HomeMy WebLinkAboutresolution.apz.016-02 RESOLUTION OF THE ASPEN PLANNING AND ZONING COMMISSION
RECOMMENDING THAT THE ASPEN CITY COUNCIL ADOPT AMENDMENTS
TO THE ASPEN LAND USE CODE TO REPEAL AND RE-ENACT CHAPTER
26.590, TIMESHARE, AND RELATED SECTIONS OF THE LAND USECODE
Resolution No. 16, Series of 2002
WHEREAS, the City Council and the Planning and Zoning Commission of the City of Aspen
directed the Community Development Department to propose amendments to the Land Use Code
to better address the emerging types of timeshare and fractional fee projects that are being planned
in Aspen; and
WHEREAS, in response to this direction, the Community Development Director prepared the
research paper Fractional Fee Ownershtp- Summary of Research and Identification of Regulatory
Options, dated January. 2002: and
WHEREAS, a work session was held with the Aspen City Council and the Planning and Zoning
Commission on February 12, 2002. at which time a discussion of the research paper was held and
direction was given [o the Community Development Director to prepare the appropriate
amendments to the Aspen Land Use Code; and
WHEREAS, a ~vork session was held with the Planning and Zoning Commission on March 26,
2002, to review a first draft of these proposed amendments to the Land Use Code, at which time it
was determined that a public hearing should be scheduled to consider the proposals: and
WHEREAS, pursuant to Section 26.310 of the Aspen Land Use Code, applications to amend the
text of Title 26 of the Municipal Code shall be reviewed and recommended for approval, approval
with conditions, or denia! by the Community Development Director and then by the Planning and
Zoning Commission at a public hearing. Final action shall be by City Council after reviewing and
considering these recommendations; and
WHEREAS, the Community Development Director recommended approval of the amendments to
the Land Use Code as are described herein; and
WltEREAS, the Planning and Zoning Commission conducted a duly noticed public heating on
May 21, 2002, June 4, and June 11, 2002, to consider these amendments to the Aspen Land Use
Code, took public testimony, and considered the recommendations of the Planning Director; and
WHEREAS, at the conclusion of the public hearing, the Planning and Zoning Commission
recommended approval of these amendments by a vote of 4 in favor to 1 against.
NOW, THEREFORE, BE IT RESOLVED by the Commission, that it recommends that the
Aspen City Council adopt the following amendments to Chapter 26 of the Municipal Code, the
Aspen Land Use Code:
Seetinn 1:
That Chapter 26.590 of the Aspen Municipal Code be repealed and re-enacted to read as follows:
Chapter 26.590
TIMESHARE DEVELOPMENT
26.590.010 Purpose and Intent.
The purpose of this chapter is to establish the procedures and standards by which fimeshare
development may be permitted within the City of Aspen. It is the City's intent to establish
timeshare regulations that provide for the protection of the character of Aspen as a resort
community, and that help to promote increased tourism and vitality within the City. Specifically,
the City intends that new timeshare projects in Aspen will implement the goals of the Aspen Area
Community Plan, and will help ro achieve the following public purposes:
A. Increased Vitality. Timeshare developments can provide the opportunity for increased
tourism to Aspen, can add to the level of community vitality, and can help to create a more
sustainable local economy. This can be accomplished by expanding the number and variety
of "hot beds" available to visitors, rinsing occupancy levels in the accommodations sector,
and attracting "new trials" ro Aspen, from persons who have not previously visited this
community.
B. Preserve and Enhance Lodging Inventory. Aspeffs tourist accommodations inventory has
for some time included a significant percentage of traditional lodges. The community
would like to preserve and enhance this lodging inventory, by encouraging timeshare units
to be contained in projects that look and operate in a manner similar to Aspeffs traditional
lodges. These regulations have been designed to accomplish this purpose by establishing
standards for the physical and operational features of timeshare lodges, to ensure that new
and re-developed timeshare lodges maintain Aspeffs lodging traditions.
