HomeMy WebLinkAboutagenda.apz.20011204 AGENDA
ASPEN PLANNING & ZONING COMMISSION
REGULARMEETING
TUESDAY, DECEMBER 4, 2001
4:30 PM
SISTER CITIES MEETING ROOM
· I. COMMENTS
A. Commissioners
B, Planning Staff
C. Public
II. MINUTES
III. PLANNING AND ZONING COMMISSION PUBLIC HEARINGS
A. 629 WEST SMUGGLER AVE. LANDMARK DESIGNATION,
Amy Guthrie, continued from 11/6
B. LOT 5, ASPEN MOUNTAIN PUD- SUBDIVISION,
CONDOMINIUMIZATION, TIMESHARE, CONDITIONAL
USE, MOUNTAIN VIEW PLANE REVIEW, SPECIAL
REVIEW, LAND USE CODE AMENDMENTS, GMQS
EXEMPTIONS, AND FINAL PUD DEVELOPMENT PLAN
REVIEW, Fred Jarman, continued from 11/13
IV. ADJOURN
ill
MEMORANDUM
TO: Aspen Planning and Zoning Commission
THRU: Julie Ann Woods, Community Development Director
Joyce Ohlson, Deputy Planning Director
FROM: Amy Guthrie, Historic Preservation Officer
RE: 629 W. Smuggler Street, Historic Landmark Designation - Public
Hearing
DATE: December 4, 2001
SUMMARY: The subject site contains a 19th century residence and outbuilding, and is
currently listed on the "Inventory of Historic Sites and Structures." The owners are in the
review process to complete an addition to the house and to build a new garage.
Staff and HPC recommend landmark designation for the property.
APPLICANT: Steven St. Clair, represented by Mike Hoffinan, of Freilich, Myler,
Leitner, and Carlisle and Catchi Martinez, of JBZ Architects.
PARCEL ID: 2735-124-09-001
ADDRESS: 629 W. Smuggler, Lot A and the west half of Lot -B, Block 21, City and
Townsite of Aspen, Colorado.
ZONING: R-6 (Medium Density Residential).
CURRENT LAND USE: 4,500 sq. ft. lot containing a single-family residence, garage,
and shed.
LANDMARK DESIGNATION
Any structure or site that meets two (2) or more of the following standards may be
designated as "H," Historic Overlay District, and/or historic landmark. It is not the
intention of the Historic Preservation Commission to landmark insignificant structures or
sites. HPC will focus on those structures which are unique or have some special value to
the community, as put forth in the standards.
A. Historical importance. The structure or site is a principal or secondary
structure or site commonly identified or associated with a person or an event of
historical significance to the cultural, social, or political history of Aspen, the
State of Colorado, or the United States.
Staff Finding:
The house is commonly associated with the Marolt family, who have early ties to Aspen.
Steve Marolt, whose parents arrived in Aspen in the late 1800's, and his wife Polly, lived
at 629 W. Smuggler starting in the 1950's. Staff finds that this criteria is met.
B. Architectural importance. Based on the building form, use, or specimen, the
structure or site reflects an architectural style that is unique, distinct, or of
traditional Aspen character, or the structure or site embodies the distinguishing
characteristics of a significant or unique architectural type.
Staff Finding:
This house has numerous features that are typical of 19th century residences in Aspen,
such as a decorative front porch, steeply pitched gable roofs, and simple plan. Staff
finds this criteria is met.
C. Designer. The structure is a significant work of an architect or designer whose
individual work has influenced the character of Aspen.
Staff Finding:
The original designer is unknown, therefore this standard is not met.
D. Neighborhood character. The structure or site is a significant component of an
historically significant neighborhood and the preservation of the structure or
site is important for the maintenance of that neighborhood character.
Staff Finding:
The property is located in the West End neighborhood, which has the highest
concentration of historic properties of any neighborhood in Aspen. There are numerous
19th century homes immediately surrounding 629 W. Smuggler. Staff finds this criteria is
met.
E. Community character. The structure or site is critical to the preservation of the
character of the Aspen community because of its relationship in terms of size,
location, and architectural similarity to other structures or sites of historical or
architectural importance.
Staff Finding:
The house is representative of the modest scale, style, and character of homes constructed
in the late 1800's, which is Aspen's primary period of historic significance. Staff finds
this criteria is met.
RECOMMENDATION:
Staff and HPC recommend that P&Z approve Historic Landmark Designation for 629 W.
Smuggler Street finding that review standards A, B, D and E are met.
RECOMMENDED MOTION
"I move to approve Resolution # , Series of 2001."
Exhibits:
Resolution # , Series of 2001
A. Staff memo dated December 4, 2001
B. Digital photo of historic house
RESOLUTION OF THE ASPEN PLANNING AND ZONING COMMISSION
APPROVING AN APPLICATION FOR HISTORIC LANDMARK
DESIGNATION FOR THE PROPERTY LOCATED AT 629 W. SMUGGLER
STREET, LOT A AND THE WEST HALF OF LOT B, BLOCK 21, CITY AND
TOWNSITE OF ASPEN, COLORADO
PARCEL ID# 2735-124-09-001
RESOLUTION NO. , SERIES OF 2001
WHEREAS, the applicant, Steven St. Clair, represented by Mike Hoffman, of Freilich,
Myler, Leitner, and Carlisle, and Catchi Martinez, of JBZ Architects has requested
landmark designation for the property located at 629 W. Smuggler, Lot A and the west
half of Lot B, Block 21, City and Townsite of Aspen, Colorado. The property is currently
listed on the "Inventory of Historic Sites and Structures"; and
WHEREAS, pursuant to Section 26.420.020, requests for landmark designation shall be
reviewed and recommended for approval, approval with conditions, or disapproval by the
Community Development Director, by the HPC, and by the Planning and Zoning
Commission at a public hearing, and then approved, approved with conditions, or
disapproved at a public hearing by the City Council; and
WHEREAS, the Community Development Director performed an analysis of the
application based on the standards, found favorably for the application, and recommended
approval of landmark designation; and
WHEREAS, the Aspen Historic Preservation Commission reviewed and recommended
approval of landmark designation on April 11, 2001; and
WHEREAS, all applications for Historic Landmark Designation shall meet two or more
of the following Standards for Designation of Section 26.420.010 in order for P&Z to
grant approval, namely:
A. Historical Importance: The structure or site is a principal or secondary
structure or site commonly identified or associated with a person or event of
historical significance to the cultural, social, or political history of Aspen, the
State of Colorado, or the United States.
B. Architectural Importance. The structure or site reflects an architectural style
that is unique, distinct or of traditional Aspen character, or the structure or site
embodies the distinguishing characteristics of a significant or unique architectural
type (based on building form or use), or specimen.
C. Designer. The structure is a significant work of an architect or designer
whose individual work has influenced the character of Aspen.
D. Neighborhood Character. The structure or site is a significant component of
an historically significant neighborhood and the preservation of the structure or
site is important for the maintenance of that neighborhood character.
E. Community Character. The structure or site is critical to the preservation of
the character of the Aspen community because of its relationship in terms of size,
location and architectural similarity to other structures or sites of historical or
architectural importance; and
WHEREAS, during a duly noticed public hearing on December 4, 2001, the Aspen
Planning and Zoning Commission considered the recommendation made, by the
Community Development Director and HPC, took and considered public testimony and
recommended, by a vote of _ to _, that City Council approve landmark designation
finding that standards A,B, D and E are met.
NOW, THEREFORE, BE IT RESOLVED:
That the Planning and Zoning Commission recommends Council approve landmark
designation for 629 W. Smuggler, Lot A and the west half of Lot B, Block 21, City and
Townsite of Aspen, Colorado.
APPROVED by the Commission at its regular meeting on December 4, 2001.
APPROVED AS TO FORM: PLANNING - AND ZONING
COMMISSION:
City Attorney
ATTEST:
Jackie Lothian, Deputy City Clerk
Jasmine Tygre, Chair
I
County of Pitkin
State of Colorado
I,
E . Michael Hoffman
01
Zlot
AFFIDAVIT OF NOTICE PURSUANT
TO ASPEN LAND USE REGULATIONS
SECTION 26.304.060(E)
being or representing
an Applicant to the City of Aspen, personally certify that I have complied with the public notice
requirements pursuant to Section 26.304.060(E) of the Aspen Municipal Code in the following
manner:
1. By mailing of notice, a copy of which is attached hereto, by first-class postage prepaid U.S.
Mail to all owners of property within three hundred (3 00) feet of the subject property, as indicated
on the attached list, on the 30 day of March , 2001 (which is 18 days prior to
the public hearing date of April 17 r
2. By posting a sign in a conspicuous place on the subject property (as it could be seen from
the nearest public way) and that the said sign was posted and visible continuously from the 30
day of March , 20 Ol , to the 17 day of April , 2001
(Must be posted for at least ten (10) full days before the hearing date). A photograph of the posted
sign is attached hereto.
` ature
Signed before me this a day off
20 v 1 , by
G
(Attach photograph here)
WITNESS MY HAND AND OFFICIAL SEAL
My commission expires:
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Notary Public DEBOR�` H 4_ f art N Atli THIA
NOTARY PUBLIC
I-',TAf r--- -,F 17)(07MOO
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PUBLIC NOTICE
RE: 629 W. SMUGGLER STREET HISTORIC LANDMARK DESIGNATION
NOTICE IS HEREBY GIVEN that a public hearing will be held on Tuesday, April 17,
2001 at a meeting to begin at 4:30 p.m. before the Aspen Planning and Zoning
Commission, Sister Cities Room, City Hall, 130 S. Galena St., Aspen, to consider an
application submitted by Steven St. Clair, requesting historic Landmark Designation for
the property located at 629 W. Smuggler Street, which is described as Lots A & the west
of Lot B, Block. 21 City and Townsite of Aspen. For further information, contact Amy
Guthrie at the Aspen/Pitkin Community Development Department, 130 S. Galena St.,
Aspen, CO (970) 920-5096, amv,�,ci.as-pen.co.us.
s/Bob Blaich, Chair
Aspen Planning and Zoning Commission
Published in the Aspen Times on March 31, 2001
City of Aspen Account
g:\planning\aspen\notices
PUBLIC NOTICE
RE: 629 W. SMUGGLER STREET HISTORIC LANDMARK DESIGNATION
NOTICE IS HEREBY GIVEN that a public hearing will be held on Tuesday, April 17,
2001 at a meeting to begin at 4:30 p.m. before the Aspen Planning and Zoning
Commission, Sister Cities Room , City Hall, 130 S. Galena St., Aspen, to consider an
application submitted by Steven St. Clair, requesting historic Landmark Designation for
the property located at 629 W. Smuggler Street, which is described as Lots A & the west
V2 of Lot B, Block 21 City and Townsite of Aspen. For further information, contact Amy
Guthrie at the Aspen/Pitkin Community Development Department, 130 S. Galena St.,
Aspen, CO (970) 920-5096, amyggci.aspen.co.us.
s/Bob Blaich, Chair
Aspen Planning and Zoning Commission
Published in the Aspen Times on March 31, 2001
City of Aspen Account
gApl arming\aspen\notices
609 CORPORATION
ORADO CORPORATION
)X 1819
�N, CO 81612
ASPEN GK LLC
PO BOX 640
ASPEN, CO 81612
BELLINA JOSEPH H
1515 POYDRAS ST #2650
NEW ORLEANS, LA 70112-3723
BROOKS LAURENE B
SHERIDAN SUSAN B
421 DETROIT ST
DENVER, CO 80206
ALBERT GARY & KATHLEEN
725 W SMUGGLER ST
ASPEN, CO 81611
AULD ROBERT H & CAROL C
PO BOX 186
BELMONT, MA 02178
BERLINER ARTHUR S
C/O WALDEN
750 BATTERY ST #700
SAN FRANCISCO, CA 94705
CORBIN MARCIA A
PO BOX 9312
ASPEN, CO 81612
DOREMUS FAMILY LTD PARTNERSHIP EPOCH ASPEN DEVELOPMENT LLC
LLLP 359 CAROLINA AVE
85 GLEN GARRY DR WINTER PARK, FL 32789
ASPEN, CO 81611
FLYNN MICHAEL LAWRENCE 50%
721 W FRANCIS ST
ASPEN, CO 81611
HOFFMAN JOHN L
1035 W 57TH ST
KANSAS CITY, MO 64113
JJDG LLLP
263 E GORE CREEK DR
VA I L, CO 81657
KOEHLER DAVID R TRUST
618 W SMUGGLER ST
ASPEN, CO 81611
Lr,NGENKAMP FAMILY REVOCABLE
TRUST 1/2
633 NORTH ST
ASPEN, CO 81611
FOX SAM
FOX MARILYN
7701 FORSYTH BLVD STE 600
CLAYTON, MO 63105
HUGHES GAIL
712 W FRANCIS ST
ASPEN, CO 81611
KAFRISSEN ARTHUR & CAROLE F
C/O CRIMINAL JUSTICE CENTER
1301 FILBERT ST #1420
PHILADELPHIA, PA 19107
KOVAL BARBARA TRUST
555 E DURANT AVE
ASPEN, CO 81611-1856
LEWIS TOBY D
18930 S WOODLAND RD
SHAKER HEIGHTS, OH 44122
ARMSTRONG ELIZABETH
621 W FRANCIS UNIT B
ASPEN, CO 81611
BASS RAIFIEL 1
606 E HYMAN
ASPEN, CO 81611
BLANK ROBERT S & NANCY L
C/O WHITCOMB PARTNERS
110 W 51ST ST ROOM 4310
NEW YORK, NY 10020
DIGIGLIA LE RAY
DIGIGLIA JOHN WILLIAM
PO BOX 4305
ASPEN, CO 81612
FIRST BAPTIST CHURCH
761 W FRANCIS ST
ASPEN, CO 81611
HALL CHARLES L
PO BOX 1819
ASPEN, CO 81612
IBBOTSON ANNE B
505 N 5TH ST
ASPEN, CO 81611
KEELTY PATRICK & DONNA
PO BOX 5686
SNOWMASS VILLAGE, CO 81615
KRETSCHMAR WILLIAM J REVOCABLE
TRUST
2415 CASA DE MARBELLA
PALM BEACH GARDENS, FL 33410
LOWREY JAMES E JR TRUSTEE
1390 ENCLAVE PKWY
HOUSTON, TX 77077-2025
LRM LIMITED PARTNERSHIP
7" DAVIS RD
\L GABLES, FL 33143
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MCLEAN CHARLES M
PO BOX 11687
E ASPEN, CO 81612-9478
MULL EN MICHAEL
8411 PRESTON RD STE 730 LB 2
DALLAS, TX 75225
RITCHIE ROBERT
701 W FRANCIS ST
ASPEN, CO 81611
MAC CARTHY LYNDA M
626 W FRANCIS ST
ASPEN, CO 81611
MCPHERSON DOUGLAS J & SUSAN L
PO BOX 4412
ASPEN, CO 81612
MUSGRAVE MARJORY M
629 W NORTH ST
ASPEN, CO 81611
SAUNDERS ASPEN QPRT TRUST
401 S BOSTON AVE STE 230
TULSA, OK 74103
SMITH CHRISTOPHER H & LESLIE M ST CLAIR STEVEN T TRUSTEE
234 WEST HOPKINS AVE 4001 MAC ARTHUR BLVD STE 100
ASPEN, CO 81611 NEWPORT BEACH, CA 92660
MCCAUSLAND LYNDA
PO BOX 1584
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MILLER ANN F
715 W SMUGGLER ST
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RATNER DENNIS F
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SILVERMAN JACK E
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WEST END III PARTNERSHIP LLC
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MEMORANDUM
TO: Planning and Zoning Commission
FROM: Julie Ann Woods, Community Development Director ---'
Fred Jarman, Planner's
DATE: December 4, 2001 (Continued Public Hearing from 11/13/01)
RE: 1) Timeshare Discussion, and
2) Text Amendment to the Timeshare Regulations
SUMMARY: The owners of the Aspen Mountain PUD, represented by Vann Associates,
are requesting Final PUD Development, Plan approval for Lot 5 of the Aspen Mountain
PUD also known as the former Grand Aspen Hotel site. Specific land use requests:
1)
Final PUD
Development Plan
2)
Subdivision
3)
Condominiumization
4)
Timeshare
5)
Conditional Use
6)
Mountain View Plane
7)
Special Review
8)
Land Use Code Text
Amendments
9)
GMOS Exemptions
ZONING: L/TR PUD
LOT
SIZE: 86,605 sq. ft.
EXISTING USE: Vacant lot
FAR. 115,000 sq. it.
PROPOSED USE: 60 Multi -Family Residential Units (51 free market units and 9 deed
restricted affordable housing units)
OWNER: Grand Aspen Lodging, LLC c/o Four Peaks Development, LLC
REPRESENTATIVE: Vann Associates
STAFF RECOMMENDATION: Approval with Conditions
Recap From November 13th Public Hearing
On November 13t', 2001, the Planning & Zoning Commission (hereinafter
"Commission") held the first public hearing on the Aspen Mountain PUD proposal where
the following issues were discussed: 1) physical site plan issues resulting from the hotel
conversion to a multi -family structure, 2) minimum lot area per bedroom variance, 3)
proposed text amendment allowing the conversion of tourist accommodation allotments
to residential dwelling units, 4) the livability of the sub -grade affordable housing units,
and 5) the request to pay cash -in -lieu for the remaining 12.15 FTEs. The Commission
felt the Applicant had adequately addressed these issues and were satisfied with the
proposal regarding these issues. Subsequently, the public hearing was continued until
December 4th5 2001 in order to focus solely on the Timeshare / fractional ownership
proposal portion of the application.
