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HomeMy WebLinkAboutminutes.council.19880505Continued Meeting Aspen City Council __ Mav 5, 1988 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Tuite and Fallin present. Councilwoman Fallin moved to adjourn this meeting and reconvene at the Community Center; seconded by Councilman Tuite. All in favor, motion carried. ASPEN MOUNTAIN LODGE PUD Mayor Stirling reconvened the meeting at 5:12 p.m. at the Community Center with Councilmembers Tuite, Fallin, Isaac and Gassman present. Mayor Stirling said on April 11A ril P 5 th san extension was denied by the City Council. 0 royal was issued excavation permit based on tmanaoer tubed tthat ppermit meant both to the applicant. The city g licant excavation and foundation, not just excavation. The app has disputed that this is the correct interpretation. Mayor Stirling said no ground has been broken, no d unithdevelopn filed against the city, no new conceptual planne ment has been made. Mayor Stirling said on April 18th Council agreed to enter into a dialogue with the applicant to discuss some aspects of this PUD; bulk and mass, the number of units, the overall PUD, an analysis of phases I and II , the need f or a mode us of Zf financing s oMayor tion, the Trump lawsuit, and the stat Stirling said Council and the applicants met April 20, 27 and May 5. Mayor Stirling thanked Mohamed Hadid and his staff for producing the model. Mayor Stirling said the applicants have moved 5 residential units from the southeast corner of the hotel, shifted 30 units off the main site to the Blue Spruce site, breaking up the mass into three units. May T ereraregstill there has not been a reduction of hotel units. h 292 units proposed. Mayor Stirling said up to April 11th, Council received 5 written letters in favor of extending the project. On the night of April 11th, Council received a petition from the applicants with 121 signatures in favor. Mayor Stirling said there were 31 calls and letters to Council opposing the extension; 17 were on one petition. Since April 11, Council has received 21 individual letters, a group of 37 form letters in favor of the project. Council received a resolution from P & Z asking Council to reconsider the decision made April 11th. Mayor Stirling said Council received 20 letters still asking for reduction of mass, and one letter with 22 signatures. Mayor Stirling said in favor of going ahead with the project were 76 calls and letters plu s the petition. Still urging Council to seek further reductions were 85 calls and letters including 39 signatures in one docu- ment. 1 Continued Meeting Aspen Citv Council May 5, 1988 John Sarpa, representing the applicant, said this is a critical juncture for this project. Sarpa stated the P ous cowners gaud through a great deal of scrutiny both with p this applicant. The community has had an overwhelming impact on this project. Sarpa said this has been a most thoroughly reviewed and debated project. Sarpa said it has elerithisgwould that X amount of rooms could be tSarna osaid htaking off 20 rooms create a better scale and mass. p cannot make a difference to the city; however, a reduction of rooms of the hotel has significant consequences foained pbo, the Sarpa said the balance is whateve~he ig sksbit gcreates in the reduction of rooms does not offset life of this project. Sarpa said the applicants have had an opportunity to interact with the community, with Ritz, and with th Vefconfirmed•thata292 told Council the operators and financiers ha is the most appropriate number and the only app ercflexib plity in Sarpa told Council the applicant has a Brea phase II; the applicants can control this phase and do not have to worry about financing and an operator. Sarpa told Council they have taken Council's instructions to look at densphasso the what can be done to reducewith thelcommunity nd Sarpa said the project is more in keeping applicants are prepared to make a reduction inllh asna reducf hotel units to be constructed in phase II, as we tion in the total FAR of the site. Sarpa said the applicants have looked at what can be done to make the entire project a more open project with dedicated green space to the city. Sarpa told Council they applicants have had over 200 people who came to see the model. Sarpa said the majority of people who viewed the model said this was a good project and they liked the hotel. People said they found the scale and mass acceptable. Sarpa said the applicants would like a decision ttectural design the project will consist of 292 hatmhas dbeenaprelsented and the configuration generally like w additional reductions that will be presented at tai FAR,etiThe The project will not exceed 190,000 square feet o applicants will propose on phase II not more than 50 hotel units to be built. Sarpa said the applicants are proposing to reduce by 100 rooms the number of hotel units to be built on phase II. Sarpa said the Continental Inn, with 160 rooms, sits on that site. They could tear this down and rebuild it. The applicant is proposing 50 hotel rooms and some residential, not to exceed 115,000 square feet of FAR. The applicants are proposing to permanently dedicate to the city the entire block in front of the Continental between Dean and Durant streets and Galena and Mill streets, as an open activity center. Sarpa