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HomeMy WebLinkAboutagenda.apz.20030318 AGENDA ASPEN PLANNING & ZONING COMMISSION REGULAR MEETING TUESDAY, MARCH 18, 2003 4:30 PM SISTER CITIES ROOM I. COMMENTS A. CommissiOners B. Planning Staff C. Public II. MINUTES III. DECLARATION OF CONFLICTS OF INTERESTS IV. PLANNING AND ZONING COMMISSION PUBLIC HEARINGS A. DANCING BEAR LODGE MINOR PUD, REZONING, MOUNTAIN VIEW PLANE, TIMESHARE, SUBDIVISION, AND GMQS EXEMPTIONS FOR LODGE PRESERVATION AND AFFORDABLE HOUSING, James Lindt- contid from 2/18 B. PARK-DALE SUBDIVISION, James Lindt C. ST. REGIS PUD AMENDMENT, TIMESHARE, Scott Woodford V. BOARD REPORTS VI. ADJOURN CITY AGENDA City Council-2nd and 4"' Mon. @ 5:00 PM, P/Z-1st and 3'd Tues. @ 4:30 PM; HPC-2"d & 4" Wed. @ 5:00 PM. BOA Thurs. @ 4:00 PM, or as needed Revised 3/10/03 3/10/03 Council 5:00 Notice: 2/18 1" Reading, 321 W. Bleeker Lot Split-JL 2nd Reading, Infill Code Amendments PH cont. from 2/24-CB (cont. if necessary) 2nd Reading Maroon Creek Rd.- Assignment of Zoning after Annexation -SO Boogie's Diner Temp. Use PH-JL Harley Baldwin Temp. Use PH -SO Little Ajax Resolution re. Annexation (1st step) 3/10/03 HPC 5:00 Special Meeting CANCELLED Nore Winter re: Design Guidelines (to be rescheduled) 3/11103 Work Session lnfill 4:00 3/12/03 HPC 5:00 FULL Notice 2/18 Sardy House Minor Development PH-KE 980 & 990 Gibson -Work. session 308 Park Ave — Work session 515 (507) Gillespie Lot B — Work session 3118/03 Planning and Zoning -Corn mission 4:30 Notice 2/25 Dancing Bear Lodge PUD-PH cont. from 2/18-JL Park -Dale subdivision-PH-JL St. Regis-PUD Amendment Timesharing PH -SW (cont. to 4/8, if needed) 3/24/03 Council 5:00 Notice: 3/4 2"d Reading; lnfill Code Amendments PH -CB (cont. if. necessary) 2"d Reading, Holland House -Request to de -list from the Aspen Invent of Historic Landmark Sites and Structures-PH-KE Residences .@ Little Nell Conceptual PUD/Timeshare/SPA-Reso-PH—SW-(Cont'd from 2/24) - 3/25/03 Planning and Zoning Commission 4:30 (Extra Meeting) Tipple Lodge, GMQS Ex., Sub. Ex., Timeshare Ex., PH -SW (cont. from 3/4) Tnp,_,af...M.ill,Pa.rcel..5..,,.8.0.40..Green. Line-PH.-S1/.. (,cont....fro,m. 3/26103 HPC 5:00 FULL Notice 3/4 Meadows/Trustee Townhomes Unit 2 Minor Development PH-KE Meadows/Trustee Townhomes Unit 3 Minor Development PH-KE 331 W. Bleeker, Conceptual PH-KE 819 E. Hopkins, Conceptual PH - KE 4/1/03 P&Z 4:30-CANCEL (APA Conference 4/8/03 P&Z-Special meeting instead of 4/1 Notice 3/18 Dancing Bear PUD PH (if needed) -JL Sagewood Condos PH -SW St. Regis-PUD Amendment Timesharing P.H-SW 419/03 HPC 5:00 Notice 3/18 114 Neale/17 Queen St., Conceptual PH — KE (continued from 2/26) 819 E. Hopkins, Conceptual PH — KE (continued from 3/26 if needed) 470 N. Spring, Worksession — KE 4/14/03 Council 5:00 Notice: 3/25 2" d Reading, 321 W. Bleeker Lot Split-JL Little Ajax Annexation PH (on compliance) 1" Reading, Tipple Lodge, GMQS Ex., Sub. Ex., Timeshare Ex., -SW 4/15/03 P&Z 4:30 Notice: 3/25 210 East Hyman, Change in Use PH-JL Centennial PUD Amendment-PH-JL Miscellaneous Code Amendments -SW 4123/03 HPC 5:00 Notice: 4/1 819 E. Hopkins, Conceptual PH — KE (continued from 4/9 if needed) 320 W. Hallam, Conceptual PH - KE 28 Smuggler Grove, Worksession - KE 4/28/03 Council 5:00 Notice: 4/8 1" Reading Ordinance re. Little Ajax Annexation 1 t Reading of Little Ajax PUD-JAO 5/6/03 P&Z 4:30 Notice: 4/15 5/12/03 Council 5:00 Notice: 4/22 j 2" Reading, Tipple Lodge, GMQS Ex., Sub. Ex., Timeshare Ex:, Ord. PH -SW 2nI Readi.ng, , Ldtttec:Ayax� Anne atia ; tec�tatiue .pe dingo:: P..IJD . actin c . 2"d Reading Little Ajax PUD PH-JAO PRENOTICE =4. - - 5/14/03 HPC 5:00 Notice: 4/22 Request for HPC to endorse applications for historic designation 5/20/03 P&Z 4:30 Notice: 4/29 H:\city\ASPEN\agendas\comingupmeetingsi.doc2 1V%A 6 , MEMORANDUM TO: Aspen Planning & Zoning Commission THRU: Julie Ann Woods, Community Development Director Joyce Ohlson, Community Development Deputy Direct r FROM: James Lindt, Planner ZI-L_ RE: Dancing Bear Lodge Rezoning, Lodge Preservation GMQS Exemption, Planned Unit Development, Subdivision, and Mountain View Plane Review- Continued Public Hearing DATE: March 18, 2003 SUMMARY OF PROCEEDINGS: Due to time constraints on February 18th, the Planning and Zoning Coinlinnlssion continued the public hearing on the Dancing Bear proposal to March 18t". - During the February 18 hearing, it appeared that the Commission expressed concern over several prevalent issues. In an effort to respond to the Commission's concerns, the applicant has proposed some changes to the design of the project. The amendments to the design are detailed below. SUMMARY OF DESIGN CHANGES: The applicant has altered the design of the proposal in an attempt to address some of the concerns of Staff and the Commission. The design has been amended to step it down on the west side of the building to transition better with the two story condominiums to the west. The very southwest corner of the building has been reduced to two (2) stories in height, with a majority of the remainder of the western side of the structure being dropped to three (3) stories. In addition, the applicant has proposed to remove the turret at the southeast corner and has stepped the northeast and southeast corners down to three (3) stories at a height of approximately 31 feet above grade. These corners will be used as private outdoor balcony spaces for the corner units. The overall height of the proposal has also been reduced by reducing the floor -to -floor height to 10'3" and the parapet wall has been removed from the design. Therefore, the overall height has been reduced from 63 feet above grade to 57 feet above grade at the highest point. The proposed changes to the exterior of the building have also translated to amendments to the interior floor plan. The southernmost exterior wall (on Durant Ave.) of the bar/lounge area on the first floor has been cantilevered under the facade of the upper floors to create a covered, at -grade patio area to be used as seating for the lounge/coffee bar. Additionally, the number of keys, bedrooms, and sizes of the proposed units have also changed. The applicant is now proposing a total of eleven (11) units with lock -off capabilities that will provide for twenty-two (22) total keys. The first floor unit that was originally approximately 2,850 square feet has been reduced to a two (2) bedroom unit of approximately 1,400 square feet. Similarly, one of the 2,850 square foot units on the second floor has been divided into two (2) units of approximately 1,400 square feet. In reconfiguring the upper floors of the proposal, the applicant reduced the size of the westernmost unit on the fourth floor from 2,850 square feet to 1,400 square feet 'to acconnmodate the requested changes to the massing of the structure. -1- In addition to the proposed changes to the lodging units, the applicant has proposed to construct two (2) deed restricted affordable housing units on the ground floor to satisfy a portion of their required employee housing mitigation. The two (2) affordable housing units have been proposed as a studio and a three -bedroom unit that will be available as rental units with first priority of use to go to employees of the lodge. The revised dimensional requirements are proposed as follows: Minimum Lot Size. ;, 6,000 square Feet Minimum LotAreaPer,Dvs'elling Unit =, No requirement One lodge or residential (29 lodge rooms and 4 =Qen affordable housing) bedroom per 360 square feet of lot area. M axi'MIU01-Site (overage No Requirement '777777 57 feet from existing grade to the midpoint of the MaxII1 unt'Hei lit roof on the rooftop Gazebo. Nhii, Distance betvv een Buildings Qn a 1Qt No Requirement Min. Pereent of Onen �nacc 9 Percent Trash Access: Area 35 square feet, plus loading area Allowable 'Exteirna FAR 3.5:1 Minimum Off -Street Parking-' 0.72 spaces per bedroom (24 spaces for 33 bedrooms) STAFF ANALYSIS OF AMENDMENTS TO PROPOSAL: HEIGHT AND MASS: Staff and the Commission expressed concerns about the height and mass of the proposal at the February 18"' hearing. The applicant has responded to these concerns by reducing the height of the structure and by stepping back portions of the upper floors as was requested by staff. Additionally, the applicant has stepped the west side of the building down to about three (3) stories in height to allow for it to transition better with the neighboring condominiums, which contain approximately two and a half stories. At the February 18"' hearing, staff requested that the applicant reduce the height of the structure to around 52 feet in height throughout the property to make the proposal more consistent with the height recommendations of the infill committee. The project was originally proposed with a maximum height of about 63 feet above grade and a majority of the structure was around 56 feet tall to the top of the parapet wall. The amended proposal contains a maximum height of approximately 57 feet to the midpoint of the fifth -2- floor gazebo. More importantly, the applicant has removed the parapet wall and the turret from the rooftop and stepped the building down on the west side. Therefore, with the exception of the rooftop gazebo, the rest of the building is now between 42 and 50 feet above grade. Staff believes that the amended elevations are a vast improvement over the original proposal and that the applicant has successfully broken up the mass of the project by stepping the west side of the structure down and by stepping back the upper floors in certain areas. Staff also feels that the applicant has amended the elevations to a height that is more consistent with that of other Lodge Planned Unit Developments that have been approved throughout town, such as the Mountain Chalet (51 feet tall), the Grand Aspen Hotel (48 feet tall), and the St. Regis (mid to upper 50s). Staff understands that the Commission is caught between two possible height regulations (current L/TR height limit of 28 feet, and proposed infill code amendments height limit of 52 feet with special review) in making their decision on this project. Staff is having a similar quandary in. making a recommendation on the proposed height. Staff is still somewhat concerned with the fact that the proposal has a maximum height over the 52-foot height requirements that were recommended by the infill committee. If the Commission has a similar concern about the proposed height being greater than that suggested by the infill committee, they should ask that the applicant remove the fifth floor. EMPLOYEE HOUSING MITIGATION: At the February 18t" hearing, the applicant had proposed to provide employee -housing mitigation for the addition of lodge bedrooms and accessory commercial space by providing a combination of deed restricted buy -down units and a cash -in -lieu payment. However, the amended plans now call for the construction of two. (2) affordable housing units to be constructed on the ground floor of the building. The affordable housing units are proposed as a studio unit and a three -bedroom unit. The units are proposed to be deed restricted as rental units much like those that have been approved at the Innsbruck Inn and the Mountain Chalet. The Housing Board reviewed the original proposal and recommended that the applicant be required to mitigate for the generation of 5.75 employees. Due to the fact that the number of lodging bedrooms and the amount of accessory net leasable square footage have changed since the original proposal that the Housing Board reviewed, the Housing Authority Staff has determined that the required employee housing mitigation has also changed. The new required amount of employee housing mitigation has been reduced to require that housing be provided for 5.16 full-time employees. In determining the revised mitigation requirements, the Housing Authority Staff used the same methodology that they used in evaluating the original proposal. The Aspen Manor structure was given credit for containing 23 lodging bedrooms when it was last open as a lodge. Therefore, because the revised proposal includes a total of 29 lodging bedrooms, the land use code requires that the applicant be held responsible for mitigating for the net increase of six (6) lodging bedrooms. The mitigation requirement for the revised -3- proposal is based on an employee generation factor of .3225 new employees per additional lodge room, which is the same factor that was used by the Housing Board in evaluating the original proposal. In evaluating the required employee housing requirements for the proposed lodge expansion, the applicant is required to house 60% of the expected employees generated by the proposal pursuant to the Aspen Area Coinrnunity Plan Housing Goals. Thus, the increase in lodging bedrooms on the site would require that 1.16 (6 new lodging bedrooms x .3225 employees generated per new bedroom= 1.935 employees generated, multiplied by 60%) employees be mitigated for. In addition to the net increase in lodge rooms, the lounge/coffee bar area will include approximately 1,908 square feet of new accessory net leasable space. The Land Use Code does not contain an employee generation factor specific to conunercial net leasable space in the L/TR zone, but states that 3.5 employees are expected to be generated for every 1,000 square feet of net leasable space in the Commercial Lodge (CL) and other zone districts. The Housing Board recommended that the applicant be required to mitigate for the proposed accessory commercial space in addition to the lodge room employee generation that was detailed above. Thus, the Housing Staff recommends that the applicant provide mitigation for the proposed accessory commercial space as is detailed below: 1,908 square feet of new net leasable square feet divided by 1,000 square feet = 1.908; 1.908 multiplied by 3.5 employees = 6.678 employees generated; 6.678 multiplied by 60% = 4.00 employees to be housed As was mentioned previously, the applicant has proposed to provide two (2) deed restricted affordable housing units on the site, which will provide credit for housing 4.25 full-time employees pursuant to Land Use Code Section 26.470.100. The applicant has proposed to mitigate for the remainder of the .91 employees required to be housed by paying a cash -in -lieu fee of approximately $166,000. This fee would be calculated at the time of building permit. Staff believes that the applicant has appropriately proposed to provide a large percentage of their required employee housing mitigation on -site by means of constructing two (2) affordable housing units. Furthermore, the units appear to be quality units that are proposed above -grade to allow for adequate light and ventilation. Additionally, the proposed units appear to meet the requirements set forth in the Affordable Housing Guidelines in regards to size and livable amenities (kitchen with a stove and refrigerator, clothes washer and dryer). Staff has proposed a condition of approval that requires that the applicant provide three (3) of the proposed on -site parking spaces for the use of the occupants of the affordable housing units. However, staff has also included a provision that allows for the three (3) spaces reserved for the affordable housing units to be used by lodge guests if the occupants of the affordable housing units do not have vehicles, as is sometimes the case with seasonal employees. This is consistent with how the employee housing parking has been handled with other lodge expansion approvals -4- that have included internal employee housing such as the Innsbruck Inn and the Mountain Chalet. In conclusion, staff believes that the amended proposal adequately provides for the required employee -housing mitigation. OCCUPANCY RATES: Several of the Commissioners questioned if a luxury timeshare lodge project of this nature would actually generate higher occupancy rates than a traditional lodge use given the low density and size of the proposed units. In order to aid in the Plaiming and Zoning Commission's decision -making process regarding the overall development proposal and recommendation as to whether the number and size of units is appropriate, staff has included information (attached as Exhibit "C") provided by the applicant that shows the occupancy rates of other high -end fractional ownership developments throughout the region as was requested by Commissioner Haneman at the previous hearing. However, City Council will review the tax implications of the proposed timeshare development and consider comments from the City Finance Director regarding the Financial Impact Analysis that was provided by the applicant. The timeshare regulations that were approved and enacted late last year established that City Council, at its sole discretion, would determine whether the fiscal impacts of a timeshare project would necessitate mitigation for a loss in sales tax revenues to the City. Staff believes that the fractional ownership sales data that is included as Exhibit "C" substantiates the applicant's claims that similar fractional ownership projects are selling significant percentages of their estates after they mature and the construction stages are completed. The information provided by Hobson Ferrariiu Associates indicates that the Timbers Club (containing 288 units at 1/8 fractions) in Snowmass Village is. 83% sold and the Snowmass Club (containing 30 units at 1/7 fractions) is 65% sold and is still in the construction stages. In addition, several studies have been completed that have shown that the actual occupancy rates of the fractional ownership units are higher than that of traditional lodge rooms and that the larger the unit, the higher the occupancy rate. In addition, the applicant has also proposed to rotate maintenance of the units in the off- season, so that only one unit is not available at a time. The applicant feels that this will further promote higher occupancy rates than would be received with a traditional lodge use. OTHER DISCUSSION ISSUES: Several other discussion issues were brought up at the February 18t" public hearing that staff would like to address. Several members of the public and the Commission expressed concerns about traffic congestion that may be caused due to the lack of a Pull- in parking for guests that are checking -in and for deliveries. The applicant proposed to lease two (2) on -street parking spaces from the City to use as a loading zone to alleviate this concern.