C. Upgrade Quality of Accommodations. It is important to Aspen's tourist economy that its
accommodations are kept up-to-date. Timeshare development offers the opportunity to
infuse capital into the short term accommodations inventory, so facilities can be
modernized. It is equally important to ensur~e that once facilities are up~aded, the facility is
managed to provide a quality visitor experience over time. These regulations are intended
to ensure that timeshare lodges are properly maintained over the life of the development.
D. Maintain Community Character. Aspen has a valued reputation as a quality resort
community. The City intends to regulate timeshare marketing and sales practices, to ensure
that the way timeshare estates are marketed and sold is consistent with the character of this
community, and to minimize the potential for practices that would create an inappropriate
image of Aspen. The City also intends to provide protection for its long term residential
neighborhoods, to ensure that the impacts of timeshare development do not adversely affect
the character of these residential areas, by limiting this use to the City's lodge and selected
commercial zone districts.
26.590.020 Overview of Timeshare Development.
A. Applicability. The requirements of this Chapter shall apply to all timeshare development
within the City of Aspen. These requirements shall be in addition to all other applicable
requirements set forth in this Title 26, and those set forth in the Colorado statutes.
B. Types of Timeshare Development. There are two types of timeshare development that may
be pem~itted within the City of Aspen. as follows:
1. Timeshare lodge development is the basic form of timesharing permitted in Aspen.
It applies to any application to convert lodge units or residential dwelling units to
timesharing, except for those applications that are eligible for an exemption, as
described below. Timeshare lodge development is a permitted use in the
Lodge/Tourist Residential (L/TR), Commercial Lodge (CL), Lodge Preservation
Overlay (LP), and Commercial Core (CC) zone districts. The standards and
procedures for timeshare lodge development are described in Sections 26.590.040
through 26.590.070.
2. Exempt timesharing is a more limited type of timesharing permitted in Aspen. The
only units eligible for this exemption are single-family dwelhng units,
condominiumized duplex dwelling units, and condeminiumized multi-family
dwelling units within any individual condominium complex or condominium
project that contains no more than six (6) such traits. Exempt timesharing is a
permitted use in the Lodge/Tourist Residential (L/TR) zone district and the Aspen
Highlands Village PUD. The standards and procedures for exempt timesharing are
described in Section 26.590.030.
26.590.030 Exempt Timesharing.
A. Eligibility For Exemption.
1. The following types of dwelling units are eligible to apply for this exemption:
a. Single-family dwelling units;
b. Condomin/umized duplex dwelling units; and
c. Condominiumized multi-family dwelling units within any individual
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condominium complex or condominium project that contains no more than
six (6) such units.
2. To be eligible to apply for the exemption, the single-family, duplex, or multi-family
dwelling units must be located in the Lodge/Tourist Residential (L/TR) zone district
or the Aspen Highlands Village' PUD.
B. Minimum Requirements To Obtain Exemption.
1. No more than six (6) estates may be created in any dwelling unit via this excnuption.
An applicant wishing to create more than six (6) estates in any unit may do so only
via an application for a timeshare lodge development.
2. The ownership interests that may be created pursuant to this exemption shall be
limited to "time-span estates" as defined in C.R.S. 38-33-110, where the annually
recurring exclusive fight to possession and occupancy is determined by a schedule
or formula.
3. Applications for exempt timesharing shall be processed as a subdivision exemption,
pursuant to Section 26.480.030 A.5. of this Code.
4. The minimum application contents for the subdivision exemption application shall
be as follows:
a. The applicable Portions of the information described in Section 26.590.050
A., B., F and G.; and
b. The general application contents required in Section 26.304.030,
Application and Fees.
C. Review Standards for Exemption. An applicant for exempt timesharing shall demonstrate
compliance with each of the following standards. These Standards are in addition to those
standards applicable to the review of the subdivision exemption.
