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CITY COUNCIL WORK SESSION
February 06, 2017
5:00 PM, City Council Chambers
MEETING AGENDA
I. Report from Aspen Institute meeting on regulation of formula retail outlets
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MEMORANDUM
TO: Mayor Skadron and Aspen City Council
FROM: Jessica Garrow, Community Development Director
James R True, City Attorney
RE: Formula Business Regulations
MEETING DATE: February 6, 2017
REQUEST OF COUNCIL: Council has been asked to weigh in on possible formula retail
regulations.
BACKGROUND AND DISCUSSION: In December, a group led by Jerry Murdock
approached City Council with a request to consider such regulations. After extensive public
feedback at the November 28th public hearing on AACP code amendments, City Council
requested the group continue to work with other in the community, including business owners,
brokers, and land owners. The culmination of this work was a January 19th forum at the Aspen
Institute.
City Council also indicated a willingness to discuss the potential regulations at a future work
session, and either move forward with land use code amendments or refer it to the ballot.
Attached as Exhibit A is a draft ordinance the group has prepared following the Aspen Institute
forum. Attached as Exhibit B is a listing of formula businesses as identified by Bill Stirling, a
member of the group, which was presented at the forum.
NEXT STEPS: Based on City Council direction there are three options to move forward.
1. Direct staff to continue studying the issue and conduct additional community
outreach. Given the need to focus on implementing legislation passed during the
moratorium, staff is limited in the amount of work that can be dedicated to such an
effort until mid-March.
2. Move forward with code amendments to adopt the proposed, or a modified,
ordinance. A Policy Resolution, which is required for all code amendments, is
tentatively scheduled for February 13th, if this is the direction City Council wishes to
pursue.
3. Refer the proposed ordinance to the voters on the upcoming ballot. If Council wishes
to pursue this direction, a first reading and second reading would need to be
completed by the March 6th meeting.
CITY MANAGER COMMENTS:
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ATTACHMENTS:
Exhibit A – Draft Ordinance
Exhibit B – formula business map/list
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ORDINANCE NO. __
(SERIES OF 201_)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO,
AMENDING CHAPTERS 26.110, 26.710, AND 26.425 OF THE ASPEN
MUNICIPAL CODE TO REGULATE FORMULA USES
WHEREAS, the City of Aspen is a unique, international community with historic roots
and attentive civic mindset;
WHEREAS, the City serves as a home to a diverse group of residents that provide the
underpinnings of the community’s unique character and the City’s status as a destination resort;
WHEREAS, over time, the Aspen downtown commercial core has undergone a
transition that has altered the City’s community character, in particular, through the proliferation
of “formula” use;
WHEREAS, the Aspen Area Community Plan identifies this concern, stating:
There is a concern that businesses providing basic necessities will be replaced
with businesses providing non-essential goods and services. High-profile
locations in the downtown have steadily converted from restaurants to retail
spaces, some retail spaces have transformed to offices, and high rents have
resulted in a continuing shift towards exclusivity. The character of our community
is bolstered by a diverse commercial mix. While we have taken some steps to
increase retail diversity, we must pursue more aggressive measures to ensure the
needs of the community are met, and to preserve our unique community character.
See Aspen Area Community Plan, p. 20;
WHEREAS, to address this concern, the Aspen Area Community Plan adopts the
following policies as they relate to the Commercial Sector (emphasis added):
V.1. Encourage a commercial mix that is balanced, diverse and vital and meets
the needs of year-round residents and visitors.
V.2. Facilitate the sustainability of essential businesses that provide basic
community needs.
V.3. Ensure that the City Land Use Code results in development that reflects our
architectural heritage in terms of site coverage, mass, scale, density and a
diversity of heights, in order to:
• Create certainty in land development.
….
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• Protect our small town community character and historical heritage.
….
See Aspen Area Community Plan, p. 26.