- However, the City Engineer has expressed that he is strongly against allowing the applicant to utilize parking spaces in the public right-of-way for this use. The Planning Staff does not believe that this is a substantial issue given that there are five (5) surface parking spaces proposed to be accessed off of the alley. Staff suggested that -5- the applicant propose to sign two (2) of the surface parking spaces in the alley as thirty (30) minute check -in parking and that the applicant make it an operational practice to inform estate owners and guests that the two (2) spaces are to be used for check -in purposes only. Therefore, staff has added a condition of approval to the proposed resolution that requires the applicant to sign the spaces accordingly and inform guests at the time of room bookings to use the two (2) parking spaces when checking in. Members of the Commission also requested that the rooftop garden and gazebo be accessible to the public. In response to this request, the applicant studied moving the public lounge/bar to the fifth floor. However, it was determined by the applicant that they did not feel that it was financially feasible to open a lounge/bar off -grade level within Aspen. The applicant cited examples of commercial spaces around town that are not at street level that have not succeeded as lounges and restaurants due to a lack of foot traffic and exposure from the street. Therefore, the proposal still includes the fifth floor gazebo as a private exercise/spa facility for guests and estate owners only. Additionally, staff requested that the applicant widen the ramp into the parking garage to a minimum of twenty-one (21) feet. Therefore staff is proposing a condition of approval that requires the final PUD plans to exhibit a twenty-one (21) foot wide ramp into the parking garage as is set forth in the International Transportation Engineer's (ITE) Manual. STAFF RECOMMENDATION: Staff feels that the applicant has made great strides in addressing both staff and the Planning and Zoning Commission's concerns in regards to the proposal. Moreover, staff believes that the revised height is more consistent with that of other Lodge Planned Unit Developments that have been approved throughout town as was detailed previously. If the Commission is still concerned about the height of the structure breaching the 52-foot height recommendation of the infill committee, the Commission should request the removal of the fifth floor. However, other than the lingering concern over the proposed height, staff believes that the applicant has sufficiently addressed the remaining concerns regarding the project. If the Commission believes that the proposed height is appropriate based on it's consistency with the height of other approved Lodge PUD's, then the Commission should approve the proposed resolution recommending that City Council approve the proposal with the conditions contained therein. RECOMMENDED MOTION: "I move to approve Resolution No. 6, Series of 2003, recommending that City Council approve with conditions, the Dancing Bear Timeshare Lodge Minor PUD, which includes approval for a Minor PUD, Subdivision, Timeshare, Mountain View Plane, and Growth Management Quota System Exemptions (GMQS) for Lodge Preservation." -6- ATTACHMENTS EXHIBIT A - REVIEW CRITERIA AND STAFF FINDINGS EXHIBIT B - REFERRAL COMMENTS EXHIBIT C - HOBSON AND FERRARINI OCCUPANCY INFORMATION EXHIBIT D - HOBSON AND FERRARINI FRACTIONAL INDUSTRY OVERVIEW EXHIBIT E - REVISED ELEVATIONS AND FLOOR PLANS -7- RESOLUTION NO. 6 (SERIES OF 2003) A RESOLUTION OF THE ASPEN PLANNING AND ZONING COMMISSION RECOMMENDING THAT CITY COUNCIL APPROVE THE DANCING BEAR LODGE PRESERVATION MINOR PLANNED UNIT DEVELOPMENT APPLICATION INCLUDING SUBDIVISION, TIMESHARE, MOUNTAIN VIEW PLANE, AND GROWTH MANAGEMENT QUOTA SYSTEM EXEMPTION (GMQS) FOR LODGE PRESERVATION AND AFFORDABLE HOUSING ON THE PROPERTY DESCRIBED AS LOTS P, Q, R, AND S, BLOCK 77, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY, COLORADO Parcel No. 2735-182-19-002 WHEREAS, the Community Development Department received an application from MSE Aspen Holdings, Inc, owner, represented by Mitch Haas of Haas Land Plan riing, LLC, requesting approval of a Lodge Preservation (LP) Minor Planned Unit Development including Subdivision, Timeshare, Mountain View Plane, and Growth Management Quota System Exemptions (GMQS) for Lodge Preservation on the property described as Lots P, Q, R, and S, Block 77, City and Townsite of Aspen; and, WHEREAS, the subject property is approximately 11,957 square feet, and is located in the Lodge/Tourist Residential (L/TR) Zone District; and, WHEREAS, pursuant to Land Use Code Section 26.304.060(B), Combined Reviews, the Community Development Director in consultation with the applicant has concluded that a combined review of the land use requests associated with this application would reduce duplication and ensure economy of time, expense, and clarity; and, WHEREAS, pursuant to Land Use Code Section 26.310, Map and Text Amendments; Section 26.435, Mountain View Plane; Section 26.445, Planned Unit Development; Section 26.470, Growth Management Quota System; Section 26.480, Subdivision; and, Section 26.590, Timeshare, the City Council may approve, approve with conditions, or deny the land use requests made by the applicant during a duly noticed public hearing after taking and considering connments from the general public, and recommendations from the Planning and Zoning Commission, Conununity Development Director., and relevant referral agencies; and, WHEREAS, during a duly noticed public hearing on February 4, 2003, the Planning and Zoning Commission opened and continued the public hearing to February 18, 2003 ; and, WHEREAS, during a duly noticed public hearing on February 18, 2003, the Plaiming and Zoning Commission opened and continued the public hearing to March 18, 2003; and, IVIZ, MEMORANDUM TO: Aspen Plazuling and Zoning Commission THRU: Joyce Ohlson, Deputy Director-.." FROM: James Lindt, Planner V L� RE: Park -Dale Subdivision - Public Hearin DATE: March 18, 2003 APPLICANT /OWNER: Coast Pacific Asset Management, Inc. REPRESENTATIVE: Mitch Haas, Haas Land Planning LLC. LOCATION: A Lots 4A and 5A of the Independence No.2 Subdivision (1180 Dale Ave. and 215 Park Ave.) Existing Single -Family Residence j CURRENT ZONING:.,,x� 1.,,, .,� w 5�r, ..uw �:fi.� ,..R+�3.�'}.,� < t...:,x?i<" .t`..�. vn,r. -v ...,..,_?';,>m..v_..ku�+���..,,,'"s,�',.r.�:,•��err::v> R-6 (Medium -Density Residential) Zone District (Zoning Map that shows property as Photo Above: The picture above is the R/MF has been determined to be in error) existing single-family residence located on Lot 4A. PROPOSED LAND USE REQUEST: Subdivision to reconfigure lot lines to create three (3) lots. . SUMMARY: The applicant requests subdivision approval to reconfigure the lot lines of Lots 4A and 5A of the Independence No. 2 Subdivision into three (3) lots. The applicant has concurrently applied for an administrative approval of a GMQS Exemption for reconstruction of demolished units pursuant to Land Use Code Section 26.470.070(A). In addition, the applicant has applied for - administrative approval of a GMQS Photos Above: The picture above is the Exemption to construct a duplex or two (2) existing duplex that is located on Lot 5A. detached dwelling units on one of the newly created lots pursuant to Land Use Code Section 26.470.070(B). REVIEW PROCEDURE A development application for subdivision shall be approved, approved with conditions, or denied by City Council after considering a recommendation from the Plaiming and Zoning Commission and the Community Development Director pursuant to Land Use Code Section 26.480.040, Subdivision. PROJECT SUMMARY: The applicant, Coast Pacific Asset Management, Inc, requests subdivision approval to reconfigure Lots 4A and 5A of the Independence No. 2 Subdivision into three (3) lots for the purpose of single-family and duplex development. Lot 4A is located on the southwest corner of Park and E. Hopkins Avenue and contains 9,005 square feet. Lot 5A is located directly to the south of Lot 4A on the northwest corner of Park and Dale Avenues. Lot 5A contains approximately 12,913 square feet. Therefore, the lots together total 21,918 square feet. The abovementioned properties are located in the R-6 (Medium -Density Residential) Zone District. The Official Zone District Map had shown the parcels as being zoned R/MF, but significant research into the zoning of the properties by the applicant and the Community Development Department have determined that the zoning map was in error and that the property had never been rezoned to R/MF by an ordinance. Therefore, staff has made the determination that Lots 4A and 5A are zoned R-6 (please see the Zoning Interpretation that is attached as Exhibit "C"). '�y , R c,, _;` The applicant would like to re -subdivide Lots 4A and 5A of the Independence No. 2 Subdivision into two (2) lots of just over 6,000 square feet and one lot of slightly more than 9,000 square feet. On the two (2) lots of approximately 6,000 square feet, the applicant would like to construct a single-family residence on each lot that meets the dimensional requirements of the R-6 Zone District. Subsequently, on the lot proposed to be 9,000 square feet, the applicant would like to construct either a duplex or two (2) detached residential dwellings that meet the dimensional requirements of the R-6 Zone District. 2 The applicant concurrently applied for a GMQS exemption for reconstruction of demolished units that has been approved administratively by the Community Development Director contingent upon subdivision approval to obtain development rights. Currently, there are three (3) residential units located on the two (2) existing parcels. The applicant wishes to demolish the three (3) residential units and replace them with four (4) units on the three (3) lots to be created. Therefore, the applicant would be able to reconstruct three (3) units within the subdivision by virtue of gaining an exemption from GMQS for reconstruction of three (3) demolished units. Additionally, the applicant has requested a GMQS exemption pursuant to Land Use Code Section 26.470.070(B), which allows for the "remodel or expansion of a single family dwelling into a duplex dwelling". Therefore, the applicant could remodel the single-family residence to be built on the 9,0.00 square foot lot into a duplex if the GMQS exemption is approved. This request has also been approved by the Community Development Director contingent upon approval of the subdivision. The applicant proposes to either pay cash -in -lieu or build an ADU that meets the ADU design standards to satisfy the mitigation requirements of the abovementioned GMQS exemption. In conjunction with the application for subdivision, the applicant has also requested to move a portion of Dale Avenue back into the platted public right-of-way. Currently, a sizable portion of Dale Avenue is located on the southern part of the existing Lot 5A. The applicant has already received approval of a right-of-way improvements agreement from City Council to relocate Dale Avenue back into the platted public right-of-way at the applicant's expense. STAFF ANALYSIS: Staff believes that the subject properties are suitable for subdivision. Lots 4A and 5A are relatively flat and contain no slopes over 20 percent. Staff also feels that proposed single- family and duplex residential uses are compatible with the uses in the immediate vicinity given that the majority of the development in the general neighborhood consists of single- family and duplex residential structures. In addition, the proposed lots are located near an existing RFTA bus route with a bus stop that is located at the intersection of Park Avenue and E. Hopkins. The site is also within walking distance of the Commercial Core as the applicant has pointed out in the application. Staff also believes that the applicant may obtain development rights for the four (4) proposed residential units in the manner that was detailed in the proposal summary above. Therefore, the Community Development Director has approved the proposed GMQS exemptions contingent on the approval of the subdivision. The GMQS exemption approval allows the applicant to use reconstruction credits for the development of three (3) of the proposed units. The fourth unit was granted a GMQS exemption for expanding one of the single-family residences to be constructed, into a duplex pursuant to Land Use Code Section 26.470.070(B). As a condition of approval of the administrative GMQS exemptions, the applicant is required to meet one of the mitigation options that are set forth in Land Use Code Section 26.470.070(B) for each of the residential units to be constructed. SCHOOL LAND DEDICATION: The applicant is subject to school land dedication for the addition of the residential units to be developed within the proposed subdivision pursuant to Land Use Code Section 26.630. 3 The applicant has proposed to pay cash -in -lieu of dedicating land. The amount of the required cash -in -lieu payment is based on the following equation: Cash Payment —Market Value of the Land Proposed for Subdivision x Land Dedication Standard (based on number of bedrooms proposed) x 0.33 In this instance, the amount of the required cash -in -lieu payment canriot be determined at this time because the proposed residences have not been designed. Therefore, the dedication amount caiuzot be determined because it is calculated based on the number of bedrooms being proposed within the subdivision, which is still an uncertainty. The applicant has consented to paying the applicable school land dedication fee at the time of building permit issuance for each residence on a proportional basis and this is reinforced by a condition of approval. Thus, staff believes that the proposal will meet the land dedication standard. RELOCATION OF DALE AVENUE AND RELATED ISSUES: As was stated in the surnniary of the proposal, the applicant is proposing to relocate Dale Avenue off of the southern portion of Lot 5A and into the platted public right-of-way. The applicant has reached an agreement with the City Engineering Department and City Council to relocate Dale Avenue at the applicant's expense. As a result of the approved relocation, Dale Avenue will be reduced slightly in width to twenty-one (21) feet. In reviewing the right-of-way improvements agreement to relocate Dale Avenue, City Council indicated that they did not feel that curb and gutter was appropriate for the neighborhood at this time. In a related matter, the Aspen Sanitation District is requiring that the applicant either grant the District an easement to accommodate the existing sewer line that crosses about twenty (20) feet into the southeast corner of the proposed Lot 3 or relocate the existing sewer line to within the public right-of-way at the applicant's expense. The applicant has chosen the option of relocating the sewer line into the public right-of-way. As part of the relocation of the line, the Sanitation District has required that the applicant maintain a ten (10) foot setback off of the water line that currently exists in the public right-of-way. Therefore, staff has proposed a condition of approval that requires that the applicant relocate the sewer line completely into the right-of-way at the applicant's expense prior to issuance of a building permit on Lot 3 of the proposed subdivision. VEHICULAR ACCESS: The applicant is proposing to access the northern lot (proposed Lot 1) by way of E. Hopkins Avenue as it is currently accessed. Access to the middle lot (proposed Lot 2) is proposed off of Park Avenue and access to the southern lot (proposed Lot 3) is proposed off of Dale Avenue. Staff believes that the applicant has appropriately proposed access on the corner lots off of Dale Avenue and the short portion of E. Hopkins, which are considerably less busy than Park Avenue. Therefore, staff does not believe that any issues exist with the proposed vehicular access. REFERRAL AGENCY COMMENTS: The City Engineer, Fire Marshal, Water Department, Aspen Sanitation District, Streets Department, and the Parks Department have all reviewed the proposed subdivision. The City Engineering Department has requested that the applicant provide a five (5) foot wide Ll c sidewalk easement along the southern property line of the proposed Lot 3 that allows for sidewalk to be constructed within it. In