen staff and working groups comprised of community members, led a study of the local commercial and affordable housing landscape; and, WHEREAS, during the project timeline, the City of Aspen has contributed more than 300 hours of staff time in support of these efforts, including the time of the City's Long -Range Planner, Housing Analyst, and Community Development Director; and, WHEREAS, the outcome of these efforts was the incorporation of the Aspen Area Community Trust as anon -profit organization in the State of Colorado; and, WHEREAS, in further support of the AACT, the City of Aspen engaged the Sector Law firm to support the drafting of the organization bylaws and incorporation application and in drafting the 1023 application for 501c3 status with the Internal Revenue Service; and, WHEREAS, on July 30, 2025, the City of Aspen's City Manager approved the use of $35,000 in already budgeted monies within Community Development's Planning fund to support the work of Sector Law, and, WHEREAS, The City of Aspen continues to support the AACT through commitment of staff time and meeting spaces; and, 0 WHEREAS, the Aspen City Council finds that this Resolution furthers and is necessary for the promotion of public health, safety, and welfare. NOW, THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT: Resolution #044, Series of 2026 Aspen Area Community Trust Page 2 of 25 Section I: In continued support of the concept of a Community Land Trust and specifically mine newly created Aspen Area Community Trust (AACT), the City of Aspen commits to the following: a. $35,000 of additional, new monies from already budgeted amounts within Community Development's Planning fund to continue efforts from both Burlington and Associates in Community Development, LLC and Sector Law. The funds will be utilized to finalize the application for 501 c3 status and to provide additional consultation for the newly formed board of the AACT. In total, this will increase direct City of Aspen financial commitment to $85,000 to date in support of the formulation ofAACT. b. The Community Development Director is authorized to represent the interests of the City of Aspen through participation as a voting member of the Board of Directors of the AACT. This appointment recognizes the potential for conflicts of interest and will rely on the bylaws of the AACT, and the City of Aspen's charter, municipal code and employee handbook to give direction to the navigation of any potential conflicts of interest. c. The City acknowledges that the work of the AACT may result in consideration of policy changes or additions or amendments to the Land Use Code or consideration of Site Specific Development Plans in coordination with the work of the AACT. d. The City anticipates a future request from the AACT for monies in support of the organization's start-up operating costs and potentially as a long-term partner in the organization's on -going work. This is not an approval of these requests — only a statement anticipating and allowing for the consideration of future funding requests. e. Recognizing the intersection of aligned interests between the City of Aspen and the AACT, City Council also acknowledges that the AACT is an independent, non-profit organization that is governed by the decisions of the Board of Directors. RESOLVED, APPROVED, AND ADOPTED FINALLY this 24th day of March 2026. APPROVED AS TO COP Rachael Mayor Nicole Henning, City Clerk APPROVED AS TO Katharine A. Exhibit A: A History ofAspens Efforts on Affordability n, City Attorney Resolution #044, Series of 2026 Aspen Area Community Trust Page 3 of 25 History of Aspen's Efforts on Affordabili Executive Summary EXlllbit A For more than two decades, the City of Aspen has undertaken significant governmental efforts to preserve both affordable housing and access to essential goods and services for its permanent residents and workforce. Escalating land values and market pressures have increasingly displaced locally serving and community -oriented businesses from the city's commercial areas, limiting access to everyday services and threatening the economic diversity necessary to support a stable year-round population. In response, the City has adopted numerous public policies and programs intended to mitigate these impacts, including land use regulations that prioritize locally serving businesses, restrictions on certain commercial uses, affordable housing mitigation requirements associated with commercial development, and the acquisition and subsidized leasing of commercial spaces intended to serve residents. These actions reflect the City's recognition that maintaining access to essential services and preserving community -serving commercial space are necessary governmental functions related to the health, safety, and welfare of the community. In addition to regulatory actions, the City directly owns and manages several community -serving commercial and cultural spaces. These properties are leased at below -market rates to support locally serving restaurants, childcare providers, nonprofit organizations, and artists whose services benefit the local community. However, managing and preserving these spaces requires substantial administrative oversight and public investment. After a two year feasibility study Funded by the Department of Local Affairs (DOLA) and the City of Aspen, the concept of a community land trust has been deemed both appropriate and needed to further support and complement these governmental efforts by acquiring, stewarding, and preserving affordable commercial and community -serving spaces, thereby performing functions that the City has historically undertaken and continues to pursue. By assuming responsibility for these activities and providing specialized management and long-term affordability protections, the organization will lessen the burdens of government by helping ensure continued access to essential goods, services, and community -serving spaces for Aspen residents and workers. The following narrative and five sections outline key initiatives undertaken over the past two decades that reflect this public purpose and governmental responsibility around policy amendments, site -specific initiatives, City -owned attempts to create and preserve community serving spaces, the history of the DOLA and City of Aspen funded feasibility study, as well as news sources citing the need. Resolution #044, Series of 2026 Aspen Area Community Trust Page 4 of 25 Introduction For more than two decades, the City of Aspen has undertaken substantial governmental responsibility to preserve a diverse, affordable, and locally serving community sector that supports the health, safety, and welfare of its permanent population. Ensuring access to essential goods and services, maintaining economic diversity, and preventing displacement of community - serving businesses have become core municipal functions as rising land costs and increasing market pressures undermine these public objectives. For instance, Aspen's current retail rents are between $275 - $325 a square foot, whereas New York City's are $57 a square foot, Denver's are between $27 - $46 a square foot and San Francisco's are $38 a square foot (see below for full cost comparison). Beginning in the early 2000's, the City adopted and implemented policies designed to address these challenges, including land use regulations supporting locally serving businesses, site - specific entitlements to maintain affordability, the acquisition of properties for the purpose of providing subsidized rents to community -serving tenants, and the integration of affordable housing mitigation requirements for commercial redevelopment. These initiatives represent ongoing governmental efforts to address market failures that would otherwise impair access to essential and community serving services for residents and workers. The City of Aspen is a national leader through its robust