Loading...
HomeMy WebLinkAboutminutes.council.20040126Regular Meeting Aspen City Council January 26, 2004 CITIZEN PARTICIPATION .................................................................................... 2 COUNCILMEMBER COMMENTS ....................................................................... 2 CONSENT CALENDAR ........................................................................ 3 · Resolution #4, 2004 - Saab Contract ............. . ..... 3 · Minutes - January 12. 2004 .................................................................................... 3 ORDINANCE #2, SERIES OF 2004 - Fees ....................................................... 3 ORDINANCE #51, SERIES OF 2003 - Code Amendment - Definition of Demolition and RMF Replacement ........................................................................... 3 ORDINANCE #1, SERIES OF 2004 - ~ ' ' 7 and Hopkxns Annexation .............. 6 RESOLUTION #5, SERIES OF 2004 - Zupancis and Recycle lease ............ 7 RESOLUTION v6, SERIES OF 2004 - Pre-Annexation Agreement Little Ajax ............................................................................................................................... RESOLUTION #7, SERIES OF 2004 - Purchase of Property at Galena & Main ............................................................................................................... 13 Regular Meeting Aspen City Council January 26~ 200~. Mayor Klanderud called the meeting to order at 5:00 p.m. with Councilmembers Torre, Paulson, Semrau and Richards present. CITIZEN PARTICIPATION 1. Bill Wiener, 701 Gibson, said as a member of the S-curve task force, he would like to make a minority report at the work session February 24th. Mayor Klanderud said Wiener would be given 5 minutes in which to do that. 2. Toni Kronberg noted Resolutions #5 and 7 are action items and asked if comments from the public be allowed. Mayor Klanderud said comments will be taken. COUNCILMEMBER COMMENTS 1. Mayor Klanderud said the excitement in town ts fantastic, which proves with collaboration and cooperation, just about anything can happen. Mayor Klanderud thanked city staff for their commitment; everyone is working very hard. Mayor Klanderud thanked Vail Transit, the Aspen School District and Town of Snowmass Village for lending vehicles and drivers to help out the X-games. 2. Councilman Paulson noted he has received comments about the 50% increase in natural gas prices. John Worcester told Council KN Energy had a lawsmt several years ago, which they lost. They petitioned for a rate increase. The city intervened in that before the PUC and asked on behalf of Aspen and other western slope communities not to pass a rate increase on to the customers. The PUC sided with Aspen. Worcester said about 2 years ago the case was resolved and the PUC was again petitioned for a rate increase. Worcester said the west slope communities again intervened and the amount requested was lowered by 25%. Worcester told Council the rate increase in this area is not as severe as in other areas in Colorado. 3. Councilwoman Richards said she will be attending the CAST meeting Friday in Breckenridge. The annual CAST legislative meeting with state legislators will be in Denver March 25. 4. Mayor Klanderud noted the civic master plan task force heard a report from BBC, the city's downtown consultants. One suggestion from that meeting is to have a creative summit inviting entities from the community. 2 Regular Meeting Aspen City Council January, 26~ 2004 5. Mayor Klanderud said there was an ACRA marketing committee meeting last week. Mayor Klanderud said there is a preliminary summer marketing piece, which she will make available to Council. 6. Mayor Klanderud reported she has attended two meetings of the Arts and Culture commission. There is a lot of enthusiasm, and they will be before Council at a February 2 work session. CONSENT CALENDAR Councilwoman Richards moved to approve the consent calendar; seconded by Councilman Paulson. The consent calendar is: · Resolution #4, 2004 - Saab Contract · Minutes - January 12, 2004 All in favor, motion carried. ORDINANCE #2, SERIES OF 2004 - Fees Councilwoman Richards moved to read Ordinance #2, Series of 2004; seconded by Councilman Semrau. All in favor, motion camed. ORDINANCE NO. 2 Series of 2004 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE MUNICIPAL CODE OF THE CITY OF ASPEN TO INCREASE CERTAIN MUNICIPAL FEES. Councilman Paulson moved to adopt Ordinance #2, Series of 2004, on first reading; seconded by Councilman Torre. Roll call vote; Councilmembers Torre, yes; Semrau, yes; Paulson, yes; Richards, yes: Mayor Klanderud, yes. Motion carried. ORDINANCE #51~ SERIES OF 2003 - Code Amendment - Definition of Demolition and RMF Replacement Regular Meetin~ Aspen City Council January, 26, 2004 Chris Bendon, community development department, reminded Council at the last public hearing, the P&Z recommendation was to allow developers or owners of multi-family properties to be able to redevelop those properties without incurring any affordable housing impact fees or mitigation