addition, the Engineering Department has requested that the applicant put in a crush on fine gravel path in the Park Avenue Right -of - Way from the corner of E. Hopkins to Dale Avenue and on the proposed Lot 3 along Dale Avenue in the sidewalk easement to be granted. Therefore, staff has proposed a condition of approval that requires the crush on fine gravel path along Dale Avenue to be completed prior to issuance of a certificate of occupancy for Lot 3. Furthermore, staff has proposed a condition of approval that requires the crush on fine gravel path along Park Avenue to be completed prior to issuance of certificate of occupancy on Lots 1 and 2 of the proposed subdivision. Additionally, it has been requested that an underground electrical circuit be provided to the corner of E. Hopkins and Park Avenue when the overhead utility lines are to be placed underground to allow for service to be maintained to the existing street lamp. These requests are proposed as conditions of approval. RECOMMENDATION: Staff recommends that the Planning and Zoning Commission approve the proposed resolution recommending that City Council approve with conditions the proposed subdivision to allow for the Lots 4A and 5A of the Independence No.2 Subdivision into Lots 1, 2, and 3 of the Park -Dale Subdivision. RECOMMENDED MOTION (ALL MOTIONS ARE PROPOSED IN THE AFFIRMATIVE): "I move to approve Resolution No.6, Series of 2003, recommending that City Council approve the Park -Dale Subdivision, with conditions. " ATTACHMENTS: Exhibit A -- Review Criteria and Staff Findings Exhibit B -- Application Exhibit C -- Zoning Interpretation Exhibit D -- Referral Comments 5 RESOLUTION N0. Iq (SERIES OF 2003) A RESOLUTION OF THE CITY OF ASPEN PLANNING AND ZONING COMMISSION RECOMMENDING THAT CITY COUNCIL APPROVE THE PROPOSAL TO SUBDIVIDE LOTS 4A AND 5A, OF THE INDEPENDENCE NO.2 SUBDIVISION TO CREATE LOTS 15 29 AND 3, OF THE PARK -DALE SUBDIVISION, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Parcel ID: 2 73 7-181-33-051 Parcel ID: 2 73 7-181-33-052 WHEREAS, the Community Development Department received an application from Coast Pacific Asset Management, Inc, represented by Mitch Haas, requesting to subdivide Lots 4A and 5A, of the Independence No. 2 Subdivision to create Lots 1, 2, and 3, of the Park -Dale Subdivision; and, WHEREAS, the subject properties are zoned R-6 (Medium -Density Residential); and, WHEREAS, the proposed lots are to contain 6,000 square feet (Lot 1), 6,921 square feet (Lot 2), and 9,000 square feet (Lot 3) respectively; and, WHEREAS, upon review of the application, and the applicable code standards, the Community Development Department recommended approval, with conditions, of the proposed subdivision; and, WHEREAS, during a duly noticed public hearing on March 18, 2003, the Planniing and Zoning Conunission approved a resolution, by a to (_- ) vote, recommending that City Council approve the proposed Subdivision 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; and, WHEREAS, the 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 Conununlity Plan; and, WHEREAS, the Planniing 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 CITY OF ASPEN PLANNING AND ZONING COMMISSION AS FOLLOWS: Section 1: Pursuant to the procedures and standards set forth in Section 26.480 of the City of Aspen Land Use Code, the Planniing and Zoning Commission recommends that City Council f Iva C, MEMORANDUM TO: The Aspen Planning & Zoning Commission THRU: Joyce Allgaier Ohlson, Deputy Director' FROM: Scott Woodford, City Planrie l RE: ST. REGIS HOTEL: PUBLIC HEARING, PLANNED UNIT DEVELOPMENT AMENDMENT, GMQS EXEMPTIONS, SUBDIVISION, AND TIMESHARE; RESOLUTION No.. SERIES 2003 DATE: March 18, 2003 The entrance to the St. Regis Hotel and Building B. Building A is located up South Mill Street and Building C is located across a vacated portion of Dean Avenue via a bridged walkway (see also the site plan on the following page). All three buildings are proposed for various interior renovations. PROJECT: ST. REGIS HoTEL' REQUEST GMQS Exemptions, Planned Unit Development (PUD) Amendment, Timeshare, SUMMARY: and Subdivision to convert 98 existing hotel rooms into 24 timeshare lodge units and one residential unit in Building B, to convert a portion of the existing meeting room hotel office, and accessory space on the Ballroom Level of Building A into an approximately 15,300 square foot spa amenity, to relocate the hotel offices into the existing spa facility on the Second Level of Building B, and to convert 22 approved hotel rooms in Building C into 20 hotel rooms. LOCATION: 315 East Dean Street STAFF APPROVAL OF THE GMQS EXEMPTIONS, PUD AMENDMENT, RECOMMENDATION: TIMESHARE, AND SUBDIVISION, WITH CONDITIONS ST. REGIs HOTEL STAFF REPORT PAGE 1 I W PROJECT SUMMARY: The applicant, SLT Aspen Dean Street, LLC, an affiliate of Starwood Hotels and Resorts, has submitted an application requesting the appropriate land use approvals to make a number of improvements to the St. Regis Hotel. According to the application submitted for the proposal, the applicant proposes to make over $30 million in upgrades to the hotel, citing that the changes are necessary to help the St. Regis keep pace with other luxury hotels in competing resort communities and to meet changing consumer expectations. The proposed changes to the hotel include the following (see Floor Plans in Application on pages 16-24 for help in understanding the proposal): 1.) Conversion of 98 of the existing hotel rooms located on the 2"d through the 6t" floors in Building B into 24, two and three bedroom timeshare units and 1 whole residential unit. The applicant proposes to sell the timeshare units in 1/11th increments. 2.) Conversion of a portion of existing meeting room and pre -function space, the business center and hotel sales and accounting offices on the Ballroom Level under Building A into an approximately 15,300 square foot spa for the use of guests. 3.) Relocation of the hotel sales and accounting offices from the Ballroom Level into the 4,800 square foot spa on the 2"d floor of Building B. 4.) Reduction of the number of un-built, yet approved hotel rooms on the 2"d and 3rd floors of Building C (Blue Spruce Building) from 22 to 20 hotel rooms (16 hotel rooms and 4 one bedroom suites). The 22 units were part of the original approval, but were never constructed. This application seeks an Amendment to the original PUD to reduce the number of units from 22 to 20. Looking from South Mill Street towards Building B, which will house the 24 proposed timeshare lodge units and one whole residential unit on the second through sixth floors. No changes are proposed to the exterior of any part of the hotel. ST. REGIs HOTEL STAFF REPORT PAGE 2 If the changes are approved, it will result in a change from an existing total of 279 hotel rooms (257 built units and 22 un-built units in Building C) to 187 hotel rooms, 24 timeshare lodge units and 1 whole residential condominium. The new spa facility will consist of 3 fitness centers, 8 treatment rooms, 8 spa/facial/therapy rooms, 4 waiting lounges, a salon, boutique, reception area, separate women's and men's changing areas with private steam, sauna, cold plunge, Jacuzzi, and several staff/attendant/reservations stations located on -site. All changes proposed are to the interior of the building and no exterior changes or site improvements are proposed. REVIEW PROCESS: The applicant requests the following land use approvals for the project described above: 1) Planned Unit Development (PUD) Amendment: An Amendment to the PUD approval for the St. Regis Hotel is necessary to approve the conversion of the 98 hotel rooms into 24 timeshare lodge units and one residential unit, and to convert the 22 un- built lodge units into 20 lodge units in Building C. Since the proposed Amendment has been determined by the Community Development Director to not be eligible for an Insubstantial Amendment and to be inconsistent with the approved final development plan, both Planuling and Zoning Commission and City Council approval are required. The timeshare use also requires PUD approval. A view looking towards Building C of the St. Regis, which is connected to the main part of the hotel by the enclosed bridge over Dean Avenue. Although 22 hotel rooms were originally approved for Building C, the owners never constructed them and the building is only a shell with two floors. As part of this application, the applicant would like to convert them into 20 hotel rooms and construct their simultaneous to the other changes. 2) Growth Management Quota System (GMQS) Exemptions: The following GMQS Exemptions are requested: Remodeling, restoration, or reconstruction of existing buildings (Section 26.470.070.A.): to remodel the existing hotel units into timeshare lodge units. Staff has determined that the proposal is a remodel, as the Code defines a remodel as "a construction project comprising revisions within or to elements of an existing structure, as distinct from additions to an existing structure." This exemption is allowed provided it does not add additional lodge units (timeshare, ST. REGIs HOTEL STAFF REPORT PAGE 3 like hotel, are considered to be "lodge" in the Code) and does not involve a change of use. • Change of Use (Section 26.470.070.F): to allow the conversion of hotel units into one residential unit. The change of use exemption is not required for the conversion of hotel units into timeshare lodge units because both uses are considered tourist accommodations, for the purposes of the Code. • ' Accessory Uses in a Mixed Use Development (Section 27.470.070.K): to allow for the reconfiguration of hotel accessory space, specifically the spa, meeting space, and hotel office. 3) Timeshare: The applicant proposes to sell the converted hotel rooms as timeshare lodge units in 1 / 11 "' increments. To qualify as a timeshare, the proposal must comply with the Review Standards for Timeshare Lodge Development (contained in Exhibit C). 4) Subdivision: Subdivision is required for creating multi -family units, for condomllllumizatlon, and for timeshare approval. The process, act, or result of dividing land into two or more separate legal interests for the purpose of transfer of ownership constitutes a subdivision. According to Section 26.480.090, a condominium plat must be submitted to the Community Development Director for review and approval as a subdivision. This step is usually done after the construction is significantly complete; however, as subdivision approval is technically required to approve a condominium plat (which would require another City Council approval), the applicant is requesting subdivision approval for the condominiumization at this stage so that Subdivision approval will not be necessary again at the time the applicant wishes to file the condominium plat. Final Review Authority: Per Section 26.304.060, when more than one development approval is being sought simultaneously, the applicant may choose to combine them in order to eliminate or reduce duplication and ensure economy of time, expense and clarity. This means that, although some land use approvals require only staff approval or P&Z approval, while others require Council approval, all requested approvals for the St. Regis will be reviewed by P&Z and their recommendation will be passed on to Council for final review. BACKGROUND/ExiSTING CONDITIONS: The St. Regis Hotel (formerly known as the Ritz Carlton) finished construction in December of 1992. The property was purchased by the current owner in January of 1998. For information about the history of Lot 1 of the Aspen Mountain Subdivision PUD, and the St. Regis Hotel, see Page 1 of the Application. ST. REGIs HOTEL STAFF REPORT PAGE 4 PREVIOUS ACTIONS: The Housing Authority Board reviewed the application at their March 5, 2003 meeting and approved the application with the condition that the applicant be subject to an employee audit to be conducted one full fiscal year after completion of the changes. The Housing staff had indicated to the Board that they agreed with the applicant with regard to a reduction in the number of employees generated for the lodge and hotel portion of the project because of a reduction in the number of those units, but felt that there would be an increase of 23.3 new employees with the expanded spa. Of those, the applicant would be required to provide housing for 60%, or for 13.98 employees. In arriving at this requirement, the Housing staff used the figure of 12.8 employees per 1,000 square feet, which is the same figure used in determining the employee generation for food and beverage space. The applicant contends that the food and beverage generation figure is too high for spa uses and that the increase in employees generated by the spa would be more than offset by the reduction in employees required from the net loss of overall lodge units and partial reduction of conference space. In fact, the applicant believes that there will be a net loss of 3.59 employees. Ultimately, the Board was uncomfortable with requiring a factor of 12.8 employees per 1,000 square feet for the spa and, because there exists no employee generation numbers for spas in the Code, the Board decided to instead require the audit after one year. The applicant agreed to the provision. In their approval, the Board added the following conditions: 1. The applicant shall conduct an audit inu-nediately after one full fiscal year following the issuance of a certificate of occupancy for the proposed new spa facility, hotel rooms, timeshare units, and residence under the following terms: a. The applicant shall retain an auditor and shall gain prior approval from the Housing Office Operations Manager for the selection of the auditor. b. The applicant shall be fully responsible for all fees associated with retaining an auditor. 2. Should the audit show an increase in the number of employees, the applicant shall return to the Housing Authority under the following terms: a. The applicant shall provide deed restricted, affordable housing for any additional employees of the new facilities. b. The applicant shall abide by the Aspen/Pitkin County Affordable Housing Guidelines in effect at the time of the audit. STAFF COMMENTS: PUD AMENDMENT: Any request for an Amendment to a PUD must comply with the review criteria for a PUD. Staff has reviewed the proposal against the criteria and finds ST. REGIs HOTEL STAFF REPORT PAGE 5 that the request for PUD Amendment meets all of the applicable criteria (See Exhibit A for a full analysis of Staff Findings for PUD). GROWTH MANAGEMENT QUOTA SYSTEM (GMQS) EXEMPTIONS: The applicant requests three different exemptions from the City's GMQS as listed below. Staff comments on the proposal's compliance with the criteria follows: (For full review, see Staff Findings in Exhibit B) REMODELING, RESTORATION, OR RECONSTRUCTION OF EXISTING BUILDINGS: A GMQS Exemption is requested to allow for the remodeling of 98 of the existing hotel rooms into 25 timeshare lodge units. The Code states that such remodeling shall be exempt from the growth management competition and scoring procedures, provided that it does not create additional dwelling, hotel or lodge units or involve a change of use. In this instance, the number of units is being reduced and, because the Code defines both hotel and timeshare units as tourist accommodation, there is no change of use, so staff finds the request to comply with the criteria. CHANGE OF USE: A GMQS Exemption is also requested to allow for the change of use from hotel, or tourist accommodation, to residential for the proposed conversion of several hotel rooms into one whole condominium unit. There are seven criteria a request must comply with to get the exemption (all of them can be found in Exhibit B), but the two most significant criteria are that: a..) a minimal number of additional employees will be generated by the change in use and that employee housing i4;ill be provided for the additional employees generated. As noted above, the applicant contends that the proposal will actually result in a reduction of 3.59 employees generated because of the ability of the hotel management to consolidate employees and because of the reduction in employees from the conversion to less lodge units and eliminating a portion of meeting space (a letter from Joseph Wells, representing the applicant, is attached detailing the anticipated employee needs of the St. Regis Hotel after the changes, Exhibit F). The Housing staff felt that the changes would generate 23.3 employees and be required to mitigate for 13.98 of them. The Housing Board decided to require an audit one year after the changes are complete. If the audit determines that there were more employees generated than are contemplated with this application, then the applicant shall be required to provide additional affordable housing. Based on this safeguard, staff believes that the project complies with the above criteria. With the original approval for the hotel, the applicant was required to provide affordable housing. In the First Amended and Restated P1anuled Unit Development/Subdivision Agreement recorded in 1988, the hotel was required to house 161.5 employees, which was based solely on lodge operations, accessory food and beverage space and accessory retail space. Employee generation for the spa was not considered as it was apparently agreed at the time, between the owner and the City, that the hotel did not generate