As a result, this memorandum will focus on the Timeshare / fractional ownership request
in the application. The specific land use approvals sought by the Applicant regarding this
portion of the proposal include Conditional Use, Timeshare, Subdivision,
Condominiumization, and a Text Amendment to the Timeshare Regulations.
Again, a matrix has been provided below to illustrate the issues to be discussed and the
dates on which those discussions are proposed to occur.
➢ Presentation of Project, physical site plan issues, AH units,
November 13, 2001 Public Hearing minimum lot area per bedroom variance, conversion Text
Amendment, cash -in -lieu for 12.15 FTEs.
December 4, 2001 Public Hearing ➢ Timeshare Request for Fractional Ownership
➢ Timeshare Text Amendment
December 11, 2001 Public Hearing ➢ Continued for other Issues
STAFF COMMENTS:
As mentioned, the Applicant is proposing a multi -family structure containing 51 (1, 2,
and 3-bedroom) free market residential units and 9 (1-bedroom) affordable housing units,
which closely resembles that of a traditional hotel. Other specific amenities include a
central lobby, a front desk for check -in, a concierge desk, a bar and lounge, a pantry area
from which to provide continental style food service, an exercise room, public restrooms,
a ski and bicycle storage area, and a small accessory commercial space. In addition, two
large landscaped areas will contain the structure's swimming pool and outdoor function
areas.
The Applicant is requesting Conditional Use approval for a Timeshare project in the
Lodge / Tourist Residential (L/TR) zone district. By default, a Timeshare project must
also comply with Subdivision and Condominiumization regulations of the Land Use
Code. Staff has outlined several points below regarding the proposal as well as positive
and negative points about fractional ownership from the perspective of the City of Aspen.
New Timeshare Request
As the proposal changed from the 150-room hotel to this 51 unit residential project, the
land use requests and required approvals have also changed to include a Conditional Use
request for Timeshare so that the Applicant can sell the units using a fractional ownership
scheme. Timeshare is allowed as a conditional use in the L/TR zone district. The
Applicant requests that Lot 5 be developed as a "fractional ownership" project, which
falls within the realm of Timeshare. In order to accomplish this timeshare request, the
Applicant has proposed one (1) text amendment to the Timeshare section of the Land Use
Code that is addressed below.
1. Timeshare: Fractional Ownership Plan
The Applicant is proposing to market the 51 free market units in a fractional ownership
scheme where each of the units will be condominiumized and sold in 1/20 interests. As
such, an owner will own one "fixed" week of the year and 10 "floating" days to be used
throughout the year. Ownership of a fractional interest will be "unit specific" and will
allow the owners to occupy the unit during a specific time. When not occupied by the
owners during a "fixed" week, the unit will be available through an exchange program or
may be part of the rental pool and available to the public on a nightly basis. This
proposed plan does not indicate that an owner is not able to own multiple shares. (Please
refer to Exhibit A, a supplement to the Application, for a summary of the proposed
fractional ownership scheme, which shows how ownership occurs throughout the year.)
It should be noted the Applicant defines the "on -seasons" for winter season as a 10-week
period between December 15th — December 31 st and February 1 st to April 1 st and the
summer season as a 10-week period between July 1 St and September 15th. The insert
shows the "fixed" and "float" weeks available during the year correlated to seasons. A
quick study of this plan shows that the times reserved as "fixed' weeks are those that are
typically the weeks that are most frequently booked by visitors.
The Applicant is attempting to sell a short-term accommodations timeshare product that
looks and feels like a hotel, in that, the use of patrons visiting the product will be frequent
with a multitude of options allowing the "general public" to also use the product. In
addition, the structure itself offers many of the same amenities to guests / owners as a
typical hotel such as a main lobby, front desk, concierge service, bar and lounge, a small
commercial shop, and an entrance directly related to all the activity generated from the
adjacent ice rink and Durant Street.
The Applicant is promoting a 1 /20th interest product through 51 units, which ultimately
means there could be as many as 1,020 owners for the 51 units. When viewed as a matter
of "time," since each owner gets one fixed week in a particular unit and 10 float days in
the product (for a total of 17 days) then arguably, one unit could be monopolized 340
days out of the year by owners leaving 25 days to the general public and or maintenance
operations.
Staff believes that since these shares or interests are being marketed at a low price point
compared to the typical condominiumized timeshares typically found in the Aspen
market, the product will appeal to a much broader market base. In addition, the "use
plan" of these units / shares is such that there are two main (required) opportunities for
the units / interests to be rented to the general public either by the owner directly or by
default in the case where an owner cannot use the unit or can rent it to someone in
particular. Ultimately, the units get placed in the general rental pool or exchanged to
other participants in Hyatt's exchange hotels if not used by the owners. (Please see the
use plan for clarification.)
Staff also believes that today's resort destination climate is such that there are no visitors
that simply "drive over the pass" anymore looking for a room / unit on a moment's
notice especially during peak season times. This might be slightly different for "rubber -
tire" resorts such as Vail, which are not primarily end -destination resorts. Using this
logic, no matter if the units are owned or simply rented as in a traditional hotel, finding a
vacant unit while "traveling thru" would be very difficult. Today's traveler, especially
one considering going to an end -destination ski resort plans the entire trip well in advance
of arriving.
One of the main concerns regarding a timeshare product is its tendency to become an
exclusive product where the general public is unable to stay in a unit during the best
times of the year. Clearly a trend like this in Aspen might mean that the general public is
less and less able to visit because units are "owned" and unavailable so that the pool of
truly "rentable" units dwindles. In this light, there are several ways to analyze the
proposed product regarding what time is "owned" and therefore not available to the
general public. Staff has provided the following "worse case scenario" below for the
Commission's contemplation that shows there are only 3.5 weeks -available to the general
public. In addition, please review the use plan that shows when these weeks are offered
regarding seasons.
Scenario: If each unit is owned by 20 people and each owner owns and uses all 17 days
during the year, then the time available to the general public will look like
this:
1) 51 units = 1,020 owners = who own a total of 17,340 days (or 2,477 weeks) of the
year; then
2) 51 units offer a total of 18,615 days a year to be used by owner or guest; then
3) 18,615 minus 17,340 owned days leaves 1,275 "unowned" days (or 182 weeks)
available to the general public; then
4) 182 weeks divided by 51 units = 3.5 weeks per unit per year.
However, given this worse case scenario, it is unlikely that all the owners will use all the
time they own. They will most likely use their "owned" weeks and allow the 10 float
days to be rented by Hyatt. Even if the owned days are not used by the owner, there is a
mechanism that allows the units to be rented to the general public or through an exchange
program. In addition, the likelihood of units sitting empty during a "fixed" week is also
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Offseason
--Off season
is xt az i F 3N4
cif a b i S r. f..
26
Off season
Fixed Week`
Totals 20 weeks 32 weeks
unlikely as there is no incentive for an owner to allow them to sit empty when they could
make money off of the units. Again the units are sold at such a price point that those
purchasing the units have the advantage of making money on the units if they themselves
cal -mot use them snaking the units even more affordable. There are a myriad of different
likely scenarios that do not mirror the scenario illustrated above. -
Fractional Ownership in Aspen
While the timeshare concept has been around for many years in Aspen, fractional
ownership is a new concept for Aspen as well as many other, resorts in Colorado. In fact,
Aspen recently saw its first fractional ownership project with the Boomerang Lodge
expansion. As a result of that project as well as this project, Staff has been exploring what
this new type of ownership means for Aspen's lodging bed base in terms of "hotbeds" or
beds available to the general public on a short-term basis. There are many issues yet to
be fully analyzed and /or realized, as the concept of fractional ownership is relatively
new. Staff has presented several issues of concern below as they relate to fractional
ownership.
As these units are "owned," the City gains no "bed tax" from short-term visitors as
compared to a regular hotel; however, those owners that do visit may tend to spend more
money indirectly in Aspen due to the notion that they are not burdened by paying a
nightly lodging fee (even though they may already be doing that through mortgages). In
addition, it appears that fractional fee ownership programs tend to be successful by
utilizing "exchange programs" where an owner of a fractional share in Boca Raton may
wish to exchange their time in Boca Raton for two weeks in Aspen and vice versa. It is
clear that G. A. Resort Condominiums will become a club resort in the Hyatt Vacation
Club system and therefore, owners can participate with other Hyatt club resorts and with
properties represented by Interval International.
Also, as the fraction of the share increases (say from 1/7 th share to 1 /20th share
ownership) in the units, it appears more likely that the units will function more like
traditional hotel rooms / units with patrons coming and going more often than a
traditional timeshare / condominium operation where a family will stay in a unit for a
prolonged period of time and may remain more consistent with the operability of a
traditional hotel.
Staff s continued reservation regarding this type of ownership is that property ownership
does not* transfer on a regular basis; therefore, the tax generated through the Real Estate
Transfer Tax (RETT) may not be a steady revenue source beyond the first "sale" years of
the project. The applicant's financial analysis comparing fractional ownership to a hotel
does not take into account any transfers (after the initial sales) for ten years, which may
be a good conservative approach to take. It should be noted that a RETT payment shall be
made every time a fractional interest is sold in perpetuity.
Points to Consider on Fractional Ownership
As the City Attorney has determined, the City cannot regulate the specific method of
ownership or ownership scheme of a particular unit but the City can regulate the potential
negative "impacts" resulting from a particular type of ownership. The following is a
quick analysis regarding the apparent positive and negative issues surrounding fractional
ownership.
Positive:
1. Owners of a fractional share may tend to spend more money in Aspen, as an
indirect sales benefit, due to the notion that they are not burdened by paying a
nightly lodging fee (even though they may already be doing that through
mortgages);
2. In addition, it appears that fractional fee ownership programs tend to be successful
by utilizing "exchange programs" where an owner of a fractional share in Boca
Raton may wish to exchange their time in Boca Raton for two weeks in Aspen and
vice versa;
3. It appears the trend in fractional ownership accommodations operate with higher
occupancies throughout the year than typical hotels. More than that, as the fraction
of units' increases, for example from 1/7`h to 1/201h per unit., so does the number of
beds that are filled more frequently because that many more guaranteed bodies are
coming to town;
4. Since some of the traditional economic strategies are becoming less effective in
maintaining economic viability for some smaller traditional lodges, fractional
ownership provides a more viable method to finance a lodge operation / expansion;
5. A fractional ownership model can present smaller shares (1/20"') for less investment
(more economically feasible) so that it appeals to a broader market so that they can
buy their condo in Aspen than were previously priced out of the market;
6. Allows more property owners to become hooked on what Aspen has to offer from
the intellectual to the spiritual to the physical amenities which in turn may add a
stronger donor base to nonprofit organizations dependent on donations;
7. Real Estate Transfer Tax (RETT) is collected every time an interest spins. In this
case, the 1,020 interests for sale would be required to provide the City with a taxed
percentage of the value every time it is sold in perpetuity.
Negative:
1. As lodge units are "owned," the City gains no "sales tax" from short-term visitors;
2. It may mean that visitors driving into Aspen for the night without reservations will
increasingly have a difficult time in finding a lodge unit;
3 . Depending upon how many shares a particular owner may "own," these units could
turn into second homes precluding other visitors and may also sit empty for long
parts of the year;
4. All the -units are "owned" and untouchable for the best on -season times so that the
remaining less desirable off-seasons are the only units / times available to the
general public. This is a problem that exists now with the lodge conversions to
timeshare because the six month rule does not require when those times are to be set
for the general public and as a result the time available to the general public will
most likely occur during the less desirable time to be in Aspen.
5. RETT tax is a dedicated fund (to the Wheeler & AH funds) so there is no addition
to the general fund which normally gets fed by sales taxes.
6. There may be a reduction in property taxes generated by the property, since
residential units are taxed at a much lower rate than commercial units. This
reduction may, however, be offset by the fact that each residential unit would have
a greater value than the prior lodge units, due to upgrading of the facility and the
typically larger size of fractional units compared to lodge units.
7. The higher occupancy that can come with fractional ownership leads to the need for
higher levels of maintenance. Unless the project reserves the time and funds for
such maintenance, it will deteriorate over time and will not maintain its market.
8. After the project has been sold off into fractional shares, it will become much more
difficult to re -develop the property, leading to the potential for the facilities to
become outdated.
9. Because fractional ownership is a new concept, there is not information available to
understand the long-term implications of this form of ownership. For example,
while the experience today may be that owners use the shares that they own, it is
not clear whether this trend will continue over time. Some timeshare projects have
found that owners use their interests less, and over time this could be the same
experience for fractional owners. Furthermore, as with any new land use concept,
the potential for unintended consequences exists, and we may not know enough
about this form of ownership to be able to predict these consequences.
10. Unless the marketing of the fractions is properly regulated, the potential exists for
visitors to Aspen to have a negative impression of our community due to high
pressure sales tactics.
Financial Implications of Fractional Ownership
The City's existing timeshare ordinance, which was adopted in the early 1980's, does not
address potential long-term impacts of a fractional ownership project on the City's
General Fund. The City of Aspen's Finance Department has completed a study that
indicates that the conversion of the applicant's previously proposed hotel project to a
fractional ownership interest project will have a long term financial impact upon the
City's General Fund. The Applicant understands and acknowledges this financial impact
upon the City and desires to partially mitigate these financial impacts upon the City
treasury by offering a cash payment to the City in an amount between $4 and 5 million;
the exact amount to be determined by the City Council and the applicant upon further
study and research.
2. Text Amendments to the Land Use Code
In order for the Applicant's present proposal to work, the Applicant has proposed a text
amendment to the Timeshare regulations of the Land Use Code (hereinafter "Code") to
permit the City Council to vary the current Timeshare review standards in the Code. A
discussion of these amendments is as follows (please note that the separate resolution is
attached specifically to these text amendments, which should be adopted first before
Final PUD approval):
A. An amendment to the Timeshare regulations to permit the City Council to
vary the current Timeshare review standards in the Land Use Code.
It is clear, the current Timeshare provisions in the Code, adopted in the early 1980s, were
effective in regulating various problems inherent to the timeshare industry at the time
such as marketing, disclosure practices, and other consumer protection issues. The
Applicant contends that these problems appear to be accounted for through current real
estate practices and laws enacted by the Colorado Revised Statutes but the Timeshare
regulations in the Code have not changed. The Applicant has proposed a fractional
ownership scheme that conflicts somewhat with the Timeshare regulations. As a result,
the Applicant requests that a text amendment be approved that allows City Council the
authority to vary specific Timeshare review standards as a result of the anticipated
operations of their proposal.
At present, the City has hired a consultant to review and re -write the City's Timeshare
ordinance due to the apparent antiquated nature of the existing ordinance regarding
today's timeshare industry, alternative ownership scenarios, and the regulation of
potential impacts from such ownership schemes.
Specifically, the Applicant has proposed a fractional ownership plan that would require
the following variances from the existing Timeshare review standards:
1. 26.590.010(C)(2)(c) discusses ".Gift Giving" in the marketing and sales practices.
The standard requires a gift giving limitation of $100. The Applicant is requesting
this be waived so that they may compete with current industry practices such as
providing complimentary lift tickets, certificates for nights at other Hyatt resorts, etc.
which would far exceed the $100 limit.
2. 26.590.010(C)(3) discusses Integration, where Timeshare must be conducted in all
residential units of a proposed development or not at all. While the Applicant will
market all of the 51 free market units pursuant to the proposed fractional ownership
plan, the remaining 9 affordable housing units will be owned, deed -restricted, and
rented by G.A. Resort Condominium Association in accordance with the Aspen /
Pitkin County Housing Authority (APCHA) guidelines. As a result, these units are
not part of the fractional ownership plan and a variance from this standard is
requested.
3. 26.590.010(C)(6)(a) discusses a "Maintenance" plan, which requires that a
minimum of four weeks per year (two weeks in the spring and two weeks in the fall)
be reserved by the Timeshare development so that adequate maintenance and repair
may be accomplished on the units. The Applicant proposes that G.A. Resort
Condominium Association will have a priority right to reserve at least one week and a
maximum of four weeks per year for maintenance and repair on the units. This
requires a variance from the standard.
4. 26.590.010(C)(14) discusses the "Right to Rescind" which is granted for 10 days
after the execution of a contract to purchase an interest in a timeshare project. The
Applicant asserts that the Colorado Revised Statutes permits a five (5) day rescission
period with respect to the purchase of a fractional ownership interest. The Applicant
is requesting a variance from the 10-day standard.
5. 26.590.010(C)(15) discusses "Escrow of Deposits." This standard requires that
Deposits or down -payments made in connection with the purchase or reservation of a
timeshare unit from a seller shall be held in an escrow account until closing or until
the issuance of a- certificate of occupancy, whichever is later. The Applicant's plan
offers an alternative to this standard: The Applicant requests the flexibility of posting
a "letter of credit" or "bond" consistent with Colorado Real Estate Commission
requirements. The Applicant asserts that "this alternate assurance, which must be
equal to 110 percent of the deposits released to the developer prior to closing, is
normally either a letter of credit drawn on a bank doing business in Colorado or a
bond." Staff recommends the letter of credit be posted rather than a bond.