as long as they were doing the same unit configuration. P&Z did not feel there was an issue of expanding to what the zoning allowed for on the property. Council had concerns about the expansion if there was a significant increase in size of the units resulting in a change in the market for those units. Council asked staff to look at some percent of expansion that would trigger affordable housing mitigation. Bendon told Council he intended to do financial modeling; however, every property and every remodel would be different and it was too complex to do a modeling. Bendon noted his memorandum has 3 options. Option #1 is an expansion up to a 30% increase in the net livable area. After an owner exceeds 30%, a mitigation of 50% of the existing before redevelopment units and bedrooms would be required. Bendon said there are minimum unit sizes for category housing and there should be a reference to minimum size ~n redevelopment. Option #2, the owner would have an incremental affordable housing requirement commensurate with the percentage tncrease in net livable space. If there was a 1% increase in net livable, the owner would owe l% affordable housing; 40% would tncur a 40% fee. Option #3 allows an owner up to 30% increase without any mitigation and after that 30%, there would be an incremental mitigation; 1% increase would require a 31% mitigation. Bendon said staff feels the eastest option to administer is #2. The difficulty with the existing ordinance is that it requires all or nothing. Ifa project goes from remodel to demolition and replacement, it goes from 100% free market to 50% free market. Bendon said the same things may occur at a 30% threshold. Bendon said option #2 allows redevelopment with like units, and implements some housing requirement to get the city closer to public goals. Mayor Klanderud opened the public hearing. John Werning submitted a letter for the record. Werning told Council he owns an apartment building, which has not been redeveloped because it has not fit within the standard equations. Werning said the staff has done a good job looking at the public goals. Werning said his project has studios up to a 5-bedroom unit. This code amendment does not address the different types Regular MeetinR Aspen City Council January 26, 2004 of dwellings. Weming suggested adopting option #1 with increments after 50% and flexibility for different types of units. The other proposals are too rigid and too structured. Mayor Klandemd closed the public hearing. Councilwoman Richards supports option #2. The demolition/replacement ordinance was created to try and protect people living in affordable units in town. Option #2 represents a relief from the current standard. Councilwoman Richards pointed out the current code requirement has resultedin replacement units from several projects. Councilwoman Richards noted the Burlingame decision to build affordable units outside the metro area was very difficult, and if older units continue to disappear, Council will be forced to look outside the metro area for more housing. Councilwoman Richards moved to adopt Ordinance #51, Series of 2003, on second reading with the language of option 2 and that units expanding to the minimum affordable housing size of category 3 will be exempted; seconded by Councilman Semrau. Councilman Semrau said one goal is to allow property owners to renovate older buildings and to make them more habitable Mayor Klanderud asked if there might be a way to give a bonus to keep categories 1 and 2. Councilman Semrau asked whether that would be price or size. Bendon said being able to redevelop without penalty is a relief from the current reqmrements. Councilman Semrau said the goal is not to freeze substandard units. Councilman Semrau said mimmum size units for category 3 and 4 are livable. Councilman Semrau suggested adopting option 2 with the exemption ifa property owner is expanding the units to category 3 footage minimums, the only mitigation is that 10% of the units have to be deed restricted to category 2 standards. Councilwoman Richards withdrew her motion. Mayor Klandemd moved to adopt Ordinance #51, Series of 2003, on second reading accepting option 2, establishing an exemption for those umts expanded to category 3 & 4; seconded by Councilman Semrau. Roll call vote; Councilmembers Torte, no; Semrau, yes; Richards, no; Paulson, no; Mayor Klanderud, yes. Motion NOT carried. 