ST. REGIs HOTEL STAFF REPORT PAGE 6 employees beyond those generated by these three factors. The owner, however, eventually agreed to provide housing for 198.5 employees in exchange for City Council approval of a revised plan and is credited with housing 182 employees in the Alpina House, Copper Horse Lodge, Ute City, and the Hunter Longhouse. An audit, which was required of the original PUD and conducted by the Ritz Carlton (now the St. Regis), in 1998, concluded that the 198.5 employees mitigated was reasonable in accordance with the 1993-1994 payroll records. b.) a minimal amount of additional parking spaces ivill be demanded by the change in use and that parking will be provided. According to the application, the parking demand will be reduced by 10.33 spaces as a result of the timeshare conversion. This difference was calculated by comparing the parking demand of the net loss of the units (98 existing units — 25 proposed units = 78 net loss of units) with the number of proposed units. When the Aspen Mountain Subdivision PUD was originally approved, a parking demand study was done for the whole subdivision by TDA, Inc. and used to determine parking requirements for the hotel. The study was used to determine parking requirements rather than the Code requirement because it was agreed by all parties that it would provide a more accurate, site specific analysis of the parking demand. The study concluded that the peak parking demand for the hotel is in the summer and estimated that .66 spaces per lodge bedroom was sufficient during times of an average 90% occupancy rate. Parking for residential uses, similar to the proposed timeshare use, was also predicted in the report, assuming one space per 2 bedroom unit and two spaces per 3 bedroom unit. The applicant proposes to use those ratios to determine the parking demand for the 25 proposed timeshare units. The reduction of 10.33 spaces with the conversion was calculated as follows: Existing: 78 (net loss of rooms) x .66 x 90% = 46.33 spaces Proposed: 14 2BR units x 1 space = 14 + 11 3BR units x 2 spaces = 22 = 36 spaces Staff feels that existing parking is adequate to meet the demand generated by the hotel with the proposed changes. ACCESSORY USES IN MIXED USE DEVELOPMENT: A GMQS Exemption is requested to allow reconfiguration of the spa, meeting space, business center, and hotel office, which are all considered to be accessory uses of the hotel. There are five criteria for review (found in Exhibit B). The most notable criteria is that the impacts of accessory use on public facilities and affordable housing shall be mitigated by an agreement to provide those facilities. According to the Development Review Committee (DRC) review of the proposal, there will be no adverse impact to any public facility, although additional tap fees may be assessed due to the change in use (which is addressed in a condition of approval). A condition of approval has been added requiring an audit of employees one year after operation to determine exactly how many employees work for the hotel and, therefore, how many employees are required to be mitigated for with regard to affordable ST. REGIs HOTEL STAFF REPORT PAGE 7 housing. If the audit determines that there is no increase in the number of employees over what they have prior to the remodel, then there would be no requirement for additional housing. If the audit determines that there is an increase in the number of employees, then the applicant will be required to mitigate for them. Based on this, staff is comfortable that the affordable housing demand created by this proposal will be adequately addressed. TIMESHARE: The applicant proposes to timeshare 24 of the twenty-five new units into at least 1/1 It" fractional interests, or Club Interests as the applicant refers to them. With sale of biennial interests (biem-iial interests give the owner the right to occupy a unit every other year), the fractional interests may be as high as 1/15t". As each fractional interest is proposed to be sold in minimum increments of four (with each increment representing seven days) and each unit is divided into 11 different interests, a total of 44 out of the 52 weeks of the year will be sold for each unit. The remaining 8 weeks will be rented out to the general public via walk-in or through the central reservation system. In addition, the Club Interest Owners may relit out a.portion or all of their Club Interests to the general public. If the Club Interests are not reserved by owners in a timely manner, the timeshare plan operator is permitted to rent them out (Note: as the application did not specify what "timely manner" meant, the applicant should state for the record at the public hearing, the specific amount of time). The applicant is complying with all of the applicable review criteria for timeshare and is not requesting any variances. This proposal will reduce the number of existing lodge units and bedrooms. One provision of the timeshare ordinance requires that there not be a reduction of the existing lodging inventory, in terms of units and bedrooms. The ordinance goes on further to state that if the applicant is unable to replace the existing number of units and bedrooms, then they must demonstrate how the proposal complies with the purposes of the regulation. The proposed conversion will result in a reduction of the number of units in the St. Regis Hotel, from 257 hotel units to 192 hotel, timeshare, and residential units. In addition, the conversion will reduce the number of bedrooms, from 257 to 248. The applicant contends, however, that the number of "sleeping facilities", which includes bedrooms and sleeper sofas, will be increased with the conversion. The increase in sleeping facilities will be from the existing, 257, to 266 after the conversion. Staff finds that because the drop in number of actual bedrooms is relatively slight, that the applicants proposal to include the sleeper sofas in the overall equation is sufficient to comply with this provision. Furthermore, the other mandatory and optional timeshare requirements are well addressed in the St. Regis facility, including additional spa improvements. SUBDIVISION: Subdivision approval is necessary to approve the creation of separate legal interests so that the timeshare lodge units may be conveyed separately. Given that the subdivision review, in this instance, is related to the creation of the timeshare lodge units and the changes are all interior to the existing building, much of the subdivision review criteria is not applicable. The development does comply with the criteria that is applicable, such as whether the proposed subdivision is consistent with the Aspen Area ST. REGIs HOTEL STAFF REPORT PAGE 8 Community Plan and whether it is consistent with the character of the surrounding area (See full Staff Findings for Subdivision in Exhibit D). DEVELOPMENT REVIEW COMMITTEE (DRC) REFERRAL COMMENTS: The DRC meeting was held on February 19, 2003. The minutes from that meeting are contained in Exhibit G. No significant issues were raised by the DRC. STAFF SUMMARY AND RECOMMENDATION: Staff recommends approval of a PUD Amendment, Growth Management Quota System Exemptions, Timeshare, and Subdivision for the St. Regis Hotel RECOMMENDED MOTION: "I move to approve Resolution No. /Q, Series of 2003, for a PUD Amendment, GMQS Exemptions, Timeshare, and Subdivision for the St. Regis Hotel." ATTACHMENTS: Exhibit A: PUD Amendment — Staff Findings Exhibit B: Growth Management Quota System — Staff Findings Exhibit C: Timeshare — Staff Findings Exhibit D: Subdivision — Staff Findings Exhibit E: Housing Authority Memorandum Exhibit F: Letter from Joseph Wells Exhibit G: Development Review Committee (DRC) Minutes Exhibit H: Application ST. REGIs HOTEL STAFF REPORT PAGE 9 RESOLUTION N0. ID (SERIES OF 2003) A RESOLUTION OF THE CITY OF ASPEN PLANNING AND ZONING COMMISSION RECOMMENDING CITY COUNCIL APPROVE A PLANNED UNIT DEVELOPMENT (PUD) .AMENDMENT, GROWTH MANAGEMENT QUOTA SYSTEM (GMQS) EXEMPTIONS, TIMESHARE, AND SUBDIVISION FOR THE ST. REGIS HOTEL, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Parcel ID: 2 73 7-1828-5001 WHEREAS, the Community Development Department received an application from the SLT Aspen Dean Street, LLC (Applicant), represented by Gideon Kaufman of Kaufman and Peterson, P.C., requesting a PUD Amendment, Growth Management Quota System Exemptions, Timeshare, and Subdivision to convert 98 existing hotel rooms into 24 timeshare lodge units and one residential unit, to convert a portion of the existing meeting room, hotel office, and accessory space on the Ballroom Level into an approximately 15,300 square foot spa amenity, and to convert the existing spa facility on the Second Level of Building B to relocated hotel offices; and, WHEREAS, the 24 timeshare lodge units are proposed to be sold in a minimum of 1/1 It" fractional interests; and, WHEREAS, the Community Development Department received referral continents from the Aspen Consolidated Waste District, City Engineering, Building, Fire, Streets, Parks, Housing, Envirolunental Health, and Water Departments as a result of the Development Review Committee meeting; and, WHEREAS, the applicant has chosen to consolidate all of the land use approvals, in accordance with Section 26.304.060, so that City Council will be the final reviewing body on all land use requests; and, WHEREAS, upon review of the application, referral continents, and the applicable Land Use Code standards, the Community Development Department recontinended approval for the proposed land use requests for the St. Regis Hotel; and, WHEREAS, at its meeting on March 5, 2003, the City of Aspen / Pitkin Courity Housing Authority forwarded a recommendation of approval to City Council at its meeting to approve the proposed employee mitigation through an audit program; and, WHEREAS, the Planning and Zoning Commission forwarded a recommendation of approval via Resolution No.1jO Series of 2003, by a vote of to (_ - _), to City Council to approve a PUD Amendment, Growth Management Quota System Exemptions, Timeshare, and Subdivision; and, ST. REGIs HOTEL STAFF REPORT PAGE 10 NOW, THEREFORE BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF ASPEN, COLORADO ON THE 18"' DAY OF MARCH 2O03, THAT: Section 1 Pursuant to the procedures and standards set forth in Title 26 of the Aspen Municipal Code, the Planning and Zoning Commission recommends approval of the Amendment to the PUD, GMQS Exemptions, Timeshare, and Subdivision, subject to the following conditions: 1. 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 traffic management plan that addresses issues such as construction worker parking and hauling routes. 2. Prior to issuance of a building pen -nit: a. The primary contractor shall submit a letter to the Coinrnunity Development Director stating that the conditions of approval have been read and understood. b. All tap fees, impacts fees, and building permit fees shall be paid. c. A complete set of sprinkler and alarm plans shall be submitted to the Aspen Fire Marshal in order to determine if the fire sprinkler system and alarm system is adequate. d. The Applicant shall comply with the Aspen Consolidated Sanitation District's rules and regulations. No clear water connections (roof, foundation, perimeter drains) shall be allowed. All sanitation -related improvements below grade shall require the use of a pumping station. The conversion from lodge units may result in additional tap fees due to the additional kitchens and other sources of wastewater. e. The applicant shall comply with the City of Aspen Water System Standards, with Title 25, and with the applicable standards of Title 8 (Water Conservation and Plumbing Advisory Code) of the Aspen Municipal Code, as required by the City of Aspen Water Department. Based on the sprinkler requirements of the Fire Department, a new and larger water tap may be needed. An additional tap fee may be assessed due to the change in use. f. The applicant shall consult the Colorado Revised Statutes (CRS) to determine the required number of type A and type B units as it pertains to food/beverage service areas. American With Disabilities Act (ADA) Accessibility shall be provided to all timeshare units and to the juice bar and spa. A Temporary Certificate of Occupancy (TCO) may be issued subject to safety and Fire Department concerns being addressed to the satisfaction of the Fire Marshal and the Aspen Building Department. g. The applicant shall be subject to the soon to be adopted International Fire Code. The applicant shall submit a complete set of fire sprinkler and alarm plans to the ST. REGls HOTEL STAFF REPORT PAGE 11 Fire Department, Water Department and Sanitation District prior to sign -off of building permit. In addition, the applicant shall comply with new regulations requiring sprinkler heads that provide a larger flow that may impact the plumbing design, the size of the water tap, and water service fees. h. At the time of building permit, Environmental Health shall review the plans for the juice bar set-up and operations. 3. Per the Aspen Pitkin County Housing Authority Board approval of the application on March 5, 2003) the applicant shall conduct an audit immediately after one full fiscal year following the issuance of a certificate of occupancy for the proposed new spa facility, hotel rooms, timeshare units, and residence under the following terms: a. The applicant shall retain an auditor and shall gain prior approval from the Housing Office Operations Manager for the selection of the auditor. b. The applicant shall be fully responsible for all fees associated with retaining an auditor. 3. Should the housing audit show an increase in the number of employees, the applicant shall return to the Housing Authority under the following terms: a. The applicant shall provide deed restricted, affordable housing for any additional employees of the new facilities. b. The applicant shall abide by the Aspen/Pitkin County Affordable Housing Guidelines in effect at the time of the audit. 5. Final Condominium Declarations shall be submitted to the City concurrent with the submission of the Condominium Subdivision Plat and shall include the following language regarding timeshare: a. Timeshare estates shall be made available for short-term rental when the estate is not in use by the owner of the unit, the owner's guests, or persons occupying the unit under an exchange program. Units that are available for rental shall be listed at competitive rates in a central reservation system. b. The covenants of the homeowners association shall permit walk-in rental of units. The association shall not limit rental of units to such arrangements as only weekly rentals or Saturday -to -Saturday rentals; instead the association shall permit shorter stays, split -week rentals, and similar flexible arrangements. c. Owners of timeshare estates shall be required to reserve their unit/time sufficiently far enough in advance to enable the public to obtain access to those units that are not so reserved. d. The owner of a timeshare estate shall not be permitted to occupy that estate for any period in excess of thirty (30) consecutive calendar days. e. The owner of a timeshare estate shall be prohibited from storing a vehicle in a parking space on -site when the owner is not using that estate. ST. REGIs HOTEL STAFF REPORT PAGE 12 6. The timeshare lodge units that remain in the developer's inventory shall be made available for rental to the public while the estates are being sold, except for models and other units that are needed for marketing or promotional purposes. 7. The Applicant shall pay the City of Aspen school land dedication fees for the additional residential unit. These fees shall be due and payable at the time of issuance of a building permit for the development. 8. A PUD Agreement and Amended PUD Plan shall be recorded within 180 days of the final approval by City Council and shall include the information required to be included in a PUD Agreement, pursuant to Section 26.445.070(C). 9. The applicant shall file a Notice of PUD in the Clerk and Recorders office of Pitkin County subsequent to receipt of a development order, or prior to issuance of a building permit. Section 2: All material representations and commitments made by the applicant pursuant to this application, whether in public hearings or documentation presented before the Planning and Zoning Commission or City Council, are hereby incorporated in such plan approvals and the same shall be complied with as if fiilly set forth herein, unless amended by an authorized entity. Section 3: This Resolution shall not effect any existing litigation and shall not operate as an abatement of any action or proceeding now pending Linder or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. gPrtinn d- If ally 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. Approved by the Commission at its regular meeting on March 18, 2003. APPROVED AS TO FORM: PLANNING AND ZONING COMMISSION: City Attorney Jasmine Tygre, Chair ST. REGIS HOTEL STAFF REPORT PAGE 13 ATTEST: Jackie Lothian, Deputy City Clerk ST. REM HOTEL STAFF REPORT PAGE 14 EXHIBIT A. PLANNED UNIT DEVELOPMENT (PUD) FINDINGS Planried Unit Development. A development application for PUD shall comply with the following standards and requirements: A. General requirements. 