HomeMy WebLinkAboutagenda.council.special.19910417v
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CITY , PEN
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April 15, 1991
NOTICE OF SPECIAL MEETING
At the request of Mayor Stirling, there will be a special
City Council meeting Wednesday, April 17, 1991, at 5:00 p.m. in the
City Council Chambers, 130 South Galena, Aspen, Colorado.
The purpose of this meeting will be to hold a public hearing
on the Aspen Mountain Lodge (Ritz Carlton) Section M PUD Amendment.
Kathryn Koch, City Clerk
Notices delivered to:
Mayor Stirling
Councilmembers
Michael Gassman
Frank Peters
Margot Pendleton
Bill Tuite
City Manager O'Dowd
City Attorney Caswall
,`
E. ~
~30.~aut1~ ~~~e~ta street
~sp~n~ co~ora~o 8161
303-925 -2020
MEMORANDUM
DATE: April 15, ?991
TO: Mayor and City Council
FROM: fed Caswall, City Attorney 'l~ ,
~,~
RE: ~-?earing Concerning Proposed Amendment to Aspen Mtn. PUD.
The attached materials and information constitute your "packet"
in regard to the April 17th hearing relevant to Savanah Ltd.
Partnership's request for a Section M FUD amendment far the
above-noted development.
Thank you.
EMG/mc
~~
130~so,uth galena street
aspen, ,colorado .$1611
303-925 -2ozo
MEMORANDUM
DATE: April 15, 1991
T0: Mayor and City Council
FROM: Jed Caswall, City Attorney
RE: Savanah Ltd. Partnership Request for PUD Section M Amend-
ment.
This memo is being provided you to assist in your preparation for
and use at the public hearing scheduled for Wednesday, April
17th, relevant to Savanah Limited Partnership's request for an
extension in the existing construction deadlines for the Aspen
Mountain Subdivision development project.
JURISDICTIONAL FRAMEWORK
The First Amended and Restated Planned Unit Develop-
ment/Subdivision Agreement for the Aspen Mountain Subdivision
executed between the City and Savanah Ltd. Partnership on October
3, 1988, provides, in part, at Section M as follows:
the owner or its successors or assigns may, on its owr_
...
initiative, petition the City Council for a variance, an
amendment to this Agreement, or an extension of one or more
of the time periods required for performance under the
Construction Schedules or otherwise. The City Council may
grant such variances, amendments to this Agreement, or
extensions of time as it may deem appropriate under the
circumstances. The parties expressly acknowledge and agree
that the City Council shall not unreasonably refuse to
extend time periods for performance indicated in one or more
of the Construction Schedules if Owner demonstrates by a
preponderance of the evidence that the reasons for the
delay(s) which necessitate such extension(s) are beyond the
control of the Owner, despite good faith efforts on its part
to perform in a timely manner."
Pursuant to a previous Section M amendment granted by the City on
June 11, 1990, that resulted from negotiations resolving litiga-
tion between the parties, Savanah Ltd. Partnership v. City of
Memorandum to Mayor and City Council
April 15, 1991
Page 2
Aspen, 90 CV 35 (Pitkin County District Court), the current
construction schedule for the development project is as follows:
Certificate of Occupanc~•
Ice Rink and Park 10/1/91
Certificate of Occupancy
Ritz-Carlton Hotel 10/1/91
Building Permit Issuance
Ute City Place 10/1/91
Certificate of Occupancy
Summitt Place 8/1/92
Certificate of Occupancy
Ute City Place
(20 mos. from 10/1/91) 6/1/93
Demolition Permit for Lot 5
Grand Aspen Hotel 10/1/94
Building Permit Issuance
Top of Mill 10/1/95
Building Permit Issuance
Hotel Phase II 10/1/96
Certificate of Occupancy
Top of Mill
(2 0 mo s . f rom 10/ 1/ 9 6 ) 6/ 1/ 9 7
Certificate of Occupancy
Hotel Phase II Lot 5
(20 mos. from 10/1/96) 6/1/98
The 1990 Section M amendment specifically reaffirmed that "the
revised development schedule herein contained may be amended only
by the Aspen City Council pursuant to Section M of the PUD
agreement or as otherwise provided by law. Savanah agrees to
comply with the revised development schedule unless and until
amended by the Aspen City Council. The City Council reserves the
right to initiate and investigate compliance with, and enforce,
the revised development schedule and the terms and conditions
herein stated, as the beneficiary of the PUD agreement and
Memorandum to Mayor and City Council
April 15, 1991
Page 3
pursuant to its general power to enforce the provisions of the
City's land use and other regulations".
On March 15, 1991, Savanah submitted a written request pursuant
to Section M seeking "an extension of the PUD construction dead-
lines". (A copy is attached in the appendix hereto.) As of the
date of this memo, Savanah has not (1) specified which deadlines
it wishes to extend, (2) specified new extended deadlines or the
number of months it would like to see the existing deadlines
extended, or (3) specified the reasons or circumstances beyond
its control warranting new schedule deadlines (however, see
letter dated 3/14/91 from Mr. Hadid on behalf of 1001, Inc.,
addressed to the City Council, included in the appendix hereto).
PROCEDURAL FRAMEWORK
tahiie the PUD agreement does not explicitly require a public
hearing as a precondition to Council's determination on whether.
to grant the Section M amendment as requested by Savanah, bath
the Planning Director ~.rd this office feel that it is appropriate
to allow public input on the subject in view of the significant
impact the development project has had on the community at large
and the potential impact(s) of further delays in its completion.
Pursuant thereto, published notice of the hearing date and time
has-been provided. -
Consistent with the nature of the subject matter, Council will be
acting in a quasi-judicial role in hearing and ruling upon
Savanah's schedule amendment. Section 24-6-205C of the Municipal
Code sets forth the general hearing procedures applicable to the
proceeding:
(1) Testimony and evidence upon factual matters shall be
given under oath or affirmation (technical rules of
evidence, however, are not to apply).
(2) Any person may appear and submit evidence.
(3) Council may exclude testimony or evidence that it finds
to be irrelevant, immaterial or unduly repetitious.
(4) Persons may ask relevant questions of other persons
appearing at the hearing, but only at the discretion of
the riayor .
Memorandum to Mayor and City Council
April 15, 1991
?age 4
(5) Council may continue the hearing to a fixed date and
time. The applicant shall have the right to request
and/or grant one continuance.
(6) After the presentation of all evidence, argument and
discussion, Council shall vote on Savanah's extension
request by mction briefly stating its findings of fact
and conclusions based thereon. Council's decision
shall be reduced to writing and provided the applicant.
Council need not enter its determination immediately,
but may defer same to a later date prior to which time
a proposed written decision may be prepared by staff
for approval at the later date. Judicial review of
Council's decision may be sought by the applicant
pursuant to Rule 106(a)(4) of the Colorado Rules of
Civil Procedure. Any decision made by Council must be
supported by reliable, probative and substantial evi-
dence and shall be based only on evidence presented at
the time of the hearing. (Ord. No. 87, Series of
1975.)
The burden of persuasion as to whether a Section M amendment is
warranted and should be granted rests with Savanah. The standard
to be applied is whether Savanah can demonstrate by a preponder-
ance of the evidence that the reasons for the delay(s) which -
necessitate the requested extension(s) are beyond its control
despite its good faith efforts to perform in a timely manner.
"Preponderance of the evidence" means that the existence cf a
proposition asserted is more probably true than not.
Under normal circumstances, the Planning Staff is to present
Council with a narrative and/or graphic description of the
subject matter under consideration and a recommendation as to any
proposed action. However, in this instance, Savanah has not
provided any information in advance of the hearing upon which the
Planning Staff could analyze or base a recommendation, hence,
Savanah must proceed first at the hearing and present its case,
to be followed by staff comments and/or questions. (The Planning
Staff has prepared a memo noting concerns and issues for your
information, a copy of which is being provided with this memo.}
Public comment may then be entertained to be followed by re-
sponses on behalf of the staff and Savanah.
Memorandum to Mayor and City Council
April 15, 1991
Page 5
APPENDIX
Attached for your information and inclusion into the record of
the proceedings are the following documents:
"A" Savanah's Section M Amendment Request, dated 3/15/91.
"B" Letter from M. Hadid on behalf of 1001, Inc., dated
3/14/91, and previously forwarded to Council.
"C" Memorandum to City Council from staff dated 3/19/91,
requesting hearing on Savanah's Section M amendment
request.
"D" Letter from City Attorney to Savanah dated 3/26/91
notifying it of the hearing date, time and location.
"E" Correction letter from City Attorney to Savanah dated
3/27/91 correc~ing hearing date.
"F" Certified Return Mail Receipt dated 4/1/91 for notice
delivered .o Savanah.
"G" Letter from "Steve" to Bill Stirling dated 3/27/91, and
previously provided City Council regarding the Section
M amendment. _ _ - - -
"H" Letter from City Attorney to Savanah dated 4/10/91
notifying Savanah of staff concerns related to Section
M amendment request.
"I" Proof of Publication for hearing notice.
EMC/mc
Attachments
cc: Planning Director
City Manager
Robert W. Hughes, Esq.
~~~~gD
ii~n~n
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l i~.` .March 15 , 19 91
Honorable Mayar William Stirling
Aspen City Council
130 South Galena
Aspen, Colorado 81611
Dear Mayor and Council:
Nub 1 S 1941
CITY ATTGRNEY'S
. oFF~cF
In accordance with Section "M" of the First Amended and Restated
PUD/Subdivision Agreement for Aspen Mountain Subdivision we are
petitioning City Council for an extension of the PUD construction
deadlines.
We feel that, for reasons beyond our control, and despite our hest
efforts, we can no 1~onger meet existing deadlines.
Please conta t uS wi h the date and time of the- extension- hearing.
Si cerel
J
Mr.~ ober Hu es
Cates, Hughes and Kn zevich
Attorney for Sa~v-anah invited Partnership
PAH/ld
ATTACHMENT A
MITI'
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CERTIFIED - RETL'R2vT RECEIPT REQliESTED
I~,arch 2 6 , 19 91
:.;~:..vanah Ltd. Partnership
1~OC IvTorth Seventeenth Street
.:~. 7_te 1100
.~sslyn, Virginia 22209
-e: Ritz-Carlton Hotel Section M Amendment Request
Dear Sirs:
This letter is to formally confirm receipt by the City of Aspen
of the ~: r i tten request dated riarch 15 , 19 91, submitted b~•~ th e
SaV~nah Limited Partnership seeking an extension of the current;v
existing construction schedule for the Ritz-Carlton. Motel as sF~.t
forth in the planned unit development agreement for the Asper
~•icuntain Subdivision.
As you know, Section M of the PUD agreement governs requests for
amendments ar.d extensions relevant to the provisions cr schedules
contained in the agreement. In accordance ~:ith that section,
"the Owner er its successors or assigns may, on its own initia-
tive, petition the City Council for a variance, an amendment to
this Agreeme:-:w, or an exter.sicn cf one or more cf the time
periods requ~..~ed for performance under the Construction Schedules
or otherwise. 'she City Council may grant such variances, a:;end-
ments to this Agreement, or extensions of time as it may deem
appropriate under the circumstances. The parties expressly
acknowledge and agree that the City Council shall not ~an.reascn-
ably refuse to extend time periods for performance indicates in
one or mere of the Construction Schedules if Owr.e~- demonstrates
by a prepo::derance cf the evidence that the reasons for the
Qelai' (S i which necessitate SllCh eY,tenSlOn ~ S ~ are beyond the
control of the Owner, despite good faith efforts on its part to
perform in a timely manner". +
Pursuant to Savan.ah's request for an extension, the City Council
has set April 17, 1991, at 5: G0 o'clock p.m., for a hearing at
which time Savanah will be afforded the opportunity to present to
the City the facts and reasons supporting its request. Such
~~~
., ~ecycledpa~er
Letter to Savanah Ltd. Parternshi~
1`iarch 26, 1991
Page 2
J
hearing will be conducted at City Hall, 130 South Galena Street,
P.spen, Colorado. Please note that the burden of persuasion on
all issues rests ~:ith Savanah and that, specifically, Savanah
must demons~~~ate by a preponderance that the reasons for er_isting
..:~e1ay(s) are the result of acts or circumstances beyond its
control. A hearing notice will be published in a local newspaper
~--f general circulation in advance of the hearing.