affordable housing program, where the Aspen Pitki An County Housing Authority (APCHA) manages over 3,200 affordable housing units which houses over 70% of Aspen's full-time residents. With a free-market medium home valued at $13,200,000, and the median household income being $105,3 99, there is an estimated gap of $2,089,431 to create attainable and affordable housing. The City's employee housing mitigation program demonstrates its capacity to develop and administer complex systems by addressing structural market challenges. Originally established with limited precedent, the program has evolved into a comprehensive framework that combines regulatory authority, public investment, and long-term oversight by APCHA to ensure the creation, occupancy, and maintenance of employee housing. Building upon this established governmental function, the City seeks to extend similar public -serving mechanisms to the commercial sector and expand the potential within the existing Affordable Housing Program. Despite these extensive efforts in both community serving businesses and housing, escalating property values and changing demographics have continued to displace Aspen's full-time residents. As luxury -oriented businesses are able to outbid essential service providers for limited commercial space, residents increasingly face reduced access to everyday goods and services within the city. Many displaced businesses have relocated "downvalley" in less expensive communities such as Carbondale, Basalt, Glennwood Springs and even Rifle and Silt, requiring travel times of up to two hours, which disproportionately impacts lower- and middle -income Resolution #044, Series of 2026 Aspen Area Community Trust Page 5 of 25 residents and employees. This trend places additional strain on municipal infrastructure, transportation systems, and housing policy, and erodes the City's ability to meet its governmental obligations related to economic accessibility, community stability, and equitable service provision. As a result, the City of Aspen continues to bear a significant governmental burden in addressing the loss of essential services and the resulting social and economic impacts on its residents. The community has made clear that affordability, access to local services, and a fundamental loss of `third spaces' are critical public concerns that require sustained and innovative intervention. While municipalities nationwide have explored tools such as formula -based retail ordinances to regulate commercial mix, few have developed comprehensive programs specifically intended to preserve affordable community serving spaces for locally serving and character -based businesses as well as support a lived in community through a diverse affordable housing makeup. Land use regulations and public initiatives aimed at mitigating retail gentrification remain rare, yet examples such as the OakCLT and Artist Space Trust, both community land trusts (CLTs) with a residential, commercial and locally serving component, give promise to Aspen's future. Using OakCLT as a guiding example, the City of Aspen has undertaken work over the past two years to both contemplate the feasibility of and create the foundation for the concept of a community land trust. The City of Aspen has along -standing history of exploring progressive methods for increasing affordable housing and keeping policies outcomes locally serving. With reduced affordability of market -rate housing in the Aspen and the greater Roaring Fork Valley, the need for creative responses to the affordable housing crisis increases. In September of 2023, City Staff brought the idea of a community land trust to Aspen City Council, who subsequently gave approval (Resolution #140, Series of 2023) to submit a grant application to the Colorado Department of Local Affairs (DOLA). The grant application was for funding from the Strong Communities Planning Grant Program which is intended to support local governments in planning for sustainable growth and development patterns and affordable housing into the future. While Aspen has a long history of developing and utilizing creative solutions to affordable housing, this is one of the few strategies not yet explored. The City was awarded a grant of $135,000 with a matching fund from the City of $15,000 for a total of 0150,000. In May 2024, with internal funding and a grant from the Colorado Department of Local Affairs (DOLA), the City of Aspen issued an RFP in May 2024, seeking consultant services to assist the City in assessing the feasibility of and developing the programing for a local community land trust. On June 18, 2024, Burlington Associates — with Michael Brown and Jeff Washburne as the two principals — was notified that the City of Aspen had selected them as the team to undertake this work. Beginning with an initial onsite visit in September 2024 and continuing into January 2025, the Burlington Associates consultants interviewed —either face-to-face or in online conversations — with over 70 key community leaders and local community residents from Aspen and other Resolution #044, Series of 2026 Aspen Area Community Trust Page 6 of 25 Roaring Fork Valley communities. In all these conversations, no one expressed skepticism, resistance, or opposition to the community land model or to the notion of a possible CLT in Aspen or in the broader region. Additionally, strong concerns were expressed by many regarding changes to downtown Aspen as community -serving businesses continue to be replaced by retail stores that cater to the ultra - wealthy. Correspondingly, keen interest was voiced regarding the potential for a local CLT to help protect and preserve businesses and help keep Aspen authentically local. Also, interest was expressed in the potential for a local CLT to play a pivotal role in addressing the critical shortage of affordably priced homes in Aspen and the surrounding areas. Possible roles a local CLT could play include protecting and preserving affordably priced homes to be created in pending and future housing developments, playing a role in efforts to assist struggling HOAs in the region, and managing stewardship ofdeed-restricted homes on behalf of municipalities and APCHA. By exploring new programs, such as CLT, which seek to preserve affordable, locally serving space, the City aims to reduce its ongoing regulatory, financial, and administrative burden while ensuring continued access to essential goods, services, and housing for residents and workers. Aspen Commercial Real Estate Comparisons Community Retail Rents $/SF) .::Office Rents ($/SFj Vacanc Rate Year Aspen $2754325/SF $664100/SF 1.6% 2025 Denver $27446/SF $27446/SF 4.3% 2025 Grand Junction, CO $6412/SF $6412/SF 15% 2025 New York City $57/SF $71/SF 12.7% 2024 Los Angeles $36/SF $41/SF 5.5% 2024 San Francisco $38/SF $60/SF 25% 2024 Miami $44/SF $50/SF 15.5% 2024 Boston $22/SF $49/SF 20% 2024 Austin $32/SF $42/SF 25% 2024 Washington DC $32/SF $30/SF 18.5% 2024 Philadelphia $26/SF $3 8/SF 13 % 2024 Seattle $28/SF $37/SF 34.7% 2024 Atlanta $21/SF $36/SF 26.5% 2024 Chicago $19/SF $28/SF 26.6% 2024 Dallas $23/SF $29/SF 24% 2024 Aspen Housing Figures Communi ' Median Home ;Value Aspen, CO Sin le-Famii ,detached $13,200,000 Aspen, CO (all) $3,20000 Basalt, CO $153755000 Glenwood Springs, CO $8495000 Denver, CO $5805000 Grand Junction, CO $410,000 Resolution #044, Series of 2026 Aspen Area Community Trust Page 7 of 25 United States 1$405,000 Aspen Historical (Homeownership Affordability) Year Median HH Income. (Us Census, ACS) � � Chang e Median Home Price (https *.