1. The proposed development shall be consistent with the Aspen Area Community Plan. STAFF FINDING: I DOES IT COMPLY? ( YES The proposal complies with the applicable aspects of the AACP, specifically with regard to creating a sustainable economy. The conversion of a portion of the St. Regis hotel Lulits into timeshare units, the expansion of the spa, and the construction of the additional hotel units that were originally approved will make the project more attractive to visitors and therefore increase the number of visitors to the property. With increased visitors, especially during the off-season, the City will receive additional revenue, which will contribute to sustaining and increasing the local economy. This type of land use is consistent with the AACP in locating tourist accommodations close to the ski area and close to the commercial core. 2. The proposed development shall be consistent with the character of existing land uses in the surrounding area. STAFF FINDING: I DOES IT COMPLY? YES The proposed timeshare use is consistent with surrounding tourist oriented accommodations and proposed timeshare projects in close vicinity. 3. The proposed development shall not adversely affect the future development of the surrounding area. STAFF FINDING: DOES IT COMPLY? YES Since all proposed changes are interior, the proposed development will not adversely affect the future development of the surrounding area 4. The proposed development has either been granted GMQS allotments, is exempt from GMQS, or GMQS allotments are available to accommodate the proposed development and will be considered prior to, or in combination with, final PUD development plan review. STAFF FINDING: DOES IT COMPLY? YES All of the requested land use approvals are eligible for GMQS exemptions. B. Establishment of Dimensional Requirements: ST. REGis HOTEL STAFF REPORT PAGE 15 The PUD development plans shall establish the dimensional requirements for all properties within the PUD. The dimensional requirements of the underlying zone district shall be used as a guide in determining the appropriate dimensions for the PUD. The proposed dimensional requirements are listed below: STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE No exterior changes are proposed, therefore no changes to dimensional standards. 1. The proposed dimensional requirements for the subject property are appropriate and compatible with the following influences on the property: a) The character of, and compatibility with, existing and expected future land uses in the surrounding area. b) Natural or man-made hazards. c) Existing natural characteristics of the property and surrounding area such as steep slopes, waterways, shade, and significant vegetation and landforms. d) Existing and proposed man-made characteristics of the property and the surrounding area such as noise, traffic, transit, pedestrian circulation, parking, and historical resources. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE No exterior changes are proposed. 2. The proposed dimensional requirements permit a scale, massing, and quantity of open space and site coverage appropriate and favorable to the character of the proposed PUD and of the surrounding area. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE No exterior changes are proposed. 3. The appropriate number of off-street parking spaces shall be established based on the following considerations: a) The probable number of cars used by those using the proposed development including any non-residential land uses. b) The varying time periods of use, whenever j oint use of common parking is proposed. c) The availability of public transit and other transportation facilities, including those for pedestrian access and/or the conimitment to utilize automobile disincentive tecluliques in the proposed development. d) The proximity of the proposed development to the cominercial core and general activity centers in the city. STAFF FINDING: DOES IT COMPLY? YES ST. REGIs HOTEL STAFF REPORT PAGE 16 Staff finds that the proposed off-street parking is adequate given the number of spaces provided compared to the number of units and the proximity of the building to mass transit and the downtown core. In addition, many guests arrive to the hotel, especially in the winter, without vehicles and use the buses, taxis, or walk to get around. 4. The maximum allowable density within a PUD may be reduced if there exists insufficient infrastructure capabilities. Specifically, the maximum density of a PUD may be reduced if: a) There is not sufficient water pressure, drainage capabilities, or other utilities to service the proposed development. b) There are not adequate roads to ensure fire protection, snow removal, and road maintenance to the proposed development. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE The density, in terms of how the Land Use Code is concerned, is being increased by one residential unit. 5. The maximum allowable density within a PUD may be reduced if there exists natural hazards or critical natural site features. Specifically, the maximum density of a PUD may be reduced if: a) The land is not suitable for the proposed development because of ground instability or the possibility of mud flow, rock falls or avalanche dangers. b) The effects of the proposed development are detrimental to the natural watershed, due to runoff, drainage, soil erosion, and consequent water Pollution. c) The proposed development will have a pernicious effect on air quality in the surrounding area and the City. d) The design and location of any proposed structure, road, driveway, or trail in the proposed development is not compatible with the terrain or causes harmful disturbance to critical natural features of the site. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE The density, in terms of the Land Use Code, is being increased by one residential unit. 6. The maximum allowable density within a PUD may be increased if there exists a signi scant community goal to be achieved through such increase and the development pattern is compatible with its surrounding development patterns and with the site's physical constraints. Specifically, the maximum density of a PUD may be increased if: ST. REGIS HOTEL STAFF REPORT PAGE 17 a) The increase in density serves one or more goals of the community as expressed in the Aspen Area Conununity Plan (AACP) or a specific area plan to which the property is subject. b) The site's physical capabilities can accommodate additional density and there exists no negative physical characteristics of the site, as 'identified in subparagraphs 4 and 5, above, those areas can be avoided, or those characteristics mitigated. c) The increase in maximum density results in a development pattern compatible with, and complimentary to, the surrounding existing and expected development pattern, land uses, and characteristics. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE The density, in terms of how the Land Use Code is concerned, is being increased by one residential unit, but not beyond the maximum allowable density. C. Site Design. The purpose of this standard is to ensure the PUD enhances public spaces, is complimentary to the site's natural and man-made features and the adjacent public spaces, and ensures the public's health and safety. The proposed development shall comply with the following: 1. Existing natural or man-made features of the site which are unique, provide visual interest or a specific reference to the past, or contribute to the identity of the town are preserved or enhanced in an appropriate manner. 2. Structures have been clustered to appropriately preserve significant open spaces and vistas. 3. Structures are appropriately oriented to public streets, contribute to the urban or rural context where appropriate, and provide visual interest and engagement of vehicular and pedestrian movement. 4. Buildings and access ways are appropriately arranged to allow emergency and service vehicle access. 5. Adequate pedestrian and handicapped access is provided. 6. Site drainage is accommodated for the proposed development in a practical and reasonable manner and shall not negatively impact surrounding properties. 7. For non-residential land uses, spaces between buildings are appropriately designed to accommodate any programmatic functions associated with the use. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. C. Landscape Plan. The purpose of this standard is to ensure compatibility of the proposed landscape with the visual character of the city, with surrounding parcels, and with existing ST. REGIs HOTEL STAFF REPORT PAGE 18 and proposed features of the subject property. The proposed development shall comply with the following: 1. The landscape plan exhibits a well designated treatment of exterior spaces, preserves existing significant vegetation, and provides an ample quantity and variety of ornamental plant species suitable for the Aspen area climate. 2. Significant existing natural and man-made site features, which provide uniqueness and interest in the landscape, are preserved or enhanced in an appropriate mamier. 3. The proposed method of protecting existing vegetation and other landscape features is appropriate. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. D. Architectural Character. It is the purpose of this standard to encourage architectural interest, variety, character, and visual identity in the proposed development and within the City while promoting efficient use of resources. Architectural character is based upon the suitability of a building for its purposes, legibility of the building's use, the building's proposed massing, proportion, scale, orientation to public spaces and other buildings, use of materials, and other attributes which may significantly represent the character of the proposed development. There shall be approved as part of the final development plan an architectural character plan, which adequately depicts the character of the proposed development. The proposed architecture of the development shall: l . Be compatible with or el-diance the visual character of the city, appropriately relate to existing and proposed architecture of the property, represent a character suitable for, and indicative of, the intended use, and respect the scale and massing of nearby historical and cultural resources. 2. Incorporate, to the extent practical, natural heating and cooling by taking advantage of the property's solar access, shade, and vegetation and by use of non - or less -intensive mechanical systems. 3. Accommodate the storage and shedding of snow, ice, and water in a safe and appropriate manrier that does not require significant maintenance. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. E. Lighting. ST. REGN HOTEL STAFF REPORT PAGE 19 The purpose of this standard to ensure the exterior of the development will be lighted in an appropriate maiuzer considering both public safety and general aesthetic concerns. The following standards shall be accomplished: 1. All lighting is proposed so as to prevent direct glare or hazardous interference of .any kind to adjoining streets or lands. Lighting of site features, structures, and access ways is proposed in an appropriate manner. 2. All exterior lighting shall in compliance with the Outdoor Lighting Standards unless otherwise approved and noted in the final PUD documents. Up -lighting of site features, buildings, landscape elements, and lighting to call inordinate attention to the property is prohibited for residential development. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. F. Conunon Park, Open Space, or Recreation Area. If the proposed development includes a common park, open space, or recreation area for the mutual benefit of all development in the proposed PUD, the\following criteria shall be met: - 1. The proposed amount, location, and design of the common park, open space, or recreation area enhances the character of the proposed development, considering existing and proposed structures and natural landscape features of the property, provides visual relief to the property's built form, and is available to the mutual benefit of the various land uses and property users of the PUD. 2. A proportionate, undivided interest in all common park and recreation areas is deeded in perpetuity (not for a number of years) to each lot or dwelling unit owner within the PUD or ownership is proposed in a similar manrier. 3. There is proposed an adequate assurance through a legal instrument for the permanent care and maintenance of open spaces, recreation areas, and shared facilities together with a deed restriction against future residential, commercial, or industrial development. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. , Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. G. Utilities and Public facilities. The purpose of this standard is to ensure the development does not impose an undue burden on the City's infrastructure capabilities and that the public does not incur an unjustified financial burden. The proposed utilities and public facilities associated with the development shall comply with the following: ST. REGIs HOTEL STAFF REPORT PAGE 20 l . Adequate public infrastructure facilities exist to accommodate the development. 2. Adverse impacts on public infrastructure by the development will be mitigated by the necessary improvements at the sole cost of the developer. 3. Oversized utilities, public facilities, or site improvements are provided appropriately and where the developer is reimbursed proportionately for the additional improvement. STAFF FINDING: I DOES IT COMPLY? NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. H. Access and Circulation. The purpose of this standard is to ensure the development is easily accessible, does not unduly burden the surrounding road network, provides adequate pedestrian and recreational trail facilities and minimizes the use Of security gates. The proposed access and circulation of the development shall meet the following criteria: 1. Each lot, structure, or other land use within the PUD has adequate access to a public street either directly or through an approved private road, a pedestrian way, or other area dedicated to public or private use. 2. The proposed development, vehicular access points, and parking arrangement do not create traffic congestion on the roads surrounding the proposed development, or such surrounding roads are proposed to be improved to accommodate the development. STAFF FINDING: DOES IT COMPLI'? NOT APPLICABLE No changes are proposed to exterior access and circulation of the building. At the time the hotel was approved, it was deemed to be in compliance with the criteria. I. Phasing of Development Plan. The purpose of this criteria is to ensure partially completed projects do not create an unnecessary burden on the public or surrounding property owners and impacts of an individual phase are mitigated adequately. If phasing of the development plan is proposed, each phase shall be defined in the adopted final PUD development plan. The phasing plan shall comply with the following: l . All phases, including the initial phase, shall be designed to function as a complete development and shall not be reliant on subsequent phases. 2. The phasing plan describes physical areas insulating, to the extent practical, occupants of initial phases from the construction of later phases. 