STAFF RECOMMENDATION:
Staff recommends the Planning and Zoning Commission recommend City Council
approve the Final PUD proposal for the 51-unit multi -family dwelling fractional
ownership project. The Applicant received Conceptual PUD approval from City Council
via Resolution 99- 111, which established the major threshold issues regarding the
proposed hotel's massing, design, location, basic site plan, and density. In addition, the
City Council approved an amendment to the Conceptual PUD from City Council via
Resolution 01-47, which essentially allowed the Applicant to pursue the same physical
structure as originally proposed with a new internal configuration.
In addition, the amended PUD changed the nature of the use from a short-term stay hotel
to a residential timeshare project that is proposed to look and feel like a hotel project in
that it ensures a short-term accommodations use that is not only similar to a hotel / lodge
but is also a permitted use in the L/TR zone district.
The accompanying resolution includes many of the same conditions, which were
included in the Conceptual PUD approval. As a result of some of the physical changes
and operational changes, other new conditions have been added to the recommended
resolution to address the impacts resulting from the amended proposal from a hotel to the
51-unit multi -family dwelling fractional ownership project.
Staff recommends that the text amendments be approved first (Resolution No. 46),
prior to approval of the Final PUD with the conditions as stated.
RECOMMENDED MOTION: "I move to approve Resolution No. 46, Series of 2001
recommending that City Council approve the two text amendments to the Land Use Code
for GMQS and Timeshare regulations."
RECOMMENDED MOTION: "I move to approve Resolution No. 45, Series of 2001
finding that the Final Planned Unit Development for Lot 5, Aspen Mountain PUD, with
the conditions stated above, are consistent with the previously approved conceptual plan
approval."
ATTACHMENTS:
Exhibit A Review . Standards . for Subdivision, Condominiumization,
Timeshare, Conditional Use, and Land Use Code Text
Amendment
Exhibit B Final PUD Application Binder (Handed out early)
Exhibit C Final PUD Application "Appendix" (Handed out early)
Exhibit D "Project Summary & Use Plan" Supplement (Handed out early)
Text Amendments Resolution
RESOLUTION NO. 46
(SERIES OF 2001)
A RESOLUTION OF THE PLANNING AND ZONING COMMISSION, OF THE
CITY OF ASPEN, COLORADO, TO AMEND SECTION 26.470.070,
EXEMPTION FROM THE GROWTH MANAGEMENT QUOTA SYSTEM, AND
SECTION 26.590.010, TIMSEHARE, OF THE LAND USE CODE, CITY OF
ASPEN, PITKIN COUNTY, COLORADO.
WHEREAS, the Community Development Department received an application
from Grand Aspen Lodging, LLC c/o Four Peaks Development, LLC to amend the text of
the Land Use Code and as contemplated in the Amended Conceptual Planned Unit
Development approval granted pursuant to City Council Resolution 901-47; and,
WHEREAS, the proposed amendments relate to the authority of City Council to
vary review standards for Timeshare regulations in Section 26.590.010 and would add a
conversion process for tourist accommodations reconstruction credits to residential
dwelling units as a Growth Management Quota System exemption in Section 26.470.070.
as both are further described herein; and,
WHEREAS, pursuant to Section 26.310 of the City of Aspen Land Use Code,
after a recommendation by the Community Development Department made during a duly
notice public hearing, and the comments made by the general public, the Planning and
Zoning Commission may recommend to the City Council approval, approval with
conditions, or denial of an application for amending the text of the Land Use Code based
on the criteria that are set forth in said Section; and,
WHEREAS, the Community Development Director reviewed the proposed text
amendments, as described herein, and recommended approval; and,
WHEREAS, the Aspen Planning and Zoning Commission has reviewed and
considered the proposed text amendments under the applicable provisions of the Municipal
Code, as identified in Section 26.310, has reviewed and -considered the recommendations
made by the Community Development Director and has taken and considered public
comment at a public hearing; and,
WHEREAS, during a regular meeting on November 13t", continued to December
02001, the Planning and Zoning Commission, by a to (_ - _) vote,
recommended City Council amend the text of the Land Use Code, as described herein.
WHEREAS, the Planning and Zoning Commission finds that the proposed Land
Use Code text amendments meet or exceed all applicable review standards and that the
approval of the text amendments is consistent with the goals and elements of the Aspen
Area Community Plan; and
WHEREAS, the Planning and Zoning Commission finds that this Resolution
furthers and is necessary for public health, safety, and welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING
COMMISSION OF THE CITY OF ASPEN, COLORADO ON THIS 13' DAY OF
NOVEMBER CONTINUED TO DECEMBER 4T11, 2001, THAT:
,Section 1
Section 26.470.070, which defines the types of development that may be exempted from
the scoring and competition procedures of growth management, is hereby amended to
include a new section to read as follows:
O. Conversion of lodge reconstruction credits to residential dwelling units. The
conversion of reconstruction credits derived from the demolition of tourist
accommodation units pursuant to Section 26.470.070(A)(2) to residential
dwelling units shall be exempt from the growth management competition and
scoring procedures. This exemption is deducted from the Aspen Metro Area
development ceilings established pursuant to Section 26.470.030. Exemption
review is by City Council. This exemption shall only be granted if the following.
standards are met. -
Demolished tourist accommodation units shall be converted to residential
dwelling units at the rate of 0.34 residential dwelling units per each one
tourist accommodations unit;
2. Residential dwelling units obtained pursuant to this exemption shall only
be developed in those zone districts in which residential units are a
permitted use;
3. Development of the residential dwelling units shall be limited to the same
parcel from which the reconstruction credits were derived, on a
contiguous parcel owned by the applicant, or within a Planned Unit
Development approved pursuant to Section 26.445;
4. Employee housing or cash -in -lieu thereof shall be provided to mitigate for
additional employees generated by the development of the residential
dwelling units;
5. The proposed development is compatible with the character of the existing
land uses in the surrounding area and the purpose of the underlying zone
district;
6. Adequate parking and public facilities exist or can be provided for the
development; and,
7. The proposed development is consistent with the Aspen Area Community
Plan.
�ectinn 7-
Section 26.590.010, which defines zone districts in which timeshare shall be permitted,
review standards applicable to all timeshare projects, contents of a timeshare application,
review procedures, city licensing and sales tax, and remedies is hereby amended to
include a new subsection 26.590.010(D). Existing subsections D, E, F, and G shall be
renumbered E, F, G, and H respectively. The new subsection 26.590.010(D) shall read as
follows:
D. Variations in timeshare standards. Variations in the review standards and
criteria contained in Section 26.590.010(C) may be permitted subject to the
approval of the City Council. An applicant requesting a variation in a review
standard shall demonstrate that the standard is inappropriate or otherwise
cannot be met and the reasonableness of the proposed variation. All variations
from the standards and criteria of Section 26. 590. 010 shall be specified in the
timeshare approval.
CPetinn 'A -
This Resolution shall not effect any existing litigation and shall not operate as an
abatement of any action or proceeding now pending under or by virtue of the ordinances
repealed or amended as herein provided, and the same shall be conducted and concluded
under such prior ordinances.
Section 4
If any section, subsection, sentence, clause, phrase, or portion of this Resolution is for
any reason held invalid or unconstitutional in a court of competent jurisdiction, such
portion shall be deemed a separate, distinct and independent provision and shall not affect
the validity of the remaining portions thereof.
Section 5
That the City Clerk is directed, upon the adoption of this Resolution, to record a copy of
this Resolution in the office of the Pitkin County Clerk and Recorder.
Section 6•
A public hearing on the Resolution was held on the 13th day of November continued to
December 4th1 2001, at 5:00 in the City Council Chambers, Aspen City Hall, Aspen
Colorado, fifteen (15) days prior to which hearing a public notice of the same was
published in a newspaper of general circulation within the City of Aspen.
APPROVED by the Commission at its regular meeting on November 13 continued to
December 4th, 2001.
APPROVED AS TO FORM: PLANNING AND ZONING
COMMISSION:
City Attorney
ATTEST:
Jackie Lothian, Deputy City Clerk
Jasmine Tygre, Chair
PUD Resolution
RESOLUTION No. 45
SERIES OF 2001
RESOLUTION OF THE ASPEN PLANNING AND ZONING COMISSION
RECOMMENDING APPROVAL OF THE FINAL PLANNED UNIT
DEVELOPMENT APPLICATION INCLUDING SUBDIVISION,
CONDOMINIUMIZATION, CONDITIONAL USE FOR TIMESHARE,
MOUNTAIN VIEW PLANE, SPECIAL REVIEW, AND GROWTH
MANAGEMENT QUOTA EXEMPTIONS (GMQS) FOR THE GRAND ASPEN
SITE, LOT 5 OF THE ASPEN MOUNTAIN PUD, CITY AND TOWNSITE OF
ASPEN, PITKIN COUNTY, COLORADO
PARCEL NO. 2737-782-85005
WHEREAS, the Community Development Department received an application
from Grand Aspen Lodging, LLC c/o Four Peaks Development, LLC (Applicant),
represented by Vann Associates, requesting Final Planned Unit Development (PUD)
approval for Lot 5 of the Aspen Mountain PUD (hereinafter "AMPUD"); and
WHEREAS, Grand Aspen Lodging, LLC c/o Four Peaks Development, LLC
requested specific land use approvals as part of the Final PUD to include Final PUD
Development Plan, Subdivision, Condominiumization, Timeshare, Conditional Use,
Mountain View Plane, Special Review, and GMQS Exemptions; and
WHEREAS, Savanah Limited Partnership, owner at the time of Lot 5 of
AMPUD, received Conceptual PUD approval for AMPUD on December 6, 1999 which
is memorialized through Resolution No. 111, Series of 1999; and
WHEREAS, Top of Mill Investors, LLC, owner at the time of Lot 5 of AMPUD,
received Amended Conceptual PUD approval for AMPUD on May 29, 2001 which is
memorialized through Resolution No. 47, Series of 2001; and
WHEREAS, the Housing Office, the City Zoning Officer, the City Engineer, the
Parks Department, Aspen Consolidated Waste District, the Environmental Health
Department, the City Fire Department, the City Streets Department, the City Parking
department, the City Water Department, and the City Electric Department reviewed the
development proposal for Lot 5 and provided written referral comments as a result of the
Development Review Committee meeting; and
WHEREAS, upon review of the application, referral comments, and the
applicable Land Use Code standards, the Community Development Department
recommended approval of the Final Aspen Mountain PUD land use requests for Lot 5
with conditions; and
WHEREAS, the Aspen Planning and Zoning Commission has reviewed and
considered the development proposal under the applicable provisions of the Municipal Code
as identified herein, has reviewed and considered the recommendation of the Community
Development Director, the applicable referral agencies, and has taken and considered public
comment at a public hearing; and
WHEREAS, the Planning and Zoning Commission forwarded a reconunendation
of approval to the city council, by a vote of to (_ - _), Final Planned Unit
Development Application including Subdivision, Condominiumization, Conditional Use
for Timeshare, Mountain View Plane, Special Review, and Growth Management Quota
Exemptions (GMQS) for the Grand Aspen Site, Lot 5 of the Aspen Mountain PUD; and
WHEREAS, the Planning and Zoning Commission forwarded a recommendation
of approval to City Council to approve the Final PUD including Final PUD Development
Plan, Subdivision, Condominiumization, Timeshare, Conditional Use, Mountain View
Plane, Special Review, and GMQS Exemptions for Lot 5 of the Aspen Mountain PUD;
and
WHEREAS, the City of Aspen Planning and Zoning Commission finds that the
development proposal meets or exceeds all applicable development standards and that the
approval of the development proposal, with conditions, is consistent with the goals and
elements of the Aspen Area Community Plan; and
WHEREAS, the City of Aspen Planning and Zoning Commission finds that this
Resolution furthers and is necessary for the promotion of public health, safety, and welfare.
NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING
COMMISSION OF THE CITY OF ASPEN, COLORADO ON THIS 13TH DAY OF
NOVEMBER 2001, THAT:
Section 1
Pursuant to the procedures and standards set forth _in Title 26 of the Aspen Municipal
Code, the requests for the Final PUD including Final PUD Development Plan,
Subdivision, Condominiumization, Timeshare, Conditional Use, Mountain View Plane,
Special Review, and GMQS Exemptions for Lot 5 of the Aspen Mountain PUD is
recommended for approved with the following conditions stated herein.
1. That the City Council approve a variance from timeshare standard
26.590.010(C)(2)(c) "Gift Giving" in the marketing and sales practices by
waiving the $100 maximum allowing the Applicant to compete with current
industry practices such as providing complimentary lift tickets, certificates for
nights at other Hyatt resorts, etc. which would exceed the $100 limit.
2. That the City Council approve a variance from timeshare standard
26.590.010(C)(3) Integration, allowing the Applicant to specifically exclude
the 9 affordable housing units from being integrated in the fractional ownership
plan as these units will be owned, deed -restricted, and rented by the Applicant in
accordance with the Aspen / Pitkin County Housing Authority (APCHA)
guidelines.
3. That the City Council approve a variance from timeshare standard
26.590.010(C)(6)(a) Maintenance, allowing the Applicant to vary the
maintenance plan standard such that the Applicant will have a priority right to
reserve at least one week and a maximum of four weeks per year for maintenance
and repair on the units.
4. That the City Council approve a variance from timeshare standard
26.590.010(C)(14) Right to Rescind allowing the Applicant employ a five (5)
day rescission period with respect to the purchase of a fractional ownership
interest consistent with the Colorado Revised Statutes.
5. That the City Council approve a variance from timeshare standard
26.590.010(C)(15) Escrow of Deposits allowing the Applicant the additional
flexibility of posting a "letter of credit" or "bond" consistent with Colorado Real
Estate Commission requirements.
6. That the Applicant shall record the approved condominium subdivision plat in
the office of the Pitkin County Clerk and Recorder within one hundred eighty
(180) days of its approval by the Community Development Director. Failure on
the part of the applicant to record the plat within one hundred eighty (180) days
following approval by the Community Development Director shall render the
plat invalid and a new application and approval will be required.
7. The Applicant shall record a PUD Agreement and the Final PUD Plans within
180 days of the final approval by City Council with the Pitkin County Clerk and
Recorder binding this property to this development approval. The PUD
Agreement and Plan shall include the following information:
a. The information required to be included in a PUD Agreement,
pursuant to Section 26.445.070(C).
b. A final plat meeting the requirements. of the City Engineer and
showing easements, encroachment agreements and licenses with
reception numbers for physical improvements, and location of utility
pedestals.
c. An illustrative site plan of the project showing the proposed
improvements, landscaping, parking, and the dimensional
requirements as approved.
d. A drawing representing the project's architectural character.
8. The following dimensional requirements of the PUD are approved and shall be
printed on the Final Illustrative Plan. (Units measured in'feet or square feet):
*The requested height variance, as proposed, shall be consistent with the approvea
"Natural Grade Height Analysis" insert in the Application.
**This number is figured on net lot area as calculated in the PUD section of the
Staff Findings regarding open space.
9. The building permit application shall include:
a. A copy of the final Ordinance and recorded P&Z Resolution.
b. The conditions of approval printed on the cover page of the building
permit set.
c. A completed tap permit for service with the Aspen Consolidated
Sanitation District.
d. In the event a tree removal permit as required by the City Parks
Department and any approval from the Parks Department Director for
off -site replacement or mitigation of removed trees.
e. A drainage plan, including an erosion control plan, prepared by a
Colorado licensed Civil Engineer, which maintains sediment and debris
on -site during and after construction. If a ground recharge system is
required, a soil percolation report will be required to correctly size the
facility. A 2-year storm frequency should be used in designing any
drainage improvements.
10. The building permit plans shall demonstrate an adequate fire sprinkler system
and alarm system for the new buildings as required by the Aspen Fire Marshal.
11. Prior to issuance of a building permit the primary contractor shall submit a letter
to the Community Development Director stating that the conditions of approval
have been read and understood and all tap fees, impacts fees, and building permit
fees shall be paid. If an alternative agreement to delay payment of the Water Tap
and/or Parks Impact fee is finalized, those fees shall be payable according to the
agreement.
12. The Applicant shall convey an undivided fractional interest (one tenth of 0.1 %)
in the ownership of the deed restricted affordable housing to the Aspen/Pitkin
County Housing Authority for the purposes of complying with the recent
Colorado Supreme Court Decision regarding rent control legislation. The
Applicant may submit an alternative option to satisfy the rent control issue
acceptable to the City Attorney.
13. The Applicant shall indemnify and hold harmless the Aspen/Pitkin County
Housing Authority and City of Aspen from any claims, liability, fees or similar
charges related to ownership in the deed restricted affordable housing units.
14. The Applicant shall complete and record the deed restriction for the 9 affordable
housing units prior to application for building permits.
15. The Applicant shall pay the required School Land Dedication Fee to the City of
Aspen, which is due and payable at the time of building permit application for
the development. This fee shall be assessed at the rate of the regulations and
calculations in effect at the time of the building permit application.