said the applicants 2 Continued Meeting Ashen City Council May 5, 1988 hope staff will be given the direction to work with the applicant so that this project can come to fruition by Christmas 1989. R. J. Gallagher, representing the applicant, gave Council a list of 51 names of letter writers in support ofamon a~tscand Gallagher presented Council a petlrt of 1thelRitz Carlton hotel. cultural groups in Aspen in suppo The petition has 65 names on it. Gallagher gave f othellro'ectt of 9 names who phoned their office in support o p J Gallagher presented a petition circulated in the Ajax Mountain building and signed by 12 business owners in that building. Gallagher gave Council a viewers response of the Pf°plstud eWbut the model. Gallagher said this is not a scient Y does show some response of viewing the model. Gallagher pointed out 271 people signed in to view the model. The applicants talked to 187 of the people viewing the model. GalSe9hrira ive Council those positive were 158 people or 84.5, tho g 20 people or 12.6 and neutral 9 persons. Peter Krause, vice-president Morgan Stanley Realty Inc., said their investment bank serves as an intermediary raising capital for commercial real estate projects. Krause said it is difficult to put together financing packages for both destinwaso strongly and urban hotels. Krause said Morgan Stanley attracted to this project because of the designo ff thee r o Josed strength of the ownership. tci eveduontthe feasibil ty study manager, the excellent results a h by Levanthal and Horwath, and the location. Krause told Council this project has met with enthusiastic responset ld Council domestic and international lending clients. Krause his firm has already received written indications of interest from 3 banks. Krause told Council Morgan Sisn on the develop- select a lender to proceed on an expedited bas ment of this project. Krause said the process will be to finish negotiations with the proposed lenders, select a lender, proceed to negotiate a legal commitment and close the deal. Krause told Council Morgan Stanley has f elt comfortable f rom Seh said Morgan that this will be a successful project. Krau Stanley recommends the project be approved, that it proceed to development on the quickest possible basis. Krause told Council hotel financing is fragile, and he would like this to proceed to commitment as soon as possible. Councilman Tuite asked what is the guarantee th et the town with oa pull out half way through the process and leav half built hotel. Krause told Council his companonallls well banks and insurance companies that are excepts Y capitalized and experienced. Krause told Council these companies issue a commitment they will have enough funds to complete a project; they are legally bound. These are institutions that 3 Continued Meeting Aspen City Council May 5. 1988 have analyzed the projects before the commit the fuKdausehsaidnhe they have the capability to complane tclient' refusing to follow has never had experience with y through and issue the commitment. Krause said months,lthat construction financing and a mini-perm.to 5ft ears. Krause told lender would agree to stay on for 3 y Council Morgan Stanley stays through the projectder and ptog give relationship between the borrower and the len guidance how best to structure a take-out. Horst Schultze, chief operating officer of Ritz Carlton, told Council he is responsible for the day-to-day operatuncil he was hotel and for marketing and sales. Schultze told Co asked to work out a feasibility of a hotel in Aspwhat it hwould told Council the marketing departould beosuccessful. Schultze take to have a hotel in Aspen that w said they analyzed this very carefully. Schultze , f lthe a have the Ritz a hotel in Aspen can only band uenoushu extra rooms for space for meeting up to 250 rooms g meeting their transient base. Schultze recommended a 300 room hotel and the space to serve those rooms. Sarpa told Council when Hadid Aspen Holdings bought the project ash correct forzthe update thei r analysis and see if the size w market. Sarpa said Ritz's requirement was still 300 rooms. Sarpa said the applicant asked Ritz what was the leaCounuc it rthe rooms they would be comfortable with. Sarpa told applicant and Ritz finally settled on 292 rooms. Schultze told Council in the past two weeks, the applocanSchultze appealed to Ritz to see how low they could possibly g said they studied this all over again and came back again with the request for 300 rooms. Schultze told Council thchultzegtold this hotel would be 60 percent double occupancy. S Council there has been a high interest in ket urns the toff tseasonn in off season, and there is a strong mar Schultze told Council if 30 rooms are cut out of this hotel, he would lose 50 percent of the market because groups happen to be the size to need 200 to 250 rooms. Schultze ea achievablee proposed hotel size, 75 percent of the groups ar Schultze told Council Ritz cannot afford to have their name on a hotel that is not successful. Mayor Stirling asked how long the Ritz company has been in business. Schultze told Council it was formed in 1982 without any hotels in existence at that time. They opened their first hotel in 1984. The Ritz hotel in Boston was acquired at the same time and consequently they acquired the use of the name in the United States and other countries. There are 6 hotels in operation, 2 in construction and several in development inrtturned overlthe Councilman Isaac asked if Ritz Carlton has eve 4 Continued_Meeting Aspen City Council May 5. 