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HomeMy WebLinkAboutminutes.council.19950724Aspen City Council Regular Meeting July 24, 1995 Mayor Bennett called the meeting to order at 5:05 p.m. with Councilmembers Marolt, Richards and Paulson present. GOVERNOR’S SMART GROWTH & DEVELOPMENT AWARD AACP Stan Clauson, community development director, told Council Governor Romer gave out 32 awards to communities across Colorado for smart growth programs. Aspen entered and won for the Aspen Area Community Plan. Clauson presented certificates to Amy Margerum, Leslie Lamont, Cindy Houben, Suzanne Kochan and Diane Moore for their work on the AACP. CITIZEN PARTICIPATION 1. Phoebe Ryerson presented a plan for the entrance into town with a 4 lane down Main street. Ms. Ryerson said she is going to send copies of this plan to city of Aspen, Pitkin County, hospital and school employees so they can see what one alternative may be. COUNCILMEMBER COMMENTS 1. Councilwoman Richards moved to table Ordinance #32, Series of 1995, Text Amendment School District Fees, to August 14, and to remove Moore Water Policy Discussion; seconded by Councilman Marolt. All in favor, motion carried. 2. Mayor Bennett suggested switching the order of Ordinances 33 and 34 under public hearing. Council agreed. CONSENT CALENDAR Councilwoman Richards moved to read Ordinance #36 and 37, Series of 1995; seconded by Councilman Paulson. All in favor, motion carried. ORDINANCE #36 (Series of 1995) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, TO AMEND SECTION 23-44(A)(4) OF THE MUNICIPAL CODE RELATING TO EQUIVALENT CAPACITY UNIT CALCULATIONS FOR IRRIGATION, AND TO AMEND SECTION 23- 1 Aspen City Council Regular Meeting July 24, 1995 71 OF THE MUNICIPAL CODE TO CODIFY ORDINANCE NO. 27 (SERIES OF 1995), WHICH ESTABLISHED A SCHEDULE FOR PARTIAL TAP FEE WAIVERS FOR MIXED FREE MARKET AND AFFORDABLE HOUSING PROJECTS IN AH ZONE DISTRICTS ORDINANCE #37 Series of 1995 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, AMENDING CHAPTER 24 OF THE MUNICIPAL CODE, LAND USE REGULATIONS, BY AMENDING SECTION 24-5-412(c)(3), TEMPORARY SALE SIGNS were read by the city clerk Councilwoman Richards moved to adopt the consent calendar, excluding Ordinance #38, Series of 1995; seconded by Councilman Paulson. The consent calendar is: · Ordinance #36, 1995 - Tap Fees for Irrigation · Resolution #46, 1995 - Authorization to Spend 1/2 Cent Sales Tax · Resolution #48, 1995 - Approving Expenditures to be Funded from the Aspen Parks & Open Space Fund · Ordinance #37, 1995 - Code Amendment - Temporary Signs · Minutes June 26, 1995 · Changes to Grant Guidelines for Childcare Advisory Committee Roll call vote Councilmembers Marolt, yes; Richards, yes; Paulson, yes; Mayor Bennett, yes. Motion carried. ORDINANCE #34, SERIES OF 1995 - Tree Protection Rebecca Baker, parks department, told Council this section of the code was enacted in 1976 and this revision updates the section and closes some loopholes. The original ordinance did not require a permit for relocation of trees, which this addresses. This is also more responsive to larger trees, which can be difficult to move. Relocated trees must survive for one year for deciduous trees and 2 years for coniferous trees. The ordinance establishes a payment in lieu system for trees not replaced on site. Ms. Baker pointed out Gamble oaks have been added as they are a native species. Mayor Bennett opened the public hearing. There were no comments. Mayor Bennett closed the public hearing. 2 Aspen City Council Regular Meeting July 24, 1995 Councilwoman Richards asked if there are guidelines for moving trees. Ms. Baker said there are guidelines and they will be revised when this ordinance is adopted. Councilman Paulson moved to adopt Ordinance #34, Series of 1995, on second reading; seconded by Councilwoman Richards. Roll call vote; Councilmembers Paulson, yes; Marolt, yes; Richards, yes; Mayor Bennett, yes. Motion carried. ORDINANCE #33, SERIES OF 1995 - Grand Aspen Demolition Extension Leslie Lamont, community development department, told Council the applicants, Savanah Limited Partnership, is requesting to extend the deadline by which to demolish the Grand Aspen. Ms. Lamont reminded Council there have been several amendments to the Aspen Mountain PUD, the most current set the demolition deadline for October 1, 1995. The applicants request an extension to May 1998 to better track with the development for this portion of the PUD. At first reading Council requested an analysis of the lodge unit allotments. The