WHEREAS, the City Council finds that the proliferation of formula retail and restaurant
uses in the downtown core undermines the goals and policies of the City of Aspen by: (i)
eliminating commercial diversity meeting the needs of year-round residents; (ii) driving out
locally serving and essential business; and (iii) threatening the City’s small town community
character;
WHEREAS, the City Council wishes to: (i) maintain the unique character of the
community and the appeal of its downtown core; (ii) protect the community’s economic vitality
by ensuring a diversity of businesses; and (iii) foster businesses that serve a variety of needs,
including those of year-round residents;
WHEREAS, the City Council wishes to further the goals and policies of the Aspen Area
Community Plan and those stated herein by regulating new formula retail and restaurant uses as
conditional uses in certain zone districts, as set forth in this Ordinance;
WHEREAS, recognizing the investment backed expectations of building owners and
developers, the City Council wishes to exempt existing buildings and structures, development
approvals, and development applications from this Ordinance;
WHEREAS, by requiring new formula retail and restaurant uses to undergo a
conditional use review process, the City will have a better opportunity to examine the impacts of
such uses; and
WHEREAS, the City Council finds that this Ordinance furthers the City’s planning goals
and policies.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF ASPEN, COLORADO THAT:
Section 1. Section 26.104.110 - “Use Categories” of the Aspen Municipal Code is
hereby amended to include the defined term “formula use” in subsection C, as follows:
26.104.110. Use Categories.
***
C. Definitions.
***
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Formula Use
Characteristics Any “restaurant, bar and entertainment uses” and “retail uses”, as defined
in this Chapter, that has eleven (11) or more other establishments in
operation, or with local land use or permit entitlements already approved
and effective, located anywhere in the United States. In addition to the
eleven (11) establishments either in operation or with local land use or
permit entitlements approved for operation, the business maintains two (2)
or more of the following features: a standardized array of merchandise,
standardized array of services, a standardized facade, a standardized decor
and color scheme, uniform apparel, standardized sign, a trademark, or a
service mark.
1. “Standardized array of merchandise” means 50% or more of in-stock
merchandise from a single distributor bearing uniform markings.
2. “Standardized array of services” means as a common menu or set of
services priced and performed in a consistent manner.
3. “Trademark” means a word, phrase, symbol or design, or a
combination of words, phrases, symbols or designs that identifies and
distinguishes the source of the goods from one party from those of
others.
4. “Service mark” means a word, phrase, symbol or design, or a
combination of words, phrases, symbols or designs that identifies and
distinguishes the source of a service from one party from those of
others.
5. “Façade” means the face or front of a building, including awnings,
looking onto a street or an open space.
6. “Décor” means the style of interior furnishings, which may include but
is not limited to, style of furniture, wall coverings or permanent
fixtures.
7. “Color Scheme” means a selection of colors used throughout the
establishments, such as on the furnishings, permanent fixtures, and
wall coverings, or as used on the facade.
8. “Uniform Apparel” means standardized items of clothing including but
not limited to standardized aprons, pants, shirts, smocks or dresses,
hats, and pins (other than name tags), and standardized colors of
clothing.
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Examples Those examples set forth in the definitions of “restaurants, bars and
entertainment uses” and “retail uses” (general and specialty) that have the
characteristics set forth in this definition.
Accessory Uses Accessory uses may include those accessory uses set forth in the
definitions of “restaurants, bars and entertainment uses” and “retail uses”
(general and specialty).
Exceptions Exceptions include those exceptions set forth in the definitions of
“restaurants, bars and entertainment uses” and “retail uses” (general and
specialty).
Section 2. Section 26.710.140.C of the Aspen Municipal Code is hereby amended to
read as follows, with bold, underlined text added and strike through language deleted:
26.710.140. Commercial Core (CC).
***
C. Conditional uses. The following uses are permitted as conditional uses in the
Commercial Core (CC) Zone District, subject to the standards and procedures established in
Chapter 26.425:
1. Gasoline service station.
2. Commercial parking facility, pursuant to Chapter 26.515.
3. Automobile showroom and dealership.
4. Formula uses, subject to the provisions contained in Section 26.425.045.
Section 3. Section 26.710.150.C of the Aspen Municipal Code is hereby amended to
read as follows, with bold, underlined text added and strike through language deleted.