1988 operation of one of its hotels to another operaeihas t lked toe said no. Schultze told Council with the groups h he can run the hotel at 80 percent occupancy in October. Sarpa reminded Council at the last meetiX gstinommass ofsphase brought up about what could be done to the e g I building, with the primary focus on Mill street. Gene Aubry, architect, pointed out the Mill street .elevation sh he nback movI~ of some rooms off Mill street and astorgeshandt three stories. will drop some elevations to two There are roof heights of 28, 31 and 35 feet- a breaklulnof submission was four stories. Aubry said he feels th p the building is very successful. Sarpa said the four pillars of the building do need to undergo some architectural changes. Sarpa presented a photograph in which the hotel is drawn in to scale to shown how it would appear looking south f rom Wagner park. Aubry presented some diagrams of phase II• oomrhotelwis where the open space is proposed,tment condominium type complex. proposed. There would be an apar A total of 115,000 square feet FAR is propose oo °s ogres feet. Harvey said phase II site is dust over 113,0 q Aubry said the opportunity to have a community outdoor activity area in this site is extraordinary and provides a window into the project. Sarpa told Council that entire block will remain as,cant msuidea activity center in perpetuity. Sarpe r nk in ethe pwinter and in is to maintain this block for an i the summer an outdoor performing area. This will be deed restricted in perpetuity. Sarpa said the applicant will not build retail, commercial buildings on that space. Councilman Isaac asked when this land will be brought in as a park. Sarpa said with phase II. Harvey told Council under the current PUD, this is to be open space and landscaped as gskedt bout ethe occupancy for the Ritz. Councilwoman Fallen a employee housing on this block, will the people be relocated. Sarpa said if the city feels strongly about the employee housing, they will try and keep this. Sarpa said in the last few days an employee housing corporation has been formed. T to generate nreal fast as they can to find parcels of property g projects for employees. Mayor Stirling asked how many employees the Ritz is projecting to hire for the hotel. Schultze said he projects 272 full time employees. Councilwoman Fallen asked when the applicants plan to begin phase II. Sarpa said the Grand Aspen is serving a v ery useful purpose in the mix of rooms in the city~o be rablegto use Grand Aspen has had a good season. They want that facility for potential World Cup. Sarpa said they will 5 Continued Meeting Aspen City Council __ May 5, 1988 watch the market and let the market drive what that site does. Alan Richman, planning director, asked if the applicant have a range of residential units planned for phase II. Sarpa said they will have to examine the market for this site. Mayor Stirling asked the average size of hotel rooms in phase I. Sarpa said they are 550 square feet including the space in the corridors. Sarpa said they are planning larger rooms for phase II. Mayor Stirling asked how much square footage the applicants are proposing for phase I that will not count in the FAR. Sarpa said it is 92,500 square feet for conference facilities, parking, support space. Cit Attorne Taddune asked if the project is allowed to go Y Y through the amendment process, what would the applicant's position be with respect to the permit application. Sarpa said the applicants want to work in any way the city feels appropriate in order to complete construction of the hotel by Christmas 1989. They would like to be able to do some excavation work prior to this summer season. Sarpa said they do not want to do major work during the summer season. Bob Hughes, representing the applicant, said the applicants have given financial assurance for the excavation process. Councilwoman Fallin asked where exactly this is in the process. Council has voted to deny the extension but has said they want to work with this applicant. Taddune said this meeting is an adjunct to the PUD amendment process, in which this project is not postured. Taddune said a determination has to be made whether the Roberts' project is viable in a legal sense. If so, the project has the ability to complete the amendment process with the community input. Taddune said if it is the position of the city that the Roberts permit, even though the applicant does not intend to build that project, is viable, the project can proceed through the amendment process and return to Council. Sarpa said if the city and the applicant can reach an agreement on the general parameters, the applicants will commit not to build the old design. Mayor Stirling said there was a denial of the extension and there was only one permit given. Mayor Stirling said there ha s not been a motion by Council to reconsider the previous vote, which has to be taken at the next duly constituted meeting. Another approach is to overrule the city manager. Taddune said the city manager can report to Council where he is with regard to investi- gating the administrative process. Taddune asked the applicant if, in addition to not building the Robert's project, would they agree not to submit an application for a project that is more expansive that the proposed project. Sarpa said absolutely. 