Savarah's riarch 15th request for extension of the PUD construc-
tio:~ deadlines does not list or otherwise illustrate those
s~~ec.fic deadlines it seeks to amend. The e~:isting construction,
~~ ead -'_ Ines as incorporated in Savanah' s earlier Section Iii Amend-
nlE:~~t, recorded on August 15, 1990, are as follows:
1. Certificate of Occupancy
Ice Rink and Park 10/1/9
2. Certificate of Occupancy
Ritz-Carlton Hotel 10/1/91
3. Building Permit Issuance
Ute City Place 10/1/1
4. Certificate of Occupancy
Summitt Place g/1/c2
5. Certificate of Occupancy
L?te City -Place - - -
( 2 0 mos . f nom 10/ 1/ 9 , ) 6/ 1/ 9 3
6. Demolition. Permit for Lot 5
Grand Aspen Hotel 10/1/94
7. Ruildir~g Permit Issuance
Tcp of Ifill 10/1/95
o^". Euilding Permit Issuance
'r.otel Priase II 10/1/96
9. Certificate of Occupancy
I"op of Ni11
(20 mos. from 10/1/96) 6/1/97
10. Certificate of Occupancy
Hotel Phase II Lot 5
(20 mos. from 10/1/96) 6/1/98
Letter to Savanah Ltd. Parternship
~ar~~:h 26, 1991
Page 3
T`.e City requests that Savanah supply it the following informa-
tion in writing no less than one week prior to the April i5th
hearing:
and
1. j~lhich construction deadline(s) it seeks extensions for;
2. The length of time for any proposed extension and a
specification of new construction deadline(s) for each e~:ten-
~ior, (s} .
~:~hile not required under the applicable procedures, the City
~ti~ould also welcome a written summary or "brief" setting forth
whose facts, circumstances or arguments upon which Savanah will
rely in making its presentation to City Council for the requested
extension(s). As with the information above, it would be helpful
to receive the document no less than seven days pricy to the
scheduled hearing. All written information may be submitted to
the City Council througr. this office and such information will
become part of the official record of the hearing..
The hearing to be held cn the 15th shall be conducted in accor-
dance with the General Hearing Procedures as described at Sectic,r
24-6-205 (C} of the Aspen Municipal Code. Should you have any
questions concerning those procedures, please do not hesitate to
contact tr.is cff i Ce .
Finall~T, please note that a failure to comply with the previously
agreed to and e};fisting construction: schedule(s) as set forth ire
the PL'D agreement and Section M Amendment dated June 11, 1990,
and/or the failure to o;~~tair. approved extensions thereof, car.
result in the termination of the develcpment approvals, in whcle
or in part, for the P.spen Mountain Subdivision.
Very truly yours,
--LAG-~'~ ' l ~ ~~..~..r-c
~d•~~ard ri. CaSWall
C~~•.~ Attorney
~MC!mc
cc : City i~anaaer
Director of Public k7orks
Planning Director
Letter to Savanah Ltd. Farternship
:i~lar~'h 26, 1991
Page 4
~:c: Per Section 0 of the PUD:
Robert j~. Hughes, Esq.
Oates, Y.ughes & Knezevicri
533 East Hopkins Avenue
Asper., Colorado 81611
Perry A. Harvey
:-iadid Aspen Holds ng, Inc .
500 East Cooper, Suite 200
aspen, Colorado 81611
c~:: Courtes~~ copy
:^~arc I. Hayutin, Esq.
Sidlev & Austin
2049 Century Park East
Los Angeles, California 90067
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C~P.mIFIE~) - RE;TliRi~T RECEIPT REQliF.STrJ
2~iarch 27, 1991
~~. ~ anah L~`:•~. '~~artnership
1.;CC Nortt: Seventeenth Street
S~~:ite ~ lOC~
,;c,ssyl~~, V:~_rginia 22209
R:.: R~_tz°•Car~ ton rotel Section r~ Amendment Request
Deer Sirs:
I regret trial I made an error ir, my correspondence addressed and
telefaxed to you on March 25, 1991, concerning the above-acted
matter. Or. page 1 of the letter, the date scheduled for the
:~._earing on the Section 2f amendment is represented to be April 15,
!99:x. That date is incorrect. The correct date is tednesday,
':nr:. 1 i ~ , 1991. All other i1!.iormation contained i n the letter is
correct.
': apologize for the mistake and I have corrected same ~n the hard
dopy of the March 26th letter included in this mailin~.
Should you have any questions ~r~ this matter, please do not
resitate to give me a call.
Thank yo~~.
Very trt~ ~y yours ,
Edward r. Caswall
City Attorney
EI~SC/mc
cc : City rianao~er
Director of Public ti~rorks
Planning Director
y~>
~ecvcied page'
cc: Per Section 0 of the Pt;D:
:?obert S,; . Hughes , Esq .
Oai.es, Hughes & Knezevic~l
533 East Hopkins Avenue
Aspen, Colorado 81611
Perry A. Harvey
Hadid Aspen Holding, Inc.
600 East Cooper, Suite 200
Aspen, Colcrado 81611
:~c ^ot::rtesy copy:
Isar. ~ I . Hayutin, Esq.
~~ic?.ley & Austin
2049 Century Park East
Loy: Angeles, California 90067
;'A~: TF~A1~?SMISSION 3/27/91
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Cc~rnL~t::a; ,,e '::..ice ~"'_C~~?;'~.:~%4 "~G_':.1ou3 F:~:F~o- ~ aage 1 of 1
•- T mmT nvrar. rTm r-
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THE ASPEN TIES
Box E
Aspen, Colorado
PROOF OF PU~3LICATIOI'~T
STATE OF COLORADO )
ss. Copy of ?Notice
Count}~ of Pitkin ) - =
1, V1'illirm R. Dun~ual~ do solemnly swear that 1 am PUBIdC NO'T'ICE - .
~. RE: TITE ASPEN MOUNTAIN LODGE (RITZ-
cnR1,TON>
the Publisher of THE ASPEN TIMI/S: that the same is a SECTION M PUD AMENDMENT
.NOTICE Ts BY GIVEN that s publ;e
hearing will be held on Wedneaday,•Ap:il 17,
~n'eckl..' nc'r~'spapcr printed, In «'hole or In part, and 1991, at 5:00 p.m. before the Aspen City Coun-
`
published in the COUnty of Pitkin, SCa to o` Colorado, cif, City Council Chambers, 130 South Galene,
Aspen, Colorado, co consider an appti~tion by
• ~
and.has a ~;encral circulation thcrc:n; t}i~:t said ne11's- Savanah Limited Partnership in acvordance
with Section Mot the First Amended and
paper has been published continuously' and unintcr- Restated PUD/Subdivision agreement for
aspen Mountain Subdivision roqueating an
ra tcdly in Said Coun}}-~~' of Pitkin, fo: a '~criod of more
'J r
p cxunaion of the PUD construction dcadlineb.
For further information contact the Aspen/
- Pitkin Planning Office, 130 South Galena ~:.,
than fi.~ty-t~~'o consecutive weeks next prior to the first Aspen, CO
920 090.
-
~ - ~-~- William L Stirling, Mayor
publication of the annexed ]e~al nC)tlce Or adVCrtlse- ~ -Published in the Aspen Times Aprilt4, 139jci1
nlent; that Sa1C1 ne~1'Spapcr has been admitted to the ~ -
united States mails as second-class matter under the
F.rovisions of the Act of March 3, 7879, or any amend-
ments tiiercof, and that said nc~,'spa>~er is a weekly
newspaper dull' qualified for publishing le~;ai notices
and advertisements «'itii the mcaninb of the ia~ti's of
the State of Colorado.
That the annexed ie~-al notice or advertisement Was
published in the rc~uiar and entire issue of even' num- - -
bcr ofsaid weekiv newspaper for the period of
consecutive insertions; and that the first publication of
s id notice ~1tas ir. the issue of said ne~,'spaper dated
~ A.D., 19~~ and That the ]ast publica-
tion of said notice ~ti'as in the issue of said ne~ti'sp~~per
dated A.D., ]9
~~~ ~ ~
Subscribed and sworn to before me, a notan• public
in and for the Cour~t-y of Pitkin, State of Colorado, this
_ day o.` f ~ ~ A.D., ]9~.
Not rv Public ~ ~ ~ /
;~1~~commission expires .~ -~~'. ~7
` ATTA('NMF,T~TT r
- M~oRANDUM -
TO: Mayor and City Council
THRU: Carol O'Dowd, City Manager
FROM: Amy Margerum, Planning Director ~"
RE: Aspen Mountain PUD: Request for Extension Under Section
M of the PUD Agreement
DATE: April 1~, 1991
SUMMARY:
On March 15, 1991 Savanah Limited Partnership requested an
extension of the construction schedule for the Ritz-Carlton
Hotel, and associated development as set forth in the Aspen
Mountain Planned IInit Development (PUD) agreement for the Aspen
Mountain Subdivision.
Due to the fact that the request far an extension is vague and
does not specify the length of time the delays may take, the
Planning Office is unable to specifically co~aent on the
implications this may have to the City of Aspen.
Most of the Planning Office's general concerns have been
incorporated in the memo presented to you by the City Attorney.
We have reiterated some of these concerns and added additional
concerns below for Council's consideration.
Staff requests a continuation of the public hearing on this
matter once we have received more information on the nature of
the request for extension so that we may more appropriately
respond.
BACKGROUND:
The First Amended and Restated PUD/Subdivision Agreement dated
October 3, 1988 was reconfirmed by the voters of the City of
Aspen on February 13, 1990. A Section "M" Amendment to the PUD,
revising the construction schedules for all elements of the PUB
was approved by City Council on June 11, 1991.
Lots 3 (Top of Mill) and 5 (Grand Aspen/Hotel Phase II) of the
PUD never received final approval and will require an amendment
to the PUD. These elements of the PUD will be subject to the
expiration dates in the Land IIse Code (Section 8-108).
Lot 6 (Ice Rink/Park) received conceptual approval from City
Council on June 25, 1990. Staff is waiting on an application for
a Final Development Plan for the Ice Rink and Park. Unless an
ext.~.ension is granted by City Council, the applicant has one year
from the date of Conceptual approval to submit an application for
a Final Development Plan.
The Building Department has been issuing phased building permits
to allow for expeditious processing of the Ritz-Carlton hotel
permit review and to maintain the construction schedule outlined.
in the PUD. A final (#1) Building Permit has not been issued.
Previous plans included modifications to the building known as
Building B, facing Mill St., which were inconsistent with the
approved plans for the hotel. Final plans consistent with
development approvals were re-submitted to the Building
Department on March 7, 1991. All relevant conditions in the PUD
must be met prior to the Zoning office signing off on the final
building permit. The Building and Zoning offices should be ready
to issue the #1 building permit in about a mont~~ assuming a
timely response by the project architects to questions.
DISCIISSION:
The Planning Office has the following general concerns with the
request for an extension of the construction deadlines in the
Aspen Mountain PUD Agreement:
- The schedule for all other elements of the PUD have
consistently been tied to the completion of the Ritz Carlton
Hotel. With an additional delay in the opening of the Ritz
Carlton Hotel, the schedule for amenities, such as the 1"ce
Rink/Park, will also be delayed. City Council should consider
maintaining the deadlines for the remainder of the PDD if an
extension is granted to the Ritz-Carlton hotel project.