16. The Applicant shall pay the required Park Development Impact Fee to the City of
Aspen, which is due and payable at the time of building permit application for
the development. This fee shall be assessed at the rate of the regulations and
calculations in effect at the time of the building permit application.
17. That the application for final PUD approval will meet all of the conditions set
forth in City Council Resolution No. 99-111 and No. 01-47, except as otherwise
modified herein.
18. The affordable housing mitigation for Lot 5 shall be for 40.9 net new employees
and shall be provided as follows:
a. The Applicant shall provide 9 on -site deed restricted affordable housing
units to have the net livable area as follows and as depicted on the site
plan represented in the Final PUD Application to mitigate for 15.75
employees:
i. Unit #1 & #2 = 1-bedroom with a minimum of 634 sq. ft.
ii. Unit #3 through #8 = 1-bedroom with a minimum of 665
sq. ft.
iii. Unit #9 = 1-bedroom bedroom with a minimum of 817 sq.
ft.
b. The Applicant shall provide affordable housing mitigation for 13
employees to be housed in the Bavarian Inn affordable housing project;
c. The Applicant shall make a payment of cash -in -lieu to the Aspen / Pitkin
County Housing Authority for 12.15 employees to be paid at the time of
building permit application and as recommended by the Aspen / Pitkin
County Housing Authority at a regular meeting held on November 7t1',
2001. This fee shall be assessed at the rate of the regulations and
calculations in effect at the time of the building permit application.
19. The Applicant shall be required to purchase and make available at all times
valley bus passes for all employees not housed on -site.
20. The Applicant shall provide a total of I I I off-street parking spaces in the
represented sub -grade garage (2 for each of the 51 residential units for a total of
102 spaces as required under the L/TR zone district and 1 for each of the on -site
affordable housing units for a total of 9 spaces as set through Special Review);
and 9 spaces to be located on west side of South Galena Street adjacent to the
project to replace the 9 spaces on Dean Street. They shall be signed as
appropriate by the City Streets Department to be dedicated to the Silver Circle
Ice Rink patrons..
21. The Applicant shall provide a shuttle to and from the airport for the proj ect's
patrons, and shall make a good faith effort to use an alternative energy source
vehicle for such shuttle purposes.
22. The service/delivery area shall be provided with a means of precluding exiting
vehicles from turning left onto South Mill Street. Time limitations for deliveries
shall be set, and a plan indicating how trucks will maneuver to enter the loading
docks shall also be provided. All service/delivery functions shall comply with
regulations currently in effect, as may be amended from time to time.
23. The Final application shall include a management plan for construction parking,
traffic, and noise, and said plan shall consider neighborhood concerns. It is
recommended that meetings with the noticed neighbors be held in preparation of
the management plan required pursuant to this condition.
24. All material representations made by the Applicant in this application and during
public meetings before all boards and commissions shall be adhered to and shall
be considered conditions of approval, unless otherwise amended by a
Board/Commission having authority to do so.
25. The Applicant shall be required to provide $20,000.00 to the City of Aspen in
either a cash deposit or letter of credit at the time of building permit application
for the project to ensure there are no deviations from the proposed timeshare
marketing plan provided in Appendix E, Exhibit 7 of the Application. This letter
of credit or cash deposit shall be released when the Applicant proves that all the
interests have been sold.
26. During construction, noise cannot exceed maximum permissible sound level
standards. In residential zone districts, construction cannot be done except
between the hours of-7 a.m. and 7 p.m., Monday through Saturday. Whether the
entire site is in a residential zone district or not, residential zones are adjacent to
and surrounding the site, so these hours shall be adhered to.
27. The Applicant shall consult the Environmental Health Department for review and
approval of pool and spa plans and specifications (complete with piping layout,
equipment and mechanical specifications along with design calculations) at least
30 days before issuance of a building permit.
28. The Applicant shall contact the Aspen Consolidated Sanitation District for their
recommendation on the proper size of the grease trap. The City of Aspen
regulates restaurant grills and the Applicant shall contact the Environmental
Health Department to be sure that if a grill is planned, that it complies with City
code.
29. The Applicant shall work with the City Engineering Department to resolve an
error encountered in the drainage calculations . that does not fulfill the
requirement of the 90-minute sustained runoff at rates computed by the rational
method. The Engineering Department requires the Applicant to revise the
proposed drainage collection and corresponding plan prior to the submission for
building permits. In addition, the Applicant shall submit adequate soil data as
required by the City Engineering Department in' order to ensure adequacy of this
drainage system. In reference to the foundation drains, soil percolation rates and
classifications will be required to confirm the feasibility of the proposed drainage
system.
3 0. The developer shall provide a letter of credit to the City of Aspen to ensure that if
any of the surrounding roads are damaged as a result of the development on Lot
5, they will be responsible for fixing the damaged areas. .
Section 2:
A public hearing on the Resolution was held on the 13th day of November, and continued to
41h of December at 5:00 in the City Council Chambers, Aspen City Hall, Aspen Colorado,
fifteen (15) days prior to which hearing a public notice of the same was published in a
newspaper of general circulation within the City of Aspen.
APPROVED by the Commission at its regular meeting on November 13, 2001 continued
to December 4th, 2001.
APPROVED AS TO FORM: PLANNING AND ZONING
COMMISSION:
City Attorney Jasmine Tygre, Chair
ATTEST:
Jackie Lothian, Deputy City Clerk
Exhibit A: Review Standards
II. Subdivision (26.88.040) (Old Code Provisions)
26.480.050 Review Standards.
1. General requirements.
a. The proposed subdivision shall be consistent with the Aspen Area
Comprehensive Plan.
Staff Finding:
Please refer to the Staff response provided in the PUD review standards (Section 1(a)) of
this memorandum for this response.
b. The proposed subdivision shall be consistent with the character of existing
land uses in the area.
Staff Finding:
Please refer to the Staff response provided in the PUD review standards (Section 1(b)) of
this memorandum for this response.
C. The proposed subdivision shall not adversely affect the future development
of surrounding areas.
Staff Finding:
Please refer to the Staff response provided in the PUD review standards (Section 1(c)) of
this memorandum for this response.
d. The proposed subdivision shall be in compliance with all applicable
requirements of this Title.
Staff Finding:
Staff finds that the proposed subdivision complies with the applicable requirements of the
Code.
2. Suitability of land for subdivision.
a. Land suitability. The proposed subdivision shall not be located on land
unsuitable for development because of flooding, drainage, rock or soil creep,
mudflow, rockslide, avalanche or snowslide, steep topography or any other natural
hazard or other condition that will be harmful to the health, safety, or welfare of the
residents in the proposed subdivision.
Staff Finding:
There have been several environmental studies completed over the course of the recent
years regarding the suitability of the property proposed for development. As a result of
the former analyses, the Applicant contends that there are "no environmental problems
21
which cannot be either avoided or reasonably mitigated in connection with the
development of the projects on Lot 5 or 3." The bulk of the analysis regarding. issues such
as flooding, drainage, rock or soil creep, mudflow, rockslide, avalanche or snowslide,
steep topography or any other natural hazard is focused on Lot 3 which is not being
addressed in this current review. Because a hotel formerly occupied the site without
incident, it's reasonable to presume the site is suitable for development.
b. The proposed subdivision shall not be designed to create spatial patterns that
cause inefficiencies, duplication or premature extension of public facilities and
unnecessary public costs.
Staff Finding•
As noted by City Departments regarding existing utilities and required service to the
proposed development, there are no expected inefficiencies, duplication or premature
extension of public facilities and unnecessary public costs due to the development on Lot
5. It appears that Savanah completed most of the infrastructure upgrades for Lot 5 and 3
during the construction of the Ritz -Carlton Hotel. -In addition, the Applicant has agreed
that "all costs associated with the installation of the public improvements to serve the
proposed development which have been identified in the Application shall be borne by
the Applicant as may be required."
3. Improvements.
This section requires that the following improvements shall be provided for
the proposed subdivision: permanent survey, paved streets, curbs, gutters and
sidewalks, paved alleys, traffic control signs, signals or devices, street lights,
street trees or landscaping, water lines, fire hydrants, sanitary sewer lines,
storm drains and storm sewers, bridges or culverts, and electric, telephone,
cable, and natural gas lines.
Staff Finding:
Savanah, the former owner of Lot 5, completed most of the infrastructure upgrades for
Lot 5 during the construction of the Ritz -Carlton Hotel. In addition, the Applicant has
agreed that "all costs associated with the installation of the public improvements to serve
the proposed development which have been identified in the Application shall be borne
by the Applicant as may be required."
Specifically, the improvements and utility upgrades already, made that affect Lot 5 are
discussed in detail in the engineering report completed by Schmueser / Gordon / Meyer
dated August 15th, 2001 which also contains detailed recommendations as to the
Construction Management Plan and Fugitive Dust Control Plan in Appendix D, Exhibits
4 & 10.
A brief review of anticipated required improvements to be made for the development of
Lot 5 include the following:
22
Water: Water service for Lot 5 will be provided via the existing 12" main located in
South Galena Street.
Electric, Telephone, Natural Gas, and Cable TV: Electric, Telephone, and Cable TV
lines were rerouted as part of Savanah's prior upgrades to serve the former Roberts
development. The Applicant shall be required to install a new 6" natural gas line to serve
the project. Dean Street shall be improved to accommodate heavy vehicles such as fire
trucks and other emergency support vehicles.
Fire Protection: The Aspen Volunteer ire department will provide fire protection for the
proposed development. There are adequate fire hydrants in place to serve Lot 5. The
multi -family structure will also be required to have a comprehensive sprinkler system.
(Please see the DRC Comments provided by the City of Aspen Fire Department.)
Roads: The developer does not plan to improve any of the roads in the immediately
surrounding area as a result of the proposed development on Lot 5. However, the
Developer shall provide a letter of credit with the City to ensure that if any of the roads
are damaged as a result of the development on Lot 5, they will be responsible for fixing
the damaged areas. This will be a condition of approval.
Sidewalk, Curb & Gutter: As discussed in the aforementioned engineering report, the
Applicant shall install approximately 950 linear feet of sidewalk in the public right-of-
way, mostly on the Dean and South Mill Street frontages. Sidewalk repair and
replacement shall be conducted elsewhere as necessary. In addition, the Applicant shall
install approximately 950 linear feet of new curb and gutter along street frontages. Curb
and gutter repair and replacement shall be conducted elsewhere as necessary.
Drainage: Lot 5's on -site drainage will be accommodated by dry -wells located under the
sub -grade garage designed to maintain historic flow rates with respect to surface water
runoff and groundwater recharge. This proposed system will utilize a detention facility
with a delayed release to the City's storm sewer.
Street Lights & Trees: The Applicant intends to install street trees and lights along all
street frontages as required by the appropriate City Departments. They are also depicted
on the Lot 5 site plan.
Easements, Survey Monuments, and Final Plats: The Applicant intends to depict any
existing and /or new required easements on the final subdivision plat for Lot 5. This
document shall also be filed with the final PUD development plans and agreements. The
external boundaries of Lot 5 will be monumented as required and reflected on the final
PUD development and subdivision plats to be recorded in the Pitkin County Clerk and
Recorder's office. The Applicant shall prepare a Final PUD / Subdivision plat for Lot 5
as to properly delineate the existing encumbrances on the Lot such as easements and
trails.
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4. Affordable housing.
Staff Finding:
As a result of the Conceptual PUD, the affordable housing mitigation was determined to
be 40.9 employees that was approved by the APCHA and City Council via Resolution
99-111. The number was configured by the notion that a total of 82.2 employees were
determined to be generated by the proposed hotel. A credit of 47.8 employees was given
for the former Grand Aspen Hotel, which resulted in an employee generation of 34.4 net
new employees. The 40.9 employee generation figure was derived from combining the
34.4 mentioned above plus the former hotel's 6.5 employee housing replacement
obligation.
Appendix D, Exhibit 1 l contains a letter from Hyatt Vacation Ownership to Scott Writer
explaining that the proposed 51-unit fractional owner proposal would generate 39 full
time employees to operate the facility, which is significantly less than the 82 employees
required for the former hotel operation. However, the Applicant indicated they will
continue to meet the approved mitigation of 40.9 employees.
To satisfy this mitigation requirement, the Applicant intends to provide affordable
housing for 15.75 FTEs in the multi -family structure in the form of 9 employee units.
The Applicant is also providing affordable housing for 13 FTEs in the Bavarian Inn
affordable housing project, paying cash -in -lieu of $2,227,568.85 for 12.15 FTE to the
APCHA. During the regular meeting at the Housing Authority, held on November 7t',
2001, the Authority unanimously approved a recommendation to City Council for the
proposed 9 affordable housing units as well as the request allowing the Applicant the
ability to pay cash -in -lieu for the remaining 12.15 FTEs as indicated above.
5. School Land Dedication. Compliance with the School Land Dedication
Standards set forth at Chapter 26.630.
Staff Finding:
The City of Aspen requires the either the dedication of land or payment of cash -in -lieu
fee for each new unit in a subdivision so that current levels of services can be maintained
in the Aspen .School District. The Applicant has offered a cash -in -lieu payment instead
of a land dedication.
In this case, the Applicant is proposing 10 one -bedroom units (including the AH units),
19 two -bedroom units, and 31 three -bedroom units for a total of 60 units of varying
bedroom counts as shown below. The market value of the land is defined as the value of
the land at the time of payment, excluding the value of any structures on the property.
The Applicant has determined, according to Pitkin County assessors that the market value
of Lot 5 and current improvements to be $2,540,500.00. As a result, the fee is calculated
as $4,846.24.Return to Top of Document
24
III. Condominiumization (26.480.020)
Where a proposed development is to include a condominium form of ownership,
or if an existing development is to be converted to a condominium form of
ownership, in whole or in part, a condominium subdivision plat reflecting all
condominiumized units, or that portion. of the development to be
condo miniumized, shall be submitted to the Community Development Director
for review and approval as a subdivision pursuant to the terms and provisions
of this section.
Staff Response:
In order to sell the units in fractional ownership interests, the Applicant is required to
condominiumize the units. As such, the Applicant must submit a condominium plat
to the Community Development Director for review and approval as a subdivision
pursuant to Section 26.480.090(B). The Applicant's responsibility to comply with
this section is also memorialized in Article 2, Section 2.2 of the Lot 5 Agreement.
The Applicant states that a condominium plat cannot be submitted until the project is
practically . completed, but that the Applicant will submit the appropriate
condominium plat to the Community Development Director prior to the sale of the
units in question which meet the requirements in Section 26.480.090(B), and is also
a condition of approval in the Resolution for the Final PUD.
In addition, the Applicant requests the additional subdivision review, mentioned in
26.480.090(A) above, be waived and that this Final PUD / Subdivision shall serve as
that review. Staff finds this to be acceptable.
Return to Top of Document
IV. Timeshare (26.590.010(C
The Applicant - is proposing to develop a 51-unit free market multi -family structure where
units will be sold in a fractional ownership program. The current Code defines a timeshare
development as "a development, building or dwelling unit the title to which, or is to be,
divided either into interval estates or time -span estates as defined at Section 38-33-110,
C.R.S., as may be amended from time to time." As proposed, this development shall be
required to comply with the standards for Timeshare listed below.
1. Marketing and sale of timeshare. The marketing and sale of timeshare units shall be
governed by the real estate laws set forth in Title 12, Article 61, C.R.S. 1973, as
amended. The applicant and licensed marketing entity shall present to the city the
plan for marketing the timeshare units. To ensure that the applicant. and/or the
marketing entity do not deviate from the approved marketing plan, a sum of twenty.
thousand dollars ($20,000.00) cash or a twenty thousand dollar ($20,000.00)
irrevocable letter of credit for each timeshare development in which the applicant or
marketing entity is involved shall be posted with the city. In addition to all other
remedies or penalties, any deviation from the approved marketing plan shall give
the city the right to enjoin such sale technique deviations. The applicant shall be
responsible for paying the costs of such legal action to enjoin, including the city's
legal and expert witness fees.
Staff Response:
The Applicant proposes that the units will be marketed .and sold by Hyatt Vacation
Marketing Corporation (hereinafter "HVMC"). The Applicant has provided a "Sales and
Marketing Agreement" in Appendix E, Exhibit 6, indicating the terms of agreement between
the owner, Grand Aspen Lodging, LLC, and HVMC for the purpose of the sale and
marketing of the units. In addition, the Applicant has provided a letter from HVMC to Scott
Writer indicating the proposed "Marketing Plan" which is contained in Appendix E, Exhibit
7, that outlines the particular activities proposed to market the units. The Applicant
acknowledges the $20,000.00 cash deposit or letter of credit requirement to be paid to the
City of Aspen so that the propose marketing practices in the Plan are followed as proposed.
However, the Applicant indicates that this amount does not need to be paid until such time as
the actual marketing of the project commences. This shall also be recorded as a condition of
approval in the Final PUD agreement.
While Staff understands this request, Staff feels a date certain should be established for the
conveyance of the $20,000.00 (in the either a cash deposit or letter of credit) to the City of
Aspen by the City Council. An alternative could be to require the Applicant to pay the
subject amount as a condition prior to the receipt of building permits for the project.