original PUD took into account existing lodge units on site and lodge unit allocations, the applicants received a total of 447 lodge units that could be built as part of the Aspen Mountain Lodge. This was amended and reduced the total of lodge rooms to 342 room. The Ritz Carlton site was approved at 292 rooms and the Grand Aspen site was approved for 50 units. There are actually 257 rooms at the Ritz. The Grand Aspen has 150 rooms in operation. There are a total of 407 units in operation on the Aspen Mountain Lodge property. If the Grand Aspen is not torn down in October, this property will not be in compliance with their agreement by 65 rooms. Ms. Lamont reiterated the Grand Aspen site is limited to 50 rooms; they should not be able to use the 35 rooms not built at the Ritz. Ms. Lamont told Council there was a recent audit of the Ritz employee housing mitigation and they were found to be in compliance with that requirements. The Copper Horse and Alpina Haus were deeded over as employee housing as part of mitigation for the Ritz and have recently been found by the housing office to not be in compliance with their agreements. Ms. Lamont suggested an additional condition of approval to read, “That Savanah Limited Partnership will take all steps reasonable and necessary to enforce all of the deed restrictions placed on the Alpina Haus and Copper Horse properties to insure that Savanah has complied with their employee mitigation plan”. 3 Aspen City Council Regular Meeting July 24, 1995 Council had asked what would be the operation measures of the Grand Aspen if they received an extension. Small lodge owners voiced concern about the continued operation of the Grand Aspen. John Sarpa, representing Savanah Limited Partnership, said they intend to demolish the Grand Aspen. The reason for the extension was to let the applicant and the community recover from the approval and construction process for the Ritz Carlton and then the approval process of the Aspen Meadows. Sarpa told Council they have met with staff on the process for approval of the Grand Aspen and the Top of Mill site. This has required months of analysis and planning. Sarpa said they feel it will take 18 months from submittal to approvals. Sarpa said the 105 room reduction between the original approval and Savanah’s approval was the result of the community process. The replacement credits which account for 275 units remain unchanged and 67 units came from the lodge quota. Sarpa noted the PUD agreement required the applicants deed restrict 7 rooms at the Grand Aspen for employee housing; 4 of these are for the Ritz and 3 of these are for the ice rink. Sarpa said the applicants have tried to reduce the impact on small lodges. The applicants have met with the M.A.A. and offered them a 3 year contract committing 70 rooms in each of the 3 years at a rate of $16/night/person. Sarpa said this is selling the Grand Aspen rooms at a 75 percent discount. Sarpa said in order for the applicants to do this, they need cash flow from other seasons. Sarpa said SLP suggested to the small Lodge owners that the Grand Aspen be allowed to sell their lodge rooms at going rates for 5 weeks and to block the rest of the year 70 rooms for groups only. Sarpa said the applicants feel this is meeting the objective of eliminating the 65 rooms competition with the small lodges. The group representing the small lodges felt 5 weeks is too much and requested the applicants look at 4 weeks full market rental. Sarpa told Council this works out to 19 weeks for the M.A.A. contract; 16 weeks for groups only, 4 weeks at open market and 12 or 13 week closed. Sarpa said the “group booking” will be 10 people or more. Walter Eisenberg, Sage Hotel operator, told Council their company is based in Denver and operates 60 hotels across the country. Eisenberg said Sage has been involved in the Grand Aspen hotel since 1984 under management agreements with various owners. In 1994, the Grand Aspen hotel paid over $200,000 in taxes to the city and county. The Grand Aspen hotel employs 55 year round and 25 seasonal employees with wages totaling over $1 million. The facility was renovated in 1987 4 Aspen City Council Regular Meeting July 24, 1995 and there is an annual capital maintenance budget of $150,000. In 1992 $300,000 was put into the hotel after it was used as construction housing. Jeff Dougan, general manager Grand Aspen, told Council their increase last year was 16.3 percent in repeat guests as well as referral business. Dougan said he feels the Grand Aspen