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HomeMy WebLinkAboutminutes.council.20040322Regular Meetin~ Aspen City Council March 22~ 2004 CITIZEN PARTICIPATION ....... : .............................................................................. 2 COUNCILMEMBER COMMENTS ........................................................................ 2 CONSENT CALENDAR ............................................................................................ 3 · Resolution #18, 2004 - Contract Amendment Phase II Utilx ................................ 3 · Resolution #19, 2004 - Wheeler First Floor Master Plan - Phase li Design Development - PrOfessional Services Agreement ........................................................... 3 · Resolution #20, 2004 - Authorization of EOTC Bonding Authority for the Purchase of 10 Diesel Buses ........................................................................................... 3 · Minutes- March 8, 2004 ........................................................................................ 3 RESOLUTION #21, 2004 - Airport Master Plan ................................................. 4 FIRST READING OF ORDINANCES ................................................................... 4 · Ordinance #8, 2004 - Supplemental Appropriations .............................................. 4 · Ordinance #9, 2004 - AMPUD Section M Amendment ....................................... 4 · Ordinance #10, 2004 517 Park Circle Wagar PUD Amendment ........................ 4 ORDINANCE NO. 8 ............................................................................................ 4 ORDINANCE #3, SERIES OF 2004 - 1295 Riverside Drive Historic Landmark & Lot Split ................................................................................................... 6 ORDINANCE #6, SERIES OF 2004 Maroon Creek Road Annexation .... 11 RESOLUTION #22, SERIES OF 2004 Merrick & Company Contract for Digital Orthophotography .......................................................................................... 13 RESIDENCES AT LITTLE NELL BUY DOWN OF AFFORDABLE UNITS ............................................................................................................................. 13 RESOLUTION #3, SERIES OF 2004 - SPARC Agreement ........................... 16 Regular Meeting Aspen City Council March 22, 2004 Mayor Klanderud called the meeting to order at 5':00 p.m. with CoUncilmembers Paulson, Richards, Torre and Semrau present. CITIZEN PARTICIPATION 1. Toni Kronberg commended Council for focusing on pedestrian safety on Main street. Ms. Kronberg noted another trouble spot is the intersection of Mill and Bleeker and suggested Council look into prohibiting left turns at that intersection. Ms. Kronberg said she is sponsoring a concerned citizens about the visitors center Easter egg hunt at the library plaza Sunday, April 4th starting at 10 .m. This will give the community an opportunity to use the plaza as a community gathering space. There will be information supporting moving the visitors center to the former youth center. Mayor Klanderud noted there is a public hearing on the visitors' center April 12th. Ms. Kronberg said there will be two Easter egg huts and the Easter bunny will make an appearance. 2. A citizen noted that their area on Durant east of downtown does not have adequate street lighting and that the alley behind their house needs attention; it turns into a mud pit in the spring. Steve Barwick, city manager, said he will look into the city's sidewalk plan to see when this area is scheduled for lighting and any other improvements. COUNCILMEMBER COMMENTS 1. Mayor Klanderud announced the board interviews and a work session on priority funding is tomorrow, Tuesday, MarCh 23 at 5 p.m. 2. Mayor Klanderud congratulated the Aspen Historical Society and the Aspen Skiing Company for their great events last week, including the band and core party Saturday night. 3. Councilman Paulson said he and Phil Overeynder went to a conference in Boulder on wind energy on Indian reservations. Indian reservations are interested in hooking onto the national power grid so they can get green power. Councilman Paulson requested Council lobby the state legislators to make this happen. 2 Regular Meeting Aspen City Council March 22, 2004 4. Councilman Torre agreed the weekend was great Aspen. Councilman Torre commended the police department for the way they handled a shooting incident in the west end. 5. Councilman Torre reminded everyone the brown bag lunches are back and encouraged citizens to bring issues to Council at these lunches. 6. Mayor Klanderud said she attended the RFTA meeting March 11th, The vote taken to approve the RFTA budget did not have a super majority so the budget is not approved. Aspen had indicated they did not want the budget approved until Council has reviewed the long-range plans, which they will do in a work session scheduled April 5th. RFTA had discussed going to an election for a sales tax in November. This has not been decided. 