2. Marketing and sale practices. The following marketing and sales practices for a
timeshare development shall not be permitted:
a. The solicitation of prospective purchasers of timeshare units on any
street, mall, or other public property or facility.
26
b. Sales campaigns using phone solicitations.
C. Gift giving practices consisting of:
(1) Gifts valued in excess of one hundred dollars ($100.00) used to
induce prospective purchasers to attend a sales presentation or to
purchase timeshare estates. Travel and lodging for the inspection
of timeshare development shall not be included in the definition of
gifts for purposes of this section;
(2) Any gift for which an accurate description is not given;
(3) Any gift package for which notice is not given to the
prospective purchaser that the purchaser will be required to attend
a sales meeting as a condition of receiving the gifts; and
(4) Any gift package for which the printed announcement of the
requirement to attend a sales presentation is in smaller type face
than the information on the gift being offered.
d. The marketing plan shall satisfactorily demonstrate that off-season
timeshare weeks are being packaged and included in the proposed
sales packages and that off-season periods will be adequately
marketed and sold. At a minimum the marketing shall include a
multi -week package including one (1) off-season week sold with one
(1) on -season week. A marketing plan may present alternative
packaging of weeks to be sold if it can be proven to the city council
that the proposed packaging adequately accomplishes the
marketing and sales of off-season weeks.
e. Any unethical sales and marketing practices which would tend to
mislead potential purchasers.
Staff Response:
The Applicant proposes to comply with the above standards which commitment is also
indicated in the Sales and Marketing Agreement, which states:
"WHEREAS, MARKETER has created a professional sales and marketing program designed
to, and has the experience and expertise to, advertise, promote, market and sell timeshare
interest to the general public in compliance with all applicable federal, state, and local laws."
However, the Applicant requests the ability to vary the "Gift -Giving" requirement discussed
in standard C(1) above. The standard requires a gift giving limitation of $100. The Applicant
is requesting this be waived so that they may compete with current industry practices such as
providing complimentary lift tickets, certificates for nights at other Hyatt resorts, etc. which
27
would far exceed the $100 limit. Staff finds this is one example of an antiquated timeshare
regulation, which does not practically relate to today's timeshare industry. The Applicant has
requested that a text code amendment be- made concurrently with this Final PUD application
that allows the City Council the ability to vary the timeshare standards. In fact, this
amendment is discussed further in this memorandum.
The Applicant's timeshare plan sells one "fixed" on -season week in either the winter or
summer seasons and 10 additional days, which "float during the off-season. This appears to
satisfy the intent of standard (d) above regarding an alternative packaging of weeks to be sold
that adequately accomplishes the marketing and sales of off-season weeks.
3. Integration. Timeshare must be conducted in all residential units of a proposed
development or not at all.
Staff Response:
In total, the proposed development will include 51 free market units and an additional 9.
affordable housing units that mitigate for the 51 free market units. While the Applicant
proposes to market all of the 51 free market units pursuant to the proposed fractional
ownership plan, the remaining 9 affordable housing units will be owned, deed -restricted, and
rented by G.A. Resort Condominium Association in accordance with the Aspen / Pitkin
County Housing Authority (APCHA) guidelines. As a result, these units are not part of the
fractional ownership plan and a variance from this standard is requested. The Applicant has
requested that a variance be approved that excludes the 9 affordable housing units from the
fractional ownership plan and are sold and rented in accordance with APCHA guidelines.
4. Amenities. A timeshare development's recreational facilities and amenities shall be
sufficient so as not to create an undue burden on public facilities. Recreational
facilities and amenities of newly constructed or existing structures must sufficiently
service the needs of the development during both the summer and winter seasons.
Staff Response:
As proposed in this Final PUD, the structure will include. central lobby, a front desk for
check -in, a concierge desk, a bar and lounge, a pantry area from which to provide continental
style food service, an exercise room, public restrooms, a ski and bicycle storage area, and a
small accessory commercial space. In addition, two large landscaped areas will contain the
structure's swimming pool and outdoor function areas.
The City's existing timeshare ordinance, which was adopted in the early 1980's, does not
address potential long-term impacts of a fractional ownership project on the City's General
Fund. The City of Aspen's Finance Department has completed a study that indicates that the
conversion of applicant's previously proposed hotel project to a fractional ownership interest
project will have a long term financial impact upon the City's General Fund. The Applicant
understands and acknowledges this financial impact upon the City and desires to partially
mitigate these financial impacts upon the City treasury by offering a cash payment to the City
in an amount between $4 and 5 million; the exact amount to be determined by the City
ME
Council and the applicant upon further study and research. Staff finds these proposed
amenities are sufficient so as not to create an undue burden on public facilities.
5. Parking. Parking shall be sufficient to meet the demands of the development and the
standards of this title.
Staff Response:
The Applicant has proposed 2 spaces for each of the 51 free market units and 1 per each of
the employee affordable housing units for a total of 111 on -site parking spaces to be located
in the sub -grade garage. The proposed parking complies with the requirement in the
underlying UTR zone district.
6. Maintenance and Reserve.
a.. Because timeshare is an intensive, high impact use, a timeshare
development shall provide and reserve a minimum of four (4)
weeks for an annual maintenance period, two (2) weeks in the
spring and two (2) weeks in the fall. The maintenance period must
be sufficient to accomplish proper maintenance of the timeshare
development.
b. A reserve account shall be established to assure that the timeshare
development will be satisfactorily maintained throughout the
lifetime of the development.
Staff Response-
26.590.010(C)(6)(a) discusses a "Maintenance" plan, which requires that a minimum of four
weeks per year (two weeks in the spring and two weeks in the fall) be reserved by the
Timeshare development so that adequate maintenance and repair may be accomplished on
the units. The Applicant proposes that G.A. Resort Condominium Association will have a
priority right to reserve at least one week and a maximum of four weeks per year for
maintenance and repair on the units. This requires a variance from the standard.
7. Budget. The proposed budget for the timeshare development shall demonstrate an
accurate indication of necessary costs and expenditures.
Staff Response:
The Applicant has attached a budget in Appendix E, Exhibit 10.
8. Conversions.
Staff Response:
This standards does not apply as this is a new building and is required to comply with current
UBC regulations.
9. Management/assessment fees. A fair procedure for reviewing/approving any fee
increases which may be made throughout the life of the timeshare development shall
be established to provide assurance and protection to timeshare owners that
management/assessment fees will be applied and used appropriately.
Staff Response:
The Applicant has included a draft condominium declaration that requires the associations'
executive board to deliver a summary of the proposed annual budget, which requires 67% of
the project's allocated interests to reject the budget. Please see Appendix E, Exhibit 2, Article
VIII Assessments and Common Expenses on page 21.
10.Occupancy standards. Occupancy levels throughout the life of the timeshare
development shall be in compliance with applicable building code requirements.
Staff Response:
The Applicant shall be required to comply with the occupancy requirements codified in the
current UBC and the project's on -site affordable housing units shall be based on APCHA
standards.
11. Handicap access. Satisfactory provisions shall be made to provide handicap access
to ten (10) percent of the units and to and throughout the timeshare development as
required by the Uniform Building Code.
Staff Response:
The Applicant shall be required to comply with the occupancy requirements codified in the
current UBC and the project's on -site affordable housing units shall be based on APCHA
standards, as well as UBC requirements.
12. Unsold units. With respect to unsold timeshare units, the applicant shall pay
assessments and fees equal to those assessed or levied on sold timeshare units. The
applicant may rent unsold timeshare units provided that any funds realized from
the rental, to the extent necessary, shall be utilized to defray maintenance costs.
Staff Response:
The Applicant agrees to pay assessments on all fractional interests owned by the Applicant
on the same basis as all other owners of fractional interests in the same unit. In addition, the
Applicant will pay assessments on all residential units owned by the Applicant and not yet
committed to the fractional ownership plan equal to the Whole Project Assessments levied
against owners of fractional interests.
13. Exchange Programs. If the timeshare owners are permitted or required to become
members of or to participate in any program for the exchange of occupancy rights
among themselves or the timeshare owners of other timeshare parcels, or both,
prospective purchasers shall be provided with a full and accurate disclosure of all
the details, costs, expenses, procedures, names of persons and other timeshare
development involved, and any other matters pertinent to a timeshare owner's
participation in such program. The materials provided to prospective purchasers
shall demonstrate that the timeshare development has been accepted in the
30
exchange program with which it claims it is affiliated and shall disclose what the
confirmation percentage is in the exchange program with which the timeshare
development is associated, indicating the likelihood of the purchaser actually being
able to obtain occupancy time in another development in the exchange program at a
time and location the purchaser desires.
Staff Response:
G. A. Resort Condominiums will become a club resort in the Hyatt Vacation Club System,
which is administered by Hyatt Vacation Ownership, Inc where fraction interests owners will
enjoy privileges with other Hyatt club resorts. The Applicant shall provide the necessary
information regarding the exchange program in the Hyatt Vacation Ownership Exchange
Program Disclosure Guide, which is provided in Appendix E, Exhibit 11 and in the Hyatt
Vacation Club Rules and regulations.
14. Right to rescind. Within ten (10) calendar days after the execution of a contract to
purchase an interest in a timeshare project, or within ten (10) calendar days after
purchaser's receipt of the disclosure statement required herein, whichever occurs
later, either party may cancel the contract without penalty. The seller shall obtain a
written receipt of the disclosure statement documenting purchaser's receipt of the
disclosure statement. The seller shall clearly and conspicuously notify the purchaser
in writing of the rights of the purchaser under this section. The seller shall also
provide an adequate opportunity to the purchaser to exercise his right of rescission.
Within ten (10) days after receipt of a written notice of rescission, the developer
shall return to the purchaser any and all monies given by the purchaser to the
developer.
Staff Response:
26.590.010(C)(14) discusses the "Right to Rescind" which is granted for 10 days after the
execution of a contract to purchase an interest in a timeshare project. The Applicant asserts
that the Colorado Revised Statutes permits a five (5) day rescission period with respect to the
purchase of a fractional ownership interest. The Applicant is requesting a variance from the
10-day standard.
15. Escrow of deposits. Deposits or down -payments made in connection with the
purchase or reservation of a timeshare unit from a seller shall be held in an escrow
account until closing or until the issuance of a certificate of occupancy, whichever is
later. The escrow agent or holder of the escrow shall be a neutral third party not
having an interest in the purchase and sale transaction, such as a title insurance
company licensed by a governmental agency or instrumentality. The escrow agent
may (a) deliver the deposited funds to the seller at the expiration of the time of
closing or at the date of the issuance of a certificate of occupancy, whichever is later,
(b) deliver to the seller because of purchaser's default under a contract to purchase
the timeshare; or (c) refund to the purchaser.
31
Staff Response:
This standard requires that Deposits or down -payments made in connection with the purchase
or reservation of a timeshare unit from a seller shall be held in an escrow account until
closing or until the issuance of a certificate of occupancy, whichever is later. The Applicant's
plan offers an alternative to this standard: The Applicant requests the flexibility of posting a
"letter of credit" or "bond" consistent with Colorado Real Estate Commission requirements.
The Applicant asserts that "this alternate assurance, which must be equal to 110 percent of
the deposits released to the developer prior to closing, is normally either a letter of credit
drawn on a bank doing business in Colorado or a bond." Staff recommends that if this
alternative is acceptable to the City Council a letter of credit is preferred over a bond.
16. Bindingeffect. ffeet. The requirements of this section and any approval granted pursuant
to this section shall be binding on an applicant and the applicant's successors or
assigns.
Staff Response:
The Applicant understands this standard that the requirements of this section and any
approval granted pursuant to this section shall be binding on an applicant and the applicant's
successors or assigns.
17. Disclosure of information. This section is intended to regulate the creation and sale
of timeshare interests within the City of Aspen, and no warranty or guarantee is
made by the City of Aspen with regard to the completeness or accuracy of any
information or documentation submitted to the City of Aspen or any approval
granted by the City of Aspen. No person may advertise or represent that the City of
Aspen or any of its officers or employees have recommended the sale or purchase of
timeshare units.
Staff Response:
The Applicant has submitted a "Disclosure Statement" to the City of Aspen in Appendix E,
Exhibit 12 that explains that no warranty or guarantee is made by the City of Aspen with
regard to the completeness or accuracy of any information or documentation submitted to the
City of Aspen or any approval granted by the City of Aspen. No person may advertise or
represent that the City of Aspen or any of its officers or employees have recommended the
sale or purchase of timeshare units.
18. Prohibited practices and uses. Without in any way limiting any requirement
contained in this section, it is unlawful for any person to knowingly engage in any of
the following practices:
a. The creation, operation or sale of a right -to -use interest or any
other timeshare concept which is not specifically allowed and
approved pursuant to the requirements of this section. Right -to -use
timeshare concepts (e.g. lease -holds, vacation clubs) are considered
inappropriate and are not permitted.
32
b. Misrepresent the facts contained in any application for timeshare
approval, timeshare development instruments or disclosure
statement.
C. Failure to comply with any representations contained in any
application for timesharing or misrepresenting the substance of
any such application to another who may be a prospective
purchaser of a timeshare interest.
d. Manage, operate, use, offer for sale or sell a timeshare estate or
interest therein in violation of any requirement of this section or
any approval granted pursuant hereto or cause or aid and abet
another to violate any requirement of this section or an approval
granted pursuant to this section.
Staff Response:
The Applicant has agreed not to engage in any of the forgoing practices.
19. Disclosure.
a. General requirements. A written sworn disclosure statement,
containing sufficient detail and information to allow the city to
verify .any and all disclosures required herein, shall contain the
following:
(1) The name and address of the developer of the timeshare
development as well as a summary of the developer's business
experience including all background and experience in the
development of timeshare development and a resume with
references and present financial condition of the developer.
(2) The name and address of the manager of the development, if
any, and a description of the manager's responsibility, authority
and business experience along with a resume with references. All
information on the manager's background and experience
specifically related to timeshare development should be provided.
(3) The names and addresses of the marketing entity and the
listing broker and a statement of whether there are any lawsuits
pending or investigations that have been undertaken against the
marketing entity or listing broker, and if so, a description of the
status or disposition of said lawsuits or investigations. A summary
of the marketing entity's business experience including all
background and experience related to timeshare development, and
a resume with references on the marketing entity shall be provided.
33
(4) A description of the timeshare units, including the developer's
schedule for completion of all buildings, units and amenities, and
dates of availability. In the event the development is to be a phased
development, the developer shall provide, to the satisfaction of the
city, a bond or letter of credit insuring that all phases of
construction will be completed.
(5) If the timeshare plan consists of a condominium or a similar
form of ownership, a description of the development and any
pertinent provisions of the development's instruments.
(6) Any restraints on the transfer of the purchaser's interest in the
timeshare units or plan.
(7) The timeshare ownership plan (timeshare, fractional fee,
interval ownership), which shall include a description of the rights
and responsibilities under the plan. This description should also
disclose whether a prospective purchaser is buying a specific unit
for a specific time or a specific unit for a floating time, or whether
there is no specific unit but just a specific time.
(8) Notice of any liens, title defects or encumbrances on or
affecting the title to the units or plan and, if there are
encumbrances or liens, a statement as to whether, when and how
they will be removed.
(9) Notice of any pending or anticipated legal actions that are
material to the timeshare units or plan of which the applicant has,
or should have, knowledge.
(10) The total financial obligation of the purchaser, which shall
include the initial price and any additional charges to which the
purchaser may be subject in purchasing the unit.
(11) An estimate of the dues, maintenance fees, real property taxes,
sales taxes, real estate transfer tax and similar periodic expenses,
and the method or formula by which they are derived and
apportioned, which shall include whether maintenance fees are
determined by unit, time of year, or prorated share of the overall
maintenance costs, or any other means utilized to compute
maintenance fees.
(12) A description of any financing offered by- the he applicant.
34
(13) The terms and significant limitations of any warranties
provided, including statutory warranties and limitations on the
enforcement thereof or on damages.
(14) A statement that any deposits or down payments made in
connection with the purchase of a timeshare unit will be held in an
escrow account until closing of the transaction or availability for
occupancy, whichever is later. The escrow agent or holder of the
escrow shall be a neutral third party not having any interest in the
purchase and sale transaction.
(15) Any current or expected fees or charges to be paid by
timeshare owners for the use of any facilities related to the
property.
(16) The extent to which a timeshare unit may become subject to a
tax or other lien arising out of 'claims against other timeshare
owners of the same timeshare unit.
(17) A statement that there is a ten (10) day calendar period of
mutual recession in the purchase of the unit.
(18) The developer must disclose the minimum percentage of units
intended to be sold before the developer will proceed with the
completion of the timeshare development.
(19) A description of the maintenance to be supplied to the
timeshare development and how such maintenance will be
provided, and what time periods during the year are set aside for
only maintenance so that the unit will not be able to be occupied.
(20) How the proposed development will deal with the problem of a
unit not being available to an owner because of a prior occupant
holding over and not yielding possession of the unit, and what
means are available to discourage and penalize persons who do
hold over.
(21) A statement of what times of ,year are high season (on -season),
including a statement of when the local ski areas are open for
skiing and how the developer intends to market the off-season.
(22) Whether all the units in the proposed development, or only
certain specific units, if any, are available for participation in an
exchange program.