fits into a market niche in town, especially for groups and mid- income groups. Their groups range in size from 10 to 120 with an average size of 55. Les Anderson, chairman Aspen Music Festival and School, supports the extension request. Anderson told Council annually the Music Festival brings in about 1000 students, 200 faculty, artists and families. Anderson said housing prices have gone up and the number of available rooms has gone down. Anderson said 280 students are housed in the Marolt facility, 40 in the Holland House, about 200 in single family houses. This year the Music Festival was unable to supply housing for all students who wanted to attend. The Grand Aspen is a good facility because there can be supervisors on site. The Music Festival is requesting a 3 year contract with the Grand Aspen. During that time the Music Festival will be working on getting more housing. Anderson said the Grand Aspen space can not be replicated in town. Sarpa quoted from the PUD agreement that the owner shall be permitted to request an extension of the deadline from City Council. Sarpa said the applicants have the right to make this request. Mayor Bennett opened the public hearing. Doug Niehaus, representing Aspen Lodging Company which manages 8 associations and 1 lodge adjacent to the Grand Aspen Property told Council all these properties are against this extension. Niehaus said they feel the exterior of this building is an eyesore and the building should be torn down. Niehaus said if the extension is granted, the Summit Place condos are supposed to have a garage built by December 1997. This should not be extended along with the Grand Aspen. Heinz Coordes submitted a letter for the public record. Coordes questioned the revenue the applicant states they need for the 4 free market weeks. Coordes said the ACR polled 10 lodges; all lodges are opposed to this extension. John Werning, Mountain House, pointed out this application was approved for 50 rooms on this site. They are currently operating 150 rooms on site. The applicants are operating 5 Aspen City Council Regular Meeting July 24, 1995 65 rooms illegally. Werning said he does not want to see a hole in the ground but would agree to the applicants mothballing 65 rooms for the winter season. Michael Behrendt, St. Moritz, said the M.A.A. is important and he houses at least 30 people. Behrendt said there is a large parking garage below the Grand Aspen which is boarded up and unused. This parking garage should be used. Behrendt said the applicant knew when this deadline was and should have been prepared. Bob Toby, Durant Board of Directors, said no matter when this is done, there will be a hole in the ground. Toby said planning could have been done so that the time there is hole would be minimized. Toby said it will cost less to tear the building down and reconstruct it now. Ann Murchison, Fifth Avenue condominiums, said a lot of time was spent on this process; the applicants should be held to their original dates. Chris Reed, Ullr Lodge, said they do not support the extension request. John Norton, Aspen Skiing Company, said the comments on this have related to competition and eliminating competition. Norton said this conversation may be because of the business climate in Aspen, the lack of airlines flying into Aspen. Irma Prodinger, Hearthstone House, said the small lodges have been trying to talk to the city an make changes to help their situation in general. Chuck Cory, Aspen Reservations, said the Ritz Carlton and Grand Aspen have had an effect on the small lodges. Cory said there has been a significant shift in guest preference from hotels to condominiums over the past few years. Cory said about 33 percent of the summer guests specifically come for the music festival. Cory said meeting space with catered functions is important to groups that want to come to Aspen. Cory said this will be a difficult decision. Sarpa said the Aspen Mountain Lodge has met all their parking requirements. The garage under the Grand Aspen is not part of the PUD and is not usable; it does not meet code. Sarpa said the applicants are trying to take rooms out of competition to help the small lodges as well as meet demands from the M.A.A. Sarpa said when they met with the small lodges, they discussed helping with a marketing effort. Behrendt asked how the city could keep track of something like this proposal. Sarpa said the Ritz has just gone through an audit on their employee mitigation. Sarpa said the city picked someone to do this audit. It was very successful. Council took a 15 minute recess. Councilwoman Waggaman joined the meeting. During the recess she received updates from the applicants. 