//walletinvest orcom/real-estate- fore+cast/co/pitkin/as pen -housing- market - history? cha I rtlntery al=all) % Change Median Income Household Buyer Mortgage Average Mortgage Interest Rates Gap Required 2007 $49,657 $1,159,810 $177,100 6.40% $982,710 2008 $501303 1.3% $1,186,130 2.3% $181,800 6.23% $1,0041330 2009 $531750 6.9% $1058,070 -2.4% $2075800 5.38% $9505270 2010 $62,458 16.2% $1,13500 4.9% $251,800 4.86% $883,880 2011 $74,509 19.3% $1,133,380 42% $305,600 4.65% $8271780 2012 $711284 .4.3% $15165,420 2.8% $31100 3.88% $853,820 2013 $71,856 0.8% $1,262,900 8.4% $306,900 4.16% $956,000 2014 $66,635 .7.3% $15393,490 10.3% $28100 4.31% $1,112,490 2015 $67,164 0.8% $1,567,990 12.5% $2905900 3.99% $11277,090 2016* $70,992 5.7% $102,240 6.0% $31200 3.79% $1,349,640 2017 $64,594 -9.0% $1,755,860 5.6% $276,300 4.14% $1,47%560 2018 $72,973 13.0% $1,855,740 5.7% $298,100 4.70% $15557,640 2019 $78,292 7.3% $15924,630 3.7% $335,200 4.13% $1,589,430 2020 $77,669 -0.8% $25034,191 5.7% $35400 3.38% $1,680,191 2021 $8%625 15.4% $2,152,109 5.8% $416,500 3.15% $1,735,609 2022 $94,338 5.3% $2,252,022 4.6% $360,300 5.53% $1,891,722 2023* $99,715 5.7% $2,123,657 -5.7% $339,500 7.00% $1,7843157 2024* $105,399 5.7% $2,448,331 15.3% $358,900 7.00% $2091431 AVERAGE 5.7%* 4.6% 4.8% Resolution #044, Series of 2026 Aspen Area Community Trust Page 8 of 25 2025 $111,407 5.7% $2,560,954 4.6% $451,300 4.80% $2,109,654 2026 $1175757 5.7% $2,678,758 4.6% $477,100 4.80% $2,201,658 2027 $124,469 5.7% $201,981 4.6% $504,300 4.80% $2,29701 2028 $131,564 5.7% $2,930,872 4.6% $533,000 4.80% $2,397,872 2029 $13%063 5.7% $3,06502 4.6% $5635400 4.80% $2,502,292 2030 $146,990 5.7% $3,206,714 4.6% $595,500 4.80% $2,611,214 2031 $155,368 5.7% $3,3545223 4.6% $624,400 4.80% $2,7299823 2032 $164,224 5.7% $3,508,517 4.6% $665,300 4.80% $2,843,217 2033 $173,585 5.7% $30%909 4.6% $703,200 4.80% $2,966,709 2034 $183,479 5.7% $3,838,725 4.6% $743,300 4.80% $3,095,425 2035 $193,937 5.7% $4,015,306 4.6% $785,700 4.80% $3,229,606 2036 $204,992 5.7% $4,200,010 4.6% $830,500 4.80% $3,36%510 2037 $216,676 5.7% $4,393,211 4.6% $87700 4.80% $3,5155411 2038 $229,027 5.7% $4,595,298 4.6% $9271900 4.80% $3,667,398 2039 $242,081 5.7% $4,806,682 4.6% $980,700 4.80% $3,825,982 2040 $255,880 5.7% $5,027,789 4.6% $1,036,700 4.80% $359915089 2041 $270,465 5.7% $5)25%068 4.6% $1,095,700 4.80% $4,163,368 2042 $28502 5.7% $5,500,985 4.6% $1,158,200 4.80% $4,342,785 Resolution #044, Series of 2026 Aspen Area Community Trust Page 9 of 25 2043 $3025177 5.7% $5,754,030 4.6% $1,224,200 4.80% $455295830 2044 $319,401 5.7% $61018,716 4.6% $1,29400 4.80% $4,724,716 2045 $337,607 5.7% $6,295,577 4.6% $1,36700 4.80% $4,927,777 2046 $356,851 5.7% $6,5855173 4.6% $1,4451700 4.80% $5513%473 Aspen Projected (Homeownership Affordability) Source: Cited as Attach�rzent 1 Section 1: Land Use Code and Policy from 2000 - 2025 Pre-2000's: The first attempts to set aside specific land areas for service and commercial uses occurred in the early 1970s — what was created was the Service/ Commercia/ Industrial (SCI) Zone District. In 1993 the first Aspen Area Community Plan called for a revision of the SCI Zone District to "ensure only locally-servi Zng uses." The 2000 Aspen Area Community Plan (AACP- See Exhibit A), Aspen's Comprehensive Plan, Action Plan carried over several items from the 1993 version, including the revision of the SCI zone to ensure only locally -serving uses, and to zone "undeveloped commercially zoned land" for SCI uses. The 2000 AACP called for an Economic Sustainability Committee, which issued its report in 2002. Action Items relevant to the SCI district were: "Retain and expand through infill SCI facilities wherever possible to help counter downvalley economic leakage and provide needed goods and services to Aspen residents and visitors." In reviewing the history of the allowed uses, a few themes emerge. The strongest theme is a desire to maintain certain types of threatened business that would otherwise be pushed to the Airport Business Center (approximately 1) minutes outside of the City of Aspen) or downvalley. The SCI Zone District has long attempted to become a `locally serving' zone district, but on many occasions has failed due to high rents and proximity to the commercial core as these zoned area lay outside the core of economic activity (see below site specific example, Obermeyer Place). 2000: The 2000 AACP sought to formalize a community feeling that locally serving businesses were being driven out by market forces in downtown Aspen. The Action Plan called for recommendations on "Economic Sustainability" and the importance of strengthening local ownership of businesses and for the City to provide incentives for small, diverse, locally -owned businesses (See Exhibit B). An Economic Sustainability Committee was subsequently created. 2002: For decades, the City has long tied commercial development and redevelopment to the mitigation of employees generated. The outcome has been the creation of a robust affordable housing mitigation system. In 2002, the City hired the consultants, Economic &Planning Systems for $9,500 (See Exhibit C), to update the employee generation rates for commercial Resolution #044, Series of 2026 Aspen Area Community Trust Page 10 of 25 properties with the goal of updating land use regulations and employee housing mitigation standards with current data. 2004: One outcome from the 2000 AACP and Economic Sustainability Committee was the passing of Ordinance #28a, Series of 2004, a land use policy that banned professional service businesses such as real-estate firms and travel agents from entering ground -level space in downtown Aspen. The prohibition of offices on ground level in the Commercial Core was created as a way to `sustain the local social and economic conditions' . 2005: Established subsequent to the 2000 AACP, the Action Plan (see Exhibit D) was created with action point #91 being "Support Locally Owned Businesses." Policy outcomes followed, one of which being the activation of alleys stores for local business. The incentive the City offered to convert existing commercial or mixed -used space or to develop new commercial or mixed -used building to accommodate a storefront of 600 square feet or less along an alleyway was an exemption from all housing mitigation (Ordinance #21, Series of 2005). At this time and based upon the updated work from the EPS Contract in 2002, the affordable housing mitigation would have equated to $296,887.56. The concept was that small, "out of the way" stores would create a unique experience and might tend to be local -serving or locally owned and therefore reflect a community benefit. This policy incentive was not successful and was later removed from the Land Use Code, 2006: In March 2006, the Aspen City Council identified four `themes' to explore as part of a moratorium on land use applications. One of them was `Commercial Mix'. There were concerns about whether there were enough `locally serving' businesses for local residents and whether retail stores were too high -end. There was concern about the conversion of once vibrant 11 businesses to offices due to high rents and that businesses providing basic necessities being replaced with businesses providing non -essential goods and services. 