1. The proposal shall not conflict with any applicable deed restrictions or private
covenants, or with any provisions of the Colorado statutes. If the proposal is for a
condominium, it shall comply with the applicable provisions of Section 26.590.070
I. of this Code.
2. All units to be converted to timesharing shall comply with the City's adopted fire,
health, and building codes. If any unit does not comply with said codes, then no sale
of an interest in that unit shall be closed until a certificate of occupancy has been
issued that brings the unit into compliance.
3. All dWelling units td be converted to timesharing shall comply with the
requirements of the zone district in which they are located and all other applicable
standards of this Land Use Code, or with the requirements of any PUD or other site
specific development approval granted to the property.
4. 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.
5. The marketing, sales, management, and operation of the timeshare estates shall
comply with the provisions of Sections 26.590.070 F. ~and 26.590.070 J. of this
Code.
6. A wall sign shall be mounted on each building stating that it has been approved by
the City for timesharing and providing the name and phone number of a
management entity or local contact person who can be called in the event of an
emergency or to respond to neighborhood concerns. The: sign shall comply with the
requirements of Section 26.510.030 B.22. of this Code,
26,590,040 Procedure for Review of Timeshar~ Lodge Development Application.
All timesharing that is not eligible for an exemption shall be processed as follOWs:
A. PUD Review Required. Timeshare lodge development shall be processed as a Planned Unit
Development (PUD), pursuant to Chapter 26.445 of this Code.
B. Consolidated PUD Review. The Community Development Director may determine that
because a timeshare lodge development is a conversion of an existing building, or because
of the limited extent of the issues involved in the proposal, the four step PUD review
process should be consolidated into a two step review, pursuant to Section 26.445.030 B.2,
Consolidated Conceptual and Final Review. Development of a timeshare lodge in the
Lodge Preservation Overlay (LP) Zone District shall be processed as a two step review,
pursuant to Section 26.445.030 B.3. The Community Development Director is also
authorized to waive those PUD submission requirements from Section 26.445.060 and
review standards from Section 26.445.050 that the Director finds are not applicable to a
proposed timeshare development.
C. Subdivision Review. Timeshare lodge development shall also require subdivision approval.
Review of the subdivision application may be combined with final PUD review, as
authorized by Section 26.304.060 B., Combined Reviews, and by Section 26.445.030 B.4,
Concurrent Associated Reviews.
D. Growth Management Quota System Review. Whenever a proposed timeshare lodge
development or exempt timesharing is subject to review under the City's Growth
Management Quota System (Chapter 26.470), the development Shall be considered to be a
"Tourist Accommodation" or a "Lodge" under that System.
E. Authority to Grant Variations. Variations from the requirements applied to timeshare lodge
development may be authorized by the CitY Council. An applicant requesting a variation
shall demonstrate that the provision requested to be varied is not applicable to the proposed
development or cannot be met, and shall demonstrate that the proposed variation is
reasonable, would not be contrary to the public interest, and better implements the purpose
and intent of these timeshare regulations than the codified requirement.
26~590.050 Contents of Application.
In addition to the general application information required in Section 26.304.030, Application and
Fees, and those application contents for PUD and subdivision, the application for timeshare lodge
development shall include the following information:
A. Timeshare Use Plan. A detailed description of ~e basic elements of the proposed
timeshare use plan. The use plan shall describe the number of estates being created in each
unit, the total number of estates to be created, the expected price for each estate, and
whether a pUrchaser is buying a specific unit for a specific time, a specific unit for a floating
time, or whether there is no specific unit but just a specific time. It shall also describe
whether owners will be able tO Participate in an exchange program, and if so, in which
program(s) they Will be eligible to participate. The use plan shall also provide a specific
description of how the development will comply with the requirements of Section
26.590.060, Characteristics of a Timeshare Lodge.