- The Ritz Carlton Hotel was approved- contingent upon many
conditions, compliance of many of these conditions is prior to
issuance of Certificate of Occupancy. In light of the delays
associated with the hotel, City Council may wish to consider the
implications of waiting for Certificate of Occupancy to obtain
street improvements (noted in the City Attorney's memo) and such
things as the construction of the "Alpine Trail" link and the
"Aspen Mountain Trail" ski trail.
- The PUD requires the owner to design and construct a new
building for the Aspen Ski Club or contribute to a larger
facility for the Ski Club_ The PUD does not specify a date by
which such commitment must be made, however it is staff's
interpretation that the timing needs to be settled prior to the
issuance of the final building permit for the hotel. Given the
delays in the project, we need to ask if this is another amenity
which may not be forthcoming for a much longer period than was
originally anticipated when development approvals were granted.
- The schedule for the renovation of the Grand Aspen Hotel is
critical to maintaining the community's lodging base and ensuring
that the City of Aspen has upgraded lodging facilities in the
commercial core. City Council should consider curtailing the use
of the building for temporary offices and consider keeping the
eventual improvements to the hotel on schedule.
- Additional bonding to insure completion of public improvements
and completion of the hotel should be considered in conjunction
with an extension of the construction schedules.
ALTERNATIVES:
The City Council has the following alternatives with respect to
the request, under Section M of the PUD Agreement, for an
extension of the construction schedules:
1) Grant the extension as requested with no additional
conditions.
2) Grant the extension with any additional conditions reasonably
related to the extension.
3) Deny the extension. This requires a finding by City Council
that the owner was unable to demonstrate "by a preponderance of
the evidence that the reasons for the delay(s) which necessitate
such extension(s) are beyond the control of the Owner, despite
good faith efforts on its part to perform in a timely manner. "
In this event the owners will have until October 1, 1991 to
occupy the hotel at which time, non-compliance hearings would
take place if the hotel were not occupied.
4) Direct staff to proceed with Non-Compliance hearings
at this time.
5) Deny the request for extension at this time, but impose
interim deadlines associated with those issues raised in the
memos from the City Attorney and the Planning Office and
reconsider the request for an extension once the interim
deadlines have been met, prior to October, 1991.
6 ) After . hearing the applicant' s reques
the reasons f or such an extension, direct
more detailed analysis and recommendation.
RECOMMENDATION
Staff recommends Alternative 6 above.
t for an extension and
staff to return with a
CITY MANAGER COMMENTS
~'r
~.
CITY
30
SFEN
r'A:~ TRANSMITTAL
~= ; ~~cil 10, 1991
S~vanah Ltd. Partnership
~_~~0 North Seventeenth Street
Suite 1100
~.- sslyn, Virgir~i a 22209
ne~~
<~~: Ritz-Carlton Hotel Section M Amendment Request.
Dear Sirs:
In an effort to focus and, perhaps, expedite to a certain e}.tent
the hearing on the above-noted matter which is to be conducted or.
April 17th, I am for~~~arding you the following information ~~,Thich
higrilights various concerns and questions which the City s~ar~
has relevant to ycur request for an extension. of the e}:isti nc
construction schedule for the Ritz-Carlton Hotel. Please be~
advised that these questions have been generated at the staff
level and are in no way intended to constitute or limit the areas
o~ inquiry or ccncern of the City Council when it conducts the
hearing or. your Section M_amendment request. _
As you kno~T, the City has not yet been apprised as to the lencth
c` time Savanah wishes to extend the current construct_on dead-
~ine(s). Media reports indicate that work on the hotel, t~lhich
'rlas already ceased, may nct recommence for some months or longer.
::scum~na a lengthy suspension of construction activity on she
hotel , the PL:~~lic Wcr}:s and Building Departments t~,ould 1 ike to
:~Ee t~ze following matters addressed and/er compiled ~: ith as a
prec~.~~~ition to any extension in the construction completion
~~ead1~_ne(s) pursuant to your Section M amendment reaeust:
1. The shell of the hotel structure shall be enclosed and
made water tight by completing exterior brickwor}~ and precast,
completing insulation., waterproofing below grade, and installing
z _ .:fi ng, windows and necessary caul:~.ing. The hotel must have a
c~~mol~:,ted appearance.
,;.'~ ~ecycledpape~
~ ~
T mmT /~LTTRL'TTrP L7
~e~'~ter to Savanah Ltd. Partnership
~:~ra.l 10, 1991
Page 2
2. All building materials shall be stored inside cf the
hotel's structural framework or otherwise hidden from public vie~•.'
with aNpropriate and acceptable scrzening.
3. Lower sump pumps with automatic acti~,ration shall be
e~:-,ergi.zed so as to insure against the accumulation of water
~:~, :,.-, ..~_~~ the structure below grade . The two dry well systems or,
t=:. mast and west sides of the construction site shall be cem-
~iCte~. t~Jith permanent piping and collection systems to control
ar~~:~ m,~ nim.i ze water runoff from the site.
y. The. outside perimeter foundation wall must be brou__ght
~:p to a minimum of finish grade elevation. Areas alongside
foundation walls shall be backfilied and compacted.
5. All internal and external shaft openings shall be
_~ secured and maintained in a safe condition and the construction
cranes shall be ~ emoved .
6. All utility services to the hotel (water, eiectri city,
sewer and gas) shall be shut off to the nearest utility source
except for those services necessary to maintair. and protect the
facility. Unused hot or live utility lines shall not be permit-
ted and a certificate of inspection executed by each utility-
exhibiting satisfactory disconnects or shutoffs shall be provided
a~'te~ inspection. A diagram illustrating the utility systems on
-site s~ all be provided to the City and Fire Marshall . urther-
mc~re, as-built underground utility. locations i n public rights-o~-
c•:ay and service connections must be accurately :rapped and refer-
ee cod.
7. All temporary buildings and .trailers associated wit~~
the construction as well as all construction materials notable
to be stored within the hotel structure shall be re:r,oved from the
site as well as from the top of Mili Street and ice rink parcel.
The ?:ill Street and ice rink parcels shall be cleared, Graded and
appropriately landscatied. Fugitive mud and dust prevention
measur~:s shall be devised and ir:plemented.
8. All temporary construction tack welding, te:roorary
shoring, ar~d temporary bracing shall be inspected and certified
,--~ as secure and safe by the general contractor .
9. A fire ~rotecticn plan indicating ingress and egress
routes, toxic material data sheets and storage areas, locatio:: of
Lettzr ~~o ~ ~ v~ nah Ltd . Partnership
Apri ! i 0, 1y9
P~4ge 3
f~.amt~a~-~~_e m:~tErials, lighting panel boxes and knox box for keys,
shall be established with the Fire Marshall.
10. The four fire hydrants called for in the PUD shall be.
~~ZStalled and activated.
11. An aesthetically acceptable security fence shall be
~n~:intained around all construction sites.
12. Mill, Juanita, Durant and Monarch Streets shall be
~:~eared, cleaned and restored to their original unobstructed
:~~:-.dths with curbs, gutters and sidewalks. Necessary repairs as
c:etermir:ed by the Streets Department Director shall be satisfac-
~.c_rily competed to all paved surfaces dammed as a result of
construction activities.
13. All ~Tersey barriers shall be removed from in or around
the construction site(s) and all public rights-of-way, except as
a;herwise deemed necessary by the Streets or r^ublic Works Depart-
ments for public safety purposes.
1~. The ~31ue Spruce structure and site shall be cleared of
-c nstrur•tion m~~. aerials and debris and temporary scaffolding and
forms shall be removed.
15. Use of the Grand Aspen Hotel as a construction-heal- -
~uart.ers and housing unit shall cease by a date certain as .agreed
~:c between the parties. All future uses of the hotel shall
conform to all underlying zoning and land use controls.
16. Summit Place must be appropriately razed and cleared cr
securec:. The trash and debris accumulated as ~-•~ell as the soil
subsidence and erosion on the site are unacceptable. The current
c~c•ndition of Summit Place constitutes a public nuisance and
presents a serious public safety problem. The City is seriously
contemplating legal action relevant to Summit Place apart from
PLED remedies .
~~. The Barbee parcel must be cleared of trash and debris
and steps taken to maintain vegetation and ground cover to
minimize run-off.
1S. All signage shall conform to the sign code sections of
the Municipal Code.
~:;~~~..
..., ,.
~, ~. . ,
130 ouch galena street
aspen.,~_ca~orado_ 81611
3~0~3-y25 -2020
Mr,.rsoRAr~DUM
DA~!'E: April 16, 1991
T0: Mayor and City Council
FROM: Jed Caswall, City Attorney
RE: Savanah Ltd. Partnership Request for :''UD Section M Amend-
ment.
The Planning Department has asked that the attached "progress
report" relevant to the Ritz-Carlton Hotel project, submitted by
the Hadid organization to the Planning Department on February 7,
1991, be added to those materials for your review and considera-
tion at Wednesday's hearing.
EMC/mc
Attachment
cc: Planning Director
Robert W. Hughes, Esq.
f
~r~l
( (.Lz ~:;
~r~~-
_~1(~ ~
l;c~l~i;t;~~,
lnc.
February 7, 1991
I~Ss . ~_my Nargerum
Planning Director City of Aspen
130 South Galena
Aspen, Colorado 81611
Re: Compliance Status
Dear Amy,
In connection with the issuance of the final building permit for
The Ritz-Carlton Hotel I am writing to detail the current status
of compliance with the terms of our approvals, primarily as
outlined in The First Amended and Restated PUD/Subdivision
Agreement dated October 3, 1988 and the Section "M" Amendment
dated June 11, 1990.
Due to the holidays we were delayed in submitting the December
update on The Ritz-Carlton construction schedule. PCL t~:~ld Bob
Gish in advance that this would be delayed. An updated
construction schedule was submitted on January 14, 1991. This is
now being supplemented ~-ith additional information, including a
bar chart (enclosed).
It has come to-our attention that we may not be able to make our
construction completion date of October+l, 1991. Any delay has
been primarily dup to weather, material and equipment delays and,
of course to funding delays caused by the recent (i.e. last 6
months) and continuing turmoil in the Persian Gulf region. Our
hope is to make up these delays in the coming months. On March
1, 1991 we will reevaluate our status and determine our schedule.
If we have not sooner been able to make up any lost time, we
v~ill, by March 15, 1991, take appropriate action as required in
accordance with Section M of the PuTD agreement.
!-~ Lii j. E' ~. ~~ :j 5f)E~i )~ u~~' C~~ l!1~ .l ~.. '3 .., _.
Ms. Amy Margerum
Compliance Status
February 7, 1991
Page Two
A change has been made in the room count and configuration for
The Ritz-Carlton. The changes have reduced the total key count
from 292 to 284. The configuration at 292 keys called for 158
king rooms, 105 double rooms, 27 executive suites and 2 Rit2-
Carlton suites. To provide handicap accessible rooms, plumbing
chases, roof stairs and the 45 degree corners on the upper floors
we had to reconfigure the rooms. Currently the key configuration
is 151 }~:ing rooms, 87 double rooms, 10 handicapped accessible
?~ooms, 30 executive suites, 4 bed/sitting rooms and 2 Ritz-
Carlton suites. Since the PUD requires a maximum key count of
292 a reduction from that total should not be seen as requiring
formal review by Council.
Demolition has been completed on the ice rink site. We are
planning to submit for final PUD review in February for spring
construction in order to complete by the October 1 section rri~r~
date . As part of the f final submission we t~~il l be requesting
rezoning of Lot 6 to Park. This complies with the requirement
that the rezoning be applied for within 90 days after receipt of
the final building permit for Phase I of the Hotel which is tYie
subject of this letter.