6 Aspen City Council Regular Meeting July 24, 1995 Mayor Bennett closed the public hearing. Mayor Bennett said this is an extremely difficult issue with no clear right or wrong. Mayor Bennett said it seems excessive to demolish the hotel and leave a hole in the ground. This seems like a punishment. However, to allow 150 free market hotel rooms to operate for 3 more years feels like a punishment for the small lodge owners. There is also a concern over the Music Festival, which is an important organization to Aspen. Mayor Bennett said there are approvals for 50 rooms on the Grand Aspen site after October. There were 342 units planned for both hotels with 407 in existence, which implies there are 65 too many and there should only be 85 on the property. Mayor Bennett pointed out the PUD does allow the owner be permitted to request an extension from Council but does not imply Council has to give approval. Mayor Bennett said the language can be construed that an extension may be given if the city has not approved redevelopment, not necessarily that the applicant has not yet applied for redevelopment. Mayor Bennett said the urgency is caused by the vulnerability of small lodges. Small lodges are part of what makes Aspen special and they are referred to in the AACP. Mayor Bennett said he is inclined to let the lodge stand but to limit the number of free market rooms that can be rented over the next 3 years. Any rooms over that could be used for the Music Festival or for employee housing. Mayor Bennett said the city has to tackle the small lodge issue soon. Councilwoman Richards agreed the applicant has the right to ask for an extension. Councilwoman Richards said the operation of the excess rooms should be separated from the right to extend. Councilwoman Richards said the with proper operation of the rooms, she would be able to grant the extension; however, the proposal before Council is not the proper plan. Councilwoman Richards said the promise of 292 rooms at the Ritz is a promise to the community that has not been fulfilled. Councilwoman Richards said she would like to know what percentage of total beds in Aspen is this proposal. Councilwoman Richards said there are many beds that have been taken off the market. The applicant has taken the Bavarian Inn rooms off the market and they could turn these back into small lodge beds. Councilwoman Richards said she would like the applicant to look at the overall management of the Bavarian Inn, as a separate issue. 7 Aspen City Council Regular Meeting July 24, 1995 Councilwoman Richards pointed out many other businesses besides the small lodges will be affected by this decision. Councilwoman Richards said to have a big hole may place undue pressure on the redevelopment process. Councilwoman Richards said if Council approves the tear down, they will be denying the Ritz right to operate 50 rooms they have the right to operate. Councilwoman Richards said she is concerned about pushing demolition, which will result in a big hole, without a redevelopment plan in place. This will not be a benefit to the town. Councilwoman Richards said there are other discussions to be had with the small lodges besides just eliminating the competition. Councilwoman Richards said if Council does eliminate these 100 beds, she may not want to give away any other rooms through the rezoning process. One big plus to the extension is housing for the Music Festival and utilizing an existing building. Councilwoman Richards said one negative to the extension request is that there were a lot of representation in 1988 that the overflow from the Ritz would benefit the small lodges. That isn’t happening because the overflow is going into the Grand Aspen. Councilwoman Richards said she does not feel the proposal is much of a deal for the Music Festival. Councilman Paulson said he is inclined to stick with the current demolition schedule; however, he would be willing to examine some options. Councilman Paulson said he would like to see the commitment for Summit Place garage met. Sarpa said they have not asked for an extension of this obligation and it is firm. Councilman Paulson said he would like to see the schedule for the next 3 years so he can have some assurance that Council won’t be back in the same situation. Councilman Paulson asked about the parking under the Grand Aspen. Dougan said the ceiling are only 6’5” and it does not meet