B. Summary of Disclosure Statement and Timeshare InstrUments. A detailed summary of each
of the key points that Will be included in the diSclosUre statement and the timeshare
development instruments (see Section 26.590.090)if the project receives approval from the
City.
C. Management Plan. A plan for how the timeshare development will be managed, describing
whether the applicant will manage the project, or if it will be managed by a management
company, a branded company, or other entity, and deScribing how the project will be
operated.
D. Marketing Plan. The marketing plan for the timeshare development, including information
on proposed sales techniques (including a description of gifts, premiums, or promotions to
be offered), sales packaging, and whether a sales office will be established off-site.
E. Budget. A thorough account of the proposed homeowners/condominium association
budget, giving a tree indication,of proposed costs and expenditures.
F. Upgrading Plan. For any existing project that is proposed to be converted to a fimeshare
lodge development, the applicant shall submit a plan of how the project will be physically
upgraded and modernized.
G. Tax Collection. A statement indicating the manner in which real estate transfer taxes and
sales taxes will be collected.
Developer's Registration. A copy of the developer's registration with the Colorado Real
Estate Commission. If the developer has not so registered at the time of submission of the
application, then this information shall be submitted at the time the timeshare documents
are submitted for recordation, pursuant to Section 26 590 090 of this Code.
26.590.060 Characteristics of a Timeshare Lodge Development
It is the intent of the City of Aspen that all timeshare lodge developments incorporate some of the
physical and operational features that are typically found in lodges in Aspen. The City recognizes
that each timeshare development is unique, and that each development should not contain all of
these features. In fact, considering the proposed location of the development and the intended
method of operating the facility, certain of these features may not be appropriate. The City also
recognizes that when owners occupy their units, the development will operate more like a private
residential complex than like a lOdge. BUt the City seeks to balance that form of use with
oPPommities for other guests to use the facility. Therefore, the City has identified a menu of
timeshare lodging features, inclUding both mandatory and optional elements. All timeshare lodge
developments shall incorporate the mandatory physical and operational features listed herein.
However, an applicant may instead propose to substitute optional operational features for one or
more of the mandatory features listed herein, or may propose its own set of features which ensure
that the development operates in a manner similar to a lodge when the owners are not using their
timeshare estates, as described further below.
A. Mandatory Physical Elements.
1. All timeshare lodge developments shall have an on-site :Pront 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 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 accommodate
walk-in rentals.
2. A timeshare lodge development shall contain a sufficient level of recreational
facilities and other amenities to serve the occupants, including appropriate facilities
for both the winter and the summer seasons.
3. A timeshare lodge in the Commercial 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.
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 under an exchange program.
The City has identified certain operational practices that will accomplish this intent, which
are listed in this section. An applicant ~vho agrees to include all of the practices listed
below in the operation of the fimeshare development shall be deemed to have complied with
this intent.
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 Ci, 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 th~ sole discretion of the City C0unci[
1. Timeshare estates shall be made available for short-term rental in a managed
program 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. The purchasing disclosure
documents shall state that the purchaser must sign an agreement with the
management company to rent the estate when it is not being occupied by the
purchaser, guests or exchangers.
2. The covenants of the homeowners association shall permit walk-in rental of units.
The association shall not limit rental of units to such an'angements as only weekly
~:entals or Saturday-to-Saturday rentals; instead the aSsociation shall permit shorter
stays, split-week rentals, and similar flexible arrangements.
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.
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.
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5. The uults 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.
6. 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.
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).
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.
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.
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.
4. Applicants may decide to sell on and off-season estates as a package.
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 thais.
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 lmpact Analysis and Mitigation.
1. Any applicant proposing to convert an existing development to a timeshare lodge
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development shall prepare a fiscal impact analysis of the proposed development,
Which demonstrates whether there would be any negative sales, property, or other
tax consequences to the City from the approval of the proposed conversion. The
applicant shall, as a condition of approval of the timeshare lodge development, be
required to mitigate any negative tax consequences the project will cause.