35
(23) All unusual and material circumstances, features and
characteristics of the property.
(24) A description of all insurance covering the property.
(25) A description of the on -site amenities and recreational facilities
which are available for use by the unit owners. All on -site amenities
must be owned by the homeowner's association and the developer
shall not be allowed to charge any additional fees for use of the
amenities.
(26) A list of any units in the development that have existing
kitchens and any proposals for additional kitchens.
(27) A list of the limitations on the number of persons who can
occupy a unit at any one time and what those limitations are for
each unit in the development. These limitations must comply with
maximum occupancy requirements established by applicable
building codes.
(28) A statement that the homeowners association and/or the
managing agent shall serve as the owner's designated agent for the
service of legal notices pertaining to the timeshare interest or the
service of process (in a manner sufficient to satisfy the
requirements of personal service in the state, pursuant to Rule 4,
C.R.C.P., as amended).
(29) A statement that any timeshare interest shall be expressly
subject to all requirements and representations set forth in the
disclosure statement on record with the Pitkin County Clerk and
Recorder.
Staff Response:
The Applicant has submitted a "Disclosure Statement" to the City of Aspen in
Appendix E, Exhibit 12 that adequately contains responses to each of the
aforementioned standards. It should be noted that the Applicant is requesting to vary
standard (17) "A statement that there is a ten (10) day calendar period of mutual
recession in the purchase of the unit" to be five days and standard (l9) "A description
of the maintenance to be supplied to the timeshare development and how such
maintenance will be provided, and what time periods during the year are set aside for
only maintenance so that the unit will not be able to be occupied." To a maximum of
4 weeks and a minimum of one week per year whereas the current regulation requires
4 weeks per year for maintenance.
36
20. Timeshare development instruments. Timeshare development instruments shall
include, without limitation, the following documentation or information:
a. Disclosure statement.
b. Instruments for a timeshare estate as permitted by this section,
including:
(1) The legal , description, street address or other description
sufficient to identify the property.
(2) Identification of timeshare time periods by letter, name,
number or combination thereof.
(3) Identification of the timeshare estate and the method whereby
additional timeshare estates may be created.
(4) The formula, fraction or percentage of the common expenses
and any voting rights assigned to each timeshare estate.
(5) Any restrictions on the use, occupancy, alteration or alienation
of timeshare units.
(6) Any other matters that the applicant or the city council deems
reasonably necessary to consider the development.
C. All timeshare development instruments shall - provide for the
following:
(1) That a homeowners' association shall be established. Title to
the common areas of the development, and responsibility for
maintenance of the development shall reside within the association.
The association shall designate a managing agent. The management
contract with the managing agent shall allow for either party to
terminate, for cause, upon sixty (60) days notice. In the event the
manager is terminated, a new managing agent shall be designated
as quickly as possible by the association. Any management
agreement shall specify the managing agent's duties to.maintain the
development.
(2) A stipulation by the owner of the timeshare interest
irrevocably designating the homeowners' association and/or the
managing agent as an agent for the service of legal notices for any
legal action, proceeding or hearing pertaining to the timeshare
interest or for- the service of process (in a manner sufficient to
37
satisfy the requirements of personal service in the state, pursuant to
Rule 4 C.R.C.P., as amended).
(3) Each timeshare interest with a multiple ownership shall be
required to designate one managing agent as the spokesperson and
voter for all of the owners involved.
(4) That the association shall have the ability to compel a
timeshare owner to pay maintenance fees and if any owner's fees
are not paid, his interest shall be subject to a lien and foreclosure
or other divestment. In the event an owner or his guests violate the
rules and regulations of the association, the association shall have
the right to enjoin the violation and the prevailing party in such
suit shall be awarded his court costs and reasonable attorney's fees.
(5) How proceeds shall be distributed in the event the property is
taken by reason of condemnation or eminent domain.
Staff Response:
Staff finds that adequate response to this standard is represented in the following
documents found in Appendix E of the application.
➢ Draft Articles of Incorporation and Bylaws;
➢ Condominium Declaration;
➢ Disclosure Statement to the City of Aspen
➢ Condominium Association Management Contract
Return to Top of Document
W
V. Conditional Use (26.425.040)
Only those uses that are authorized as, a conditional use for each zone district in Chapter
26.710, may be approved as a conditional use. The designation of a land use as a
conditional use in a zone district does not constitute an authorization of such land use or
act as an assurance that such land use will be approved as a conditional use; rather, each
proposed conditional use shall be evaluated by the Planning and Zoning Commission for
compliance with the standards and conditions set forth in this Chapter.
A. The conditional use is consistent with the purposes, goals, objectives and
standards of the Aspen Area Community Plan, with the intent of the zone
district in which it is proposed to be located, and complies with all other
applicable requirements of this Title; and
Staff Finding
The Applicant is requesting Timeshare approval, which is listed as a conditional use in
the L/TR zone district. The purpose of the L/TR zone district is to encourage construction
and renovation of lodges in the area at the base of Aspen Mountain and to allow
construction of tourist -oriented detached, duplex and multi -family residential dwellings.
Staff finds that the proposed structure is multi -family and designed to operate as short-
term tourist -oriented accommodations and therefore is consistent with the Land Use
Code.
The proposed development is consistent with the AACP regarding affordable housing by
providing a variety of affordable housing mitigation including 9 on -site employee units
(for 15.75 employees) in the multi -family structure, the creation of the Bavarian Inn
affordable housing project which will house 13 employees, and a payment of cash -in -lieu
to the APCHA of approximately $2,227,586.85 to be used for the City's housing needs.
In addition, the project will provide a shuttle service to and from the airport and other
destinations and the Applicant shall be required to purchase and make available at all
times valley bus passes for all employees not housed on -site to assist in the reduction of
the need for an automobile while visiting Aspen that is consistent with the transportation
goals in the AACP.
B. The conditional use is consistent and compatible with the character of the
immediate vicinity of the parcel proposed for development and surrounding
land uses, or enhances the mixture of complimentary uses and activities in the
immediate vicinity of the parcel proposed for development; and
Staff Find* cr
The character of the surrounding land uses is primarily defined by the underlying Lodge /
Tourist Residential zone district whose purpose is to encourage construction and
renovation of lodges in the area at the base of Aspen Mountain and to allow
construction of tourist -oriented detached, duplex and multi -family residential dwellings.
In addition, adjacent development includes a mix of large hotels and smaller tourist
oriented duplex and multi -family condominium dwelling units, which are occupied by
permanent and second homeowners.
C. The location, size, design and operating characteristics of the proposed
conditional use minimizes adverse effects, including visual impacts, impacts on
pedestrian and vehicular circulation, parking, trash, service delivery, noise,
vibrations and odor on surrounding properties; and
Staff Finding
The proposed 51-unit fractional ownership is consistent with the originally proposed
hotel in location, size and design. The operating characteristics will differ slightly from
that of a hotel, however, the former hotel proposal included significant hotel amenities
such as a restaurant and conference facilities that received conceptual approval. This 51-
unit multi -family structure will function much the same as the previous hotel designed to
accommodate short-term stays and will also contain the main level amenities of a hotel
such as a front desk, concierge, lounge / bar, sundries shop, ski storage, fitness facility
and so forth. If anything, there is a reduction in many impacts as a result of the loss of the
restaurant and conference facilities.
D. There are adequate public facilities and services to serve the conditional use
including but not limited to roads, potable water, sewer, solid waste, parks,
police, - fire protection, emergency medical services, hospital and medical
services, drainage systems, and schools; and
Staff Finding
Savanah, the former owner of Lot 5, completed most of the infrastructure upgrades for
Lot 5 during the construction of the Ritz -Carlton Hotel. In addition, the Applicant has
agreed that "all costs associated with the installation of the public improvements to serve
the proposed development which have been identified in the Application shall be borne
by the Applicant as may be required."
Specifically, the improvements and utility upgrades already made that effect Lot 5 are
discussed in detail in the engineering report completed by Schmueser / Gordon / Meyer
dated August 15t', 2001 which also contains detailed recommendations as to the
Construction management Plan and Fugitive Dust Control Plan in Appendix D, Exhibits
4 & 10. A brief review of anticipated required improvements to be made for the
development of Lot 5 are discussed in the Subdivision Section of this Memorandum.
E. The applicant commits to supply affordable housing to meet the incremental
need for increased employees generated by the conditional use; and
Staff Finding
As a result of the Conceptual PUD, the affordable housing mitigation was determined to
be 40.9 employees that was approved by the APCHA and City Council via Resolution
99-111. The number was configured by the notion that a total of 82.2 employees were
determined to be generated by the proposed hotel. A credit of 47.8 employees was given
M
for the former Grand Aspen Hotel, which resulted in an employee generation of 34.4 net
new employees. The 40.9 employee generation figure was derived from combining the
34.4 mentioned above plus the former hotel's 6.5 employee housing replacement
obligation.
Appendix D, Exhibit 11 contains a letter from Hyatt Vacation Ownership to Scott Writer
explaining that the proposed 51-unit fractional owner proposal would generate 39 full
time employees to operate the facility which is slightly less than the employees required
for the former hotel operation. However, the Applicant indicated they will continue to
meet the approved mitigation of 40.9 employees.
To satisfy this mitigation requirement, the Applicant intends to provide affordable
housing for 15.75 FTEs in the multi -family structure in the form of 9 employee units.
The Applicant is also providing affordable housing for 16 FTEs in the Bavarian Inn
affordable housing project, paying cash -in -lieu of $2,227,568.85 for 12.15 FTE to the
AP CHA.
Return to Top of Document
41
VI. Land Use Code Amendment (26.310.040�
As mentioned above, in order for the Applicant's present proposal to work, the Applicant
has proposed a text amendment to the Timeshare regulations in the Land Use Code to be
reviewed concurrently with the Final PUD Application. This amendment calls for the
Timeshare regulations to permit the City Council to YM the current Timeshare review
standards in the Land Use Code. A discussion of these amendments is as follows:
1) An amendment to the Timeshare regulations to permit the City Council to vary
the current Timeshare review standards in the Land Use Code.
It is clear, the current Timeshare provisions in the Land Use Code, adopted in the early
1980s, were effective in regulating various problems inherent to the timeshare industry at
the time such as marketing and disclosure practices. The Applicant contends that these
problems appear to be accounted for through current real estate practices and laws
enacted by the Colorado Revised Statutes but the Timeshare regulations in the Code have
not changed. The Applicant has proposed a fractional ownership scheme that conflicts
somewhat with the Timeshare regulations. As a result, the Applicant request that a text
amendment be approved that allows City Council the authority to vary specific
Timeshare review standards as a result of the anticipated operations of their proposal.
At present, the City has hired a consultant to review and re -write the City's Timeshare
ordinance due to the apparent antiquated nature of the existing ordinance regarding
today's timeshare industry, alternative ownership scenarios, and the regulation of
potential impacts from such ownership schemes.
Specifically, the Applicant has proposed a fractional ownership plan that would require
the following variances from the existing Timeshare review standards:
l . 26.590.010(C)(2)(c) discusses "Gift Giving" in the marketing and sales practices.
The standard requires a gift giving limitation of $100. The Applicant is requesting
this be waived so that they may compete with current industry practices such as
providing complimentary lift tickets, certificates for nights at other Hyatt resorts,
etc. which would far exceed the $100 limit.
2. 26.5.90.010(C)(3) discusses "Integration," where Timeshare must be conducted
in all residential units of a proposed development or not at all. While the
Applicant will market all of the 51 free market units pursuant to the proposed
fractional ownership plan, the remaining 9 affordable housing units will be
owned, deed -restricted, and rented by G.A. Resort Condominium Association in
accordance with the Aspen / Pitkin County Housing Authority (APCHA)
guidelines. As a result, these units are not part of the fractional ownership plan
and a variance from this standard is requested.
3. 26.590.010(C)(6)(a) discusses a "Maintenance" plan, which requires that a
minimum of four weeks per year (two weeks in the spring and two weeks in the
fall) be reserved by the Timeshare development so that adequate maintenance and
repair may be accomplished on the units. The Applicant proposes that G.A.
Resort Condominium Association will have a priority right to reserve at least one
week and a maximum of four weeks per year for maintenance and repair on the
units. This requires a variance from the standard.
4. 26.590.010(C)(14) discusses the "Right to Rescind" which is granted for 10 days
after the execution of a contract to purchase an interest in a timeshare project.
The Applicant asserts that the Colorado Revised Statutes permits a five (5) day
rescission period with respect to the purchase of a fractional ownership interest.
The Applicant is requesting a variance from the 10-day standard.
5. 26.590.010(C)(15) discusses "Escrow of Deposits." This standard requires that
Deposits or down -payments made in connection with the purchase or reservation
of a timeshare unit from a seller shall be held in an escrow account until closing
or. until the issuance of a certificate of occupancy, whichever is later. The
Applicant's plan offers an, alternative to this standard: The Applicant requests the
flexibility of posting a "letter of credit" or ."bond" consistent with Colorado Real
Estate Commission requirements. The Applicant asserts that , "this alternate
assurance, which must be equal to 110 percent of the deposits released to the
developer prior to closing, is normally either a letter of credit drawn on a bank
doing business in Colorado or a bond." Staff. Again, refers the Applicant submit a
letter of credit rather than a bond if this is acceptable to City Council.
Review Criteria and Staff Findings: Section 26.310.020, Standards Applicable to
Text Amendments
In reviewing an amendment to the text of the text of the Land Use Code, the City Council
and the Commission shall consider:
A. Whether the proposed amendment is in conflict with any applicable portions of
this title.
Staff Finding:
It is not apparent that the request to allow City Council the authority to vary the timeshare
regulations is in direct conflict with any portions of this title.
B. Whether the proposed amendment is consistent with all elements of the Aspen
Area Community Plan.
Staff Finding:
The proposed amendment allows a certain flexibility regarding the parameters of
timeshares. The proposed request is consistent with the AACP.
C. Whether the proposed amendment is compatible with surrounding zone districts
and land uses, considering existing land use and neighborhood characteristics.
Staff Finding:
43
This does not apply to the proposed request.
D. The effect of the proposed amendment on traffic generation and road safety.
Staff Finding:
This does not apply to the proposed request.
E. Whether and the extent to which the proposed amendment would result in
demands on public facilities, and whether and the extent to which the proposed
amendment would exceed the capacity of such facilities, including, but not
limited to, transportation facilities, sewage facilities, water supply, parks,
drainage, schools, and emergency medical facilities.
Staff Finding:
This does not apply to the proposed request.
F. Whether and the extent to which the proposed amendment would result in
significant adverse impacts on the natural environment.
Staff Finding:
This does not apply to the proposed request.
G. Whether the proposed amendment is consistent and compatible with the
community character in the City of Aspen.
Staff Finding:
This does not apply to the proposed request.
H. Whether there have been changed conditions affecting the subject parcel or the
surrounding neighborhood which support the proposed amendment.
Staff Finding:
This does not apply to the proposed request.
I.. Whether the proposed amendment would be in conflict with the public interest,
and is in harmony with the purpose and intent of this title.
Staff Finding:
The public interest is the very thing that the timeshare standards were designed to protect.
The proposed amendment would give City Council the authority to vary timeshare
`standards, as they felt continued to be in the public interest as is their charge.
Return to Top of Document
ASPEN MOUNTAIN SUBDIVISION/PUD
GRAND ASPEN AND TOP OF MILL FINAL
PUD DEVELOPMENT PLAN
APPLICATION
Submitted by:
Grand Aspen Lodging, LLC
Top of Mill Investors, LLC
c/o Four Peaks Development, LLC
1000 South Mill Street
Aspen, CO 81611
(970) 925-2114
August 15, 2001
Prepared by:
VANN ASSOCIATES, LLC
Planning Consultants
230 East Hopkins Avenue
Aspen, CO 81611
(970) 925-6958
EXO(ibn—
F-+� ba/4l0 I
of Aspen Mountain. Two triplexes have been located on the lowest portion of Lot 3 to
reflect the scale and density of surrounding development (e.g., the Fifth Avenue,
Mountain Queen and Summit Place condominiums) . A small multi -family structure and
a duplex have been located in the central portion of the site. At the top of Lot 3, the
density changes to single-family residences which are nestled into the base of Aspen
Mountain. The overall effect of the Master Site Plan is to blend the proposed
development into the established character of the surrounding area in terms of density,
scale, massing and architectural texture. The Applicant's development proposal for Lots
3 and 5 of the PUD is discussed in detail below.
B. Lot 5 - Grand Aspen Hotel Site
The development program for Lot 5 consists of a single multi -family
residential structure which will contain fifty-one free market dwelling units and nine
affordable housing units. While the free market units are considered to be residential
dwelling units for regulatory purposes (i.e., each unit contains a kitchen), they will
function as short-term accommodations in much the same fashion as traditional hotel
units. The Applicant proposes to condominiumize the units and sell them pursuant to a
fractional ownership plan which has been developed by Hyatt Vacation Ownership, Inc.,
the proposed operator of the project. A 1/20th interest in each free market unit will be
sold. Each purchaser of a fractional interest will own one fixed week per year in a
specific unit, and ten days of "float time" during which they may occupy any available
unit within the project. When not occupied by the owners, the units will be available for
occupancy by participants in other fractional ownership plans and the general public. The
proposed ownership plan is discussed in detail in Section V.C. of this application.