5 Regular Meeting Aspen City Council January 26, 2004 Councilman Torre said he is concerned about the livability of these umts. Councilman Torre said if the size of units is increased, it is more likely to displace local residents. John Worcester suggested establishing category 3 and 4 as a mimmum but only exempt a portion of that. Councilman Paulson said his goal is to keep people living ~n town. Councilwoman Richards said she does not favor a discrepancy between new construction having to produce affordable housing and a demolition project not having to do any mitigation. Councilwoman Richards said she could support a minimum threshold of housing replacement in a demolition project. Councilwoman Richards moved to adopt Ordinance #51, Series of 2003, as amended to include option 2; seconded by Mayor Klanderud. Councilman Paulson smd his concern is about protecting people who are currently living in these units. Councilman Paulson said'livability for him does not equate to size but to a functional place to live. Councilwoman Richards reiterated this is a demolition and replacement ordinance and when that occurs, the new umts are usually sold at free market values. Councilwoman Richards noted this is a loosening of the current standard of 50% replacement. Councilman Semrau said livability does equate with age of the structure. The city does have a responsibility to allow renovation to minimum size. Roll call vote; Councilmembers Paulson, yes; Richards, yes; Torre, yes; Semrau, no; Mayor Klanderud, yes. Motion carried. ORDINANCE #1, SERIES OF 2004 - 7th and Hopkins Annexation John Worcester, city attorney, told Council this is the final step in the annexation process. Annexation is a legislative action and totally up to Council's discretion. Mayor Klandemd opened the public heanng. There were no comments. Mayor Klanderud closed the public heating. Councilman Torre moved to adopt Ordinance #1, Series of 2004, on second reading; seconded by Councilwoman Richards. Roll call vote; Councilmembers Semrau, yes; Torre, yes; Paulson. yes; Richards, yes; Mayor Klanderud, yes. Motion carried. 6 Regular Meeting Aspen City Council January 26, 2004 Councilman Semrau moved to continue Resolution #90, Series of 2003, Knollwood Annexation, to March 22, 2004; seconded by Councilman Paulson. All in favor, motion carried. RESOLUTION #5, SERIES OF 2004 - Zupancis and Recycle lease Randy Ready, assistant city manager, noted this is a follow up to final development approval for the Obermeyer Place project. Ordinance #18, 2003, giving development approval, also authorized Council to approve a temporary use of 540 East Mmn street and a portion of Rio Grande park for displaced businesses. The ordinance allows more than the usual 6-month temporary use period. Ready said one of Council's concerns was the developer's attempt to house his current tenants during construction. Ready told Council staff and the developer felt that a conventional lease may not be desirable and they attempted a novel approach trying to protect the city's interest and get good value for the city's assets. Ready reminded Council the Aspen Volunteer Fire District has been discussing moving their operation to the Zupancis property. This lease would allow Obermeyer to make temporary improvements to both the Zupanc~s and the recycle properties. There will be modular units; ~mprovements to the non-historic house, extending utilities. Obermeyer has committed to its tenants not to raise the rent and to give one-month free rent to offset relocation. Ready said there is a concession from the developer to allow the city's snowmelt to stay in operation two-years beyond that outlined in the ordinance to 2006. Ready stated this is a $100,000/year cost saving to the city. Ready pointed out the lease does not cover the snowmelt or the recycle center; these will continue to be used by the city and the public. The recycle containers will be located to the north side of the site. Access to the contmners and to the snowmelt will be maintained. There will be no access to the historic houses; these will be protected. The developer will be responsible for all utility connections, stte grading, lighting, signage, maintenance, snow removal, security, on-site parking. Ready told Council this is a 28-month lease with one unilateral 3-month extension clause to the end of September 2006. This is not a traditional lease and rather than getting lease payments, staffhas worked out a compensation plan in in-kind improvements to the city. This would require the developer to do permanent improvements to recycle center and its surroundings. The last 3 pages of the memorandum outline these improvements, including a 3-sided building to Regular Meeting Aspen City Council January 26, 2004 enclose the recycle containers. These improvements would need to be reviewed and approved by the city. These improvements are estimated at $425,000. Tim Belinski, representing Obermeyer, showed Council the location of both parcels; the Zupancis site on Main street at Hunter, and the recycle center off Rio Grande. There will be 4 modular structures on recycle center with parking. Belinski told Council they will undertake a PR campaign to inform the public where the businesses have relocated. Belinski said no construction equipment will be visible from Main street. There will be a 25- foot maximum height limit. Councilman Semrau suggested the front of the Main street property be screened with shrubs or trees. Jeff Woods, parks department, recommended the final landscape plan be follow so that nothing has to be redone. Ready pointed out the original agreement was that Obermeyer would g~ve the city $125,000 toward recycle improvements. This agreement allows them to keep the $125,000 and add $350,000 to produce design, engineering