3. The proposed phasing plan ensures the necessary or proportionate improvements to public facilities, payment of impact fees and fees -in -lieu, construction of any ST. REGls HOTEL STAFF REPORT PAGE 21 facilities to be used jointly by residents of the PUD, construction of any required affordable housing, and any mitigation measures are realized concurrent or prior to the respective impacts associated with the phase. STAFF FINDING: DOES IT COMPLY? I NOT APPLICABLE When the hotel was originally approved as a PUD, it was deemed to comply with all of the above provisions. Since no exterior changes are proposed, staff finds the project to still be in compliance with the above provisions. ST. REM HOTEL STAFF REPORT PAGE 22 EXHIBIT B GROWTH MANAGEMENT QUOTA SYSTEM Section 26.470.070.A. of the Land Use Code regarding remodeling, restoration or reconstruction of existing commercial, lodge or multi -family buildings, requires that the following criteria be met for an exemption: A. The remodeling, restoration or reconstruction of an existing lodge or multi-fainily building shall be exempt from the growth management competition and scoring procedures, provided that it does not create additional dwelling, hotel or lodge units or involve a change of use. STAFF FINDING: ( DOES IT COMPLY? I YES The applicant proposes converting 98 existing hotel rooms into 24 timeshare lodge units and one residential unit. The conversion to the timeshare lodge units is exempt from GMQS because it does not create additional units and does not involve a change of use (both hotel and timeshare are considered to be tourist accommodations in the Code). The exemption for the one residential unit is addressed below. Section 26.470.070.A. of the Land Use Code regarding Change in use requires that the following criteria be met for an exemption: A. A minimal number of additional employees will be generated by the change in use and that employee housing will be provided for the additional employees generated; STAFF FINDING: I DOES IT COMPLY? I YES A condition of approval has been added requiring an audit of the hotel one year after a certificate of occupancy for the changes to the hotel. The applicant feels that there will be a net loss of employees with the proposal. If the audit determines an increase, then the applicant will be required to provide affordable housing. B. A minimal amount of additional parking spaces will be demanded by the change in use and that parking will be provided; STAFF FINDING: DOES IT COMPLY? TYES The parking requirement is reduced with the proposed conversion of units and the addition of the spa. C. There will be minimal visual impact on the neighborhood from the change in use; STAFF FINDING: DOES IT COMPLY? TYES Since there are no plans to alter the exterior of the building, nor expand the footprint, there will be no additional visual impact from the change in use. D. Minimal demand will be placed on the City's public facilities from the change in use; ST. REGIs HOTEL STAFF REPORT PAGE 23 STAFF FINDING: I DOES IT COMPLY? I YES According to responses from the Development Review Committee review of the proposal, there will be increased demand from the conversion from hotel units to timeshare, but no upgrades of public infrastructure are required to accommodate it. E. No zone change is required; STAFF FINDING: I DOES IT COMPLY? YES No zone change is required. F. No more than one residential unit will be created; and STAFF FINDING: I DOES IT COMPLY? YES Only one residential unit will be created. G. The proposed use is consistent in all respects with the AACP. STAFF FINDING: I DOES IT COMPLY? I YES The proposed use is consistent in all respects with the AACP. Section 26.470.070.A. of the Land Use Code regarding Accessory uses in mixed. use development. requires that the following criteria be met for an exemption: A. The proposed development consists of a building or buildings designed as an integrated whole that contains uses requiring the submission of development applications for an allotment in more than one of the categories of Section 26.470.040. STAFF FINDING: DOES IT COMPLY? YES The project complies with the above criteria. B. There is one use of the property that is the principal use and any other uses are accessory to, in support of and necessary for the principal use. STAFF FINDING: I DOES IT COMPLY? I YES The principal use is the hotel and the spa, retail, meeting space, offices, etc. are all accessory uses to the hotel. C. In conjunction with the application for exemption, an application is submitted pursuant to Section 26.470.080 that receives a development allotment for the principal use. ST. REGIs HOTEL STAFF REPORT PAGE 24 STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE The principal use is already constructed with development allotments received at the time. D. The impacts of the accessory use on public facilities and affordable housing are mitigated by an agreement to provide the necessary public facilities and affordable housing at a level that would meet the threshold required in Section 26.470.080(C)(5) for the accessory use. STAFF FINDING: I DOES IT COMPLY? I YES A condition of approval has been added requiring an audit of the hotel one year after a certificate of occupancy for the changes to the hotel. The applicant feels that there will be a net loss of employees with the proposal. If the audit determines an increase, then the applicant will be required to provide affordable housing. No adverse impacts on public facilities are anticipated, so no agreement is necessary. E. The site design and architecture of the accessory use is evaluated in conjunction with the review of the development application for the principal use pursuant to Section 26.470.080. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE There are no changes proposed to the site design nor the architecture. Also the principal use is already constructed, so there is no need for development application for it. ST. REGIs HOTEL STAFF REPORT PAGE 25 EXHIBIT C TIMESHARE FINDINGS A. Mandatory Physical Elements. 1. All timeshare lodge developments shall have a staffed on -site front desk, located within a lobby that is sized to meet the needs of the project. If the timeshare lodge is part of a multi -site development, there may be a single front desk for these sites. The staffed front desk shall be open at least during regular business hours, and shall be managed to provide full-time registration and reservation services, including provision for late check -in and for other off -hours guest needs. The front desk shall acconu-nodate walk-in rentals. STAFF FINDING: I DOES IT COMPLY? I YES There will be a common front desk for the timeshare lodge and hotel guests, which will accommodate walk-in rentals at any time. Additionally, there will be a concierge staff dedicated to the timeshare units. St. Regis will manage the reservation system. 2. A timeshare lodge development shall contain a sufficient level of recreational facilities (such as exercise equipment, a pool or spa, or similar facilities) and other amenities (such as a lobby, meeting spaces, and similar facilities) to serve the occupants, including facilities that can be used in the winter and the suimner seasons. The extent of the facilities provided should be proportional to the size of the timeshare lodge development. The types of facilities should be consistent with the plamied method and style of operating the development. _ STAFF FINDING: DOES IT COMPLY? YES Timeshare owners will have access to the pool, hot tubs, exercise facility, as well as the proposed expanded spa. In addition; each unit will contain steam showers, hot tubs and an audio and video system as well as complete furnishings... 3. A timeshare lodge in the Coinmercial Core (CC) zone district shall not have any lodge rooms located on the ground floor. Instead, a timeshare lodge in the CC zone district shall contain at least one of the following elements: a bar, restaurant, or retail facilities. The element(s) provided shall be located along the street front, shall be accessible from the street, and shall be designed to serve the public, not just the occupants of the timeshare lodge. STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE The proposed timeshare project is not located in the CC zone district. B. Mandatory Operational Practices. The City wants to ensure that the units in a timeshare lodge development are available for rental to the public when they are not being occupied by the owner, the owner's guests, or persons occupying the unit ST. REGis HOTEL STAFF REPORT PAGE 26 -under an exchange program. The City has identified certain operational practices that will accomplish this intent, which are listed in this section. An applicant who agrees to include all of the practices listed below in the operation of the timeshare development shall be deemed to have complied with the requirements of this sub- section B and need not address any of the optional operational practices of sub- section C. The City recognizes, however, that there may be other ways to comply with this intent, and will consider these and other operational practices. Applicants may propose to substitute one or more of the optional practices listed in Section C., below, for one or more of the mandatory practices listed in this Section B. Applicants may also propose other operational practices not listed in Section C. as a means of demonstrating compliance with this standard. Acceptance of the proposed optional practices as a substitute for one or more of the mandatory practices shall be at the sole discretion of the City Council. 1. Timeshare estates shall be made available for short -tern rental when the estate is not in use by the owner of the unit, the owner's guests, or persons occupying the -unit under an exchange program. Units that are available for rental shall be listed at competitive rates in a central reservation system. Listing of the unit with a recognized central reservation system in Aspen, or through the central reservation system of the company that will manage the timeshare development, is preferred. STAFF FINDING: DOES IT COMPLY? YES The St. Regis Residence Club will permit owners to rent all or a part of their Club interest and will slake their central reservation system available to its owners as part of a rental program. The Developer will also use a variety of marketing programs, which will result in occupancy of unsold Developer inventory by the public on a short term basis. 2. The covenants of the homeowners.*association shall permit walk-in rental of units. The association shall not limit rental of units to such arrangements as only weekly rentals or Saturday -to -Saturday rentals; instead the association shall permit shorter stays, split -week rentals, and similar flexible arrangements. STAFF FINDING: I DOES IT COMPLY? I YES The covenants of the Condominium Association will permit daily and walk in rental of the available Club Units. 3. Owners of timeshare estates shall be required to reserve their unit/time sufficiently far enough in advance to enable the public to obtain access to those units that are not so reserved. ST. REGIs HOTEL STAFF REPORT PAGE 27 STAFF FINDING: DOES IT COMPLY? YES A specific tilneframe was not given by the applicant, but they did state that they will require owners to secure or confirm a reservation of a Club Unit within certain established time periods and that the timeshare plan operator may rent out Club units that are not reserved as required under the Plan. 4. The owner of a timeshare estate shall not be permitted to occupy that estate for any period in excess of thirty (30) consecutive calendar days. STAFF FINDING: I DOES IT COMPLY? YES An owner will not be permitted to occupy the unit for more than 28 consecutive calendar days. 5. The units that remain in the developer's inventory shall be made available for rental to the public while the estates are being sold, except for models and other units that are needed for marketing or promotional purposes. STAFF FINDING: I DOES IT COMPLY? I YES The Developer will also use a variety of marketing programs, which will result in occupancy of unsold Developer inventory by the public on a short term basis while the units are being sold. C. Optional Operational Features. 1. Timeshare lodge developments that subdivide each unit into a larger, number of estates (more than 10 estates per unit) are preferred to those which subdivide each unit into a smaller number of estates (less than 10 estates per unit). STAFF FINDING: I DOES IT COMPLY? I YES The applicant proposes a minimum of 11 Club interests, or estates 2. Applicants may formulate their timeshare use plan such that the purchaser would not expect to occupy the same unit each visit; instead the purchaser would purchase the right to occupy a certain type of unit for a certain period of time. Applicants may also include provisions in the homeowners association documents prohibiting owners from personalizing the unit they have purchased. STAFF FINDING: I DOES IT COMPLY? I YES Both floating and fixed unit rights will be available. The Condominium Association will prohibit any owner of a Club Interest from using their unit as a permanent residence or permanently altering the furnishings or interior of a Club Unit. 3 . Applicants may design their development as a mixed project, which includes not only timeshare units, but also some units that would continue to be owned and operated by the applicant and his successors or assigns as traditional lodge units. ST. REGIs HOTEL STAFF REPORT PAGE 28 Another type of use plan that is encouraged would be for the applicant to agree not to sell all of the shares in every unit, but to instead keep some time reserved for rental to the public at market rates during both the high seasons and the off-seasons. STAFF FINDING: DOES IT COMPLY? FTE The property will be operated as both the St. Regis Hotel and the St. Regis Residence Club. Eight weeks within each Club Unit will not be conveyed as part of a Club Interest and will therefore be available as part of a rental program. 4. Applicants may decide to sell on and off-season estates as a package. STAFF FINDING: DOES IT COMPLY? YES Each Club Interest will contain a combination of winter, summer and spring/fall season use rights. 5. Applicants may include in their use plan provisions that allow for a wide range of exchange opportunities for owners, which will promote new Aspen trials. STAFF FINDING: DOES IT COMPLY? YES It is expected that an internal exchange program operated by Starwood, or its affiliate, will be created for its St. Regis Residence Club Project, including the Aspen St. Regis Residence Club. 26.590.070 Review Standards for Timeshare Lodge Development. An applicant for timeshare lodge development shall demonstrate compliance with each of the following standards, as applicable to the proposed development. These standards are in addition to those standards applicable to the review of the PUD and Subdivision applications. A. Fiscal In7pact Analysis and Mitigation. Any applicant proposing to convert an existing lodge to a timeshare lodge development shall be required to demonstrate that the proposed conversion will not have a negative tax consequence for the City. In order to demonstrate the tax consequences of the proposed conversion, the applicant shall prepare a detailed fiscal impact study as part of the final PUD application. The fiscal impact study shall contain at least the following comparisons between the existing lodge operation and the proposed timeshare lodge development: l . A summary of the sales taxes paid to the City for rental of lodge rooms during the prior five years of its operation. If the lodge has stopped renting rooms prior to the time of submission of the application, then the summary shall reflect the final five years the lodge was in operation. The surnrnary of past taxes paid shall be compared to a projection of the sales taxes the proposed timeshare lodge development will pay to the City over the first five years of its operation. As part ST. REGIs HOTEL STAFF REPORT PAGE 29 of this projection, the applicant shall specify the number of nights the applicant anticipates each timeshare lodge unit will be available for daily rental to visitors (that is, the aiulual number of nights when the unit will not be occupied by the owner or .the owner's guests), the expected visitor occupancy rate for these units, the expected average daily cost to rent the unit, and the resulting amount of sales tax that will be paid to the City. STAFF FINDING: DOES IT COMPLY? The requested information has been provided by the applicant and the information is under study by the City of Aspen Finance Department for Council decision. 2. An estimation of the real estate transfer taxes that would be paid to the City if the existing lodge were to be sold. If an actual sale of the property has occurred within the last 12 months, then the real estate taxes paid for that sale shall be used. This estimation shall be compared to a projection of the real estate transfer taxes the proposed timeshare lodge development will pay to the City over the first five years of its operation. This projection shall include a statement of the expected sales prices for the timeshare estates, and the applicable tax rate that will be applied to each sale. STAFF FINDING: DOES IT COMPLY? I YES The requested information has been provided by the applicant and the information is under study by the City of Aspen Finance Department. 3. A summary of the City -portion of the property taxes paid for the lodge for the prior five years of its operation, and a projection of the property taxes the proposed timeshare lodge development will pay to the City over the first five years of its operation. This projection shall include a statement of the expected value that will be assigned to the property by the Tax Assessor, and the applicable tax rate. The fiscal impact study may also contain such other information that the applicant believes is relevant to understanding the tax consequences of the proposed development. For example, the applicant may provide information demonstrating there will be "secondary", or "indirect" tax benefits to the City from the occupancy of the timeshare units, in terms of increased retail sales and other economic activity in the community as compared to the existing lodge development. The applicant shall be expected to prove definitively why the timeshare units would cause such economic advantages that would not be achieved by a traditional lodge development. Any such additional information provided shall compare the taxes paid during the prior five years of the lodge's operation to the first five years of the proposed timeshare lodge's operation. If the fiscal impact study demonstrates there will be an annual tax loss to the City from the conversion of an existing lodge to a timeshare lodge, then the applicant ST. REM HOTEL STAFF REPORT PAGE 30 shall be required to propose a mitigation program that resolves the problem, to the satisfaction of the Aspen City Council. The accepted mitigation program shall be documented in the PUD Agreement for the project that is entered into between the applicant and the Aspen City Council. STAFF FINDING: DOES IT COMPLY? The requested information has been provided by the applicant and the information is still under study by the City of Aspen Finance Department. Final determination of whether mitigation is necessary will be made prior to City Council review. B. Upgrading of Existing Projects. Any existing project that is proposed to be converted to a timeshare lodge development shall be physically upgraded and modernized. The extent of the upgrading that is to be accomplished shall be detelinined as part of the PUD review, considering the condition of the existing facilities, with the intent being to make the development compatible in character with surrounding properties and to extend the useful life of the building. 