Thirty-one of the fifty-one free market units will each contain three
bedrooms while nineteen units will contain two bedrooms. The remaining unit will
47
EXHIBIT 2
DECLARATION OF CONDOMINIUM
FOR
G.A. RESORT CONDON MUMS
CITY OF ASPEN
PITKIN COUNTY
COLORADO
CAProgram Files\Qualcomm\Eudora Pro\Attach\Declaration of Condominium for G.A. Resort Condominiums 081701 clnl.doc
Executive Board on account of such taking, or in the event a majority of the voting interests at a duly
called and constituted meeting of the Association promptly approve such restoration or repair, the
Executive Board shall arrange for same and shall disburse such of the proceeds of such award or
settlement as shall reasonably be necessary to effect such restoration or repair to the contractors engaged
for such purpose in appropriate progress payments. The balance of such proceeds, or all of such
proceeds if no determination to repair or restore is made, shall be disbursed by the Association in the
same manner as insurance proceeds under Section 10.5 above where there is no repair or restoration of
the damage.
(b) Units. Any award or settlement for the taking in condemnation of a Unit
shall be paid to the affected Owner or Owners and their mortgagees as their interests may appear and
made pursuant to Section 38.33.3-107 of CIOA. Any required reallocations of Allocated Interests
pursuant to CIOA shall be confirmed by an amendment to the Declaration .prepared, executed and
recorded by the Association. If a temporary taking in condemnation of use (but not title) of a Unit
occurs, the entire award or settlement for such temporary taking shall be paid to the Condominium
Association for the benefit of the Owners and mortgagees of such Unit as their respective interests may
appear.
ARTICLE XII
USE RESTRICTIONS
The use of the Property shall be in accordance with the following provisions:
12.1 Commercial Uses.The Executive Board may adopt rules and regulations limiting
permitted uses of commercial units. Uses that constitute a nuisance are prohibited. There shall be no use
that adversely affects that use, enjoyment or possession of a unit as a result of noise, odor, heat, vibration
or appearance.
12.2 Residential Uses.All Residential Units shall be used for dwelling and lodging
purposes only in conformity with all applicable zoning laws, ordinances and regulations. Use of
residential Units for commercial purposes or any purposes other than the personal use described herein
and other than the uses reserved by and for the benefit of Declarant is expressly prohibited.
"Commercial purpose" shall include, but not be limited to, a pattern of rental activity or other occupancy
by an Owner that the Condominium Association, in its reasonable discretion, could conclude constitutes
a commercial enterprise or practice. This restriction shall not limit the ability of Declarant, its successors
and assigns, from leasing or renting on a short or long term basis any unsold condominium units and
Timeshare Interests which rights are expressly reserved by Declarant for its benefit and the benefit of its
successors and assigns.
12.3 Personal Use Restriction for Timeshare Units.
Except for Units owned or leased by the Declarant each of the Timeshare Units shall be
1 as vacation accommodations. Use of the Timeshare Units is limited solely to the personal
occupied only � n ,
use of Owners, their guests, invitees and lessees and for recreational uses by corporations and other 1�'
entities owning Timeshare Interests.
Page 37
EXHIBIT 8
HYATT VACATION CLUB RESORT AGREEMENT
THIS HYATT VACATION CLUB RESORT AGREEMENT ("Agreement") is effective as of the
Effective Date as defined below and is made and by and among Hyatt Vacation Ownership, Inc., a Delaware
corporation, whose address is Madison Plaza, 200 West Madison, 42nd Floor, Chicago, Illinois 60606, its successors
and assigns ("HVOI"); Grand Aspen Lodging, LLC, a Delaware limited liability company, whose address is Grand
Aspen Lodging, LLC, a Delaware limited liability company ("Developer"); G.A. Resort Condominium Association,
Inc., a Colorado not -for -profit corporation having offices at
("Association"); and Hyatt Vacation Management Corporation, a Delaware corporation, having offices at 450
Carillon Parkway, Suite 210, St. Petersburg, Florida 33716 ("Management Company").
RECITALS
WHEREAS, Developer has developed a resort project known as G.A. Resort Condominiums,
located in Aspen, Colorado (the "Resort") subject to a timeshare plan pursuant to Colo. Rev. Stat. §38-33-110 and
§38-33-111, ("Timeshare Provisions"); and
WHEREAS, HVOI has established a reservation and exchange system and related services known
as the Hyatt Vacation Club (the "Club") for the purpose of providing a means by which the owners of Timeshare
Interests in the Resort ("Owners") and in any other resort that is affiliated with the Club ("Club Resorts"), reserve
the use of accommodations and related facilities of the Resort and the other Club Resorts, and have access to any
other benefits which the Club may provide from time to time, all in accordance with and as restricted by the terms of
the Club as set forth in this Agreement and the Hyatt Vacation Club Rules and Regulations ("Club Rules"); and
WHEREAS, Association is the condominium owners' association for the Resort pursuant to Colo.
Rev. Stat. §38-33.3-301; and
WHEREAS, Association has entered into that certain property management agreement with
Management Company, for the purpose of Association assigning to Management Company all of Association's
delegable Resort management duties, obligations and responsibilities; and
WHEREAS, Developer and Association desire that the Resort become a Club Resort pursuant to
the terms of this Agreement and the Club Rules and that Owners at the Resort have the ability to make use of the
benefits of the Club; and
WHEREAS, Management Company desires the Resort to become a Club Resort and for
Management Company to coordinate its activities and perform services associated therewith in accordance with the
provisions of this Agreement; and
WHEREAS, by acceptance of a conveyance of a Timeshare Interest in the Resort, each Owner is
deemed to desire that the Resort become a Club Resort; and
WHEREAS, HVOI desires that Developer, Association, Management Company and Owners
acknowledge that HVOI shall have all of the duties, obligations and responsibilities for the operation of the
reservation system regarding the use of accommodations at the Resort and other Club Resorts, in accordance with
the terms of this Agreement, the Club Rules and the Timeshare Provisions, so as to fully integrate the Resort and its
respective Owners into the Club;
NOW, THEREFORE, in consideration. of the mutual covenants and obligations contained in this
Agreement, the parties hereby agree as follows:
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I oints. Fixed Club Points are not assigned until and unless the Member voluntarily or involuntarily enters the Club
Use Period.
Club Point Account shall mean the record of the number of Club Points available for use by.a
Club Member during each Reservation Window.
Club Point Chart shall mean the table of Club Points required to reserve the use of a given Week
or Split Week in a given unit type during the Home Resort. Preference Period (Float), the Club Use Period or the
Limited Club Use Period.
Club Priority Period shall mean the sixty (60) day period immediately preceding the first day of
use of a given Week, during which Club Members have only limited rights to reserve the related Unit within the
Club in accordance with the Hyatt Vacation Club Rules and Regulations.
Club Resort shall mean both Component Resorts and Affiliate Resorts, to the extent that owners of
Timeshare Interests at such Affiliate Resorts have become Club Members.
Club Use Period shall mean both the Club Use Period (Fixed) and the Club Use Period (Float).
During any overlap between the Club Use Period (Fixed) and the Club Use Period (Float), a Club Member may use
the Fixed Club Points or Floating Club Points which remain in the Member's Club Point Account on a first -in, first -
out basis to reserve any available Week or Split Week within the Club.
Club Use Period (Fixed) shall mean the six (6) month period beginning on the day after the
expiration of the Home Resort Preference Period (Fixed) and ending on the day before the first day of use of a given
Fixed Week. During the Club Use Period (Fixed), Club Members must compete on a first come, first served basis to
reserve the use of any available Week within the Club.
Club Use Period (Float) shall mean, for Club Resorts which have Floating Weeks or Floating Split
Weeks, the period beginning on the day after the expiration of the Home Resort Preference Period (Float) and
ending on the day before the first day of use of the last Floating Week. During the Club Use Period (Float), Club
Members must compete on a first come, first served basis to reserve the use of any available Week within the Club.
Component Resort shall mean a resort which has become affiliated with the Club from time to
time pursuant to a Resort Agreement or otherwise, and for which membership in the Club is an appurtenance of
ownership of a Timeshare Interest.
Deed shall mean the instrument conveying a Timeshare Interest to an Owner, which instrument
confirms the restrictions on use of that Timeshare Interest under the Club Documents and entitles the Owner to the
benefits and the obligations of membership in the Club.
External Exchange Company shall mean any company that provides services to the Club and to
Club Members under an External Exchange Program.
Extended External Exchange Period shall mean the twenty-four (24) month period following the
end of an External Exchange Period, provided that the Club Member has notified the Club of the Member's
intention to extend the Member's opportunity to make an external exchange request beyond the end of the External
Exchange Period by timely dedicating only Fixed Club Points to the Extended External Exchange Period.
External Exchange Period shall mean the portion of a Reservation Window which begins at the
beginning of the Home Resort Preference Period and ends at the end of the Club Use Period.
External Exchange Program shall mean the contractual arrangement between HVOI and an
External Exchange Company or Companies under which Club Members may reserve, under certain conditions, the
use of accommodations in resorts other than Club Resorts.
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"Uties assigned to HVOI pursuant to this Agreement are exclusive to HVOI, although HVOI may subcontract out or
assign such rights and duties in its reasonable discretion. HVOI hereby agrees to assume and cause to be faithfully
discharged all of Developer's, Association's and Management Company's reservation duties and obligations as
assigned hereunder.
5.2 HVOI shall have the right to adopt and amend those portions of the Club Documents
which HVOI in its sole discretion determines are necessary or desirable to adopt or amend from time to time in
order to operate and manage the Club or to respond to actual purchaser use patterns and changes in purchaser use
demand for Club accommodations and facilities. The Club Documents will only be adopted or amended in a
manner that in HVOI's reasonable business judgment will be for the principal purpose of improving upon the quality
and operation of the Club and furthering the collective enjoyment of the Club by present and future Owners as a
whole. Notice of adoption or amendment shall be delivered by HVOI to each Club Member (or to each individual
designated by the multiple owners of a single Timeshare Interest to represent them in dealing with HVOI) at the
Club Member's last known mailing address. Notice of any such adoption or amendments may be made by
newsletter or annual mailings. Developer, Association and Management Company agree that each Owner's use of
the Owner's Timeshare Interest and the participation of each Owner in the Club shall be governed by the provisions
of the Club Documents as adopted and amended from time to time by HVOI.
5.3 Developer, Association and Management Company acknowledge and understand that the
operation and management of the Club, including the reservation system, is based upon a Club Point structure.
Under this structure, each Week or Split Week in each Club Resort receives an assigned number of Club Points
representing the reservation power of that Week or Split Week in relation to other Weeks or Split Weeks currently
existing in the Club as set forth in the Hyatt Vacation Club Rules and Regulations. Each Club Member shall
annually be assigned an allocation of Club Points to represent the use rights in each Week or Split Week which is
related to that Member's Timeshare Interest. However, Fixed Club Points are not assigned until and unless the
Member enters the Club Use Period (Fixed). Club Members may use Club Points to reserve available Weeks or
Split Weeks at Club Resorts, to arrange for an external exchange, or to acquire other vacation and travel benefits
currently offered through HVOI. Club Points are valid for immediate use as soon as the Club Points are assigned to
the Club Member. HVOI shall have the right to reasonably revise the Club Point assignments for reserving the use
of Weeks or Split Weeks from time to time, without Developer, Association or Management Company consent, in
the best interests of Members as a whole. In this regard, HVOI shall take into account the anticipated relative use
demand of each Club Resort based upon all evidence reasonably available under the circumstances.
5.4 HVOI hereby agrees that in no event shall it promulgate or amend the Club Rules with
respect to the Resort to provide for:
A Club Priority Period greater than sixty (60) days; or
b. A Home Resort Preference Period (Fixed) of less than six (6) months.
5.5 Developer, Association and Management Company agree that HVOI shall have a priority
right during the Club Priority Period to reserve any unreserved Weeks for HVOI's own private use, including for
exchange, promotional use, rental or any other purpose as HVOI determines in its sole discretion. In return, HVOI
agrees to make available to Association that portion of such unreserved Weeks verified by Association as being
reasonably necessary to perform additional maintenance of the Units and as may be required by applicable law,
rules, and regulations.
5.6 Notwithstanding any provision contained in this Agreement or the Club Rules to the
contrary, HVOI, Management Company, Association and Developer all acknowledge and agree that unless
Developer affirmatively notifies HVOI otherwise, a presumption shall exist with respect to all Developer -owned
Timeshare Interests (including, but not limited to, Unit Week No. 53, as the same is defined in Article II of the
Declaration of Condominium for the Resort, unless otherwise conveyed to the Owner of Week 52) that Developer
has exercised its Home Resort Preference Period rights, and no confirmation from HVOI shall be necessary to
confirm Developer's reservation of use rights to such Timeshare Interests. Only upon affirmative notice from
Developer to HVOI of Developer's intent to subject a particular Developer -owned Timeshare Interest (including
Unit Week No. 53 when it occurs, unless otherwise conveyed to the Owner of Week 52) to the Club Use Period
C:\Proaram l:i1es`•0ua1comn1\ udora Pro`Attach'Affl cln 05.docG4« l r t * g*lg r1 M000n> Aspeti D , et' n+Y;l_ ed n, doc page 8
EXHIBIT 9
HYATT VACATION CLUB
RULES AND REGULATIONS
Each Club Member of the Hyatt Vacation Club shall be governed by and shall comply
with the terms and conditions of these Hyatt Vacation Club Rules and Regulations, as amended from time
to time.
I. DEFINITIONS
The following definitions of terms used in these Rules and Regulations shall prevail
unless the context requires a different meaning:
Affiliate Resort shall mean a resort for which HVOI has determined that membership in
the Club should be made available on a voluntary basis to owners of Timeshare Interests at such resort in
accordance with terms and conditions determined by HVOI in its sole discretion.
Borrowing shall mean the act of a Club Member in using a portion of the Member's Club
Points from the succeeding Reservation Window in a given Reservation Window.
Club shall mean the Hyatt Vacation Club, which is the service name given to the variety
of exchange and reservation services and vacation and travel benefits currently offered and the restrictions
currently imposed through HVOI. The services to be provided by HVOI include the operation of the
reservation system, through which Club Members from Club Resorts exchange and reserve the use of the
accommodations at a Club Resort pursuant to the priorities, restrictions and limitations set forth in the
Club Documents. The Hyatt Vacation Club is not a legal entity or association of any kind.
Club Benefits Program shall mean the vacation and travel benefits programs created by
HVOI and made available to Club Members from time to time.
Club Documents shall mean only those instruments governing the use and operation of
the Club, including, but not limited to, the Rules and Regulations, which are promulgated, executed or
amended by HVOI from time to time.
Club Dues shall include the costs and expenses of the Club that are chargeable to each
Club Member or Component Resort each calendar year.
Club Member or Member shall mean the owner of record of a Timeshare Interest at any
Component Resort, or an owner of record of a Timeshare Interest at an Affiliate Resort who has complied
with all of the terms and conditions for membership in the Club as determined by HVOI for that Affiliate
Resort.
Club Point shall mean the symbolic unit of use comparison assigned to a Club Member's
Timeshare Interest by HVOI which enables the Member to access Club services and benefits. Each Club
Member shall annually be assigned an allocation of Club Points .to represent the use rights in each Week
or Split Week which is related to that Member's Timeshare Interest. Club Points include both Fixed Club
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(3) Subject to the discretion of the Club to limit Split Weeks in the
best interests of Club Members as a whole, a Club Member may reserve the use of a Floating Split Week
in the Club Member's Unit type during the Home Resort Preference Period (Float). A Club Member who
owns a Timeshare Interest at The Highlands Inn, a Hyatt Vacation Club resort, may reserve one Floating
Split Week during the Home Resort Preference Period (Float), provided that the Club Member has
sufficient Floating Club Points to make such a reservation. A Club Member who owns a Timeshare
Interest at Hyatt Grand Aspen, Hyatt Mountain Lodge or Hyatt Main Street Station may reserve one
whole Floating Week and one Floating Split Week during the Home Resort Preference Period (Float);
however, the Member may only reserve within the Member's Unit type during the Home Resort
Preference Period (Float), and the whole Floating Week reserved by the Member during the Home Resort
Preference Period (Float) may not be reserved in Mountain Season [see the Club Point Chart]. A Club
Member who owns a Timeshare Interest at Hyatt Grand Aspen, Hyatt Mountain Lodge or Hyatt Main
Street Station may only reserve one Floating Split Week during the Home Resort Preference Period
(Float).
(4) Upon receiving a confirmation of a Club Member's reservation
request for a Floating Week or Floating Split Week during the Home Resort Preference Period (Float), a
Member may make use of the Floating Week or Floating Split Week for personal use, for use by a guest,
or for rental purposes.
(5) A Club Member relinquishes his Home Resort Preference Period
(Float) rights whenever the Member voluntarily elects to enter the Club Use Period (Float) and reserve
accommodations at another Club Resort, to access the External Exchange Program, to access the Special
Exchange Program, or to access the Club Benefits Program.