2. The City of Aspen Finance Department has created a model which evaluates the tax
consequences of a proposed timeshare conversion. The model evaluates the direct
sales tax implications from having fewer days of occupancy by guests that pay sales
taxes in a timeshare lodge as compared to a traditional lodge. The model also
considers the indirect sales tax benefits that may accrue from increased occupancy
in timeshare lodge units as compared to Other types of accommodations within the
City. Finally, the model considers any property tax implications due to the
conversion of property that is assessed as a commercial use to property that is
assessed as a residential use. ApPlicants shall meet with the City Finance
Department before submitting their timeshare development application to review the
model and to understand the factors the City will use in evaluating the tax impacts
of their proposal.
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 determined 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.
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.
C. Preservation of Existing Lodging Inventory. An 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 planned 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
proposes of these regulations, even though the planned timeshare lodge will not replace
either the existing number of units or bedrooms.
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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 5ructions proposed in the lodge.
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.
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 ofprop0sed
lock out rooms in the development.
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 ~isPeh.
3. The owner of a fimeshare estate shall be prohibited from storing a vehicle in a
parking space on-site when the owner is not using that estate.
F. Appropriateness of Marketing and Sales Practices. The marketing and sale of timeshare
estates shall be govemed 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;
b. Sales campaigns using phone solicitations; and
c. Any unethical sales and marketing practices wh/ch would tend to mislead
potential purchasers.
2. Giving of gifts to encourage potential purchases to attend a sales presentation or to
visit a timeshare development is permitted, provided the gift reflects the local Aspen
economy. For example, girls for travel to or accommodations in Aspen, restaurants
in Aspen. and local attractions (ski passes, concert tickets, rafting trips, etc.) are
permitted. Girls that have no relationship to the local Aspen economy are not
permitted. The following girls are also not permitted:
a. Any girl for which an accurate description is not given;
b. Any girl 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 announcement of the requirement to
attend a sales presentation is in smaller type face than the information on the
girl being offered.
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 owncn's to review and approve
any fee increases which may be made throughom the life of the timeshare
development, to provide assurance and protection ro timeshare owners that
management/assessment fees will be applied and used appropriately.
2. The applicant shall also provide documentation establishing the adequacy of a
reserve fund to ensure that the proposed timeshare development will be properly
maintained throughout its lifetime.
H. Compliance with State Statutes. The applicant shall demonstrate that the proposed
fimeshare 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 do~vn payments in escrow.
[. Approval By Condominium Owners. If the development that is proposed to be timeshared
ts a condominium, the applicant shall submit written proof that the condominium
declaration allows timesharing, that one hundred (100) pereenr of the owners of the
condominitrm units have approved the timeshare development, that all mortgagees of the
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condominium have approved the proposed timeshare development, and that all
condominium units in the fimeshare development will be included in the same sales and
marketing program.
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
clubsl are considered inappropriate in Aspen and are not permitted.
2. Misrepresentation of the facts contained ~n 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.
26.590.080 Business License and Sales Tax Payments.
A. Business License. It shall be unlawful for any timeshare development to operate in the City
of Aspen without first obtaimng a business license in accordance with the standard
procedures of the City of Aspen.
B. Sales Tax Paymems. Occupancy of any tirneshare unit by anyone who pays a 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 ora 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.
26.590.090 Timeshare Documents.
At the same time the applicant submits the PUD Development Plan and PUD Agreement to the
City for recordation, pursuant to Section 26.445.070, or submits the necessary documents to record
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the subdivision exemption, the applicant shall also submit the following timeshare documents in a
form suitable for recording. The Community Development Director maY require the applicant to
submit a draft version of these timeshare documents at the time of submission of the Final PUD
application.
A. Disclosure Statement. The applicant shall submit a disclosure statement that contains the
following information:
1. The name and address of the developer of the fimeshare development as well as a
summary of the developer's business experience, including all background and
experience in the development of timeshare development, and the present financial
condition of the developer.