1. To the extent that it would be practical and reasonable, existing structures shall be brought into compliance with the City's adopted fire, health, and building codes. STAFF FINDING: DOES IT COMPLY? YES The applicant is unaware of any existing deficiencies, however, if any are brought to light, the applicant states that they will be brought into compliance. 2. No sale of any interest in a timeshare lodge development shall be closed -until a certificate of occupancy has been issued for the upgrading. STAFF FINDING: DOES IT COMPLY? YES The applicant acknowledges that no sale of any interest will be closed until a certificate of occupancy has been issued for the upgrading. C. Preservation of Existing Lodging Inventory. Ali express 'purpose of these regulations is to preserve and enhance Aspen's existing lodging inventory. Therefore, any proposal to convert an existing lodge or other property that provides short term accommodations to a timeshare lodge should, at a minimum, replace the existing number of units on the property in the plain -led timeshare lodge. If the applicant is unable to replace the existing number of units, then the timeshare lodge development shall replace the existing number of bedrooms on the property, or the applicant shall demonstrate how the proposal complies with the purposes of these regulations, even though the planned timeshare lodge will not replace either the existing number of units or bedrooms. ST. REGIs HOTEL STAFF REPORT PAGE 31 STAFF FINDING: I DOES IT COMPLY? I YES The proposed conversion will result in a reduction of the number of -units in the St. Regis Hotel, from 257 hotel units to 192 hotel, timeshare, and residential units. In addition, the conversion will reduce the number of bedrooms, from 257 to 248. The applicant contends, however, that the number of "sleeping facilities", which includes bedrooms and sleeper sofas, will be increased with the conversion. The increase in sleeping facilities will be from the existing, 257, to 266 after the conversion. Staff finds that because the drop in number of actual bedrooms is relatively slight, that the applicants proposal to include the sleeper sofas in the overall equation is sufficient to comply with this provision. D. Affordable Housing Requirements. 1. Whenever a timeshare lodge development is required to provide affordable housing, mitigation for the development shall be calculated by applying the standards of the City's housing designee for lodge uses. The affordable housing requirement shall be calculated based on the maximum number of proposed lock out rooms in the development, and shall also take into account any retail, restaurant, conference, or other functions proposed in the lodge. STAFF FINDING: I DOES IT COMPLY? I YES With the overall reduction in the number of lodging units from the existing 257 down to the proposed 187, the applicant contends that there will be a reduction in the number of employees generated. A condition of approval has been added, however, requiring an audit of the hotel one year after a certificate of occupancy for the changes to the hotel. If the audit determines an increase in employees over what they currently mitigate, then the applicant will be required to provide affordable housing. There is no change proposed to the existing retail and restaurant and bar space, so there is no increase in their affordable housing requirement. 2. The conversion Of any multi -family dwelling unit that meets the definition of residential multi -family housing to timesharing shall comply with the provisions of Chapter 26.530, Resident Multi -Family Replacement Program, even when there is no demolition of the existing multi -family dwelling unit. STAFF FINDING: DOES IT COMPLY? NOT APPLICABLE There are no multi -family dwelling units in the hotel, so this provision is not applicable. E. Parking Requirements. 1. The parking requirement for timeshare lodge development shall be calculated by applying the parking standard for the underlying zone district for lodge uses. The parking requirement shall be calculated based on the maximum number of proposed lock out rooms in the development. ST. REGIs HOTEL STAFF REPORT PAGE 32 STAFF FINDING: DOES IT COMPLY? YES The existing amount of parking provided is adequate to meet the demand, which is actually reduced with the proposal due to the reduction in the number of overall units. 2. The timeshare lodge development shall also provide an appropriate level of guest transportation services, such as vans or other shuttle vehicles, to offer an alternative to having owners and guests using their own vehicles in Aspen. STAFF FINDING: I DOES IT COMPLY? T7YES The hotel provides vans and shuttle vehicles as an transportation alternative for their guests. 3. The owner of a timeshare estate shall be prohibited from storing a vehicle in a parking space on -site when the owner is not using that estate. STAFF FINDING: I DOES IT COMPLY? I YES The applicant did not address this provision in the application. A condition of approval will be added prohibiting an owner from storing a vehicle in a parking space when not using the estate. F. Appropriateness of Marketing and Sales Practices. The marketing and sale of timeshare estates shall be governed by the real estate laws set forth in Title 12, Article 61, C.R.S., as may be amended from time to time. The applicant and licensed marketing entity shall present to the City a plan for marketing the timeshare development. 1. 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; and b. Any unethical sales and marketing practices which would tend to mislead potential purchasers. 2. Giving of gifts to encourage potential purchasers to attend a sales presentation or to visit a timeshare development is permitted, provided the gift reflects the local Aspen economy. For example, gifts for travel to or accommodations in Aspen, restaurants in Aspen, and local attractions (ski passes, concert tickets, rafting trips, etc.) are permitted. Gifts that have no relationship to the local Aspen economy are not permitted. The following gifts are also not permitted: a. Any gift for which an accurate description is not given; ST. REGIs HOTEL STAFF REPORT PAGE 33 b. Any gift package for which notice is not given to the prospective purchaser that the purchaser will be required to attend a sales presentation as a condition of receiving the gifts; and c. Any gift package for which the printed alulouncement of the requirement to attend a sales presentation is in smaller type face than the information on the gift being offered. STAFF FINDING: DOES IT COMPLY? YES The applicant has committed to not engage in any of the above, prohibited marketing practices. G. Adequacy of Maintenance and Management Plan. The applicant shall provide documentation and guarantees that the timeshare lodge development will be appropriately managed and maintained in an manner that will be both stable and continuous. This shall include an identification of when and how maintenance will be provided, and shall also address the following requirements: 1. A fair procedure shall be established for the estate owners to review and approve any fee increases which may be made throughout the life of the timeshare development, to provide assurance and protection to timeshare owners that management/assessment fees will be applied and used appropriately. 2. The applicant shall also demonstrate that there will be a reserve fund to ensure that the proposed timeshare development will be properly maintained throughout its lifetime. STAFF FINDING: I DOES IT COMPLY? I YES The management contract between the Association and the Manager will require that the project be maintained at a level sufficient to ensure compliance with St. Regis brand standards. The documents creating the Association will require preparation Of an anrival budget and will require the establishinent of a reserve fund. The Association will be required to comply with the amival budget notice requirement of the Colorado Real Estate Commission and the Colorado statutes. H. Compliance witli State Statutes. The applicant shall demonstrate that the proposed timeshare lodge development will comply with all applicable requirements of Title 12, Article 61, C.R.S.; Title 38, Article 33, C.R.S.; and Title 38, Article 33.3, C.R.S.; including the requirements concerning the five (5) day period for rescission of a sales contract, and the procedures for holding deposits or down payments in escrow. ST. REGIs HOTEL STAFF REPORT PAGE 34 STAFF FINDING: DOES IT COMPLY? YES The applicant shall comply with all applicable requirements of Title 12, Article 61, C.R.S.; Title 38, Article 33, C.R.S.; and Title 38, Article 33.3, C.R.S.; L Approval By Condominium Owners. If the development that is proposed to be timeshared is a condominium, the applicant shall submit written proof that the condominium declaration allows timesharing, that one hundred (100) percent of the owners of the condominium units have approved the timeshare development, including any improvements to the common elements that the applicant may propose, that all mortgagees of the condominimn have approved the proposed timeshare development, and that all condominium units in the timeshare development will be included in the same sales and marketing program. STAFF FINDING: I DOES IT COMPLY? NOT APPLICABLE The existing project is not currently a condominium. J. Prohibited Practices and Uses. Without in any way limiting any requirement contained in this Chapter, it is unlawful for any person to knowingly engage in any of the following practices: 1. 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 and vacation clubs) are considered inappropriate in Aspen and are not permitted. 2. Misrepresentation of the facts contained in any application for timeshare approval, timeshare development instruments, or disclosure statement. 3. 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. 4. Manage, operate, use, offer for sale or sell a timeshare estate or interest therein in violation of any requirement of this Chapter or any approval granted pursuant hereto, or cause or aid and abet another to violate any requirement of this Chapter, or an approval granted pursuant to this Chapter. STAFF FINDING: DOES IT COMPLY? T YES The applicant commits to not engaging in any marketing practice which are prohibited above, or by local or State regulations. 26.590.080 Business License and Sales Tax Payments. ST. REGIS HOTEL STAFF REPORT PAGE 35 A. Business License. It shall be unlawful for any timeshare development to operate in the City of Aspen without first obtaining a business license in accordance with the standard procedures of the City of Aspen. STAFF FINDING: I DOES IT COMPLY? I YES The applicant presently has a current business license. B. Sales Tax Payments. Occupancy of any timeshare unit by anyone who pays a rental fee for the use of the unit (other than the owner thereof) shall be subject to the City's sales tax the same as if such occupancy were of a hotel or lodge unit. Any timeshare development, as a condition of its approval, shall be required to obtain an Aspen Sales Tax/Lodging Tax License, which shall establish how this tax shall be collected and paid to the City. The manager of the association shall be responsible for the timely collection of the City sales tax for the City of Aspen for rentals made through the association or a reservation system. The manager shall notify individual estate owners that they are responsible for the payment of sales tax to the City for units rented on a private basis. .STAFF FINDING: I DOES IT COMPLY? I YES The applicant commits to complying with the above procedures. ST. REGIs HOTEL STAFF REPORT PAGE 36 EXHIBIT D SUBDIVISION — STAFF FINDINGS The Definitions section (26.104.100) of the Land Use Code explains that subdivision approval is required whenever leasehold interests will be transferred. Section 26.480.050 states that a development application for subdivision review shall comply with the following standards and requirements: A. General Requirements. a. The proposed subdivision shall be consistent with the Aspen Area Comprehensive Plan (AACP). STAFF FINDING: I DOES IT COMPLY? I YES The proposal complies with the applicable aspects of the AACP, specifically with regard to creating a sustainable economy. The conversion of a portion of the St. Regis hotel units into timeshare units, the expansion of the spa, and the construction of the additional hotel units that were originally approved will making the project more attractive to visitors and therefore contribute to sustaining and increasing the local economy. b. The proposed subdivision shall be consistent with the character of existing land uses in the area. STAFF FINDING: I DOES IT COMPLY? I YES The primary uses of the property — hotel units and timeshare lodge units are all consistent with the same uses that are currently found in surrounding area, or will be uses that will be part of soon to be constructed projects in the neighborhood (Aspen Grand Hotel). c. The proposed subdivision shall not adversely affect the future development of surrounding areas. STAFF FINDING: I DOES IT COMPLY? I YES The proposed subdivision will not adversely affect the future development of surrounding areas, as this subdivision only involves interior remodel. d. The proposed subdivision shall be in compliance with all applicable requirements of this Title. STAFF FINDING: I DOES IT COMPLY? TYES All applicable requirements, including with the zoning requirements of the L/TR zone district, are being met. B. Suitability of Land for Subdivision. ST. REGIs HOTEL STAFF REPORT PAGE 37 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: I DOES IT COMPLY? NOT APPLICABLE No exterior changes are proposed with the remodel and there will be no increase to the existing building footprint. b. Spatial Pattern Efficient. 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: DOES IT COMPLY? NOT APPLICABLE No exterior changes are proposed with the remodel and there will be no increase to the existing building footprint. C. Improvements. The improvements set forth at Chapter 26.580 shall be provided for the proposed subdivision. These standards may be varied by special review (See, Chapter 26.430) if the following conditions have been met: 1. A unique situation exists for the development where strict adherence to the subdivision design standards would result in incompatibility with the Aspen Area Comprehensive Plan, the existing, neighboring development areas, and/or the goals of the community. STAFF FINDING: DOES IT COMPLI'? NOT APPLICABLE No variations are proposed to the standards. 