(6) A Club Member who requests an external exchange pursuant to
the External Exchange Program is not required to enter the Club Use Period (Float) and relinquish the
Member's Home Resort Preference Period (Float) rights unless and until the requested external exchange
is confirmed.
(7) Once a Club Member has reserved a Floating Week or Floating
Split Week during the Home Resort Preference Period (Float), the Member cannot cancel this reservation
without relinquishing the Member's Home Resort Preference Period (Float) rights and entering the Club
Use Period (Float). If a Club Member desires to reserve a Floating Week or Floating Split Week after
such a cancellation, the Member must compete with other Members for such reservation on a first come,
first served basis.
(8) If a Club Member Borrows any Club Points from the next
Reservation Window, the Member's Home Resort Preference Period rights for the next Reservation
Window will automatically be relinquished.
(9) HVOI reserves the right to affiliate Club Resorts with the Club
that have Home Resort Preference Periods of varying lengths.
(10) During the term of the Resort Agreements for Hyatt Grand
Aspen, Hyatt Mountain Lodge and Hyatt Main Street Station, the Managing Entity of Hyatt Grand Aspen,
Hyatt Mountain Lodge and Hyatt Main Street Station has a priority right to reserve one Floating Week in
each Unit at Hyatt Grand Aspen, Hyatt Mountain Lodge or Hyatt Main Street Station during the Home
Resort Preference Period (Float), and up to one additional Week in each Unit at Hyatt Grand Aspen,
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Hyatt Mountain Lodge or Hyatt Main Street Station during the Club Use Period, for maintenance
purposes.
d. Club Use Period. During the Club Use Period, a Club Member must
compete with other Members on a first come, first served basis for a reservation for any available Week
or Split Week. Club Members will have only limited rights to reserve Weeks or Split Weeks within the
Club during the Club Priority Period described below.
(1) Club Use Period (Fixed). The Club Use Period (Fixed) begins
on the day after the expiration of the Home Resort Preference Period (Fixed), or upon earlier
relinquishment of the Home Resort Preference Period (Fixed) rights, and ends on the day before the first
day of use of a given Fixed Week. At the beginning of the Club Use Period (Fixed), Club Members who
have failed or elected not to reserve their Fixed Weeks will automatically be assigned Fixed Club Points
that will be deposited into their Club Point Accounts.
(2) Club Use Period (Float). The Club Use Period (Float) begins on
the day after the expiration of the Home Resort Preference Period (Float), or upon earlier relinquishment
of the Home Resort Preference Period (Float) rights, and ends on the day before the first day of use of the
last Floating Week or the Week containing the last Floating Split Week in a given season. The Club Use
Period (Float) at Hyatt Mountain Lodge and Hyatt Main Street Station begins on January 1st of the
current calendar year and ends on the day prior to the first day of Week 46 in the current calendar year.
e. Club Priorily Period. If a reservation request for a given Week has not
been received by Reservation Services by the beginning of the Club Priority Period (the 60-day period
preceding the first day of use of every Week), Reservation Services' ability to confirm a subsequent
reservation request for the Week will be limited by and subject to the following:
(1) Any reservations made available by HVOI to the Managing
Entity for maintenance purposes; and
(2) Any reservation requests made by HVOI for its own purposes
including for exchange, promotional use, rental or any other purpose as HVOI determines in its sole
discretion.
f. Limited Club Use Period. The Limited Club Use Period (Fixed) begins
on the first day after the expiration of the Club Use Period (Fixed) and lasts for six months. The Limited
Club Use Period (Float) begins on the first day after the expiration of the Club Use Period (Float) and
lasts for six months. During a Limited Club Use Period, a Club Member may only use the Member's
Club Points to reserve available Weeks or Split Weeks within sixty (60) days prior to the first day of use
of an available Week or Split Week.
g. Overlap of Fixed and Float Use Periods. During any overlap between
the Club Use Period (Fixed) and the Club Use Period (Float), or between the Limited Club Use Period
(Fixed) and the Limited Club Use Period (Float), a Club Member may use Fixed Club Points and Floating
Club Points which remain in his Club Point Account on a first -in, first -out basis to reserve any available
Week or Split Week within the Club.
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accommodation received may or may not be comparable in size, layout, furnishings, services, or
amenities to those contained in Club Resorts.
b. Extended External Exchange Period. If a Club Member intends to
extend the Member's opportunity to make an external exchange request beyond the end of the External
Exchange Period during a given Reservation Window for a Fixed Week, the Member must notify the
Club of such intention no later than four (4) months prior to the expiration of the External Exchange
Period. Upon timely providing such notice to the Club, the Club Member may designate a portion of the
Member's remaining Fixed Club Points for the Reservation Window in question to be deposited with
Interval and will receive the right to request an external exchange from Interval in a category of "trading
power" and unit type which corresponds to (or is lower than) the number of Fixed Club Points so
deposited (see Interval's Disclosure Guide to Club Members). During the Extended External Exchange
Period, the Club Member will have the same amount of "trading power" within the Interval system with
respect to such deposited Fixed Club Points as the Member would have if the Member had requested an
external exchange through Interval during the External Exchange Period for that Reservation Window.
However, the Club Member must utilize the external exchange before the expiration of the Extended
External Exchange Period. In the event the Club Member fails to secure an external exchange
confirmation with Interval and utilize such external exchange during the Extended External Exchange
Period, the Member's right to make use of the Fixed Club Points deposited with Interval shall expire.
The Extended External Exchange Period does not apply to Floating Club Points.
C. Anticipated Exchange Demand. HVOI shall have the right to reserve a
number of Weeks from time to time that have not been timely reserved during a Home Resort Preference
Period for the purpose of depositing the reserved Weeks with Interval on behalf of Club Members based
upon HVOI's determination, in its sole discretion, of anticipated Member demand to access the External
Exchange Program.
5.2 Special Exchange Programs. Club Members who do not choose to make a
reservation for a Week or Split Week at a Club Resort may have the option of using their Club Points to
make a Special Exchange through Special Exchange Programs established by HVOI from time to time.
Any Special Exchange Programs will be governed by reservation rules and regulations similar to those
governing the External Exchange Program.
5.3 Club Benefits Program. HVOI may offer special benefits to Club Members, from
time to time, through its Club Benefits Program. HVOI reserves the right to establish such rules and
regulations as it deems necessary to adequately govern Club Member access to the Club Benefits
Program.
VI. MISCELLANEOUS PROVISIONS
6.1 Personal Use; Commercial Purposes. Use of the accommodations and facilities
associated with the Club is limited solely to the personal use, during their reserved period of occupancy,
of Club Members, their guests, invitees, exchangers and lessees, and to the number of authorized users
permitted to occupy the Unit as may be posted in the Unit or set forth in the site rules and regulations.
Purchase of a Timeshare Interest or use of accommodations and facilities associated with the Club for
commercial purposes, for contribution to or use in a different timeshare plan or vacation club, or for any
purpose other than the personal use described above is expressly prohibited.
6.2 Club Member Rentals. A Club Member may reserve a Week or Split Week during a
Home Resort Preference Period and rent it for the Member's own account. All renters must comply with
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the rules and regulations of the Resort Documents affecting occupancy, and the renting Club Member will
be responsible for the acts or omissions of renters or any other person or persons permitted by the
Member or the renter to use the accommodation. Rental by a Club Member of accommodations reserved
through the Club (other than a Week or Split Week reserved during a Home Resort Preference Period) is
prohibited.
6.3 Amendment of the Rules and Regulations. These Rules and Regulations may be
amended by HVOI in its sole discretion from time to time without the consent of Club Members. In this
regard, HVOI will use its best efforts, in good faith and based upon all reasonably available evidence
under the circumstances, to further the best interests of the Club Members as a whole with respect to their
opportunity to use and enjoy the accommodations and facilities of the Club. Notice of any amendment
shall be delivered by HVOI to each Member (or to each Principal Contact) at the Member's last known
mailing address, and such notice shall include an effective date for such amendments. Notice of
amendments may be delivered by newsletter or annual mailings.
6.4 Termination. In the event that the Resort Agreement or other instrument which
affiliates a Club Resort with the Club is terminated or expires in accordance with its own terms, the
terminated Club Resort will no longer be affiliated as a part of the Club. However, upon termination of
such instrument, all confirmed reservations of Club Members (from the terminating Club Resort and from
the non -terminating Club Resorts) will be honored at both the terminating Club Resort and at non -
terminating Club Resorts.
6.5 Principal Contact. The owners of each Timeshare Interest owned by more than one
person or by a business entity shall designate a Principal Contact from time to time by notifying
Reservation Services of same through a writing executed by all individuals holding the membership or by
an authorized representative of the business entity. The Principal Contact shall be the designated
individual with whom Reservation Services shall deal with respect to making reservations, sending
confirmations, and providing other services. Reservation Services may charge an administrative fee of
$25, or such other amount as HVOI may determine from time to time, each time it is requested to change
a Principal Contact designation.
6.6 Effect of Transfer of Club Member's Timeshare Interest. If a Club Member ("Selling
Member") sells, assigns, or transfers the Selling Member's Timeshare Interest to another party ("New
Member"), the Selling Member will lose any and all rights to utilize the Club Points associated with such
Timeshare Interest to reserve the use of a Week or to use any previously -reserved Weeks. HVOI will,
within five (5) business days of receipt from a New Member of an administrative fee (currently $100) and
a certified copy of the recorded deed transferring a Timeshare Interest to the New Member, change
HVOI's official records to reflect such transfer of a Timeshare Interest from a Selling Member to a New
Member. Upon HVOI's change in its records, the New Member will assume any existing reservations
previously made by the Selling Member, unless the Club Points associated with the Timeshare Interest
would not be sufficient to make such reservations. HVOI will notify the New Member of those existing
reservations that are being assumed by the New Member. The New Member may cancel any reservations
originally made by the Selling Member upon paying any cancellation fees required pursuant to Section
4.5 of these Club Rules. The New Member will also assume the Selling Member's Club Points remaining
as of the date of HVOI's recognition of such transfer. If a Selling Member transfers a portion of a
Timeshare Interest at Hyatt Mountain Lodge or Hyatt Main Street Station pursuant to the subdivision
rights contained in the Resort Documents for such resorts, the Selling Member and the New Member will
have the applicable Home Resort Preference Period rights for each subdivided portion of the Timeshare
Interest.
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Hyatt Grand Aspen
Project Summary and Use Plan
PROJECT SUMMARY:
Unit Breakdown.There are 51, proposed total units with as Many as two "lockoffs" per
unit. A "lockoff" is room,, which has a separate access off' a common hallway and
can be used or rented separately and Individually as a "key". For instance, an owner
of a three bedroom unit could rent two of those bedroonis 0ockoffs) while still using
the one bedroom, fi,,,ring room and kitchen component of their unit. Lockoffs are
configured and function exactly like hotel rooms. The proposed unit breakdown of
the Hyatt Grand Aspen can be summarized as follows:
30 Three bedroom/three bathroom units with 2 lockoffs (2,000 sf
1 Three bedroom/three bathroom units with 1 lockoff (1,800 sf
18 Two bedroom/two bathroom units with 1 lockoff (1,5050 sf +/-)
1 Two bedroom/two bathroom units with no lockoff (1,400 sf
1 One Bedroom/one bathroom with no lockoff ()OO sf
5*1 Total Units
.31 Three bedroom / three bathroom units
19 Two bedroom two bathroom units, and
1 One bedroom one bathroom unit
132 Total bedrooms
Total Rooms. Note that the 132 be are attached to 51 living rooms and kitchens.
From an accomixiodations perspective that means that there are 183 rooms that will
have beds in them.
132 Total Bedrooms
51 Total Living Rooms with sofit acid or Murphy beds.
183 Rooms with beds (bedrooms and rooms witb sofalMurpby beds)
Total Keys, The configuration of these unit$ is such that a Hyatt or independent agent can
offer the traveling public any size short term accon-imodation from a conventional
hotel room to a three bed/three bathrooin unit - and everything in between. Broken
into the smallest configurations the project offers *130 keys:
79 Conventional hotel rooms
51 One bedroom units (living room, one bech-oom'%Vidi bath and Idtchen)
130 Total rentable "Keys"
Hyatt Grand Aspen
Project Summary and Use Plan
USE PLAN
1/20'J' Interest, Purchasers of a Hyatt Grand Aspen "interest" will be buying short-term
accommodations in the Aspen market with the right to exchange their Aspen interest
with 8 other Hyatt Vacation Ownership projects and 1,800 Interval International
properties around the world. Purchasers will receive an undivided 1/20'hinterest (17
to 18 days) in a specific unit. Average price per interest is currently anticipated to be
in the $150,000 per interest range, but is subject to change at Hyatt's discretion.
Purchasers will own a specific, "fixed week" in a fixed unit that they will choose
(subject to availability at time of purchase). That will be their week and unit. They
will also "own" 10 to 11 "floating days" which they can use in increments of 3, 4, 7
and 10 days, which can be used in any available unit during the float weeks.
20 Fixed Weeks For Sale Per Year. The graphic on the following page attempts to make
clearer the organization of the Use Plan. What's being shown here is the 52 weeks of
the year and how each are designated (either fixed or float). All of the weeks
highlighted in gold are the 20 fixed weeks) and the weeks highlighted in blue are the
floating weeks. Everyone buys a certain fixed week in a specific unit — in this
example week 35 (Sample Week), and they get a points package to be used to reserve
up to 10 to 11 additional days during the float periods (in any unit).
Points and Exchanges. With ownership in the, Grand Aspen (their "Home Resort")
owners receive "points" every year, which act like a vacation currency that they can
use to exchange for visits to other participating resorts or use in the Home Resort. If
they use all of their 17/18 days in Aspen (either to rent or use themselves) they will
have no points for exchange. If any portion of their unit or time is not used during a
year they will retain a number of points that could them be used for exchange in
other resorts. 'I'lie number of points one receives each. year generally correlates to the
size (one, two, or three bedrooms) and season in the interest that they purchase.
Reservation timeline and rental opportunities. The accompanying graphic also shows the
time frame during which units must be reserved for owners to control their interests.
As can be seen, an owner must reserve their fixed week at least 6 months, and no
more than 12 months, before the scheduled arrival date. Because of the lockoff
configuration each owner will have one, two or three keys as part of their single unit.
When. they resene their fixed week they may reserve all or part of their unit for their
own personal use, or to rent to the general public (through the source of their
choice).
If the Owner Ms to claim their unit by the 6 month threshold, or informs
management within the 6 to 12 month timeline that they Wish to convert their fixed
time into points the fixed time given up becomes available to other owners in all
participating resorts for exchange. This "exchange market" will represent a huge
opportunity for "new trials" to Aspen as the Hyatt Grand Aspen will be the only
opportunity for millions of timeshare owners to,%qsit Aspen on exchange.
Hyatt Grand Aspen
Project Summary and Use Plan
If an interest is still vacant 60 days prior to arrival it is then put on the open market
for rent. The accompanying graphic also shows what percentage, of renting Aspen
visitors make their reservations within 60 days of arrival. This statistic was provided
by ACR and is important because it shows that a huge majority of our Aspen visitors
make their reservations within 60 days of at -rival. For instance, 91 % of our visitors in
August book their holiday after June 1. Meaning that at least 91 % of the visiting
public will have a shot at renting vacant units in the Hyatt Grand Aspen. I say "at
Least" because many Hyatt owners will rent their units themselves and make their
units available in the rental market as much as a year in advance of arrival date. This
system insures that the general public will be able to consider the Hyatt as a rental
alternative when planning their trip to Aspen, any day of the year.
Mr. and Mrs. John Q. Traveler sample.
Mr. and Mrs. Traveler have never been able to afford to buy a whole condo in
Aspen, but now they can afford a twentieth interest in the Hyatt Grand Aspen. So
they and their two children buy Week 35 (last week in August) in a three bedroom
three bathroom /two lockoff unit (3 keys). Their unit is assigned "x"" points annually
for exchange and use with 1,800 other resorts world wide. The Travelers come
mostly for a week in August with their kids and use all the rooms, but they save their
float days for 6 days of skiing without the kids and rent out their 2 lockoffs during
those 6 days to help offset the expenses. The remaining four days, for the whole
unit, they let go into the system for exchange or rent by Hyatt and then use those
points- for exchange unit in Key West.
Every year they use their points differently. One year they put the whole unit in the
system for exchange or rental by Hyatt making them eligible to receive like days in
like units in participating resorts around the world, or take advantage of getting
longer stays in smaller units. One year the Travelers elect to exchange points for
separate vacations in smaller units in Carmel, Beaver Creek, and Key West.
The next year just the parents come to Aspen for 4 days in June (float time) during
the Food and Wine Festival and occupy a lockoff for themselves and rent the full
two bedroom unit out themselves (through the Hyatt). The rest of the year they rent
out .the unit (through Aspen Central Reservations) and pocket the income.
The fist of possibilities goes on and on, but in no case are the Travelers nilcentiviZed
to leave their unit en-ipq,- if they don't come. just like there is not incentive for a
hotel room renter who pays 100% of the bill in advance of arrival, and then later
decides not to come, to not make an effort to get the unit rented or used so as to get
the deposit back.
,Grand Aspen - Hyatt Timeshare
Use Program
luuP—If�Zft,kA3-L �:% of
Advance Booking
4) awre -Aspell Central Rtsomalivils