2008: In 2008, an updated AACP was published. Many of the themes and policy initiatives were centered around Affordable Housing and the concept of the `Commercial Mix' . The theme around affordable housing was ways to expand the creation of housing outside of the City/County and Housing Authority. A Policy Theme from the executive summary of the AACP quotes the following "the City, County, APCHA, and potential private -sector partners should explore the creation of a non-profit Affordable Housing Development Corporation to meet the substantial demand for new affordable housing. This organization would have the capability of moving forward on multiple projects at once. Transparency in this effort is critical." (See Exhibit E). Interrelated themes to commercial vitality for essential, locally serving businesses include the Following policy theme "with help from the Chamber and others, local government can form working relationships with local -serving business owners to jointly plan for the retention of essential businesses. Strategies could include succession planning, exploring options to set aside space for essential businesses and other innovative approaches." Both these themes give support Resolution #044, Series of 2026 Aspen Area Community Trust Page 11 of 25 to the City's dedicated interest in expanding both affordable housing tactics and instruments to provide essential businesses way to remain in the City. 2008: In June 2008, a contract with White & Smith, I.I.A. Planning and Law Group (contract amount not known), was completed to create a `Commercial Mix Strategies to Preserve Locally Serving Businesses' (see Exhibit F) which supported policy themes of the AACP. The report named that the City of Aspen was seeking ways to encourage a sustainable mix of businesses in the community due to rising land costs and market conditions that has pushed out many of the City's locally serving businesses, along with businesses that create the unique character and flavor of Aspen's commercial core. The report laid out tactics to encourage locally serving businesses that were within the city's Police Power such as zoning, dimensional standards, and mitigation. What resulted over the following eight years was a series of policy updates to encourage locally serving/ community owned businesses. 2012: In 2012, Aspen's City Council once again put momentum into policy changes to incentivize the core and commercial sector. As part of the 2012 City Council retreat, Council members identified their top ten goals for the upcoming year. One of these goals was to make the City more business friendly and to create easy `wins' for locally serving businesses as part of this goal, the Community Development Department examined the Land Use Code to determine if there were any changes that could be made to erase hindrances to businesses within the code language. Ordinance #07, Series of 2012, overall cleaned up the Land Use Code language in order to remove difficult to enforce and obsolete language as well as included new language that expanded on allowable services such as a distillery/tasting room, coffee shop for onsite consumption, allowed for a grocery store or similar establishment that sells prepared foods to be able to be considered a restaurant, and removed `Use' square footage limitations which was hindering the size and location of commercial uses in the core. 2012: Subsequently, Ordinance #25, Series of 2012, was a Land Use Code amendment prohibiting free-market residential in the commercial core and was part of the policy incentive to maintain a vibrant downtown commercial area during a period of overwhelming free-market residential redevelopment of what was previously commercial and lodging spaces. Free-market uses were pushing out traditional commercial uses in the City's downtown core. Council supported continuing the use of affordable -housing development to ensure a `lights on' downtown of residential uses and a continued mixed use of spaces, but the majority of the conversion of lodge and commercial spaces that were redeveloped into free-market spaces were unoccupied as they were second or third homes and not contributing towards a healthy and viable downtown. From the staff memo dated November 12, 2012: "The downtown should primarily be filled with commercial uses, and free-market residential uses have started to overshadow commercial uses as the primary driver of development projects. Staff believes it is important to ensure a vital commercial core, which requires a variety of commercial uses — from Resolution #044, Series of 2026 Aspen Area Community Trust Page 12 of 25 bars and nightclubs to restaurants and retail. Residential uses are part of creating an interesting downtown, but they should not become the primary or predominant use." 2014: One of City Council's Top Ten Goals in 2014 was "by August 31, 2014, help ensure the livability of Aspen for future generations by identifying strategies to expand business diversity and enhance business sustainability." In response to this goal, Planning Staff proposed to amend the Mixed -Use Zone District to allow retail and restaurant use in all buildings. At the time, only landmarked properties were permitted to have retail or restaurant uses. Expanding the permitted location of retail/restaurant was intended to encourage start-up businesses, incubator spaces, and more diverse retail/restaurant businesses to operate in Aspen. This was completed through Ordinance # 17, Series of 2024. 2016: In March 2016, the Aspen City Council passed an emergency ordinance, Ordinance #07, Series of 2016 imposing a moratorium on new land -use applications for commercial and lodge developments in specific zones, including CC, C-1, SCI, and NC MU districts. This pause was enacted to address rapid development, review land -use codes, and lower allowed building heights, with the restrictions extending into 2017. Out of the moratorium there were three different contracts totaling $193,500, focusing on policy updates. 2016: Out of the 2012 AACP (Exhibit E) and 2016 Moratorium, a new Zone District Overlay was established - the Essential Business Overlay Zone (EBO) through Ordinance #29, Series of 2016. The new Zone District overlay tool was intended to provide Council with the opportunity to offer incentives, use mix allowances, setback reductions and to partner with developers seeking to create spaces for small and locally serving businesses in the S/C/I and NC. The EBO was intended to be used to facilitate the development of a business incubator, a live -work development or other non-traditional commercial and mixed -use developments that may be of value to Council and align with City policies. Since its adoption, the EBO Zone District Overlay has not been successful in achieving those goals. 2016: As a policy outcome from the 2016 Moratorium, new code was created from Ordinance #31, Series of 2016 to codify the concept of `Second Tier Space' and create requirements around the creation of that space under certain redevelopment scenarios in the Commercial Core, Second Tier Commercial Space refers to specific, designated commercial areas that are not located on the ground floor's primary frontage, designed to maintain a healthy commercial mix and a sustainable year-round economy. Second Tier Commercial Space encompasses areas such as basements, spaces above the ground floor, areas accessed primarily via an alley or mid -block pedestrian path, or spaces with their entrance on a subgrade or enclosed courtyard. The purpose was to encourage design variety and potentially offer more affordable commercial options. The AACP documents that businesses that were providing basic necessities at the time were at risk of being displaced by restaurants, retail spaces, and offices in high -profile locations with high rents, resulting in a continuing shift towards exclusivity. Since the adoption of the Second Tier concept Resolution #044, Series of 2026 Aspen Area Community Trust Page 13 of 25 in 2016, there has been one successful outcome — see `Buck' site specific case study below, but overall has not made an impactful shift in the commercial sector. 