6 Continued Meeting Aspen Citv Council May 5. 1988 Councilman Isaac said the PUD agreement that is still alive. Taddune said that is under advisement whether the PUD is a viable project. Taddune said the city and the applicant are not in a position to agree to the status of the PUD at this time. Taddune said Council needs to discuss the city's position of the status of the permit given the representations that were made. Taddune said the Council has the prerogative, the way this project is postured and some of the claims that have been made, to go into executive season to discuss procedures and legal ramifications. Councilman Tuite moved to go into executive session; seconded by Councilman Isaac. Councilman Tuite said he would like to get input from the city attorney on the best way to go for this city on this project for the city's own protection. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Council went into executive session at 6:37 p.m. Council reconvened at 7:28 p.m. Councilwoman Fallin moved to reconsider the previous vote; seconded by Councilman Isaac. Councilwoman Fallin said she would like to try to arrive at a decision tonight that does not resurrect the Roberts' PUD, to get some guarantees from Hadid Aspen Holdings and from Ritz Carlton that the Roberts plan will not be built, to continue an open discussion through public hearings of P & Z and Council within the parameters outlined at this meeting, less scale, less rooms and density on the entire site, that more refinement will come. Councilwoman Fallin said she thinks there is more work to do on employee housing. Councilwoman Fallin said unless this process is kept open, nothing will be resolved. Councilwoman Fallin said the applicants have made a giant step with complying with the wishes of Council and P & Z and have shown a willingness to work with the city. Councilwoman Fallin said this is not the final vote but shows an open negotiation process between the city and the Hadid group. Mayor Stirling said the reason a motion to reconsider has been made is this meeting is a continuation of the prior meeting. All in favor, with the exception of Councilman Gassman and Mayor Stirling. Motion carried. Councilman Tuite moved to grant 120 days for an amendment process within the parameters of tonight's discussion and presentation 7 Continued Meeting Aspen City Council May 5, 1988 with the following understandings; that the Hadid group agree not to build the old Roberts' hotel; that phase I not exceed 190,000 square feet FAR as presented; that it be built under the presen- tation of the 3 units seen tonight; that the park between Dean and Durant be deed restricted as discussed; that on peaconfi/urae requested FAR of 115,000 staff has a prcause sometproblems and tion of 50 hotel and residential may Council finds that too excessive at that time and h t nthe requests the applicants work to reduce that, an applicants work with staff and bring a resolution back to the May 9th Council meeting; seconded by Councilman Isaac. Councilwoman Fallin asked that during this process, the employee housing number be looked at. Mayor Stirling saiff c ent tfor the go back to P & Z, thereoris s Thebstaffwwill have to review this process and to get reacts reciate before it goes to P & Z. Sarpa said the applicants app the chance to let this project go forward. Sarpa said the applicants have made the commitment that the Roberin' hisgtime dead. Sarpa said there is an important function frame, which has to do with the financing. Sarpa told Council an offer like they have will stay in place 30 to 45 days. Sarpa said the applicants have to move as quickly as they can or the financial offers will lapse. Sarpa said the applicants have proposed a 10 percent FAR reduc- tion, which is $3,000,000 to 54,000,000 which has been lopped off that site. Sarpa said the applicants will work on the FAR problem on phase II with the staff. Harvey said als wand would make sure this is an extension of the GMP approv like clarification on the starting date of for can amendment Councilman Tuite said his motion was 120 days process. Hughes said in effect the Council is extendectedhstaff approvals for phase I. Taddune said Council has di to formalize the motion for the meeting May 9th. Sarpa said Morgan Stanley' s concern is that to aknowrthat dthe gives a definite enough signal to Krauseesaidsa viable financing process is not still open-ended. package is the key to any major commercial reaancin atma rketlhas ment. Krause said when a project in the fin ,g momentum, one has to make sure it does not getandreommunityrwant asked for a signal that both the developer this project so he can continue his efforts. Councilman Tuite said his motion is for 292 rooms, 190,000 square feet FAR for phase I as presented. Mayor Stirling said there would have to be reliance. Councilman Isaac said staff always has reviewed this project as expeditiously as possible. Council has gone out of their way to 8 Mav 5, 1988 Continued Meeting Aspen City Council have special meetings to meet on a fast track basis. Councilman Isaac said it is incumbent upon the applicant to get these plans