All other schedules are as outlined-in th-e section."M" amendment.
A~ the time of application for a building permit for a particular
development component we shall provide Engineering with detailed
construction schedules in accordance with the PUD.
Regardi~!g the utilities we have attached an October 15, 1990
letter from Leonard Rice Engineering outlining the status of
utility work required under the PUD agreement. In addition to
this work kTe have pre-paid $234,000 of our Sanitation District
fees relating to The Ritz-Carlton Hotel to allow the Sanitation
District to complete system improvements in advance of opening
the Hotel.
Currently we are required to have financial assurances in place
with the City of Aspen totaling $925,000. Of this amount
$390,000 is in cash. The remaining $535,000 is in the form of a
letter of credit.
'7 At~ty Ma~'gerum
C~~:mpl:, ance status
:~ ebru-::ry 7 , 19 91
Puge '.Three
"here was a letter of credit for $1 million but much of that work
ilcs been completed. Per the attached memorandum the $535,000 has
teen accepted as the correct amount by the Public Works Director
for the City of Aspen and the letter of credit is held by the
;ity Finance Department.
~~~mployee housing for the Hotel Phase I (Ritz-Carlton), Summit
Place and Galena Place components of the PUD total 161.5 people.
These have been provided as follows:
A) The Alpina Haus is credited with 46 people. This project has
already been deed restricted (Exhibit F to PUD Agreement, to
become effective at Certificate of Occupancy . )
B) The Copper Horse provides credits for 43 people. This
project has already been deed restricted (Exhibit E to the PUD
Agreement to become effective at Certificate of Occupancy.)
C) Four rooms at the Grand Aspen have been deed restricted to
the moderate Guidelines in accordance with Article 4(C) of the
PUD agreement, providing for 3.5 people.
D) A credit for 69 people has been given in connection- with-the
$250,000 subordinated eq~.zity investment in the Hunter Longhouse
project.
These credits complete the 161.5 people requirement. The deed
restrictions f or tr~ese proper ties are attachments to the PUD
Agreement and are held in escrow by the City Clerk.
Beyond these commitments we agreed to construct housing at Ute
City Place for an additional 37 people, bringing our total to
198.5 credits. The PUD requires that this project be under
construction prior to issuance of a certificate of occupancy on
the Hotel Phase I. The deed restrictions in connection with the
Ute City Place component are being held by the City of Aspen.
We continue to agree to the audit of employee generation in
accordance with Article 4 (G) of the PUD agreement. The FTEEs
shall be defined according to the Housing Authority g;~idelines in
effect at the time of the approval as outlined in exhibit "G" to
the PUD agreement.
r•~s . Amy Margerun
Compliance Status
February 7, 1991
Page Four
Regarding parking there are two components to the PUD. We are
able to provide the 220 underground spaces and ten surface spaces
within Lot 1 of the PUD. We can also provide the 129 temporary
parking spaces within Lot 5. As we proceed through the approvals
for the ice rink and Lot 5 we will examine the Lot 5 parking
requirements.
Article H of the PUD agreement outlines a number of additional
representations.
1) This renovation has been completed and in fact we have gone
way beyond the renovation requirements outlined herein.
2 & 3) We agree to and are in compliance with these
requirements. .
4) We will comply with this condition.
5) Regarding "Fire Prevention Measures" we are meeting all UBC
and local codes. We are in receipt of the December 11, 1990 memo
from the building department and the January 9, 1991 memo _from
you to the Building Department. We do not foresee any
difficulties in complying with the intent of the requirements of
schedule 2 and will work out compliance ttiith the fire marshal and
the building department.
6) This condition refers to Schedule 3 to the PUD regarding
water and energy conservation measures. We have specified water
efficient fixtures for ThF Ritz-Carlton in accordance with
Schedule 3 (I) (a). Specifics will be worked out with the
building department.
Schedule 3 (I) f, b) numbers 1-8 deal with energy conservation in
The Ritz Carlton.
All energy efficient measures are being complied with, with the
exception of numbers 7 and 8. Number 7 calls for using waste
heat from the boiler to be used to heat domestic water. Because
our main boiler does not produce waste heat we cannot use it.
This is however a more efficient system than one which does
produce waste heat.
Ms. P.my Margerum
C:omplaince Status
February 7, 1991
Page Five
Number 8 calls for roof insulation of R-38. This is an error. I
h~.ve attached the planning office memo dated July 21, 1988 which
was for The Fritz-Carlton GMP amendment. In the Planning & Zoning
evaluation of the Lodge GMP under energy conservation the
comments state "Insulation e~:ceeds minimum requirements but roof
insulation is reduced from R-38 to R-20." Somehow in the PUD the
i:-~sulation requirements for the roof remained at R-38. It should
read R-20. All other insulation requirements are being complied
with in the Hotel construction.
All elements of water and energy conservation for Galena Place
have been met.
7) Schedule 4, outlining auto disincentive measures, relates to
operations of the Hotel. These requirements have been forwarded
to Ritz-Carlton for incorporation into their operating program.
ar~d marketing information.
8 & 9) These are conditions v,~hich we will meet.
10) We have funded the $250_,000 for the comprehensive Aspen
?~7ountain Drainage Plan.
11) i~sanagement of the Hotel has been entrusted to The Ritz-
Carlton Hotel Company of Atlanta, Georgia, a firm that fully
meets this requirement.
1?_) This condition has been and will be complied with.
13) This condition will be met prior to issuance of certificate
of occupancy on the Hotel P~iase I.
14) These ''Life Safety" upgrades have been completed and agreed
to by the City of Aspen.
15) These construction requirements have been and continue to be
met in connection with the PUD construction.
16) tti'e are committed to meet all requirements of the Health
Department as cutlined in Exhibit I of the PUD agreement. We are
considering additional gas log fireplaces.
its . Amy Maraerum
Compliance Status
February 7, 1991
Page Six
In the event we pursue this we will meet the requirements of the
environmental Health Department of the City of Aspen. All other
elements of E}:hibit I will be resolved with the building and
health departments.
17} Prier to issuance of Certificate of Occupancy for the Hotel
Phase I we will provide the Planning Office with a list by space
of all proposed retail uses within the hotel for the Planning
Office's approval. The four retail spaces in the building on
Durant are currently envisioned as ski repair and rental shop, a
ski accessory shop and two retail shops for as yet to be
determined tenants.
18) This restriction will be met. The total number of dining
seats in the two restaurants and private dining area Wlil not
exceed 204. The net dining area will not exceed 4,500 square
feet.
1Q) This commitment has been agreed to and will be met.
?mprovements related to Galena Place nave been installed ir.
conformance with the standards of the Lodge Irzprovement District.
Regarding project reviews with the Planning Office we last met in
October to review the status of all projects. At that time we
stated that Spring - Summer of 1991 should see construction begin
on the Ice Rink, L'te City Place and Summit Place in addition to
`the Ritz-Carlton. In terms of processing, 1991 would see the
~inal PUD review on the Ice Rink, and conceptual processing of
tie Phase II Hotei component of the PUD. Additionally, even
though it is not specifically part of the PUD, we will be
processing the rezoning for the Bavariann Inn. We remain on
schedule for these activities despite the recent acceleration of
the review process on the Aspen Meador°s and the consumption of
great amounts of time caused by that acceleration.
j~'ith the minor exceptions outlined herein and given those issues
still outstanding or conditioned upon the application for a
Certificate of Occupancy we are in full compliance with the terms
and conditions of The First Amended and Restated PUD Agreement,
the Section M amendment and all ancillary documents.
!GIs . Amy Maraerum
:~~ompliance Status
February 7, 1991
Page Seven
If you need further information please do not hesitate to contact
me.
Sincerely,
~ ~~~
Perry Harvey, Director
Hadid Aspen Holdings, Inc.
PH/ld
Enclosures
~-/~~ - ~~
April 1 ~7 , 1 '~'~ 1
i~ i t s ~~: ~_~ ~.~ n ~_ i 1 h~ e m b e r s
i~lD ~:~itY Hall
1~~~y ~. i:~alena
F::~:: Juniata 5t r eet and The
Lai tl ± ~mi to T~ {wnF~~~~mes.
gear i~t~~un~~ i 1. p
Un bet~al f ~~~f the U~_~l ~_Emi to '~i 1 1 a Name Uwner Ass~~~~~ i at i ~w~n T
!~ w~~~u1d lif::e t~~~ ~~anvey a series ~~~f real ~~~~~nerns in referen~~e
t ~~~ t tie h::i t ~~ ar 1 t ~_~n Bevel ~ ~pment and the nei gF~b~~{r i nq pr s~~per t y as
ment i ~ ~ned ab~~~ve.
J~uni ata street has served as an a~~_ess t~_~ the the ~-~iuth side
~~~f the the ~_~~nstru~~ti~~~n site. Additi~~~nally, the street
parcel 1 el s the 1 ~_{wer par k:i ng 1 ~_~t {~~f the D~ ~l ~W~mi to T~~twnh;~~mes and
is essential in servi~~inq si~f: ~~~f the twelve units ~:~n the
prs_~perty. As a result, we see residential a{_~Wess t{.{ this
dirt street fr~_~m ~_~wners, tenants and q~.tests. ~:+_~nversely,
there has been heavy equipment ne~_essary f~~~r the ~~~,{nstru~~ti~~~n
~~~n the dirt ~t r eet . E~e~~ cease the street i s dirt , mud and dust
have always been a pri~~bl em.
Perhaps a ~~~~~n~~rete val 1 ey pan i n ass~~~~~ i at i ~_~n with pavement
w~_~ul d a1 1 evi ate the pr~w~bl ems as ment i ~,~ned.
.I..~-~e U~_~l ~ ~mi to !-it~~me Uwners request y~_~ur ~w~~~nsi derat i ~~~n i n the
ab~~3ve ment i ~ ~ned t~~~ be 1 n~~~~~rp~~+r ated ~. n y~ ~~tr ,,)l.tdQements.
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650 South Monarch Street • Aspen, Colorado 81611 • (303) 925-7624
DOLOMITE VILLAS OF ASPEN
Your town>sous~ on Ajax Mountain.
X.d
- ME1rIORANDIIM -
TO: Mayor and City Council ., ,
THRII: Carol O' Dowd, City Manager J ~%`' ~/ ,,
~~~~
'IP/~
FROM: Amy Margerum, Planning Directorr~ ~- ~~
Jed Caswall, County AttorneyP ~ -~~ ~~~~\\
RE: Aspen Mountain PIID: Section M Amendment
DATE: March 19, 1991
SUI~IIKARY
On March 15, 1991, Savanah Limited Partnership submitted a letter
to Mayor Stirling requesting an extension of the construction
deadlines outlined in the Planned Unit Development (PUD)
agreement for the Aspen Mountain Subdivision.
The Ritz-Carlton hotel is only one parcel in the overall PUD,
- however, the completion of the Ritz Carlton hotel drives the
other deadlines in the PUD.
Section "M" of the PUD allows the owner to petition the City
Council for an extension of one or more of the time periods
required for performance. The City Council may grant such
extensions of time as it may deem appropriate under the
circumstances. The PUD goes on to state that:
"The parties expressly acknowledge and agree that the City
Council shall not unreasonably refuse to extend one or more of
the Construction Schedules if Owner demonstrates by a
preponderance of the evidence that the reasons for the delay(s)
which necessitate such extension(s) are beyond the control of the
Owner, despite good faith efforts on its part to perform in a
timely manner."
While the PUD only technically requires a public hearing in the
event the City Council determines the applicant is in "non-
compliance" with the terms of the PUD, it is staff's opinion that
the City Council should hold a public hearing to consider the
request for an extension from the applicant.