2. The name and address of the manager/management company for the development, if
any, and a description of the manager's/managemenT company's responsibilities,
powers, duties, authority and business experience. Ail information on the manager's
background and experience specifically related to timeshare development shall be
provided.
3. The names and addresses of the marketing entity and the listing broker and a
statement of whether there are any lawsuits pending or investigations that have been
undertaken against the marketing entity or listing broker, and if so, a description of
the status or disposition of said lawsuits or investigations. A summary of the
marketing entity's business experience including all background and experience
related to timeshare developmem.
4. A description of the timeshare units, including the developer's schedule for
completion of all buildings, units, and amenities, with dates of availability.
5. If the timeshare plan consists of a condominium or a similar form of ownership, a
description of the development and any pertinent provisions of the condominium
msrrumems.
6. Any restraints on the transfer of the purchaser's interest in the timeshare units or
plan.
7. The timeshare use plan, which shall include a description of the rights and
responsibilities under the plan.
8. Notice of any liens, title defects or encumbrances on or affecting the title to the un/ts
or plan and, if there are encumbrances or liens, a statement as to whether, when and
how they will be removed.
9. Notice of any pending or anticipated legal actions that are material to the timeshare
units or plan of which the applicant has, or should have, knowledge.
10. The total financial obligation of the purchaser, which shall include the initial price
and any additional charges to which the purchaser may be subject in purchasing the
unit.
11. An estimate of the dues, maintenance fees, mai property taxes, sales taxes, real
estate transfer tax and similar periodic expenses, and the method or formula by
which they are derived and apportioned, which shall include whether maintenance
fees are detcm'nined by unit, time of year, or prorated share of the overall
maintenance costs, or any other means utilized to compute maintenance fees.
12. A statement demonstrating the manner in which management/assessment fees will
be held, utilized and accounted for.
13. A description of any financing offered by the applicant.
14. The terms and significant limitations of any warranties provided, including statutory
warranties and limitations on the enforcement thereof or on damages.
15. A statement that the proposed development will comply with all applicable
requirements of Title 12, Article 61, C.R.S. Upon request from the City, the
applicant shall provide a copy of the documents submitted to the State of Colorado
for the registration and certification of the timeshare developer.
16. The extent to which a timeshare unit may become subject to a tax or other lien
arising out of claims against other timeshare owners of the same timeshare unit.
17. The minimum percentage of units the developer will require be sold before the
developer will proceed with the completion Of the timeshare development.
18. A description of the maintenance to be supplied to the timeshare development,
including how and when such maintenance will be provided.
19. Whether any or all the units in the proposed development will be available for
participation in an exchange program. The applicant shall disclose which exchange
program(s) the timeshare estate owners will be eligible to utilize.
20. A description of all insurance covering the property.
21. A description of the on-site amenities and recreational facilities which are available
for use by the unit owners. Ali on-site amenities shall be owned by the
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. homeowner's association and the developer shall not be allowed to charge any
~ additiOnal fees for use 0f the amenitiesl If there are anY off-site facilities that are
related to the property, these shall also be described, including a sttmmary of any
fees that timeshare owners would have to pay to use those Off-site facilities.
22. A statement that any timeshare interest shall be expressly subject to all requirements
and representations set forth in the disclosure statement, which shall be placed of
record with the Pitkin County Clerk and Recorder.
23. For any timeshare development that is a conversion Of an existing project, a
statement shall be provided by the developer, based on a report prepared by an
independent architect or engineer, licensed by the State oi Colorado, describing the
present condition of all structuraI components and mechanical and electrical
installations material to the use and enjoyment of the timeshare units. The statement
shall also provide a list of any outstanding notices of uncured violations of building
code or other municipal regulations, together with the estimated cost of curing those
violations.