code. Councilman Paulson said he would like to know if this could be brought up to code. Councilman Paulson said he would like to minimize the hole in the ground. Councilman Paulson said some of his preferences are that no more than 50 rooms be used for free market; there should be a payment to the Music Festival to help with their employee housing; using Sage to market the small lodges should be looked into; the Bavarian Inn should be cleaned up. Sarpa pointed out the Bavarian Inn is not currently deed restricted; there are no guidelines. If there are management problems, he will take this up to see if it can be improved. Ferd Belz said he met with the building staff and spent about $100,000 on code issues at the Bavarian Inn. 8 Aspen City Council Regular Meeting July 24, 1995 Councilman Marolt said Aspen has up and down business cycles and has been in a downward trend for the last 5 years and may be in another one for 5 years. Councilman Marolt said he feels there is an obligation to the M.A.A. and their students. Councilman Marolt said it would be counterproductive to tear the Grand Aspen down. Councilman Marolt said he is interested in the parking garage and its possible use. Councilman Marolt said the small lodge owners have a grievance about the number of lodge rooms and this should be considered. Council should meet with the small lodge owners separately to see what adjustment can be made in zoning or uses. Councilwoman Waggaman said it would be sad to waste this building but it would be a tragedy to get to the end of 3 years and find out the small lodges are not in existence. Councilwoman Waggaman said the applicants have known for a long time this issue would come up and could have started their planning. Councilwoman Waggaman said the small lodges need protection. She does not want the hole in the ground. She would like the M.A.A. to have this 3 year contract. Councilwoman Waggaman said she likes the idea of joint marketing. Councilwoman Waggaman suggested 2 weeks of free market rental during Christmas. Councilwoman Waggaman said she would support reducing the rooms to 50 and using the others for affordable housing and M.A.A. Councilwoman Waggaman said it is incumbent on Council to meet and examine the restrictions on small lodges. Councilwoman Richards said another option would be to allow the Grand Aspen to have group business only. Councilwoman Richards noted in this decision Council needs to keep in mind the entire business community, not just one group. Councilwoman Richards asked about the M.A.A. after the reconstruction. Councilwoman Richards said changes in the market demand as well as the airline situation have had an impact on the small lodges. Councilwoman Waggaman moved to table Ordinance #33, Series of 1995, to August 14 and to ask Savanah to come back with some new material and suggestions; seconded by Councilman Paulson. All in favor, with the exception of Councilman Marolt. Motion carried. Councilwoman Waggaman said she does not want to hear the same arguments reiterated at the next Council meeting. She would like to hear a compromise or a vote. 9 Aspen City Council Regular Meeting July 24, 1995 KRAUT AFFORDABLE HOUSING PROJECT Jim Curtis, housing board, said there are 3 issues for Council to decide; ownership versus rental; sale or lease of the extra parking spaces; extension of the financing. Curtis said he does not need a decision on the price of the units right now. Curtis reminded Council the Kraut project consists of 16 one-bedroom and 11 studio units; 58 parking spaces in a garage, 27 spaces for the affordable units and 31 spaces to be sold or leased. Curtis noted the recommendation of staff and the housing board is ownership of the units. Council concurred. Curtis said on sale versus lease of the extra garage parking spaces, the recommendation is to lease these spaces. Councilwoman Richards suggested staff look at selling a few a year to get revenue. Councilwoman Waggaman and Mayor Bennett said they would like to see these leased. Councilman Marolt asked about the city keeping the spaces of owners of the affordable housing units that do not have cars and giving these people a credit. Council said this may lead to someone saying they do not own an automobile, getting the credit, and storing their car somewhere else. Mayor Bennett suggested asked the housing office and parking staff for their thoughts on this. Curtis recommended to continue the financing through the existing housing day care fund reserves because they are getting a better interest