In the interim, we will be requesting more information from the
owner as to the specific timeline extensions they are requesting
for each element of the PUD. Staff will prepare a complete
report for City Council outlining the liabilities and planning
concerns associated with another time extension on this
development agreement.
REQIIEST:
Staff requests that City Council schedule a public hearing
preferably at a special hearing to consider the Section M
amendment request.
~--. r-
~~ ::~:~
- M~oxArrDV~-~ -
f~R 2 0 1 ~~1
TAO: Mayor and City Council
T~RLT' Y k ~ Carol ''O' Dowd, City Manager
F~O.~: Amy Margerum~, Planning Directr~r~I~
Jed Caswall, County .Attorney ~ -~~ ~a~`~\
RF: Aspen Mountain PIID: Section H Amendment
Di:P: Match 19, 1991
S~7'~ZY
Ori March 15, 1991, Savanah Limited Partnership submitted a letter
~t~. Mayor Stirling requesting an extension of the construction
deadlines outlined in" the Planned Unit Development (PUD)
agreement for the Aspen Mountain Subdivision.
The Ritz-Carlton hotel is only one parcel in the overall PUD,
however, the completion of the Ritz Carlton hotel drives the
--~
other deadlines in the PUD.
Section "M" of the PUD allows the owner to petition the City
Council for an extension of one or more of the time periods
required for performance. The City Council may grant such
extens-ions of time as it ma.y deem appropriate under the
circumstances. The PUD goes on to state that:
"The parties e}:pressly _ac~nowledge and agree that the _City
Council shall not unreasonably refuse to extend one or more of
the Construction Schedules if Owner demonstrates by a
preponderance of the evidence that the reasons for the delay(s)
~:hich necessitate such extension(s) are beyond the control of the
Oti~ner, despite good f aith efforts on its part to perform in a
timely manner."
While the rUD only technically requires a public hearing in the
event the City Council determines the applicant is in "non-
compliance" with the terms of the PUD, it is staff's opinion that
the City Council should hold a public hearing to consider the
request for an extension from the applicant.
In the interim, we will be requesting more information from the
owner as to the specific timeline extensions they are requesting
for each element of the PUD. Staff will prepare a complete
report for City Council outlining the liabilities and planning
concerns associated with another time extension on this
development agreement.
~ ~
ATTACHMENT C
'~ ??QUEST
~{~~a.f'f reques~:s :?hat C~.ty Coun~:.tl sc~1H~3ule a public hearing
p~r~f erably a+~ a a~ecidl hear;.i1~ to consider the Section M
a.~.::rdmert request .
//--- ~ ~ ~ ~ ~'- 1
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~urnpanies
VIA TELECOPIER
March 14, 19°1
uonorable I~.ayor William Stirling
~:spen City Council
~30 South Galena
Aspen, CO 81E11
RE: Ritz-Carlton Hotel
Dear Bill:
I have just been informed that Savanah Limited Partnership's
construction lender and my financial partner, Sheikh Abdulaz~.z bi:~
---~ Ibrahim A1-Ibrahim, has unilaterally and without consulting with me
decided to cease funding the Ritz-Carlton Hotel project. I
understand that this decision will cause the general contractor,
PCL Construction Services, Inc., to cease construction activities
at the site.
As you know, the Hadid organization has worked diligently and
closely with the City and the citizens of Aspen on this project
over the _last several years ._ _ I had hoped that the Hotel t•: ouid have
been completed and ready f oz.occupancy by the latter part o~ this
year. In fact, I personally believe the construction schedule
should have been accelerated. Unfortunately, my financial partner
appears to have other ti•iews.
I believe the project is well conceived, ~•:oulc be a tremendous
long-term asset to the Aspen community, and sr.ould proceed as
Manned . I believe. the cessation of funding , even on a prel iminary
basis, to be a serious mistake by the lender, but I am unable at
this time to prevent the lender from rna}:ing this decision in breach
of his obligations to me.
I understand that Sidley & Austin, the Shey}:h's laK~ fire:, ~.s
see}:ing a meeting with the C~ty today or in the near future.
Sidley ~ Austin and other .representatives of the Shei~:n ha1~e r}o
_ right, either as construction lender or as non-managing partner , :.o
spea}: on behalf of Savanah Limited Partnership. 1001,, Inc., o~
which I am President, is the managing general partner of the
partnership.
~ E
ATTACHMENT B
~'or_~~i~:~hle Mayor William Stirling
N:a-r.h _4 , 1991
I regret that this situation has occurred. I hope that 4he
existing litigation between the partners and the lender will
resolve these issues in the near future.
Sincerely,
1001, Inc. a District of Columbia
ccrporati n
- /r ~
Dy . ~ G ~ .'
r~~ham n A. H did, President
NiAH/ d j e
cc: William Johnson
~-:orst Schulze
Edward M. Caswall, Esq.
Carol O'Dowd
Amy Margerum
Robert W. Hughes, Esq.
Mark London, Esq.
Phillip E. Himelstein, Esq.
- - Narc I. Y:ayutin, Esq. - -
LAW OFFICES
ONES, HUGHES BL K~TEZEVICH
LEONARD M. OATES
ROBERT W. HUGHES
RICHARD A. KNEZEVICH
OF COUNSEL:
JOHN THOMAS KELLY
Aspen City Counsel
130 S . Galena
Aspen, CO 81611
PROFESSIONAL CORPORATION
THIRD FLOOR. ASPEN PLAZA BUILDING
533 EAST HOPKINS AVENUE
ASPEN. COLORADO 81611
May 1, 1991
AREA CODE 303
TELEPHONE 920-1700
TELECOPIER 920-1121
RE: First Amended & Restated PUD/Subdivision
Agreement for Aspen Mountain Subdivision
Section M Amendment Request of Savanah Limited Partnership ("Savanah")
Dear Mayor Stirling and Council Members:
To supplement the above-referenced request, please be advised of the following
specific extensions of the PUD construction deadlines requested.
By virtue of a previous Section M Agreement granted by the City ~ on June 11,
1990, the current construction deadlines in the Aspen Mountain Subdivision/PUD Agreement
are as follows:
Certificate of Occupancy
Ice Rink and Park 10/1/91
Certificate of Occupancy
Ritz-Carlton Hotel 10/ 1 /91
Building Permit Issuance
Ute City Place 10/ 1 /91
Certificate of Occupancy
Summit Place 8/1/92
Certificate of Occupancy
Ute City Place
(20 months from 10/1/91) 6/1/93
Demolition Permit for Lot 5
Grand Aspen Hotel 10/1/94
GATES, HUGHES & KNEZEViCH, P. C.
Aspen City Council
May 1, 1991
Page 2
Building Permit Issuance
Top of Mill
Building Permit Issuance
Hotel Phase II
Certificate of Occupancy
Top of Mill
(20 months from 10/1/96)
Certificate of Occupancy
Hotel Phase II Lot 5
(20 months from 10/1/91)
Savanah requests extension of these dates as follows:
Certificate of Occupancy
Ice Rink and Park
Certificate of Occupancy
Ritz-Carlton Hotel
Building Permit Issuance
Ute City Place
Certificate of Occupancy
Summit Place
Certificate of Occupancy
Ute City Place
(20 months from 10/1/91)
Demolition Permit for Lot 5
Grand Aspen Hotel
Building Permit Issuance
Top of Mill
10/ 1 /95
10/1/96
6/1/97
6/1/98
10/1/92 (Revised)
10/1/92 (Revised)
4/ 1 /92 (Revised)
S/ 1 /93 (Revised)
6/ 1 /93 (Not Revised)
10/ 1 /95 (Revised)
10/1/95 (Not Revised)
GATES, HUGHES & KNEZEVICH, P. C.
- Aspen City Council
May 1, 1991
Page 3
Building Permit Issuance
Hotel Phase II
Certificate of Occupancy
Top of Mill
(20 months from 10/1/96)
Certificate of Occupancy
Hotel Phase II Lot 5
(20 months from 10/1/91)
10/1/96 (Not Revised)
6/ 1 /97 (Not Revised)
6/1/98 (Not Revised)
Representatives of Savanah have and will continue to meet with City staff to
discuss the rationale for extension of each component deadline and will address these revisions
- at the City meeting on May 16, 1991, in greater detail.
Incidentally, under separate cover Savanah intends to request extension to
September 25, 1991, of the date for final plat submission for the Ice Rink and park component
of the PUD and extension of the conditional use authority earlier granted by the City Council
for use of the Grand Aspen Hotel to house construction workers.
Thank you for your consideration.
RWH/rak
aspnciry.ot
OATES~, HI~';GHES & KNEZEVICH, P.C.
By:
Robert W. Hughes
Attorneys for Savanah Limited Partnership
cc: 1001, Inc./HDC Distribution
AEI/NEI Distribution
Marc Hayutin, Esq.
H~-DID
:aspen
Holdings.
Inc.
May 1, 1991
Mr. Edward M. Caswell
City Attorney
City of Aspen
130 S. Galena
Aspen, CO 81611
Subject: The Ritz-Carlton, Aspen
Section M Amendment Request
Edward M. Caswell letter of April 10, 1991
Dear Mr. Caswell,
Based upon discussions at the City Council Meeting of April 17, 1991, on the referenced subject and
a meeting with the City staff' on April 22, 1991, on the referenced subject, the following are our
comments on your letter of April 10, 1991.
In the City Council Meeting, the Owner of the Ritz-Carlton site, Savanah Limited Partnership,
presented their request for a one year extension of the completion date in the PUD for the Ritz-Carlton
Hotel Savanah also stated that it is not, at this time,' abandoning the project and is continuing
construction, albeit at a slower pace. Work on the site has not ceased, but has been adjusted pursuant
to this slower pace. The Partnership, at this time, does not envision a suspension of construction
activity. Therefore, in accord with our meeting, the following are our comments on each individual
item.
1. As part of continuing construction on the project, work on the shell of the hotel will occur.
(See attached Construction Schedule for the exact work and timing thereof.)
2. Most of the building materials at this time are stored inside of the hotel structure. The
remainder will be hidden from public view in their present location behind fencing with
screening. Some of these materials are not within the hotel structure.
3. The lower sump pumps will not require automatic activation as the construction workers will
monitor the level of the sump and pump it as required. This is the process that has been going
on throughout the construction of the hotel.
600 East Cooper Street Suite 200 Aspen Colorado 81611 (303) 925-4272 FAX: (303) 925-4387
~ ed ;aswell
Section M Amendment Request
Page two
5/1/91
4. See attached Construction Schedule for this work.
5. Openings will be protected during the continuing construction, according to OSHA requirements.
In addition, concrete work will be done on the "garage roof." This work will eliminate a lot of
the open, unsafe conditions on the hotel plaza area. The construction cranes have been
removed.
6. The contractor will continue their temporary utility services as required for construction. Since
construction is continuing, a diagram illustrating utility systems on site at this interim stage
is not appropriate. As-built, underground utility drawings in public right of ways, have been
provided to Bob Gish. There is one outstanding as-built that needs to be provided, and that
will be provided within the next 30 days.
7. Temporary buildings, trailers and stored materials will still be required since we are continuing
construction. This includes those items on the Top of Mill Street and the Ice Rink parcel.
With regard to the visual appearance of the Ice Rink parcel, we propose moving the fence
approximately twenty feet to the South off the Durant street curb, provide seeding and a gravel
_ _ sidewalk in this area. In addition, the fence parallel to Durant street will be upgraded visually.
Fugitive mud and dust prevention measures have always been required of our contractor and
will be aggressively enforced.
8. Since we are continuing construction, there will be some temporary construction welding,
shoring and bracing in place, but only as part of the construction work. It will not be left as
a permanent situation. Most of this temporary work will be eliminated by the construction that
is to take place over the next four months.
9. The items indicated under this request are not required since we are continuing construction.
10. Three of the four fire hydrants required by the PUD are installed and activated. For the fourth
one, see the attached Construction Schedule.