and construction of the improvements in the area. The city has full review and approval rights. The money will go towards removing the snowmelt site, providing drainage and grading to the site, utility extension to the north side of Rio Grande park, a contribution of $10,000 toward the storm water management project, a sidewalk from the Eagle's Club to the west side of recycle center and landscaping for the parkway. The parks department will receive any boulders from the site. Ready passed out option B to elaborate on the base term and to provide better security for the city's assets. Ready said the elaboration states if the fire department decides not to purchase the Zupancis property, the city shall offer a right of first refusal to Obermeyer to purchase the property within 90 days. Belinski said a right of first refusal is satisfactory to the developers. Ready read option C that states if the fire department decides not to purchase the Zupancis property, Obermeyer will purchase said property at appraised value subject to city voter approval. This is a guaranteed purchase agreement. Belinski said they do not want to agree to a guarantee purchase that they do not know enough about. Steve Barwick, city manager, reminded Council the Zupancis parcel was purchased by the general fund with a loan from the housing fund. Council originally stated they wanted the housing fund repaid August 2004. Staff 8 Regular Meeting Aspen City Council January 26, 2004 has reviewed the housing fund in the context of building phase I Burlingame and the August deadline is not realistic for construction so there is more leeway in repaying the housing fund. Barwick noted if the fire department does want to purchase the Zupancis property, this lease would not interfere with that. If the fire department chooses not to purchase the Zupancis property, in 2005 the city will have to sell the site to someone else, and the site will be encumbered by the Obermeyer lease. The housing fund will have to be repaid the $3 million plus interest in 2005 If the property is not sold, Council will need to repay the housing fund from some other city funds. Councilwoman Richards said she does not know why the city would give away a right of first refusal as the applicant may not put forth their best effort in the offer. Councilman Semrau said the city ~s committing to $350,000 for rebuilding a recycle center. Councilman Semrau said that is premature because this will not be designed and built for 2 years so #3 builds some flexibility and what is design ts netted against that $350,000 figure. Councilman Semrau said this lease will encumber the Zupancis property until September 2006 and he is concerned about the city's ability to sell the land. Worcester pointed out the city could sell the property prior to 2006 but it would be subject to the lease. Belinski said they would not want to commit to anything more than a right of first refusal. Mayor Klandemd stated she is comfortable with the lease as is. Councilman Semrau suggested amending the lease without the 3-month option to September 2006. Councilwoman Richards said this property was bought with housing money as is being used to advance a commercial redevelopment and the lease payment will accrue to the benefit of the parks. Councilwoman Richards said if the city is g~ving up use of the Zupancis property for two years and the value is about $125,000, year, the parks department budget should reimburse the housing fund $250,000. Jeff Woods, parks department, noted the recycle center is not a park; it is a county facility. Mayor Klanderud said this temporary use was discussed when the land use was approved. Council was aware the housing fund would not be repaid before 2004. Barwick said the housing fund will be receiving an agreed upon interest rate for the whole time. Council agreed that item 3 is all right. Mayor Klanderud said she does not want to eliminate the renewal option to September 2006. Councilman Semrau stated this is a for-profit enterprise; Regular Meeting Aspen City Council January 26, 200~. the city is giving up the use of city land to make a development work. Councilman Semrau said he would like to insure that the city can sell the land if it is not going to be used for mumcipal purposes. Councilwoman Richards asked if there is a commitment to a lease rate for the existing tenants in the new facility. Belinski said they are in negotiations with the tenants and giwng as long a term as they want. Right now the only agreement is for the 2-year relocation. Belinski said as part of the formula for banking the projeCt, there is a pre-sale requirement, part of which is a commitment to leases. Belinski said item #3, an audit at the end, makes sense for both parties. Duane Romero, Obermeyer project, said the current schedule is about 23 months for a 200,000 square foot project, which is very tight. Romero said he feels a 3-month extension is reasonable. Councilman Torre said his concern about eliminating the 3-month extension would be how it would affect the tenants using the Zupancis site. Councilman Torre said the