B. Timeshare Development Instruments. The applicant shall submit the following fimeshare
development instruments:
1. Instruments for the interval estate or time span estate including:
a: The legal description, street address or other description sufficient to identify
the property.
b. Identification of timeshare time periods by ietter, name, number or
combination thereof.
c. Identification of the timeshare estate and the method whereby additional
timeshare estates may be created.
d. The formula, fraction or percentage of the common expenses and any voting
rights assigned to each timeshare estate.
e. Any restrictions on the use, occupancy, alteration or alienation of timeshare
units.
f. Any other matters that the applicant or the City Council deems reasonably
necessary.
2. All timeshare development instruments shall provide for the following:
a. That a homeowners association shall be established. Title to the common
~ areas of the development and responsibility for maintenance of the
development shall reside within the association. The association shall
designate a managing agent. The management contract with the managing
agent shall allow for either party to terminate, for cause, upon sixty (60) days
notice. In the event the manager is tenuinated, a new managing agent shall
be designated as quickly as possible by the association. Any management
agreement shall specify the managing agent's duties and responsibilities to
maintain the development.
b. A stipulation by the owner of the timeshare interest irrevocably designating
the homeowners association and/or the managing agent as an agent for the
service of legal notices for anY legal action, proceeding or heating pertaining
to the timeshare interest or for the service of process (in a manner sufficient
to satisfy the requirements of personal service in the state, pursuant to Rule 4
C.R.C.P., as amended).
c. Each tiraeshare interest with a multiple ownership shall be required to
designate one managing agent as the spokesperson and voter for all of the
owners involved.
d. That the association shall have the ability to compel a timeshare owner to
~ pay mahitenance fees and if any owner's fees are not paid, his interest shall
be subject to a lien and foreclosure or other divestment. In the event an
owner or his guests violate the rules and regulations of the association, the
association shall have the right to enjoin the violation and the prevailing
party in such suit shall be awarded his court costs and reasonable attorney's
fees.
e. Provisions addressing reconstruction or repair of all or a portion of the
timeshare development following its willful or non-willful destruction.
Provisions should also be included addressing termination of the association,
including the percentage of owners that must agree for the termination to
become effective, what happens to the common elements in the event of a
termination, and how the proceeds shall be distributed in the event the
property is taken due to condemnation or eminent domain.
3. Updating and filing.
a. The developer and his successors and assigns (other than individual mt
purchasersl shall have a continuing duty to update the disclosure statement
and file with the City all amendments to the timeshare development's
instruments. Such amendments shall comply with the requirements of this
1-
section. No amendment which shall significantly alter the disclosure
statement or the timeshare development instruments shall be effective unless
approved and accepted by the City and filed in the office of the Pitkin
County Clerk and Recorder. Ali amendments shall be initially submitted for
review to the Community Development Director who shall have authority to
either approve a proposed amendment as in compliance with the
requirements of this section or refer the proposed amendment for appropriate
subdivision or PUD approval.
b. The foregoing updating and filing requirements do not apply to a single unit
owner. However, the condominium association and/or the homeowners
association, or both if there be multiple asseciations, shall have the
continuing responsibility to update the filing, the disclosure statement, and
any amendments to the condominium documents and/or timeshare
development instruments with the City and, subject to apphcable City
approvals, to file the same in the Office of the Pitkin County Clerk and
Recorder as soon as practicable after City approval has been granted. Once
the condominium association has been formed, the City shall not accept any
amendments for review without prior approval thereby.
4. Before transfer of a timeshare unit and no later than the date of execution of any
contract of sale. the applicant or any other seller of a timeshare unit shall provide the
intended transferee with a copy of the disclosure statement and any amendments
thereto, except this requirement shall not apply to the owner of a single timeshare
estate in a development who is attempting to sell the estate.
5. No conveyance of a timeshare interest shall be valid unless the instrmment of
conveyance shall indicate that title is being transferred subject to the condominium
declaration which shall include the disclosure statement as an exh/bit thereto.