11. We intend to clean up and straighten up the security fence that is currently in place.
12. This work will take place with the normal sequence of construction. See the attached
Construction Schedule. It ~ does not make sense to install curbs, gutters and sidewalks at this
time, as they will just be torn up by the continuing construction.
13. Jersey barriers will need to be maintained for public safety.
14. The Blue Spruce second level slab will be poured within the next three months. This will
eliminate- most of the debris, temporary scaffolding and form work. See the attached
Construction Schedule.
~ ~1 i.;aswell
Section M Amendment Request
Page three
5!1/91
15. The Grand Aspen Hotel will need to continue as a construction headquarters and housing
facility for the construction workers.
16. Summit Place will be properly secured and part of it will be fenced to prevent any access. In
addition, all of the site will be cleaned up. Also, the west wall will be repaired and cleaned
up. Security persons from the Ritz-Carlton site will monitor the property to make sure that
unauthorized entry does not take place.
17. The Barbee parcel is currently fairly clean. Any minor clean up will be taken care of. The
parcel currently has vegetation and ground cover.
18. The contractor will maintain the construction signage, as required.
19. Dean Street in front of the Grand Aspen Hotel will be patched.
20. A set of sepia as-builts at this interim stage is not appropriate.
21. We know of no outstanding fees or bills due to the City at this time. We are researching one
bill for the Ice Rank that Amy Margerum pointed out in our meeting of April 22, 1991.
In addition, we are meeting with Tim Clarke of the Dolomites and Ralph Melville of the Mountain
Chalet to address some of their concerns. Other than the above items, we are not aware of any other
City requests with regard to construction work on the job site as part of our Section M Amendment
request. If there are others, please notify us immediately.
We understand the City's concern about the impact the project has had on the town of Aspen. In part,
that is why we have decided to continue construction, hopeful that we will proceed to complete the
project. Obtaining a one year extension for completion will facilitate our analysis and the opportunity
for completion of the project. Let us know if there is further information with which we supply you.
Thank you for your consideration.
Sin rely,
,~ %'
./ ;' c/
e elz ~/
cc: 1001 Inc. / HDC distribution
Bob Hughes, Esq.
AFB! / NEI distribution
Marc Hayutin, Esq.
Continued Meeting Aspen City Council April 17, 1991
Mayor Stirling called the meeting to order at 5:05 p.m. with
Councilmembers Tuite, Pendleton, Gassman and Peters present.
ASPEN MOUNTAIN LODGE PUD SECTION M AMENDMENT
Mayor Stirling said Council is sitting in a quasi-judicial function
to review a request from Savanah Ltd. Mayor Stirling said there is
no specific information from the applicant for the extension.
Section M states the Council shall not unreasonably refuse to
extend time periods for performance. If the owner demonstrates by
a preponderance of evidence that the reasons for the delays which
necessitate such extensions are beyond the control of the owner,
despite good faith efforts on its part to perform in a timely
manner, Council shall grant such an extension. Mayor Stirling said
Council does not know how long the extension is proposed for, or
for which parts of the PUD the extension is requested for.
Mayor Stirling said testimony in evidence will be given under oath.
Any person may submit evidence. Council may exclude testimony or
evidence it finds irrelevant, immaterial or unduly repetitious.
Persons may ask relevant questions of other persons appearing at
the hearing at the discretion of the Mayor. Mayor Stirling entered
into the record the memorandum April 15, 1991, from Jed Caswall,
city attorney, reference Amendment to Aspen Mountain PUD. Bob
Hughes, representing the applicant, told Council they have no
objection to the time or place of the hearing or notice. Mayor
Stirling said Council may continue this hearing in order to refer
any information gained to staff.
Applicants representatives present were John Sarpa, Parry Harvey,
Ferd Belz in charge of construction and design, and Mohamed Hadid,
Savanah Ltd Partnership, Mark Hayutin, attorney for a partner,
Aziz Al-Yahah, head of partner's company, Charles Wallace, Jim
Imbriana, Partner construction and design, Randy Carroll with
partner.
Harvey, Belz, Imbriana, Aziz, Hayutin, Sarpa and Hughes were given
the oath by City Clerk Kathryn Koch. Mayor Stirling asked if the
applicant was comfortable bringing forward a joint request. Hughes
told Council he is counsel to the partnership, not to the two
partners. This is an application on behalf of the partnership.
Hayutin told Council he is comfortable also. Hughes objected to
Councilman Peters' participation in the proceedings. Jed Caswall,
city attorney, stated on April 23, 1990, Savanah appeared before
Council regarding construction headquarters for the Ritz and no
objection was raised regarding Councilman Peters' participation in
that decision. Caswall said on June 11, 1990, Savanah appeared on
-~, a request to extend the construction deadlines and did not object
to Councilman Peters' participation. Hughes said their objection
had made earlier and carried over.
Continued Meeting Aspen City Council April 17, 1991
John Sarpa told Council Savanah has not abandoned the hotel project
neither has the Ritz has abandoned the hotel. Sarpa reminded
Council last February there was an election on this project; there
have been lawsuits and controversy surrounding the project; there
has been a section M amendment on completion dates. After the
February election, it was early June before all hurdles were taken
care of and a clear construction signal was available to the
applicants. The construction was very active until August. Sarpa
pointed out in August the conflict in the Persian Gulf began.
Sarpa told Council the construction has not been shut down nor
abandoned. Sarpa told Council in the past few weeks money has been
committed to the project so that construction can go forward.
Sarpa said there is a list of items for the applicants to address
if they are going to put the project on hold for a long time.
Sarpa told Council they are not doing that and are going forward
with construction.
Hughes told Council there are two causes for delay beyond the
applicant's control; the problems in the Middle East, which is
where the funding comes from, and the economic slow down in the
United States, which has hit the resort hotel economy more acutely
than anything else. The Persian Gulf conflict sent chaos to Saudi
Arabian investments throughout the world. Hayutin told Council his
client's money comes from Saudi Arabia. Hayutin said after the
invasion there was a big impact on the liquidity of the riyal. For
some months, American banks stopped confirming Saudi letters of
credit; it was difficult to get money outside of the country.
Hayutin told Council his client is involved in relief and in
rebuilding, which also has an impact.
Hughes noted the general economy has changed some basic concepts
about resort hotels. Sarpa said with the delays in this project,
they were constantly analyzing the hotel program to ensure it would
be a successful and viable program. Sarpa said it became clear the
revenue stream for the hotel was under a strain; hotel occupancies
in general are taking significant dips. Sarpa told Council in an
analysis they came to an alternative with an expanded health
facility program replacing the lowest yield rooms, those in the
back of the Mill street wing. This would change the structure of
building B. The applicants were going to come back to the city and
request whatever was required for this change.
Sarpa reminded Council this project has had inordinate delays,
which have added significant costs to the project. Sarpa pointed
out the change in the roof design had a multi-million dollar cost
increase impact. Hughes told Council that problems with the
partnership internally have had some impact on the pace of
construction. Hughes said there are troubles between the partners.
Because of the gulf war and the economy, regardless of problems
between the partners, they would still need an extension.
2
Continued Meeting Aspen City Council April 17, 1991
Sarpa told Council there are on-going economic analysis, and
analysis of the specific construction schedules. Sarpa told
Council they cannot give a specific date by which to commit. It
will require a number of weeks to determine specific dates for
commitment. Sarpa said the extension request for the Ritz Carlton
hotel is October 1, 1992, one year from the current date. This is
not the opening date of the hotel but the amount of time needed for
an extension to work with staff and to establish specific dates
within that time to perform. Sarpa said there is concern about
the effect a half finished hotel will have on the community. Sarpa
told Council there are some items on the list they can move on
immediately in order to minimize the impacts to public and the
neighbors. Sarpa suggested working with staff to address the other
projects and their time tables, like Top of Mill, Summit Place, the
ice rink. The applicants can then come back to Council with either
requests for extensions or commitments to adhere to the current
schedule.
Hayutin told Council the hotel industry is undergoing dramatic
change. The economics of this project have changed, through no
fault of anyone, in a short space of time. Hayutin said hotels,
particularly destination resort hotels, are generally in trouble
very few hotels are making debt service. Hayutin stated this is a
tough project to make pencil. The applicants are questioning the
income figures, which appear to be lower. The expense figures are
higher; costs have increased. The net result of this is a project
that is a great strain to make economic sense, to be able to cover
any significant portion of the cost to cover the debt service.
Hayutin told Council they are developing data with consultants to
try and see how to make the hotel work; where costs can be cut, how
the income can be increased.
Hayutin told Council the hotel has about $60,000,000 in it, not
counting the cost of money and the other investments of the
partnership in Aspen. One does not walk away from that type of
investment. Hayutin said another factor causing the delay is that
new money put into the project has to be justified. Hayutin told
Council since December $10,000,000 has been put into the construc-
tion of the hotel. Hayutin said there is money waiting to go
forward when some issues are ironed out with the contractors.
Sarpa told Council Savanah Ltd. disagrees on the costs and revenues
of the project. Sarpa stated the project has not been abandoned
and millions of dollars are being spent on this. Sarpa said the
applicants and staff can work together to come up with a time frame
and commitments to make sure the project gets done. Sarpa said
they will need 2 to 3 weeks of work with the staff before they can
have a presentation for Council. Mayor Stirling asked how the city
would determine the project is going forward and what criteria
would be applied in order to assess that the project is not being
stopped. Caswall said if Council wants to determine if construc-
3
Continued Meeting Aspen City Council April 17, 1991
tion is going forward in accordance to the commitments in the PUD,
there should be members of staff present to provide testimony
regarding the activities at the site. Mayor Stirling said he would
like the record to show what the level of activity is going to be
so Council can assess that in the request for extension. Hayutin
told Council they will not be able to tell Council the exact
progress because of the economic issues. Hayutin told Council in
the next stage of construction, there are two things for which the
money is available. Ferd Belz said there will be quite a lot of
construction activity, pouring concrete, doing enclosure on
buildings. Sarpa said the applicants need to meet with the
building department and review the matters they would like
addressed and then start to establish schedules with them.
Councilman Peters asked if the request for an extension failed, if
the applicants intend to finish the project on time. Hughes said
they cannot make the October 1 deadline. Councilman Peters asked
if all other elements of the PUD also slip. Hughes answered not
necessarily, but they need to review this with staff. Councilman
Peters asked what kind of financial assurances the applicants would
be capable and willing to offer the city to consider when consider-
ing this extension. Sarpa said any request that would relate to
the increase of the costs causes additional problems for the
project and does not present an opportunity to go forward in a more
assured way. This would bring greater unpredictability.
Hayutin told Council his client is not prepared to incur the
expense or to move the risk to make those kinds of assurances.
Hayutin said they want to see any money go into the project.
Hayutin's client is not prepared to increase the collateral which
the city now has as a sine qua none of the extension. Hayutin said
he understands the reason for the suggestion of a performance bond;
however, they will not do that. Hayutin said his client is still
struggling with the economics of the project; something which
increases the financial burden makes it impractical to go forward.
Hayutin said they will not walk away from the investment but will
not dig a deeper financial hole without examining each step.
Hayutin said giving the city a $25,000,000 is not consistent with
what they are trying to accomplish. Hayutin said the answer is no.
Councilwoman Pendleton said she favors this project and wants to
see the Ritz Carlton built. Councilwoman Pendleton said she would
like more proof that they will stick with this for another year.
Councilwoman Pendleton asked with $90 to $100 million in the
project, when does it become economical to walk away. The city has
to have assurances that things will work out. Hayutin told Council
they have seen nothing to indicate they will build less than a 5
star hotel or build fewer rooms. Hayutin said they hope to build
the hotel the voters approved. Hayutin told Council both the
city's and the applicant's interest for the present is to increase
4
Continued Meetinct Aspen Citv Councl_ April 17, 1991
the likelihood of the hotel being built. This likelihood is
increased if the extension is granted and reduced if the extension
is not given. Hughes said the proposal before Council is a way the
partners may be able to work a way out of the problem and get the
hotel built. The problems will be increased if they cannot get an
extension.