26.710.150 Commercial (C-1).
***
C. Conditional uses. The following uses are permitted as conditional uses in the
Commercial (C-1) Zone District, subject to the standards and procedures established in Chapter
26.425:
1. Affordable multi-family housing or home occupations on the ground floor.
2. Commercial parking facility, pursuant to Section 26.515.
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3. Automobile showroom and dealership.
4. Formula uses, subject to the provisions contained in Section 26.425.045.
Section 4. Section 26.710.170.C of the Aspen Municipal Code is hereby amended to
read as follows, with bold, underlined text added and strike through language deleted.
26.710.170 Neighborhood Commercial (NC).
***
C. Conditional uses. The following uses are permitted as conditional uses in the
Neighborhood Commercial (NC) Zone District, subject to the standards and procedures
established in Chapter 26.425:
1. Commercial parking facility, pursuant to Chapter 26.515.
2. Automobile showroom and dealership.
3. Formula uses, subject to the provisions contained in Section 26.425.045.
Section 5. Sections 26.710.180.B and C of the Aspen Municipal Code is hereby
amended to read as follows, with bold, underlined text added and strike through language
deleted.
26.710.180 Mixed-Use (MU).
***
B. Permitted uses. The following uses are permitted as of right in the Mixed-Use (MU)
Zone District:
***
20. Formula uses, except in the Main Street Historic District.
C. Conditional uses. The following uses are permitted as conditional uses in the Mixed-
Use (MU) Zone District, subject to the standards and procedures established in Chapter 26.425:
1. Commercial parking facility, pursuant to Chapter 26.515.
2. Automobile showroom and dealership.
3. Formula uses in the Main Street Historic District, subject to the provisions
contained in Section 26.425.045.
Section 6. Section 26.710.190.C of the Aspen Municipal Code is hereby amended to
read as follows, with bold, underlined text added and strike through language deleted.
26.710.190 Lodge (L).
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***
C. Conditional uses. The following uses are permitted as conditional uses in the Lodge (L)
Zone District, subject to the standards and procedures established in Chapter 26.425:
***
10. Formula uses, subject to the provisions contained in Section 26.425.045.
Section 7. Sections 26.710.200.B and C of the Aspen Municipal Code is hereby
amended to read as follows, with bold, underlined text added and strike through language
deleted.
26.710.200 Commercial Lodge (CL).
***
B. Permitted uses. The following uses are permitted as of right in the Commercial Lodge
(CL) Zone District:
1. Uses allowed in basement and ground floors: Lodging uses, conference facilities, retail
and restaurant uses, formula uses, office uses, neighborhood commercial uses, service
uses, arts, cultural and civic uses, public uses, recreational uses, academic uses, and child
care center. Uses and facilities necessary and incidental to uses on Upper Floors. Parking
shall not be allowed as
***
C. Conditional uses. The following uses are permitted as conditional uses in the
Commercial Lodge (CL) Zone District, subject to the standards and procedures established in
Chapter 26.425:
1. Retail and restaurant uses, formula uses, neighborhood commercial uses, service uses,
office uses, arts, cultural and civic uses, public uses, academic uses or child care centers
not located on basement and ground floorslocated on upper floors.
2. Commercial parking facility, pursuant to Chapter 26.515
Section 8 . Chapter 26.425 of the Aspen Municipal Code is hereby amended to read
as follows with bold, underlined text added:
Chapter 26.425
CONDITIONAL USES
Sections:
Sec. 26.425.010. Purpose.
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Sec. 26.425.020. Authority.
Sec. 26.425.030. Authorized conditional uses.
Sec. 26.425.040. Standards applicable to all conditional uses.
Sec. 26.425.045. Standards applicable to formula uses; exemptions; determination of
formula uses.
Sec. 26.425.050. Procedure for review.
Sec. 26.425.060. Application.
Sec. 26.425.080. Amendment of development order.
Section 9. Chapter 26.425 of the Aspen Municipal Code is hereby amended with the
addition of a new Section 26.425.045 – “Standards applicable to formula uses” to read as
follows:
26.425.045. Standards applicable to formula uses; exemptions; determination of formula
uses.