7. Councilwoman Richards said she attended the Club 20 meeting in Grand Junction as Pitkin County's representative. A vote was taken to continue funding for higher education, especially on the western slope. Councilwoman Richards encouraged the public to get involved in Club 20. CONSENT CALENDAR Mayor Klanderud pulled Resolution #21, Series of 2004, Airport Master Plan, for discussion. Councilman Semrau moved to approve the consent calendar as amended; seconded by Councilman Torre. The consent calendar is: · Resolution # 18, 2004 - Contract Amendment Phase II Utilx · Resolution # 19, 2004 - Wheeler First Floor Master Plan - Phase II Design Development - Professional Services Agreement · Resolution #20, 2004 - Authorization of EOTC Bonding Authority for the Purchase of 10 Diesel Buses · Minutes - March 8, 2004 All in favor, motion carried. Regular Meetin~ Aspen City Council March 22~ 2004 RESOLUTION #21, 2004 - Airport Master Plan Mayor Klanderud said lengthening the runway is a priority of many people in the community and she would like added to the resolution encouraging Commissioners to include that in Phase I. Councilman Paulson said he would like to be assured that the airport expansion does not interfere with the redevelopment of Buttermilk. John Krueger, transportation department, said it will not conflict with anything planned at Buttermilk. Councilwoman Richards said she would like to know if the airport expansion will comply with the affordable housing requirements and does the county have to meet the green building code. Julie Ann Woods, community development department, said Pitkin County will have to comply with green construction. Councilwoman Richards said she would like to see some accounting on how much employee generation there will be from the airport expansion. Councilman Paulson moved to approve Resolution #21, Series of 2004, with the amendment about the runway; seconded by Councilman Torre. All in favor, motion carried. FIRST READING OF ORDINANCES · Ordinance #8, 2004 - Supplemental Appropriations · Ordinance #9, 2004 - AMPUD Section M Amendment · Ordinance # 10, 2004 - 517 Park Circle Wagar PUD Amendment Councilman Paulson moved to read Ordinances 8, 9 and 10, Series of 2004; seconded by Councilman Semrau. All in favor, motion carried. ORDINANCE NO. 8 (Series of 2004) AN ORDINANCE APPROPRIATING AN INCREASE IN GENERAL FUND EXPENDITURES OF $1,762,354, AN INCREASE IN THE ASSET MANAGEMENT FUND OF $837,690, AN INCREASE IN THE DEBT SERVICE FUND OF $353,000, AN INCREASE IN THE LODGING TAX FUND OF $391,432, AND AN INCREASE TO THE TRANSPORTATION FUND OF $359,432. 4 Regular Meeting Aspen City Council March 22~ 2004 ORDINANCE No. 9 (SERIES OF 2004) AN ORDINANCE OF THE ASPEN CITY COUNCIL AMENDING THE SECTION M AMENDMENT TO THE FIRST AMENDED AND RESTATED PLANNED UNIT DEVELOPMENT/SUBDIVISION AGREEMENT FOR THE ASPEN MOUNTAIN SUBDIVISION, ASPEN, COLORADO. ORDINANCE NO. 10 (SERIES OF 2004) AN ORDINANCE OF THE ASPEN CITY COUNCIL APPROVING A PLANNED UNIT DEVELOPMENT AMENDMENT, SUBDIVISION, AND GROWTH MANAGEMENT QUOTA SYSTEM EXEMPTION FOR THE PROPERTY AT 517 PARK CIRCLE, LEGALLY DESCRIBED AS THE NORTH AND SOUTH CONDOMINIUMS OF LOT 6, SUNNY PARK NORTH CONDOMINIUMS, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Councilwoman Richards moved to adopt Ordinance #8, Series of 2004, on first reading; seconded by Councilman Semrau. Roll call vote; Councilmembers Paulson, yes; Richards, yes; Semrau, yes; Torre, yes; Mayor Klanderud, yes. Motion carried. Councilman Paulson moved to adopt Ordinance #9, Series of 2004, on first reading; seconded by Councilman Semrau. Councilwoman Richards noted the Bavarian Inn was partial mitigation for the St. Regis and a certain number of the units were allOcated toward the Grand Aspen but the balance of the units were promised to the public during the vote on the original Ritz hotel. Councilwoman Richards said the then Council agreed to compromise that some of the units would be allowed as mitigation and the rest would be community benefit. Councilwoman Richards asked how this would affect the timing of using Top of Mill as a construction-staging zone. Councilwoman Richards requested a report from staff on second reading. Roll call vote; Councilmembers Semrau, yes; Torre, yes; Paulson, yes; Councilwoman Richards, yes; Mayor Klanderud, yes. Motion carried. Regular Meeting Aspen City Council March 22~ 2004 Councilman Paulson moved to adopt Ordinance #10, Series of 2004, on first reading; seconded by Councilman Torre. Roll call vote; Councilmembers Paulson, yes; Richards, yes; Semrau, yes; Torre, yes; Mayor Klanderud, yes. Motion carried. ORDINANCE #3, SERIES OF 2004- 1295 Riverside Drive Historic Landmark & Lot Split 'Mayor Klanderud recused herself because she lives within 300 feet. Amy Guthrie, community development department, told Council this is the first case before Council under the new historic preservation criteria and benefits adopted 3 years ago. Ms. Guthrie noted a handful of post World War II properties have been designated since 