rate. If another project comes up that needs this money, the Kraut project can be refinanced. Councilwoman Richards said she would like to see the city put more money into subsidizing the project and have more category 2 units. Right now all the units are proposed to be category 3 and 4. Council requested staff look at raising some of the more desirable units to category 4 and making about 5 units category 2, as well as other options. Councilwoman Richards complemented the project team for keeping this project on budget. REQUEST FOR FUNDS - EIS City Manager Margerum reminded Council their top 3 priorities are (1) Entrance to Aspen, (2) Pedestrian oriented downtown and (3) In-town transit. Ms. Margerum said 2 issues that are heating up are the entrance to Aspen and the TDP. Because these are happening at the same time, staff is requesting funding to hire someone to 10 Aspen City Council Regular Meeting July 24, 1995 work with planning and parking to review the documents and to provide comments to staff and Council. Also the city reached an agreement with CDOT to allow a city representative to work in partnership on the EIS. Ms. Margerum requested $30,000 from the contingency to hire someone on a temporary basis. Councilwoman Richards said she would prefer to see the bulk of this money come from the departmental budgets rather than contingency. Mayor Bennett moved to fund $30,000 request; $10,000 out of Council contingency and $20,000 out of general fund balance; seconded by Councilwoman Richards. All in favor, motion carried. REQUEST FOR FUNDS - Early Learning Center Roof City Manager Margerum reminded Council the give gave the ELC money to repair the roof at the Yellow Brick School. This temporary repair was not successful. Two things have occurred since the last discussion on this roof. The ELC successfully negotiated a 10 year lease with the school district for the building, and the ELC successfully sub-leased the building to other child care providers. The lease with the school district specifies that if the school district terminates the lease, they will reimburse the ELC or the city for the cost of the roof. Ms. Margerum recommended the city repair the roof with the conditions that the ELC pays this back if they are successful in creating a business plan for the building. The funds to repair the roof should come out of the housing/day care fund and not compete with the annual grants. The ELC should get the approval of the school district in writing for the roof repair. David Laughren told Council the ELC has become managers of the yellow brick school by default. Laughren said there are about 150 families served by the organizations in this building. Laughren said if the city buys this building, the ELC would like new discussions on the roof payback. Laughren said they need to get the roof fixed so that they can continue to support the cost of the building from the rental income. Rental income has been lost because of the leaks. Laughren agreed the funds for the roof should not affect the yearly grant cycle. Laughren requested the city manage this roof repair project; the ELC does not want to become construction managers. Mayor Bennett said the Council earlier stated if the school district were to lease the yellow brick building to the ELC, the city would help fund the roof. Mayor Bennett 11 Aspen City Council Regular Meeting July 24, 1995 said he considers this a loan to all those who benefit from the uses in the building. Councilwoman Richards said the funds are available from the sales tax to provide affordable housing and day care. Ms. Margerum explained the city is short staffed in the project management area, has other projects going on and cannot take on the management of this construction project. Council suggested the ELC see if there are parents who can get involved. Ms. Margerum said the ELC and staff will move forward and report back to Council. This will be a $150,000 expenditure. Councilwoman Waggaman moved to suspend the rules and extend the meeting for 5 more minutes; seconded by Councilwoman Richards. All in favor, motion carried. SCHEDULE BOARD INTERVIEWS Council decided on the asset planning committee to take recommendations from existing members. Council directed the city clerk’s office to re-advertise for the Liquor License Authority. Council scheduled the board interviews for Tuesday, August 15 at 5 p.m. Councilwoman Richards moved to adjourn at 9:15 p.m.; seconded by Councilwoman Waggaman. All in favor, motion carried. Kathryn Koch, City Clerk 12