current recycle center under serves the community. Councilman Torre said he is afraid this is a setback for recycling. Councilman l'orre said he would like signs to make sure the public is aware where the recycle center is. Belinski said their intent is to clean up the site, do some improvements, fix the drainage. Belinski said they will sign the recycle center. Councilman Torre said he would like to move forward with the lease without the guarantee of purchase or the right of first refusal. Daryl Grob, fire chief, told Council their process is to get an analysis of the future service loads, how that translates into equipment and facilities, a request for proposals to see if such a facility can be developed on either site, and how much that would cost. Grob said until they finish that process, they cannot make any decision. Grob said they do not know how long this will take. Mayor Klanderud said there are agreements with this developer on these temporary uses. Two years is not a long time. Mayor Klanderud said she feels Council should move forward. Toni Kronberg said she supports the Obermeyer project and it will be a great asset. Ordinance #18 approved a temporary use to house their businesses. Ordinance # 18 did not give permanent improvements to Rio Grande park. This lease states that for a rent reduction, Obermeyer will provide a permanent recycle extending up to 25 feet. Kronberg said there is a state statutes that prohibits any c~ty from converting a temporary use to a 10 ,,Regular Meeting Aspen Citv Council January 26, 200,1 permanent use. Ms. Kronberg pointed out the Rio Grande master plan was approved by Council in 1993 and stated any site-specific improvements have to go through a SPA approval process. Ms. Kronberg said in 1993 Council did not approve site specific for a recycle center. Chris Bendon, community development department, noted Ordinance # 18 gave land use approval for temporary uses. The permanent improvements for the recycle center will have to go through a land use approval process. Debra Moore asked if this lease means the recycle center is permanent. Ms. Moore asked why 25 feet is allowed for temporary structures. Ms. Moore said this was purchased with open space money and should not have structures on it. Councilman Semrau moved to approve Resolution #5, Series of 2004, ~vith the addition of#3 as written and with the addition that if Obermeyer exercises their option for 3 extra months, that the price be increased to reflect the extra carrying costs if the city has a buyer; seconded by Councilman Paulson. All in favor, with the excel~tion of Councilwoman Richards; motion carried. RESOLUTION #6, SERIES OF 200a - Pre-Annexation Agreement Little Ajax Ed Sadler, assistant city manager, reminded Council they saw this last year and directed staff to negotiate an affordable housing project. Council indicated they were willing to invest $4.7 million into the project; $1.3 from open space funds and $3.4 million from affordable housing. Council stated they were willing to put in $72,000/bedroom based on 47 total bedrooms. There is a tax credit issue to be worked out. Sadler pointed out the proposed size of the units would meet the minimum affordable housing guidelines, although they would be up to 100 square feet smaller than the city's preferred size of units. John Worcester, city attorney, noted page 6 (d) discusses the city's purchase price for the conservation easement. This paragraph gives the landowners sole discretion on hiring appraisers and whether they accept the appraisals. Worcester said he is concerned that this language allows the landowners to choose. Typically each side chooses an appraiser and if there is conflict, a third appraiser is chosen to mediate. Kaplan.said they need to have an appraisal on lot 3 w/th no restriction on development rights versus the value Reeular Meeting Aspen City Council January, 26, 2004 of that same land with conservation easements on it. This is how they will establish the tax credits. If the difference is $1.4 million, development versus conservation easement, and the city purchases lot 3 for $1.275 million, there is no change in the purchase price. If the difference is greater than $1.4 million, the city's purchase price will decrease. Worcester reiterated them will be one final appraisal and the comparison is the price of the land unrestricted versus the price of land with a conservation easement. The higher the difference, the more tax credit the developer will get, and they will pass the tax credits on to the city. The developers agreed that the city and they could each pick an appraiser. Councilman Semrau said the goal is to have language stating, depending on what the appraisal, there will be some reduction in price to the city. Gluck agreed that is the intention. Barwick said staff can work out language that the city will get value of approximately $250,000 should a tax credit that size be available. Council agreed. Mayor Klanderud said lot 3, that the city would purchase, has a lot of steep slopes and there are environmental concerns with that parcel. Mayor