2. The applicant shall specify each design standard variation requested and provide justification for each variation request, providing design recommendations by professional engineers as necessary. STAFF FINDING: I DOES IT COMPLY? NOT APPLICABLE No variations are proposed to the standards. D. Affordable Housing. A subdivision which is comprised of replacement dwelling units shall be required to provide affordable housing in compliance with the requirements of Chapter 26.520, Replacement Housing Program. A subdivision which is comprised Of new dwelling units shall be required to provide affordable housing in compliance with the requirements of Chapter 26.470, Growth Management Quota System. ST. REGIs HOTEL STAFF REPORT PAGE 3 8 STAFF FINDING: I DOES IT COMPLY? I NOT APPLICABLE /YES The standards of Chapter 26.520, Replacement Housing Program, are not applicable because there is no replacement housing involved. With the conversion of a portion of the hotel rooms to timeshare and the expansion of the spa, the project is reducing their einployee generation, so no additional affordable housing mitigation is necess E. School Land Dedication. Compliance with the School Land Dedication Standards set forth at Chapter 26.630. Applicability. School land dedication standards shall be assessed upon all new subdivisions within the City of Aspen which contain residential units. An applicant may make a cash payment in -lieu of dedicating land to the City, or may make a cash payment in combination with a land dedication, to comply with the standards of this Section. This section of the subdivision regulations requires the dedication of land or the payment of an in -lieu fee for each new residential unit in a subdivision. STAFF FINDING: I DOES IT COMPLY? I YES Compliance with the School Land Dedication Standards will be required for the one residential dwelling unit proposed. The applicant will pay cash in lieu of a land dedication and will be required to make the payment at time of building permit. ST. REGis HOTEL STAFF REPORT PAGE 39 EXHIBIT E HOUSING AUTHORITY MEMORANDUM MEMORANI.fw,., TO: Scott Woodford, Community Development Department FROM: Aspen/Pitkin County Housing Authority DATE: 6 March 2003 RE: St. Regis Hotel, Aspen Mountain Subdivision PUD Redevelopment/Amendment . ISSUES: The applicant is proposing to convert lodge units into fractional timeshare units; remove existing meeting rooms and relocate existing office space thereby allowing for a new full -service spa facility in their place; construct 20 new hotel rooms in a currently unoccupied building; and build a new residential unit within the main building. The proposal calls for converting 98 existing lodge units into 25 residential timeshare units. The applicant is also proposing to install a new spa facility of 15,300 square feet consisting of 3 fitness centers; 8 treatment rooms; 8 spa/facial/therapy rooms; 4 waiting lounges; a salon; a boutique; a reception area; separate men's and women's changing areas both with a private steam, sauna, cold plunge and Jacuzzi; and several staff/attendant/reservation stations located on -site. The project consists of the six -story St. Regis Hotel with a total floor affected area of 97,310 square feet. The applicant states that no expansion of the property is proposed, and that all proposed remodels are limited to the area contained within the existing hotel structure. The proposal calls for 5,165 square feet of office space to be relocated to the existing 4,800 square foot spa facility on the -second level of Building B. The new spa facility will be located in the vacated office and meeting room space. The timeshare lodges and residence will be situated among the 2"d through the 6th floors in place of existing lodge units. The new lodge units will be placed in the Blue Spruce Building that is currently unoccupied. The site is located at the base of Aspen Mountain. Starwood Hotels and Resorts is the owner of the Hotel property. The original owner, John H. Roberts Jr. submitted the Aspen Mountain PUD and Subdivision in 1983. The City Council granted final approval of the PUD in 1985. In 1987, Savanah Limited Partnerships purchased Lots 1 through 5 comprising the Aspen Mountain PUD and submitted an Amended PUD/Subdivision. The City Council approved the First Amended and Restated Planned Unit Development/Subdivision Agreement in 1988. Later amendments followed in 1990 such that the development approvals of 1985 differ from subsequent amendments and the actual construction configuration of the hotel first named the Ritz -Carlton. The City of Aspen approved a total of 329 lodge units for the Hotel. Hotel construction came to completion at the close of 1992. Twenty of twenty-two lodge units that were approved for the Blue Spruce Building, but never constructed, are proposed to be completed as a part of this proposal. The original PUD Agreement was credited with 182 employees housed in the Alpina Haus, the Copper Horse Lodge, Ute City, and Hunter Longhouse. This agreement was required to house 60% of the net new employees. Additionally, because of the demolition of existing residential structures on the site, a housing replacement of 30 employees was required. These requirements resulted in 161.5 employees that are to be provided with affordable housing and 29 employees that are to be housed from the demolition of the existing residential units, as proposed the PUD. According to the applicant, the then owner, Savanah Limited Partnership, agreed to provide housing for 198.5 employees in exchange for a City Council approval of a revised development proposal. Proposal: The remodel will consist of 7 three -bedroom timeshare units, and 6 two -bedroom timeshare units on the 3rd through 6th floors of the hotel with a total of 24 lockout keys and one residential unit. Additionally the remodel will include 16 new lodge units and 4 one -bedroom lodge suites in Building C. The hotel lodge units will be reduced from 257 to 179, with the addition of 24 timeshare units and one residential unit according to the applicant. DISCUSSION: Affordable Housing Units: Section 1, Priorities for Affordable Housing Units, of the Aspen/Pitkin County Affordable Housing Guidelines establishes the following equal priority unit types based on current needs: • For -sale type units whereby the average sales price is no higher than Category 3 and the units consist of one -bedroom and two -bedroom units, with associated RO units. • Family oriented sales units (Category 3 and 4). The applicant is not proposing any units. This form of mitigation does not meet the full intent of Section 1. The APCHA Affordable Housing Guidelines establishes the preferred option to obtain credit for providing deed -restricted affordable housing units under the City's Growth Management Quota System as follows: 2 • On -Site Housing - affordable housing units located either on the same site as, or attached to, the proposed development. • Off -Site Housing — affordable housing units located within the Aspen Metro Area and approved by the Aspen/Pitkin County Housing Authority. • Cash -in -Lieu or Land -in -Lieu — payment of an affordable housing dedication fee or a donation of land. The preference of cash or land shall be determined on a case -by -case basis. The applicant is not proposing any housing, which does not meet the intent of this Section. Section 2 of the Aspen/Pitkin County Affordable Housing Guidelines requires that all affordable housing units meet the size, type, income, and occupancy requirements contained in the Guidelines. Section 2, Affordable Housing Units Required for Mitigation, of the Aspen/Pitkin County Affordable Housing Guidelines establishes the following provisions for an applicant to select from for all affordable housing units. required as mitigation for residential or commercial development in order to obtain credit under the Growth Management Quota System: • Production of new dwelling units deed restricted in perpetuity to rental and sale price terms as defined in the Guidelines. • Conversion of existing dwelling units to deed restricted units. • Payment of Land -in -lieu The applicant is not proposing any new housing units. This provision does not meet the intent of Section 2 of the Guidelines. REQUIREMENT: There are two types of mitigatory requirements for affordable housing which this proposed application is subject to, including the timeshare lodge and the commercial space. In accordance with Section 26.470.100.13 and C.3.b, Growth Management Scoring Criteria — Commercial and Office Development, of the City of Aspen Land Use Regulations, an applicant is required to provide affordable deed -restricted housing for a minimum of sixty -percent of the employees generated by the proposed development. History: An audit conducted by the Ritz Carlton (now the St. Regis) was assessed in 1998, which concluded that the amount of employees mitigated was reasonable in accordance with thel993-1994 payroll records. The audit found that the Ritz Carlton is required to provide housing for 198.5 employees (60% of 330.8 FTE). Additionally, the applicant is required to count the maximum number of proposed lockout units in the development application when calculating the need for affordable employee housing. The applicant estimates that the proposed timeshare lodges will not generate any additional need for employees based upon a comparison with current operations at the St. Regis. The applicant claims that there will not be an increase in the number of hotel employees over the amount currently employed despite the changes in use. The applicant believes that there will be an actual reduction of 3.59 employees generated by the remodel. The Housing Staff would concur with the applicant that there would appear to be no net increase in employees associated with the conversion of lodge units to timeshare units and a single residence and the construction of the previously approved lodge units and suites. The Housing Staff used the figure of 15,000 square feet listed in the application to calculate the proposed commercial and retail space's employee generation. Using the applicant's figures of 12.8 employees per 1,000 square feet, this translates to 192 employees generated by the remodeled new spa facilities. The applicant's position is that there is no change in the square footage of food, beverage, and retail space from what exists today. The applicant shows a total of 168.7 employees generated by the commercial and retail space. This is a difference of 23.3 new employees. It is the position of the Housing Staff that the applicant is required to mitigate at 60% of the new employees for a total of 13.98 employees. RECOMMENDATION: The Housing Authority Board conditionally approved the application in accordance with the following conditions: 1. The applicant shall conduct an audit immediately after one full fiscal year following the issuance of a certificate of occupancy for the proposed new spa facility, hotel rooms, timeshare units, and residence under the following terms: a. The applicant shall retain an auditor and shall gain prior approval from the Housing Office Operations Manager for the selection of the auditor. b. The applicant shall be fully responsible for all fees associated with retaining an auditor. 2. Should the audit show an increase in the number of employees, the applicant shall return to the Housing Authority under the following terms: a. The applicant shall provide deed restricted, affordable housing for any additional employees of the new facilities. 4 b. The applicant shall abide by the Aspen/Pitkin County Affordable Housing Guidelines in effect at the time of the audit. EXHIBIT F LETTER FROM JOSEPH WELLS Toseph l'Vells Land Planndng 60-7 Nfidtand Park Place ,Aspen' Colorado 81611 Plane: 970.9: 5-8080 Facsimile: 970.920.4375 e-mail: ellsAspen@aol.com NUrch 12, 2003 W. Scott Woodford City of ;aspen Community Development Department 530 East .Main Street Aspen, Colorado 81611 Delivered by. e-mail to scottw4d.aspen.co.us As we have discussed, I wanted to provide you with follow-up information on the owner's employee projections related to the proposed remodel of the St. Regis, even though the applicant has already agreed to repeat the audit procedure one calendar year after completion of the remodel, based on the methodology and procedures described in the First Amended and Restated PDD Agreement (the "PLTD Agreement"). The developer originally agreed to an audit of the actual employment in Hotel Phase I after the second full year of operation to (i) confirm that the previous estimates of the employee generation of the hotel were accurate and (ii) to require that additional housing be provided in the event that 60 percent of the number of actual .full-time equivalent employees working in Hotel Phase I exceeded the figure of 198.5 employees that the developer agreed to provide housing for under the PUD Agreement The language of Section B 4 (g) of the PLED Agreement (the audit language), restated below, required that if, as a result of the audit, it was determined that the number of full-time equivalent employees in the hotel exceeded 330.83, the owner would be obligated to provide additional affordable housing for 60 percent of the additional FI"EE & "(g) Audit: Ch,v-ner and City agree that there shah be an audit performed of the hotel after its second full year of operation to determine the actual number of FIEFs working in Hotel Phase I. In the event the :audit determines that Hotel Phase I has a higher FTEE count than 269, the Omer shall provide employee housing for sixty percent (60 ) of the number in excess if such 60% number added to 161.5 is greater than 198.5 ....... For the purposes of this requirement, the audit shall be performed and,FTEE's shall be defined according to the Housing Authority guidelines in effect at the time of this approval, a copy of which is hereto annexed as Exhibit G." h 1 ; 2003 I fr. 'Scott Woodford Page two of two Since the audit was performed in 1996, there has been a change in ownersfdp of the hotel and both occupancies and employment are down. l idu-wd McLennan, the General. Manager of the St_ Regis has now completed a calculation of the full- time equivalent employment for the hotel utilizing the audit standards for 2000 through. 2002. The St. Regis' actual employment for the hotel last year was down to 243.18 from the peak levels of 2000 of 301.5 employees and those for 2001 of 265.30 employees. All three years are considerably below the threshold number of 330.&1 employees that would have triggered a requirement for additional affordable housing under the audit language of the FLU Agreement and are also less than the figure of 314.5 employees that was apparently determined to be employed in the hotel in 1995, When the original audit was performed. (The Housi Office referred to a number of 314.5 F=s-from a confidential memo about the audit that they have in their files.) -Nfr. McLerman has also projected the full-time equivalent employment for the hovel by position for 2005, once the hotel is in operation after completion of the proposed remodel. The full-time equivalent employment for the hotel in 2005 is projected to be 261.46, over 69 employees less than the total of 330.83 employees that would have triggered a requirement for additional affordable housing - under the PUD Agreement, beyond the 198.5 that have already been housed. EXHIBIT G DRC MINUTES 1. BuildinQ Department • Code Review: It is probable that in June 2003 the Building Department will adopt the International Building Codes (IBC) and the International Residential Codes IRC). The architect will also need to reference the 1998 ANSI Standards. • Change in Use: The Applicant will need to consult Colorado Revised Statutes (CRS) to determine the required number of type A and type B units. • ADA Accessibility: Not only individual timeshare units but also the juice bar and spa. • Temporary Certificate of Occupancy (TCO): Temporary COs can be issued if safety and Fire Department concerns are addressed. • Enemy Code: New energy code will apply to portions of building never completed. 2. Parks Department • Parks Dept. notes that several of the tree grates are broken or too small for the growing trees. Parks Dept. asks that St. Regis address this problem. 3. Fire Department • International Fire Code: Soon to be adopted by the Fire Department. The Fire Chief is unaware of the impact the new code will have on the St. Regis. • Sprinkler and Alarm Plans: The Fire Department would like to see a complete set of sprinkler and alarm plans as soon as possible. These plans are also needed by the Water Department and Sanitation District. • Sprinkler. Heads: New regulations require sprinkler heads that provide a larger flow. The large flow requirements may impact plumbing design, the size of the water tap, and the water service fees. • Diesel Back-up: The Fire Department wants to lalow that the diesel generator is in rulming order and if a larger generator is needed due to the changes. 4. Water Department • Tap Fees: Based on the sprinkler requirements of the Fire Department, a new and larger water tap may be needed. An additional tap fee may be accessed due to the change in use. • Utility Plans: The Water Department needs to see existing (as -built) and proposed utility plans. ST. REGIs HOTEL STAFF REPORT PAGE 40 5. Sanitation District • Sanitation District Fees: The conversion from lodge units may result in additional tap fees due to the additional kitchens and other sources of wastewater. (Fee are based not only on quantity but also on organic loading.) • Special Concerns: The sanitation district will determine if oil and grease separators exist where needed and that requirements for laundry and dry cleaners are met. • Utility Plans: The Sanitation District needs to see existing (as -built) and proposed utility plans. 6. Environmental Health • Water Leak in Kitchen: Envirolunental Health would like to learn if the leak in the kitchen (from roof or sprinklers) has been corrected> • Juice Bar: At the time of building permit, Environmental Health will review the plans for the juice bar. • Trip Mitigation: With the exception of the hair salon, the services in the building are not available to the general public. No Additional trip mitigation measures appear to be necessary. However, Enviroiu-nental Health would like the Owners to confirm that the mitigation measures, required as part of the PUD, have been implemented. ((This is a `TO ITEM' for the Applicant but it will not be included in any resolution or ordinance.)) ST. REGIs HOTEL STAFF REPORT PAGE 41 Joseph ' e ls Land Planning 602 ukfidland Farm Place Aspen, Colorado 81611 'hone: 97FM9258w i~acsin e: 97.92-0.43?8 e-mail: 'Fell&AspenCaol.com • arch 13,2003 Min Ott Woodford City of aspen Community Development Department asf NIain Street Aspen,, Colorado 81611 'Delivered by e-mail to scottw-@daspenco.us My Ietter is to respond to your request for some information in writing about the current parking demand at the St, Regis. Unfortunately, Richard NIcLenrnan, the Generaf kfanager of the St~ Regis is out of town for a couple of days, so f am unable to provide the .letter that you requested from him.. However, f did discuss the issue of the parking demand with him some time ago, and he informed me that typically, parking demand is so low that, whten necessary, he cant afl.o-wr employees to park in the parking structure. I . INIcLennan also explained that here are only tree or four special events held in the eventing over the course of the year when demand for pariding .from hotel #ues and from attendees at those events results in full ut lizafion of the parking struclur~e. 'When Richard gets back, l will see if he has anything to add on the subject and, of course,1 will' continue my, efforts to obtain a copy,- of the parking study from the consultants who prepared it.