2017: The community expressed concern that City Council did not go far enough with the policy outcomes from the 2016 Moratorium, and in December of 2016 pursued a code adoption around formula use. A group led by Jerry Murdock, an Aspen local and co-founder of Insight Venture Partners, approached City Council with a request to consider such regulations around the prohibition of formula use in certain development scenarios. Formula use was defined as any restaurant, bar and entertainment uses and "retail uses", that has eleven (11) or more other establishments in operation, or with local land use or permit entitlements already approved and effective, located anywhere in the United States. In addition to the eleven (11) establishments either in operation or with local land use or permit entitlements approved for operation, the business maintains two (2) or more of the following features: a standardized array of merchandise, standardized array of services, a standardized facade, a standardized decor and color scheme, uniform apparel, standardized sign, a trademark, or a service mark. Subsequently, Council adopted code around when a formula use is not allowed in the commercial core as Council agreed with the community lead group that the proliferation of formula retail and restaurant uses in the downtown core were undermining the goals and policies of the City of Is Aspen by: eliminating commercial diversity meeting the needs of year-round residents; driving out locally serving and essential business; and threatening the City's small town community character. The formula use code was adopted via Ordinance #06, Series of 2017. 2019: The 2019 Roaring Fork Regional Housing Study (see Exhibit G) provided a baseline affordable housing needs assessment for the Roaring Fork valley, including the City of Aspen and Pitkin County. This study documented unaffordable housing prices, inventory shortages, and an expanding commute shed for workers. This study found that although many best practices have been implemented over decades, there is a housing shortfall in Aspen and Pitkin County of 3,000 units at 160% AMI and below. This shortfall is projected to increase to 3,400 units by 2027. More than 26,000 workers (out of 47,000 employed residents across the Roaring Fork Valley's commute shed) cross paths in their daily commute versus just 19,000 employed residents who live in the same communities in which they work. The added pressure of short- term rentals puts additional strain on the housing market, negatively impacting the local workforce and the permanent resident population's ability to find housing in proximity to where they work. As a direct result of the 2019 study, Aspen's City Council identified affordable housing as a priority goal in 2021 and directed staff to create the Affordable Housing Strategic Plan. Looking at the City of Aspen's Affordable Housing Strategic Plan (2022-2026) (See Exhibit H), the concept of a CLT intersects with several of the identified action items set out in the plan to achieve 500 new affordable and deed restricted units by 2026. 2021: In December of 2021, a residential moratorium was passed in the City of Aspen. This moratorium was a response to the accelerated pace and scale of free-market residential Resolution #044, Series of 2026 Aspen Area Community Trust Page 14 of 25 development and redevelopment as a result of out of the mass migration of second/third homeowner to resort communities due to Covid. To create equity for the City's affordable housing program due to the increase in workers generated through development, the City: removed obstacles for the creation of 100% deed restricted affordable housing projects by making the review completely administrative; removed zoning barriers for affordable housing by making 100% affordable housing triplex or fourplex structure a by -right allowance in all residential zones, prohibited the establishment of new, free-market residential units in the Mixed - Use Zone District; and, included new affordable housing mitigation for free-market housing development with those changes being supported by a new Residential Employee Generation Study conducted by consultant RRC and Associates (contract for $77,000). These changes were approved through Ordinance # 13 and # 14, Series of 2022. 2023: In 2023, the City pursued and won a $135,000 grant from the Colorado Department of Local Affairs (DOLA), contingent on a $15,000 matching grant from the City of Aspen, for the purpose of a feasibility study for the creation of a Community Land Trust (CLT). Aspen has already implemented many of the Land Use Best Practices identified by DOLA, but one tool that Aspen has not yet utilized is a CLT. Despite decades of success and significant ongoing efforts, there is still a great and growing need for more affordable housing in our community, and as the Feasibility study and community -based focus groups have explored the idea of a CLT, have additionally identified the need for a CLT to assist in the creation and protection in affordable, locally serving, essential business. Section 2: ecific E �f Free Market Commercial Little Nell Restaurant Space at Aspen Mountain Base Village: Due to the privatization and unaffordability of restaurants in the commercial core, when the Little Nell, a multi -use building A approximately 108,000 square feet at the base of the Aspen Ski Mountain, came in for development approvals, the City mandated an accessible restaurant to activate the ski base at an affordable and approachable price. In Ordinance #30, Series of 2004 (See Exhibit I), Section 18: Restaurant, binds the Little Nell to opening a restaurant for the general public and that the restaurant remains open and available all days of the year that the Aspen Mountain Skiing area is open for skiing, and open to the general public during the summer season. It specifically calls out that no memberships shall be required. Obermeyer: In conjunction with the above background on the SCI Zone District from Section 1, in 2001, a Civic Master Plan: Phase One Report was released regarding the future of SCI in Aspen. The report acknowledged that "limited lease rates expected for SCI space" made "significant redevelopment by the private sector unlikely," and suggested exploring "redevelopment potential under various partnership arrangements between adjacent landowners and the City of Aspen." When Klaus Obermeyer, local icon and owner of Sport Obermeyer, became aware of this suggestion, he entered into a public -private partnership with the City that Resolution #044, Series of 2026 Aspen Area Community Trust Page 15 of 25 has since become Obermeyer Place, Obermeyer Place is a 230,000-square400t, five®building mixed -use redevelopment on a former industrial site. It combines 22 free-market residences, 22 deed -restricted units, and nearly 39,000 square feet of commercial/office space, transforming a Former railroad yard into a blend of residential, work, and community space. The specific commercial uses allowed in Obermeyer Place were highly restricted with the intent to keep those properties affordable, locally -owned, and locally -serving. As quoted in an Aspen Daily News Article (https://www.aspendallynews.com/obenneyer-place-starting-to-fill-up/article_c3366415- 854c-5f57-ab27-50ee195aOcf0.htm1) "Obermeyer Place could be the model for solving Aspen's affordable commercial -space puzzle" and "How do you make locally -serving business work with the economics of Aspen? There's our answer right there." Despite the small successes in Obermeyer Place to date, the City feels there is still room for improvement around filling the spaces and overall affordability. Properties within the SCI Zone District will be top of mind if a CLT were to enter into the arena of affordable housing and commercial spaces. Little Armies (517 E Hyman Ave): Through Ordinance #O5, Series of 2012, the City and building owner of the `Little Annie's and Benton Buildings' (two commercial core buildings, one with a locally serving restaurant, Little Annie's) entered into an agreement to historically designate the buildings, along with other entitlements for the redevelopment of the buildings, in exchange for specific benefits from the. Section 7 of Ordinance #05 required an affordable restaurant deed restriction so that in perpetuity the restaurant remained a `low-priced restaurant'. The Deed Restriction and Agreement for an Affordable Restaurant (Exhibit J) was the first ever attempt to deed restrict free-market commercial with the intent of keeping certain items affordable for locals. Buck (508 E Cooper Ave): Bar Under Cooper aka Buck, is a bar that opened in what is considered a