Klanderud asked what the city's liability would be on lot 3, above' the other two lots. Worcester agreed the city would be responsible for any rocks falling on development below. Mayor Klanderud said Council committed to a per bedroom subsidy, not a total bedroom count. Sadler said Council said they would subsidize $72,128/bedroom and if the number of bedrooms approved is lowered, the applicants get to renegotiate the subsidy or bail out. Worcester pointed out the language in the agreement stating the applicants can withdraw their application if the numbers do not work. Joe Wells said before the applicants can move forward with the affordable housing project and allow the city to purchase the upper portion of the property, the property needs to be reconfigured, this is phase I. At the conclusion of phase I, the city has the right to purchase a conservation easement on the upper portion of the property, to be identified as lot 3. The applicants will then have the right to go forward with an affordable housing project on lots 1 and 2. Mayor Klanderud asked why the city would annex without knowing what the development proposal might be. Councilman Semrau said there is a clause that allows the applicant to bail out at anytime. Both the city and developers agreed to take out 9(b). Worcester said if Council annexes this property, the development proposal goes forward. Annexation is a legislation act and Council has discretion. 12 Regular Meetin~ Aspen City Council January 26~ 2004 Fonda Paterson said it sounds as if the developer can unilaterally withdraw and asked if the city has the same capability to withdraw at any point. Ms. Paterson asked if the city would be in a position where they will have spent money to purchase the open space and end up with a different use on the remaining parcel. Worcester said this agreement between the city and landowner states if the developer agrees to annex, the city will agree to hear a land use application. If the end of the process, the development looks like anticipated, then the property will be annexed. The city still has the flexibility to review the development plans. If the approval differs substantially, the developers can say they do not want to be annexed. Ms. Paterson asked if the open space will be purchased before the rest of the agreement is solidified. Worcester said there is a schedule in the agreement detailing when pieces will occur. Gluck reminded Council they have been in the process for 3 years. They have presented their plans to P&Z and Council. Kaplan said they are trying to give the city the best overall price on the open space and on the subsidy for the affordable housing. Kaplan said they cannot pass on a tax credit to the city but can receive a tax credit and reduce the land price to the city. The developers cannot get a tax credit until they subdivide the land into 3 free market parcels. The sequence is ~mportant to make the tax credit work.. Councilman Semrau moved to adopt Resolution #6, Series of 2003, deleting 9(b) and that the city manager and city attorney review the language proposed; seconded by Councilwoman Richards. All in favor, with the exception of Councilman Paulson. Motion carried. Mayor Klanderud said the benefit to the city is getting the trail and the open space. Councilman Paulson noted one mason he cannot support this is there is no master plan for this area of Aspen. Councilman Semrau noted another benefit will be quality affordable housing in town. RESOLUTION #7~ SERIES OF 2004 - Purchase of Property at Galena & Main Ed Sadler, assistant city manager, told Council this agreement should be contingent upon an approved lease agreement with ACRA. The maximum price is $1,030,000 for 3,000 square feet in a building at the northwest corner of Main and Galena. The costs to the city for a 20-year note plus utilities and maintenance on the building will be $92,000/annually. This will 13 Regular Meeting Aspen Ci~ Council January 26~2004 be offset by $50,000/year rent from ACRA. This will be a $42,000 annual cost to the general fund. Councilwoman Richards said this is a reasonable investment for the city and for a permanent space for ACRA. Toni Kronberg asked how this can be approved before the land use has been approved. Councilwoman Richards moved to approve Resolution #7, Series of 2004, pending successful negotiations with ACRA; seconded by Councilman Semrau. Councilman Paulson said he is opposed to this because of the lack of parking. Councilman Paulson said he feels the visitors' center ought to be focused at the Wheeler Opera House. All in favor, with the exception of Councilman Paulson. Motion carried Councilwoman Richards moved to go into executive session at 8:30 p.m. pursuant to C.R.S. 24-6-402(4)(a) to discuss property acquisition; seconded by Councilman Torre. All in favor, motion carried. Councilman Torre moved to come out of executive session at 8:55 p.m.; seconded by Councilman Semrau. All in favor, motion carried. Councilman Semrau moved to adjourn at 8:55 p.m.; seconded by Councilman Torre. All in favor, motion carried. h~ S. K~/ch, City Clerk 14