That the following definitions be revised or added to Section 26.104.100 of the Aspen Municipal
Code:
Timeshare Lodge. A development or a unit that has been approved for timesharing, pursuant to
Chapter 26.590. and has the characteristics o£a timeshare lodge, as specified in Section 26.590.060.
Each unit in a timeshare lodge shall be subdivided into no less than seven (7) time span or interval
estates. A timeshare lodge unit may contain a kitchen and still be considered to be a lodge unit (not
a residential dwelhng unit) for purposes of this Land Use Code (although the City's adopted
building codes will consider a unit with a kitchen to be a dwelling unit, and the City may, therefore,
require it to comply with the applicable provisions of those codes for a dwelling unit).
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Lodge. Same as hotel.
Seetinn
That Section 26.710.320 B.1. of the Aspen Municipal Code, pem~itted uses in the LP Zone District,
be amended to read as follows:
1. Lodge, provided:
a. All lodge units within the LP Overlay Zone District may have kitchens within
individual lodge rooms.
b. All lodge units must be available for overnight lodging by the general public on a
short-term basis for at least six (6) months of each calendar year. This requirement
shall not apply to a timeshare lodge.
Section 4:
That Section 26.710.190 D.2.d. of the Aspen Municipal Code, minimum lot area per dwelling unit
requirement for lodge units in the L/TR Zone District, be amended to read as follows:
d. Lodge units (including timeshare lodge units). No requirement. Whenever kitchen
facilities are installed in a lodge unit in the L/TR zone district, such unit shall be deemed a
multi-family dwelling unit, and the lodge shall be required to satisfy the minimum lot area
requirements for a multi-family dwelling, as provided above, unless the development is a
timeshare lodge, which shall have no minimum lot area per dwelling unit requirement.
Seetlon ~_'
That Sections 26.710.140 C., 26.710.190 C.. 26.710.200 C. and 26.710.320 C. of the Aspen
Municipal Code be amended to delete "timesharing" as a conditional use.
Section 6:
That Sections 26.710.140 B., 26.710.200 B., and 26.710.320 B. of the Aspen Municipal Code be
amended to add "timeshare lodge" as a permitted use, and that Section 26.710.190 B. of the Aspen
Municipal Code be amended to add "tin~eshare lodge" and "exempt timesharing" as permitted uses.
Section 7:
That Section 26.480.030 A. of the Aspen Municipal Code. General Exemptions. be amended to add
a new sub-section 5., to read as follows:
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5. Erern?t Tim~.~harin~, The creation of time-span estates that comply with the requirements
for exempt timesharing, pursuant to Section 26.590.030 of the Code. This subdivision exemption
shall not be used to create any new lots or dwelling units.
~qeetion 8:
That sub-section A. of Section 26.480.040 of the Aspen Municipal Code. Procedures for Review,
be amended to read as follows:
A. Lot Line Adjustment and Exempt Timesharing. After an application for a lot line
adjusrmem or exempt timesharing has been determined to be complete by the Community
Development Director, the Director shall approve, approve with conditions, or deny the application.
~q~etlon 0:
That a new sub-section 22. be added to Section 26.510.030 B. of the Aspen Municipal Code,
Exempt Signs, to read as follows:
22. Timeshare identification signs. A building that is approved for exempt timesharing,
pursuant to Section 26.590.030, may have a wall-mounted sign with an area not exceeding
two (2) square feet. stating that it has been approved for timesharing and identifying the
name and phone number ora contact person or management entity for the property.
Section 1 O:
That Section 26.470.070 O. of the Aspen Municipal Code, Conversion of Lodge Reconstruction
Credits to Residential Dwelling Units, be repealed.
APPROVED by the Commission at its special meeting on June 11, 2002.
APPROVED AS TO FORM: PLANNING AND ZONING COMMISSION:
Cit~ AttOrney -- V Jasmine Tygre, Chairperson
ATTEST:
~/tickie Lothian, Deputy City Clerk