Second Tier Space, although the restrictions on this space were placed prior to the overall code change codifying the development of Second Tier Spaces(see above background on Second Tier in Section 1). A City of Aspen deed -restriction, part of a legal compromise reached between the city and the building owners prior to the building project, requires that the space be used only for a bar or restaurant, with prices deemed as affordable, according to standards at the time. The 508 E. Cooper Ave. basement space remained empty for over a decade primarily due to 12008 lawsuit settlement that imposed restrictive covenants, requiring a "below -market" rent and menu prices, while failing to account for the estimated $1 million+ in build -out costs. This combination made it financially unviable for tenants. ion 3: City Owned Spaces The City of Aspen serves as a commercial landlord for three restaurant spaces that it owns at the Wheeler Opera House, the municipal golf course and the Rio Grande building (adjacent to City Hall), the latter of which is currently under review for a new tenant. Additionally, the City owns three spaces where it serves as a commercial landlord serving non -profits, artists, locally serving Resolution #044, Series of 2026 Aspen Area Community Trust Page 16 of 25 businesses, and childcare tenants within the Wheeler Opera House art gallery, Red Brick, Yellow Brick. and soon to be Armory spaces. Each space is run by a different department. For example, the Wheeler's full-time staff oversees the lease of the art space whereas there is no direct oversight of the restaurant space. The Director of Capital Asset oversees the restaurant space at the Rio Grande building whereas the Recreation Facilities and Business Services Director oversees the lease and space at the golf course. A local community land trust is needed because it could be much more responsive than the City in creating equity and a responsive oversight of these public assets, lease compliance, financial performance and the tenant selection process. The following is a short overview of each space. Wheeler Opera House Restaurant and Gallery: The Wheeler Opera House is a City owned, historically designated performing arts venue located in downtown Aspen. Originally opened in 1889, the Wheeler has served as a cultural anchor for the community for more than a century. The City of Aspen purchased the building in 1918 for $1,15 5, and in 1979, Aspen voters approved a 0.5% real estate transfer tax to fund historic preservation efforts and restore the Wheeler's functionality. As part of the City funded $4.5 million restoration completed in 1984, the Wheeler was renovated to include two commercial tenant spaces in addition to its year-round performing arts programming. One of those spaces is the restaurant space created as part of the post restoration remodel, which has housed multiple operators over time and is currently occupied by Aspen Public House, operating as a locally serving restaurant and bar on the ground floor of the venue. Under the current lease terms, Aspen Public House pays $10,460.33 per month for its 2,618 square foot space, equating to approximately $48 per square foot annually. The lease includes a base rent of $125,664 per year, plus 8% of gross sales above a breakpoint of $1.57 million (see Exhibit K). For comparison, a non -subsidized restaurant located two blocks away pays approximately $85 per square foot, with an annual base rent of $227,885 for a 2,681 square foot space (information verified by Lex Tarumianz, Sotheby's International Realty). In addition to rent, Aspen Public House's agreement with the City includes requirements related to days and hours of operation and maintaining affordability to support local service. The second community serving space within the Wheeler Opera House is a sub 500 square foot art gallery, currently occupied by Aspen Collective. The gallery space was awarded to Aspen Collective in 2024 following an RFP process, after being occupied by Valley Fine Art for 18 years. The selection committee included seven representatives from the Wheeler Advisory Board, Wheeler Opera House staff, the Red Brick Center for the Arts, and the City's Community Development and Finance departments. The RFP invited applicants to propose what they believed to be a reasonable and affordable rent for the space. Public processes for City owned cultural spaces typically generate significant community interest, particularly as rising commercial rents and strong demand have displaced many local artists and galleries from Aspen's downtown core. Ultimately, the space was leased for $5,000 per month to a tenant whose proposal emphasized community focused programming and providing a platform for local Resolution #044, Series of 2026 Aspen Area Community Trust Page 17 of 25 artists. Aspen Collective's stated goal is to bring energy, vitality, and public engagement to the historic Wheeler Opera House through talks, exhibitions, dinners, and special events, further activating the building as a cultural and community resource. Aspen's Municipal Golf Course Restaurant Space: The Aspen Municipal Golf Course, originally built in 1961, has always had a restaurant or food and beverage operation as a part of the operations. The current clubhouse was built in 2001. The City's main goal has always been to create an affordable/local dining opportunity as an amenity to the golf, tennis and Nordic operations. To achieve this, the City has opted to maintain a modest rental price of approximately $14 per square foot, rather than maximizing revenue potential. The City budgets $34,000 annually for building operational maintenance for the Golf Clubhouse. This space is inclusive of both the restaurant space and a Nordic/golf retail shop area. The current lease holder, Red Mountain Grill, has occupied the space since 2008. When Red Mountain Grill signed its first lease in 2008, the City proposed half the cost of rent from the previous tenant as the City wanted the new operator to extend the hours of operation, which had been a point of contention with locals and golfers alike. Red Mountain Grill is often seen as a local's restaurant and one of the most affordable options for family dining in the City. Additionally, it is adjacent to a large affordable housing neighborhood, Truscott, and aims to serve a year-round customer base Rio Grande Restaurant Space: The third and final restaurant space owned and operated by the City is the space adjacent to City Hall known as the Rio Grande Restaurant Space. From 1991 to 2003 the space was used for the non-profit group, Aspen Youth Center, and after that group relocated to a space in the Aspen Recreation Center (ARC). The space was redesigned by the City of Aspen for a restaurant use and in 2008, and the first tenant, Taster's Pizza, was appointed. The lease was set at $1,360 a month for the 1,615-square400t space. Taster's occupied that space until a substantive remodel for the adjacent City Hall was completed. At that time, anew restaurant lease was agreed upon with Yogi's, after an RFP was posted from the City with 10 proposals. Yogi's was awarded the subsidized restaurant space at $40 per square foot with a total base of $67,480, due to its proposal for an affordable, youth friendly, and local -focused restaurant in 2023. The City contributed $200,000 up front in hard improvements such as bathrooms, electrical sub panels, and air -handling units. After two years into Yogi's lease, and less than one year after the restaurant began operation, the City terminated the lease. The city sent the notice of termination after sending a notice of late rent. The notice of late rent stated the tenant did not make rent and utility payments for three months totaling $21,204.81. From December 2025 to February 2026, the Aspen City Council once again went through the intensive UP process where 12 applications were submitted of which