Sarpa told Council he will get direct communication from Ritz to
Council that they are still interested in this hotel. Sarpa
reiterated they are asking for a one year extension of the October
1, 1991 date. Sarpa told Council the applicants need to discuss
with staff what needs to be accomplished by that time. Sarpa said
the certificate of occupancy is there is insure that the impacts on
the city have been eliminated. Sarpa told Council the applicants
have concluded that within the one year time frame the project can
be complete as the voters have approved it in a way that will meet
the various criteria in the PUD.
Mayor Stirling asked if the Meadows is a discrete and separate
project from this. Sarpa answered they do not envision having
discussions with the staff, and yes this is discrete. Sarpa said
in the past when they have been asked if there is relationship
between the Meadows and the Ritz; they have said no. Sarpa said he
feels they have maintained this separation rather well. Sarpa said
they have done their best to keep the Meadows on track; the Meadows
project has been approved by P & Z. Sarpa told Council the
partnership intends to maintain the separation. The only way this
may occur differently is if the Ritz asset, if this is not resolved
with the Council and it does become an unresolved matter, the
partnership will look at all assets in Aspen. Hayutin concurred.
Mayor Stirling said the applicants have mentioned reducing the room
count for a health club. Mayor Stirling pointed out there was
always a certain number of rooms placed on the table by the Ritz
below which the applicant could not go without getting a return on
investment. Sarpa said that was driven on how much money a hotel
can generate from its facilities, including the meeting rooms,
banquets, food and beverage and hotel rooms. The previous design
had a very small health facility. Sarpa said as the market begin
to change and soften, the applicants looked at other hotel
functions that they could generate revenues from. Sarpa told
Council they have started to conclude that by removing a small
number of rooms, the rooms that yield the least, and inserting a
major health facility which will generate the same amount of
revenue or even more.
Mayor Stirling said in the construction scheduling there is no
mention of the third building, the building on Mill street. Sarpa
said there is no intention to start on that building in the next
couple of weeks. Mayor Stirling pointed out Savanah requested an
5
Continued Meetina Aspen City Councl__ April 17, 1991
extension in 1988 with the intention of a major redesign of this
project. Mayor Stirling noted the city did not initiate any of the
lawsuits which also caused further delay.
Hughes told Council they are at a point where they are trying to
make the project as viable as possible to continue building. One
way to prevent this is by increasing the cost. Councilwoman
Pendleton said there is so much money invested in this project;
there must be some money to finish the project. The city has to
ask for a performance bond. Sarpa said in conjunction with
Savanah's partner, they have agreed to ask for a time extension.
They have not come in to drop any commitments or to change the deal
with the city. Sarpa said they hope to be able to work with the
city and get this extension and to minimize the impact of the
project and not increase the financial burden of the project.
Mayor Stirling said the entire community has worked very closely
with Sarpa, Harvey and Hadid and has established a relationship
with that entity. There is concern that in one year the community
may not be working with that entity.
Mayor Stirling opened the public hearing.
Richard Roth was given the oath. Roth said there is a legal
dispute filed between the two partners. Roth asked what this
dispute is. Hayutin said they would be willing to provide
pleadings that are a matter of record. Hayutin said there are
several disputes and actions by 3 different partnerships in which
entities that are affiliates of the entities of this partnership
are also involved in New York, D.C. and Aspen. There are disputes
between the partners as to who is currently entitled to act as the
managing general partner. There are disputes over various fees,
charges, budgets and there is a separate action by Hadid for fees
involving both these projects and projects that are not involved in
this partnership. Sarpa told Council they continue to function as
the managing general partner of this partnership as well as the
others until this dispute is resolved.
Roth requested the proceedings be part of the record of this
meeting. Hughes said partnership turmoil is not one of the reason
for the extension. Hughes noted partnership turmoil is within
their control. Jed Caswall, city attorney, said Council can ask
for and admit into evidence that information it deems is pertinent
and relevant. Councilman Peters said to request these disputes
would suppose Council would be able to read them, digest them and
make a judgement on the outcome. Councilman Peters said he would
rather be concerned with assurances, plans for the hotel. Council
agreed these are not interested in receiving these pleadings.
Roth stated Council should not grant an extension to the Aspen
Mountain Lodge PUD before addressing the ice rink and the park on
6
Continued Meeting Asuen City Council April 17, 1991
Durant. These should be completed before any construction is
allowed on the hotel. Roth said Council should re-examine the
number of actual employee housing units being provided by this
hotel project. Roth entered into the record exhibit #1 literature
put out by Ritz Carlton and paid for by Hadid Aspen Holdings mailed
to every registered voter and run in newspaper ads presenting the
position of Ritz Carlton on affordable housing. Roth said the
literature states that Ritz has budgeted over $8,000,000 for
related affordable housing. Roth said he would like this examined
to see where the $8,000,000 was spent and that the applicants be
committed to a construction schedule and that bonds be posted to
see that this housing will get built.
Roth said he would like explicit language added to the agreement
that this project will not be turned into free market, for sale
condominiums. Roth noted he has always said the project was not
economically feasible and the applicants would like it to be sold
as free market condominiums. Roth said he would like Council have
the developer make the project conform to the picture sent out to
all voters and certified as an accurate picture. Roth submitted
this picture to the record as exhibit #2. Roth also submitted as
exhibit #3 a photograph showing the true roof line. Roth requested
this hearing be extended so that any public wishing to comment will
have that opportunity. Hughes asked if anything is inconsistent
with what has been approved by the city. Amy Margerum said no.
Jim Curtis was given the oath. Curtis told Council he did some
employee housing work for the project in 1983 and 1984. This work
has been questioned by both the housing authority and city staff.
The specific questions have been the employee capacity of the
Copper Horse and the Alpina Haus. Curtis said he would like to see
this issue resolved and would like to know what is the appropriate
employee capacity of these two properties. Curtis said in the PUD
agreement, the commitment regarding Ute City Place is quite loose.
Curtis said this should be defined in these discussions with the
applicant. Curtis pointed out there is no mention of the Bavarian
Inn in the PUD agreement.
Les Holst was given the oath. Holst suggested the Savanah group be
given a 12 month extension for the Ritz Carlton, specific condi-
tions are that they post a $10,000,000 bond or a bond equal to 10
percent of the proposed project, whichever is greater, all projects
to be involved. If Savanah cannot produce the bond amount, this
bond is to be secured by a first deed of trust against the property
known as the Meadows in its entirely and all of Aspen property. If
any of these parcels sells, the cash distribution shall be as 80
percent to the town of Aspen until the bond requirements are met,
20 percent to Savanah. The further requirement to this extension
is that either a member of Council or public at large sit on the
board of directors of Savanah. If there is a sale of the Ritz,
7
Continued Meeting Aspen City Council April 17, 1991
this seat carries a 50 percent vote. Holst said most of the
presentation by the applicants was that this was a high class
project. Holst said he sees a garage sale coming up. Holst said
the town needs to be protected.
Tim Clark was given the oath. Clark, representing the Dolomite
condominium association, gave Council a letter for the record.
Clark said Juniata street is a dirt street and requested expediting
paving Juniata street and doing some of the landscaping in an
effort to give the south side of the development a more finished
look. Hughes said the applicant has committed to doing these type
of things in exchange for using the air space for the cranes.
Clark stated the developer and contractor have been very sensitive
to the needs of the homeowners. Belz said the contractor has been
in contact with the Dolomites to discuss the specific time table of
doing some of these improvements.
Michael Kinsley was given the oath. Kinsley strenuously objected
to the procedure, which sets up a level of intimidation to the
publics and is unprecedented. Kinsley said this procedure is
placing the public in the position of being cross examined by
attorneys as if it were judicial hearing. Kinsley said he hopes
Council will outline the implications of both yes and no options.
Kinsley said if this continues to be a construction site for a long
time, the financial impacts on sales and rental of adjacent
properties may exist and there may be a question of compensation
against this development. Kinsley said also if the project is
going to be stopped for a long time that it be buttoned up.
Kinsley said otherwise Council needs to be very clear about what a
minimal level of activity is in order to keep this project actively
moving along.
Mayor Stirling asked about the approvals if an extension is not
granted and the applicants do not make the October 1st date. Jed
Caswall, city attorney, they could arguably be in violation of
their PUD agreement. If they fail to adhere to one provision of
the agreement, potentially all of their development approvals could
be subject to revocation. Mayor Stirling said in the April 10th
letter from Caswall, there are 21 suggested actions which consti-
tute a buttoning up of the project and will be a subject of
discussion between the applicant and staff.
Councilman Tuite asked how much it will cost to complete the
project. Hayutin said it is not possible to answer this question
until there is a definitive time table. Hayutin told Council the
applicants have been looking at the costs very closely in order to
revise the costs that make the project closer to pencilling.
Hayutin said the applicants cannot give a specific number today.
Sarpa said they would like to be able to answer this more specifi-
cally over the next month.
8
Continued Meetina__ Aspen City Council April 17, 1991
Steve Goldenberg was given the oath. Goldenberg asked if the
applicants are considering not finishing the project . Hayutin said
the 3 to 5 year comment referred to a "what if" scenario. Hayutin
said not to prejudice anyone's position, the 3 to 5 years comment
is what happens if the extension is not granted; the hotel does not
have its certificate of occupancy on October 1 and the city decides
to take a course of action which would take away the entitlement
including the dirt, foreclose on the PUD, there is a possibility
one could have litigation or whatever over the course of those
years. Hayutin said he was not referring to a 3 to 5 year
construction process. Hayutin said he is not able to tell Council
this hotel will go forward and there will be a Ritz. Hayutin told
Council his partners would like them to be able to say that;
however, they are not able to say it until the economic issues are
addressed. The economic issues are real and are serious. Hayutin
said they have not given up or abandoned the project. They are
still putting significant money into the project. Sarpa said his
side of the partnership does not have that position. Their intent
and commitment is different.
Goldenberg asked what number the applicant used when they were
pencilling. Hayutin said he would rather not say. Goldenberg said
when the voters approved this hotel in February 1990, there was
nothing raised about the doubt of this project being completed or
not. This is a new issue and should be discussed publicly.
Goldenberg said if there is a substantial doubt this project is not
going to happen, he would not like to see an extension granted
under any conditions. Goldenberg said one problem is that a
completion bond was not required as part of the PUD. Goldenberg
said if an extension is granted, there should be an irrevocable
completion bond. Goldenberg said if the applicants feel this
adds too much financial burden to the project, perhaps the Meadows
or some other property should be deeded over to the city as
collateral. Goldenberg said the city should not sign an extension
without also having a signed finalized Meadows agreement.
Mick Ireland was given the oath. Ireland asked if the applicants
will have to ask for another extension in October 1992. Hughes
said he cannot answer that. Ireland asked how long it will take
the applicants to get the hotel done if they are given the
extension. Hughes said it will be done by October 1, 1992.
Ireland said a reasonable extension is in the public interest.
Mayor Stirling moved to continue the hearing to May 16, 1991, at 5
p.m. and direct the staff to coordinate and work this with the city
manager according to schedules, etc., and work with Savanah
Holdings on the two issues, list of community impacts as per the
April 10th letter from Jed Caswall to the applicant and to address
all other projects in the PUD discussing dates and timing, etc.;
seconded by Councilwoman Pendleton.
9
Continued Meeting Aspen City Council April 17, 1991
Councilwoman Pendleton said she would like a discussion from staff
on what would be an appropriate bond and is it too early to discuss
an amount for a bond. Caswall said it is not too early to discuss.