in as expeditiously as possible. Councilwoman Fallhat sthe scale have to be some guarantees on theuncilwoman dFallin said there shown will be this size or less. Co has to be reliance on both sides for this to work in back tobPl& process. Councilwoman Fallin said this is being sent Z for them to do their work within what the Council has negotiated. Councilwoman Fallin said there is still public process involved in this. Mayor Stirling said this does not give direction FARp &Sarpa discuss the 292 rooms and the 190,000 square f eet said if there is a vote to confirm this resoluti areMfeety~ Sarpa I will be 292 rooms and not more than 190,000 squ said there are things to be done within that parameteomet comfort change. Councilwoman Fallin asked that there is s that Council will have more discussions and negotiationresen ted sa II of the PUD. Sarpa said the applicants have only p schematic design of density on phase II. All the applicants have asked for is some general guidance that they have c needs oto be saying only 50 hotel units and some FAR. This refined and nailed down. Mayor Stirling said 50 hotel units would be 40,000 square feet, leaving 71,000 square feet for residential units. Mayor Stirling asked if the applicants are going to be using residential credits that already exist. Mayor Stirling said 40 or 50 residential units behind a hotel is more density than Council is interested in. Councilman Gassman said what the applicants have done in the redesign has been good; the applicants have been cooperative and have been listening. A lot of improvements have he towndis Councilman Gassman said his fear and csaidrwhat tcreates a nice very fragile. Councilman Gassman environmental is very ephemeral and hard to accssa•testament mto Gassman said all the interestcontributedr to Aspen over the years all the individuals who have to create this town. Councilman Gassman said his co texturelof this project is that it is too far beyond the general the town and a little out of context. Councilman Gassman said a significant reduction in the overall size would hea has dQ put feel more comfortable. Councilman Gassman said what he sees as the interests of the town before those of the developer. Mayor Stirling said he appreciates the efforts the developer has made and also appreciates the interests of the town., Evsaidohe views this community in a different way• scale andlthen community has been trying to balance the community needs, which are both aesthetic and economic, with the deve- 9 Continued Meeting Aspen City Council May 5, 1988 loper's economics. Mayor Stirling said had the proposed adjust- ments reached the harmony he was looking for, he was hoping to support the changes. Mayor Stirling said he urged the applicants to do all they could to decrease the mass and bulk. Mayor Stirling said he understands why this cannot be decreased. Mayor Stirling said one of Aspen's most appealing point is the flavor, character and sense of place. Mayor Stirling s iod of etime and management plan has been developed over a long per has helped restrain and to make this tvelo ed on one siteyto Stirling said to allow too much to be de p get less developed on another site is a berout of scale seems contradictory. The one project will always Councilman Tuite said if the city doesn't give in, some area, they wouldn't have open space all over town. Councilman Tuite said the previous applicant gave the city the There uis onlyrsoe much This applicant has offered another park. open space in the town. The more the applicant is willing to give the city, the development has to go somewhere else. Councilman Tuite said if the applicants are going to have a chance of success, they have to work with something. Councilwoman Fallin said the applicants have reduced the scale from the original plan. This area is zoned for lodging. There is not another site for lodging like this. The applicants have reduced the scale and will have landscaping. Councilwoman Fallin said in comparing this building to the Jerome and the Wheeler, it is coming more into scale. Councilwoman Fallin said she would like to see fewer rooms but the applicants have scan Fallin usaid they cannot do it for less than that. Councilwom she wants a project to be successful. Councilwoman Fallin said this proposal is preserving open space. Councilman Isaac said he was not enthusiastic about 292 rooms on site. The applicants do have a right to fairness of process. The applicants purchased the land with approvals along with it and there was some reliance they would be able to build that. The applicants could have build the approved Roberts' plan. Councilman Isaac applauded the applicants for amending that plan and for making the project fit in with the community. Councilman Isaac said this plan will not make or break the town aesthet- ically or economically; however, it will have anov d ebecauset of town. Councilman Isaac said the plans have impr the process. Roll call vote; Councilmembers Tuite, yes; Gassman, no; Isaac, yes; Fallin, yes; Mayor Stirling, no. Motion carried. Councilman Tuite moved to continue this discussion as the first 10 Continued Meeting Aspen Citv Council _ May 5, 1988 action item Monday, May 9, 1988; seconded by Councilwoman Fallin. All in favor, motion carried. Council left the meeting at 8:05 p.m. ~i Kathryn Koch, City Clerk 11