three finalist were selected for one- on-one interviews with City Council. Council was the sole decision making body who decided upon a current restaurant operation within the City, Silverpeak Grill, to be the new tenant of this space. Within the interview process which was held on February 2nd, 2026 the owners proposed to Council that "Silverpeak Grill's affordable restaurant business model isn't working for a free - Resolution #044, Series of 2026 Aspen Area Community Trust Page 18 of 25 market space downtown anymore," due to the "increased cost of doing business along with an extremely challenging past nine months of having the building under construction." A lease agreement has not been finalized, but the RFP did state that the Rio Grande Building should have a restaurant operation that provides year-round services, in an affordable family -friendly setting, to the Aspen community. Red Brick: In 1992, the City of Aspen purchased the Red Brick School, built in 1942 and the city's primary schoolhouse for elementary, middle, and high school students until the 1990s, with bond money from a public vote that required that the building's continued use be public space with only five percent of the floor area be occupied by users other than non-profit or government entities. The AACP of the time set a goal of rezoning this land for public use. The application stated that proposal of the project was for "the gymnasium to be used by the City Recreation Department... and the remainder of the building to be used for a variety of public, arts, cultural, and recreational office and studio uses." The bond documents will always restrict the number of organizations which are not nonprofits and will help govern the uses allowed in the building. The Red Brick typically houses around 8 to 10 nonprofit organizations and approximately 12 to 14 resident artists. Notable, locally serving non -profits that benefit from the subsidized rent and use of space at the Red Brick include: Aspen Public Radio, the Buddy Program (matches adults with kids in a mentoring relationship), and Theatre Aspen. Outside of the rent costs associated with the subsidized maker spaces, non-profit uses, and recreational area within the Red Brick, the City spends $38,000 annual capital maintenance budget for building operational maintenance (not custodial services) for the Red Brick building. The prices get set by comparing the spaces with other community arts/non-profit spaces in the geographic area and come to consensus on what is a reasonable rate. The most recent cost analysis was in 2024 where it was determined that $2.12 per square foot a month for return +.26/square foot a month for utilities at Red Brick Center for the Arts was appropriate. In comparison, it is $5.20 per square foot a month at the Harvey Artists' Studios on Mill Street, in Aspen where there are no windows and no sinks in a basement space. In addition to the subsidized rent, the artists sign a policies and participation agreement which outlines expectations on using their studio a minimum of 20 hours a week, following safety and material guidelines on usage, and participating and contributing positively to the Red Brick and greater Aspen arts community. From 1992 through 2018, the Red Brick was managed on the City's behalf by a nonprofit, the Red Brick Council for the Arts. The Red Brick is managed by a Director of the Red Brick who oversees the tenants and lease. When a studio becomes available, a tenant selection committee is formed who reviews the applications, interviews top candidates, and makes a recommendation on the tenant selection. Yellow Brick: A second community serving space owned, operated and maintained by the City of Aspen is the Yellow Brick School Building which is an early childhood resource center that supports quality, affordable childcare choices in Aspen. Kids First, acitizen-advisory board, oversees the city's taxpayer -funded, child-care program, and helps decide the leases and users Resolution #044, Series of 2026 Aspen Area Community Trust Page 19 of 25 within the Yellow Brick building. Kids First began in 1990 and is funded by a dedicated .45% sales tax in the City of Aspen. The tax has been renewed 3 times by the voters and is in place until 2038. Childcare receives 75% of this tax fund, which equates to a $4M operating budget and through that funding the Yellow Brick is able to offer rent free childcare spaces to its tenants. Council made the decision in 2023 to waive all rent in order to deliver high -quality and affordable childcare within the City due to the rising costs to employee and house educators. Kids First is a department of the City of Aspen yet has 8 full-time FTEs plus one full-time intern that are paid from the sales tax. The Yellow Brick has one dedicated FTE for cleaning that is paid $28.20/hourly. Armory: Opened in 1892, the Armory was originally constructed by the Aspen Armory Company as a two-story building where the main level of the building was used by Company C for military purposes and the upper level was used by fraternal lodges and clubs that were in Aspen at the time. After the Silver Crash of 1893, many buildings in the city were not maintained due to the crippled economy. However in 1906, the owners of the building (the Fraternal Hall Association) made improvements to the building for their continued use. Besides being used as a fraternal hall and for social gatherings, the building has been used to hold classes, a roller rink, a gymnasium, and a general community space. By the 1940's city offices began to occupy a portion of the building and eventually most city operations relocated to the Armory as the city acquired the building in the 1950s. Over the years, the building has adapted and changed to meet the community's needs. The building was designated a local historic landmark in 1974 (as well as Conner Park) and listed on the National Register of Historic Places in 1975. In the fall of 2021, city hall operations were relocated from the Armory to its present location at Rio Grande Place. Armory Hall has experienced programming changes and remodels over time, a testament to the ability of the building to meet changing community needs. Currently, the Armory is going through a substantial design to bring it back to the community and the project has been progressed with consideration of the extensive community and City Council feedback, with the goal of creating a `third place' for the community to gather that is anchored by food and allows for flexible use of the building. The project received voter approval to use the historic building as a community gathering space 10 years ago. City council has been reviewing the project since 2022. The redevelopment of Aspen's Armory Hall is estimated to cost approximately $53.7 million. Section 4: Feasibility Study Conclusions Despite the City of Aspen's impressive past and continuing efforts, much more work needs to be done. Local, community -serving businesses and the heart of the city's downtown core are increasingly at risk of change and conversion in ways that do not always work in the community's best interests. For this reason, the City of Aspen is highly supportive of community -based efforts to establish a local community land trust with a mission that includes the creation, preservation, and economic stewardship of affordable community -owned, Resolution #044, Series of 2026 Aspen Area Community Trust Page 20 of 25 community -serving businesses and commercial properties that are accessible for all Aspen residents and help retain the culture of the local community. The mission statement adopted by the Aspen Area Community Trust (AACT) — this newly - incorporated, community -owned CLT — reads: To preserve essential community -serving spaces the^ough strategic acquisition and affordable leasing, and to promote and steward community assets that keep Aspen accessible and authentically