1980. In 2000 it was decided in order to continue forward with these designations, the criteria and standards should be revisited and set higher to identify the most significant properties and to increase benefits available to property owners of landmarks. Ms. Guthrie told Council this is the first post WWII property to be designated since 1996. It is important because a number of significant post WWII buildings have been demolished. Ms. Guthrie pointed out the basic standards to be met are that the property needs to be at least 40 years old. This property was built in 1960. The property needs to have integrity, which has been defined by creating a scoring system that considers aspects of the physical nature of the property, like has the building been altered or not. Post WWII properties need to score 75 out of 100 points; Victorians only have to score 50 points. The standard has been set high so that these are the best. Staff scored this property 86 and HPC agreed with this. In addition to meeting these criteria, the property has to be associated with an important event, pattern, trend or people. This building is an important trend in Aspen's history as the chalet style was developed after World War II when the ski resort was being formed. The chalet style was used for tourist lodges as well as single-family homes. The building has deep overhangs, decorative railings, and stucco base with wood siding. Staff and HPC recommend that this property meets all characteristics in order to be designated as a historic landmark. Ms. Guthrie pointed out the historic landmark lot split is an important benefit that has been working well in Aspen since 1995. HPC has found this is a good way to meet a lot of objectives; takes the development pressure off 6 Regular Meeting Aspen City Council March 22, 2004 the historic structure and puts it in a detached structure while allowing the property owner to obtain all development rights they would have had for their property. The standards for historic landmark lot split are that the property is in a zone that allows lot splits. This property is zoned R-15 and allows lot splits. The property must also meet a minimum lot size of 6,000 square feet; this property is 9800 square feet. The lot-split standards state that the development potential for the lot needs to be specially allocated on the plat. Ms. Guthrie pointed out what can be developed on this property is no bigger than would could be redeveloped as a single-family house. The existing structure is about 2200 square feet and the 2,000 square feet that can be added will all be in a new structure. The new structure will have to adhere to all setback requirements; no variances will be allowed from HPC. Staff and HPC recommend approving the project as proposed. Tony Welgos, applicant, said they have been in this process over 3 years. In the beginning, they were opposed to having their house historically designated; however, as they went through the process, they got comfortable designating their house and seeking a lot split. Welgos said the proposal fits with the infill idea the city is working on. Cathy Welgos told Council they were invited into this process and after much work at understanding the process, would be glad to have their house listed as a historic landmark. Ms. Welgos said it is important to save tangible examples of Aspen's history. Gil Sanchez, representing the applicants, reminded Council during the post WWII designation process, Council directed the HPC to stop the process and to start a community-wide discussion on historic preservation, the important elements of the recent past to Aspen, and appropriate economic incentives, one of which was the lot split. Sanchez noted that HPC has not reviewed any post WWII structures and 6 have been demolished or delisted. Sanchez reiterated the Welgos are the first property owners to request historic designation and the appropriate incentives. Mayor Pro Tem Richards opened the public hearing. David Eddy, across the street from this property, urged Council not to approve this ordinance. Eddy told Council he has the support of 19 of the 22 residents living on Riverside Drive. Eddy said the objections are based on the belief that the proposed plan will alter the house and its setting in an irreparable way rather than enhancing the historic setting. Eddy said the approval of the proposed changes and FAR bonus and setbacks do not meet Regular MeetinR Aspen City Council March 22, 2004 the HPC's criteria. Eddy said there are alternatives that do not require altering the house or receiving an FAR bonus. Eddy stated they are not contesting the historic designation but the proposed project that does not accomplish what it should. Eddy said the proposal does not leave the house in its current condition; it moves the front entrance and porch, requires new windows. These changes do not preserve the historical nature of the house. This house has already undergone significant restoration. This plan affects the setting of the house and fills the lot