A. Purpose. This section provides for the case-by-case review of formula uses, as defined
in Section 26.104.110.C, in order to encourage a commercial mix that is balanced, diverse and
vital, and meets the needs of year-round residents and visitors, maintain the unique character of
Aspen’s downtown, and to provide regulatory flexibility that meets the City’s evolving and
unique market demands.
B. Applicability.
1. Generally
a. No business license shall be issued pursuant to Chapter 14.08 for any formula use
subject to this section unless and until the Planning and Zoning Commission approves
a conditional use permit authorizing that use.
b. The Community Development Director may establish forms to document exemptions,
current uses, and other material information reasonably necessary for the effective
administration of this section.
2. Exemptions.
a. Exemptions. This section shall not apply to commercial and mixed-use buildings and
structures within the CC zone district, C-1 zone district, and the Main Street Historic
District (MU zone district): (i) constructed or under construction as of the effective
date of this section, (ii) which will be constructed pursuant to any approval for
development granted as of the effective date of this section; and (iii) which will be
constructed pursuant to any development application submitted for approval as of the
effective date of this section.
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b. Loss of Exemption. Any building or structure exempted by this section will become
subject to this section upon the occurrence of one of the following activities: (i)
demolition, provided that they were not caused by the occurrence of fire, flood, or
acts of nature; (ii) reconstruction of 40% of the building or structure; (iii) relocation
of the building or structure, (iv) renovation or construction resulting in an increase of
greater than __% of the net leasable area of the existing building or structure (i.e.
addition to an existing building or structure); and (v) remodel or construction of
greater than 50% of the net leasable area of the existing building or structure (i.e. gut
remodel). Notwithstanding the foregoing, the following activities shall not cause a
loss of exemption: (i) rehabilitation and other construction necessary to comply with
the law (e.g. ADA compliance); (ii) reconfiguration of leased areas; and (iii)
improvements reasonably necessary for tenant to occupy a leased space.
C. Standards. When considering a development application for a formula use as part of a
conditional use review, the Planning and Zoning Commission shall be required to determine that,
in addition to the standards set forth in Section 26.425.040, the proposed use complies with the
following standards.
1. The formula use will promote diversity and variety to assure a balanced mix of
commercial uses available to serve both resident and visitor populations, including
general retail, specialty retail, restaurant, bar and entertainment uses, and service
uses;
2. The design and improvements are consistent with the unique and historic character of
the zone district, and will preserve, and be compatible with, the distinct visual
appearance and shopping/dining experience of the zone district for its residents and
visitors;
3. The formula use will be compatible with existing uses and permitted uses in the zone
district and promote the zone district’s purpose, economic vitality and long-term
sustainability as the commercial, cultural, and civic center of the community; and
4. The formula use will not result in an overconcentration of formula uses within the
zone district and within the immediate vicinity of the proposed project based on the
current inventory of formula uses.
D. Determination of Formula Use. Any development application determined by the
Community Development Director to be for a formula use, as defined in Section
26.104.110.C,that does not identify the use as a formula use is incomplete and cannot be
processed until the omission is corrected. Any development approval or determination that is
determined by the Community Development Director to have been, at the time of application, for
a formula use that did not identify the use as a formula use is subject to revocation at any time. If
the Community Development Director determines that a development application or approval is
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for a formula use, the applicant or holder of the entitlement bears the burden of proving to the
Community Development Director that the proposed or existing use is not a formula use.
Section 10. Severability. If any section, subsection, sentence, clause, phrase, or
portion of this ordinance is for any reason held invalid or unconstitutional in a court of
competent jurisdiction, such portion shall be deemed a separate, distinct and independent
provision and shall not affect the validity of the remaining portions thereof.
Section 11. Effective Date. In accordance with Section 4.9 of the City of Aspen
Home Rule Charter, this ordinance shall become effective thirty (30) days following final
passage.
INTRODUCED, READ AND ORDERED PUBLISHED as provided by law, by the City
Council of the City of Aspen on the ___ day of _____________________, 20__.
Attest:
______________________________ ______________________________
City Clerk Mayor
FINALLY, adopted, passed and approved this ___ day of _____________, 20__.
Attest:
______________________________ ______________________________
City Clerk Mayor
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