local. The rationale for support for AACT, this new CLT, includes: Problem: There are likely philanthropists, foundations, and wealthy donors willing to make contributions of land, properties, and/or funds but are unwilling to make such donations to a unit of government, preferring instead to make a tax-deductible gift to a charitable entity. • AACT as a Solution: Asa 501(c)(3) charitable entity, AACT can act as the recipient and conduit of resources not available to municipalities and for -profit entities. Such opportunities could include tax-deductible donations of lands properties offered for purchase at "bargain sale" prices; public sector grants; private sector donations; and philanthropic gifts — creating a viable partner for the public sector and for -profit commercial owners and developers. Problem: The majority of regulatory incentives and exemptions related to affordable space in Aspen have been focused on affordable housing and not on creating and preserving affordable community-owned/serving/character commercial properties. • AACT as a Solution: There is opportunity to explore and advocate for regulatory exemptions and incentives to assist with commercial CLT development, operating costs, and encouragement of CLT partnerships. Problem: It is difficult to measure past and future missed opportunities to create and/or maintain affordable community-owned/serving/character commercial properties without the presence of an economic stewardship entity performing this role in Aspen. • .AACT as a Solution: AACT will be able to serve as a catalyst for unforeseen economic stewardship opportunities in Aspen Problem: Given its role as a municipal government with many competing priorities and subject to the electoral process and lacking an Economic Development department —the City of Aspen is not ideally suited to be the economic steward of its commercial properties. Another entity may better serve that purpose. • AACT as a Solution: City of Aspen maybe able to contract with AACT to serve as the economic stewardship provider for publicly -owned commercial properties as necessary. Resolution #044, Series of 2026 Aspen Area Community Trust Page 21 of 25 Problem: There are numerous vacant unleased privately -owned commercial spaces in Aspen that could be occupied by community-owned/serving/character businesses for a temporary or short- term basis ® AACT as a Solution: AACT can play a function to serve as a small business broker "matchmaker" for under-utilized/vacant commercial spaces. Problem: Some small business owners are unable to secure sufficient equity and/or financing for tenant buildouts or improvements to commercial spaces. AACT as a Solution: Through philanthropy, grants, and low-cost loans, AACT can serve as a conduit for tenant build-out/improvements funding sources Section 5: News References The following text documents and compiles books, academic articles, nonprofit news, public news, and City of Aspen communications with citable references from the last decade showing persistent community concern about commercial affordability, locally -serving businesses, Aspen's identity, and "Supergentrification". References by Chronological Date [ I] Little Annie's deed finalized — Aspen Public Radio — Oct 26, 2015. Link Shows City's negotiated approach (CPI -tied rent, limits on passing expenses to tenant) to preserve an affordable local -serving restaurant. [2] City restriction designed to protect affordable prices at former Little Annie's space —Aspen Public Radio —Apr 20, 2016. Link Details deed restriction structure (rent cap +menu -price expectations) and City rationale; shows City directly intervening in commercial affordability. [3] Dallas Group Buys Downtown Aspen Commercial Building (context on deed restriction and commercial core dynamics) — Estin Report (Tim Estin) —Jun 2018 (post date on page). Link Explains the City/developer negotiation trade-offs tied to preserving the Little Annie's space via deed restriction (illustrates `one-off deal' model). [4] Small Business Rent Relief Grant Program Proposal (City Council Work Session Memo) — City of Aspen —Apr 17-20, 2020 (memo/meeting). Link Resolution #0�14, Series of 2026 Aspen Area Community Trust Page 22 of 25 Explicitly frames rent relief as a public -purpose use of funds to preserve Aspen's small-business fabric; includes program design and budget ranges. [5] Struber, Jenny. (March 2021), Aspen and The American Dream: How One Town Manages Inequality in the Era of Supergentrification. University of California Press. Link [6] Can Cities Be Saved From `Supergentrification'?Aspen May Offer a Roadmap —Next City — Apr 27, 2021. Link Narrative account of Aspen's moratorium -era reforms and retail policy debates; helpful for an external framing beyond local outlets. [7] Understanding social class in place: Responding to supergentrification in Aspen, Colorado — Environment and Planning A (peer -reviewed) —repository page — 2022. Link Academic context on Aspen's formula -retail fight and how stakeholders attempted to manage upscale commercial change. [8] The Fight against Supergentrification in Aspen (short review/summary) —Sage Journals (PDF) — 2022. Link Academic article which highlights Aspen's chain -store controls as a response to supergentrification pressures in the commercial core. [9] Roger Marolt for Aspen Daily News. "Lack of affordable housing is getting expensive" January 14, 2022, Link Commentary on the deteriorating quality of life in Aspen due to high costs. [10] City of Aspen seeks proposals for Rio Grande Building restaurant space (archived alert) — City of Aspen —Aug 10, 2022. Link Earlier iteration of the same `affordable tradition' framing for the City -owned Rio Grande restaurant space. [11] The battle for the Aspen Idea: Community or commodity? 2024. Link Aspen Journalism —Feb 10, Resolution #044, Series of 2026 Aspen Area Community Trust Page 23 of 25 Broader community narrative; useful as `community voice' framing for the identity/economic tension driving commercial affordability concerns. [12] Kay a Williams for Aspen Public Radio. "Housing the Aspen Idea': Three major cultural institutions partner on plan for deed -restricted units at Aspen Meadows campus" May 24, 2024. T,inl< Three non -profits are teaming up and looking for approval for affordable housing as they find the shortage of housing options in Aspen is an `existential threat' to the future of their work. [13] Kaya Williams for Aspen Public Radio. "The Aspen Collective welcomes `guest curator' Sam Harvey — making space for creatives who have been priced out of downtown" October 28, 2024. Link Article highlighting the community work and context of the City subsidized arts space in the historic Wheeler Opera House. [14] Roger Marolt for Aspen Daily News. "The cost of a meal in Aspen: an arm, a leg and my 2 cents" September 29, 2025. Link Commentary on the loss of community -serving establishments due to high rents. [15] Kaya Williams for Aspen Journalism. "Boom in private clubs highlights tensions between belonging and exclusion" October 5, 2025. Link Commentary on the privatization of Aspen's commercial spaces. [16] FT: Has Aspen reached peak chic? (prime property context) —Financial Times —Nov 14, 2025. L1��l� External, national/international narrative highlighting extreme prices and market pressures; use only for framing. [17] City of Aspen releases RFP for Rio Grande building restaurant space —City of Aspen (Press Release) — Dec 2, 2025. Link Publicly states Council's desire for an affordable, family -friendly, year-round restaurant in a City -owned commercial space. Resolution #044, Series of 2026 Aspen Area Community Trust Page 24 of 25 [ 18] Roger Marolt for Aspen Daily News. "It's not cheap, but at least it's only as expensive as ever" February 16, 2026. Link Commentary on the current prices %J living in Aspen. Resolution #044, Series of 2026 Aspen Area Community Trust Page 25 of 25