Caswall said the building department has estimates of the construc-
tion activity. The city could use that figure to start talking
about a bond amount. Councilwoman Pendleton said she would like
Council and the applicant to discuss level of construction, what
constitutes construction and what constitutes shut down. Council-
woman Pendleton said she would like staff to spell out consequences
of a yes and a no decision. Harvey suggested a site visit by
Council and staff.
Councilman Peters said he would not be prepared to grant the
extension right now. Councilman Peters agreed it is in the
public's interest to finish the hotel. Councilman Peters said he
is not convinced granting an extension right now will finish the
hotel. Councilman Peters said he has heard it will take a year to
finish the hotel; there are 5-1/2 months left to the project
deadline. Right now the project is 6-1/2 months behind schedule.
Councilman Peters said it is disturbing to find out a project is in
so much trouble at a late date. Councilman Peters said representa-
tives of financial interests in the partnership state the project
as now designed is unfeasible and some change may have to be made
to make it feasible; these changes are not determined. Councilman
Peters said this is a matter of great public interest. Councilman
Peters said the quid pro quos for this project are also behind
schedule; there is no employee housing, the rezoning for the park
and ice rink is not complete. Councilman Peters said the project
should be finished, but not at all costs. If the project were
completed, the city would be receiving sales tax revenues, as well
as received the water tap fees.
Sarpa said the applicants will meet with staff to discuss the
timing of the other parcels in the PUD, they may not change.
Councilman Tuite said Council needs to protect the city and the
citizens. This is a project in serious trouble. Councilman Tuite
said this project needs to be completed as soon as possible.
Councilman Tuite said he wants bonding to secure this project and
to secure the community. Councilman Gassman said what concerns him
is getting mixed signals from the applicant
Council adjourned at 7:30 p.m.
Kathryn S. och, City Clerk
10
ti f • !.. .
. ,•
I"`' March 15 , 19 91
-.r.!ir.l.~.:..._F' 1"GiVI..~]' ~~~~.lll~~~:n ~ ~-~r.~i.nu
1 J
A~ : ~•~'~ ~_ i t y ~ounc i t
r~~t~En, Co.i.c~rado ~,, Ali
~~~f..~ N.::~~~c.r and Courl~, it
., - Y ..., ~.. -
in ac: ~rdanc~-: ~•~ith Sect?.on "M" cf. the First Amend =d and' Restated
Y
-r-i rJ ~~,•` S u'.~!?..: ~% 1 ~»_ i~ ?l r: . ~: E? e fi 2 n t ~ o ,,_ A S ~> t o ~': v i1 r, i:. c', .L :1 S U ~Jd 1 V 1 S 1.O I l W E a r e
pF:`..i t:i.~ ~r:~r.~ C:3 ~~.y C~~un ,_il fcr 4~.n ex~_en:~~.~:~.. of ~~le P(.?D ccnstru~~`
c?e,. dlines .
t~` feel that, for reasons r~eyond our cont?-ol, and d~~~~pite o~.i best
i ~ ::r ~:.:': we <~ 31'i :'.~' t,C:lC~E-' I.' ~~N' : °_?:..R_.~ ~.lT!~ L ?C1W...nr`:' .
Please con~act ups ~~.~ Yh the date and ~.ime o~. the ex~.ension hears_ng .
v ~ -
;~ ,
~~
,,.~y , v •,....
':r . k'~ot~er ~~ Hu yes
~~.PS, ~iU:'}'!_._'.S 2!'lt?. ~'~.~P,2.eV3:.iI
?-.~ ~crnFy f ~-r Savar.ah 1~~.nited Partnership
F'E~i~1r,
~~/1'f ._... ~. '~,U~)~1. ~:!'!•, ~~:. .. ~~~~~~ t~jll'11 ~~~Ulo;-ado ~]6]i I.j~),~1 ~~~~?-~: ._ ~-t~.\' iJt)3~ ~~'.:a-i ~~~~
'~ ~=. ~F f. er tc~ Sa~janah Ltd. Partnership
Apa' i1 10, 15:1
't='3c~e 4
a~~ . Dr~«n StreQt iz front of the Grand Aspen Hotel shall be
~rlear~:d, res~cored and repaired to no less than minimum street
standards.
~'; . A set of sepia as-k~~j ~.lts reflecting all work to date
sr.~.~ll~ r a provide~~ a.nd kept on f le with the Building Department .
~. , All our: standing biyl , and fees due the City shall be
~~a d i:n ~~~ediately .
`.~'~ , :~ items 1 fisted .3k~ove do not ~crstitute a final and complete
:agenda ~:~f matters that must b~~. addressed and satisfied and addi-
i ;anal _;_tems may ne identif ie~;. as .they become known .
T.s you can see from the list ~~f concerns provided above, the
City's intent is to insure that the Aspen Mountain PUD site is
r. estorPd to a condition of nc~ ~~~~n..:~lcy to the maximum extent possi-
_--~ b~.F . The construction of th:~ rotel has had an enormous adverse
impact on the City and the City is now going to insist that
Savar.ah mit?gate a:~d remediatE those problems which have in the
east k~Een allowed to go unres~~i :red in view of the previous on-
going construction activities. As a resort community which
s~.gnaficantly rel. Es upon it:.; ~:;.storic and aesthetic character
for its economic survival, the City of Aspen cannot any longer
tolerate the disruption of a major portion of its downtown area.
The City lo_ cks for~~ard to Sa~ranah's responses and assurances on
Ap7: i~ 17th r~levar,';. ~ to the m~it tErs listed herein .
Thank you.
Very truly yours,
Edward ~~. Caswall
Ci~.y Attorney
EMC me
cc: City Manager
Director of Public Works
Chief Building 4fficiai
Fla~~r:irg Director
~.,~~Lte:~ ~to Sa.vanah Ltd. Partnershi~~
Ar..1~ 1V, i:3~i
~'~~e 5
:•~ . ''e: tee: ti,:~~.z ~~ of tr~.e FXID
~o}.,~~~rt W. Huc~~hes, Esq.
Perry A. Harvey
i~++~: r• : I . Ha ~LCin, Esq
i
~-,,,, ~~ ~ ~ , ~.l -
,~:s.~en
~oldin~s,
I"`" March 15 , 1991
Honorable Mayor William Stirling
Aspen City Council
130 South Galena
Aspen, Colorado 81611
Dear Mayor and Council:
~~~~gD
IVY 1 S 1991
CITY ATTORNEY'S
OFFICE
In accordance with Section "M" of the First Amended and Restated
PUD/Subdivision Agreement for Aspen Mountain Subdivision we are
'~ petitioning City Council for an extension of the PUD construction
deadlines.
We feel that, for reasons beyond our control, and despite our best
efforts, we can no onger meet existing deadlines. .
Please conta t u wi h the date and time of the extension hearing.
Si cerel ,~ - - - -
1
Mr. obey Hu es
Oates, Hughes and Ian zevich
Attorney for Savanah invited Partnership
PAH/ld
600 East Cooper Street Suite 20U Aspen C'.ulorado 81611 (303) 925-42 7 2 FA~i: (3031 925-4387
G~ ~ -" ~
ASPEN DAILY NEWS, Wednesday, Apr[13,1911 P ag z 3
Aspen Daily News t Hal Clifford
The photos above show two renderings of how the Ritz-Carlton hotel was projected to look over a yearago, prior to construction of the superstructure, and two pictures taken
Tuesday from fhe same vantage points in Wagner Park. On the upper left is the photograph used by the hotel de:~eloper in a campaign flyer. The developer took a picture
from the centerof the park andthen added an artist's rendering of howthe finished hotel would look (black lines point to the artist's conception of the roof line). On~the lower
left is a photograph taken from fhe same spot on Tuesday, showing construction on the Ritz to date. On the upperright is a photograph taken by hotelopponentsfrom aslight-
lydifferentposition in Wagner Park, with the bold black line signifying their interpretation of the ultimate roofline on the building. At lowerright is a photo taken yesterday from
the same location.
Ritz Roofline Appears To Exceed What Developers Promised
By HAL CLIFFORD
Aspen Daily News E~ecuGve Editor
Veteran Ritz-Carlton hotel opponents
say they have been vindicated in their
claims that the controversial hotel is
bigger than the. developer ,promised it
would be -and photographic evidence
appears to bear them out.
Nick Dewolf and Jim Curtis, who last
winter helped form Aspenites for a
Smaller Hotel (ASH) and campaigned
against. the size of the 292-room Ritz,
asked reporters to return to WagnerPark
Tuesday to look at the size of the partial-
ly completed building.
REFERRING TO touched-up
photographs used during last winter's
heated election on the hotel, the pair said
their interpretation of how high the
building would be was in fact correct.
The touched-up photos were created last
year by both the developer (Mohamed
Hadid}, and ASH, to demonstrate to
voters varying interpretations of how big
the finished hotel would be. At the time
only foundations were in, and voters
were being asked whether to approve
consbuction of the building. Much of
the debate focused on the visual impacts
of the building.
The hotel passed the February plebis-
cite by a 3.2 margin.
"It was a deliberate falsi-
fication, in my opinion."
Nick Dewolf
Hotel Opponent
On Tuesday, the hotel roofline
appeared to be significantly higher than
the developer promised in a widely-
circulated flyer used for the Feb. 12,
1990 election.
THE PHOTOS on this page show the
artist's rendering of the Ritz created by
the developer and used in the flyer, and a
photograph taken Tuesday from the
same spot as the one for that graphic.
There is also the rendering developed by
Curtis based on a photo from a different
spot in Wagner Park, and another photo
taken yesterday from the same location.
The latter two - ASH's version and
what was actually built -appear to
match up more closely.
"I would like to say not only are we
correct, but were they intentionally
incorrect?"Dewolf said. "It was a delib-
erate falsification, in my .opinion."
Both men said they considerthe argu-
ment over the hotel size to be water
under the bridge, and they would like to
see the troubled project finished. But
they clearly felt their integrity had been
impugned during last winter's election
by hotel supporters who claimed ASH
was exaggerating the completed size of
the hotel. Although the hotel is not done,
its roofline has been laid, giving a good
idea of its final visual impact. The
Spruce Street addition, a wing on the
northwest corner of the property and the
facade which would be mast visible
from Wagner Park, has not been
completely raised.-
Work on the unfinished Ritz has
ground to a halt since the chief financier,
Saudi Arabian Abdul Azziz al-Ibrahim,
cut off funding for the project (variously
estimated to cost between $70 million
and $150 million) several weeks ago.
"I WOULD like to put the planning
department of the city and the architects
of the city on notice that when a public
issue comes up, the data should be accu-
rate so the public impacts can be
evaluated," said Dewolf.
A call to developer representative and
attorney Bob Hughes Tuesday was not
returned.
Dave Savard Enters Council Race
Daily News Staff Report
Dave Savard entered tffe Aspen City
Council race Tuesday to represent the
"silent majority" of over-worked and
under-represented employees in the
valley. .
Sava>td, 25, said he wants to get his
peers "registered and involved in the
process."
"Each of these people have 10 ideas,
but no one is listening," Savard said
Tuesday.
Savard works at Bonnie's and as a door-
man at the Cooper Street Pier in the
warm months.
He said "people don't enjoy them-
selves as much as they used to" in the
valley because they're "working three
jobs and six nights a week" to pay the
bills.
The answer, however, .isn't "More
people. More tourism. More sausage
through the machine," Savard said
THF. TRICK he said, is not to push
for more tourism numbers, but to do
Please gee SAVARD on pie i2
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Option A -The Ritz-Carlton, As
A Good
Fit For
Aspen
Paid for by Committee for Fairness
Georgia Taylor, Treasurer
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pen
Photographic accuracy verified by Hagman Yaw Architects, Ltd.
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Vote for O tion A - On #5