with a new structure, which will obscure the historic house. This lot is the smallest in the neighborhood. The plan provides no arrangements for parking. Eddy noted there will be a setback variance between the existing historic structure and the new house. Eddy submitted for the record a list of how the HPC criteria are not met. Sheree Grinell Eddy protested this application. Ms. Eddy said this neighborhood has been protected by the city's code, which try and preserve the beauty of Aspen. These include FARs and setback requirements. This application disregards all of these..There are not lot line to lot linehouses in the neighborhood. HPC disregarded their principles. Ms. Eddy noted the HPC is allowing new windows and allowing the entrance to be moved. The roof is not original. There is only one side in tact. A lot split, variances, a FAR bonus, and disruption to the streetscape is a high price to pay for 350- foot facade of WWII history. Dusty Hamrick, neighbor to the east, opposes this application because the front of this house is the historic section, which faces the street. Neither the sides nor the roof are in their original state. Ms. Hamrick presented diagrams showing what is not original and the proposed alterations. Ms. Hamrick said a lOt split and a new house 10 to 13 feet away will destroy key features of this structure. A new structure to the west will destroy the garden like setting and eliminate the trees to accommodate parking. This will have a negative impact on the visual attractiveness of the area. This project will require parking on the street nearly end to end of the entire property. Ms. Hamrick said a shed was added on the east side of the building in 1979. This shed was included in the FAR allowance. The present requested variances have not included the shed as part of the FAR. Ms. Hamrick said the shed should be eliminated as it has no histOrical value. Dick Osur, 1300 Riverside Drive, opposed this application as the requested variances and FAR bonuses do not meet the required criteria described in the document "benefits for historic properties in Aspen". This document states Regular Meetin~ Aspen City Council March 22, 2004 dimensional variances can be approved if it is shown they are part of a proposed development that has no negative impact on the character defining features of the designated property. Osur said these variances will have some negative impact on the character defining features. Osur said the west facing side is the most architecturally prominent elevation of the house. The request for the FAR bonus does not meet the criteria described in a staff memorandum noting 26.415.110.E, which lists several criteria stating an FAR bonus should meet as many of these as possible. Osur said this FAR bonus will meet almost none of these criteria. Osur said the proposed changes for 1295 RiverSide do not meet the code's criteria, are bad for the neighborhood-and are bad for the house. Andy Welgos told Council he supports his parents' efforts in trying to preserve this house. Ryan Welgos also supports his parents and the historic designation and lot split. Toni Kronberg asked if this structure were to be tom down, what could be built in its place. Mayor Pro Tem Richards said a 4200 square foot house plus a 250 square foot garage. Ms. Kronberg recommended Council approve this application to help maintain the heritage Aspen is so proud of. Mike Hoffman, HPC member, noted Council and HPC created the lot split incentive for historic preservation and so that it would be more predictable. Hoffman said the ultimate issue is density. Hoffman told Council HPC felt the criteria and standards were met by this application. Hoffman said the ability of a property owner to make use of historic preservation incentives is at stake. Elliott Robinson, RiVerside Drive, said that Aspen is a family of residents, government, and visitors. Robinson asked that Council think of this neighborhood as a family and do what is best for the Welgos', the citizens of Riverside drive, and the entire town. Tom McCabe said one reason land use issues are always adversarial is the increased value of land in the community. The value associated with changes is high enough that it causes concern. McCabe said this ordinance tries to have a representative sampling of Aspen's history throughout time. The city went throughout a long process that included the community input into what is important is historic preservation. McCabe said preserving this structure will be preserving a small, representative sample of what Aspen was and what it would like to be remembered for. 9 Regular Meetin~ Aspen City Council March 22~ 2004 Dale Hower, 1285 Riverside, said a 4200 square foot house could be built on this parcel; however, with the 500 square foot bonus, there will be 4700 square feet on the parcel. HPC has given benefits to the property owners but they did not take into consideration are the neighbors. Mayor Pro Tem Richards closed the public hearing. Ms. Guthrie reminded Council it is the HPC's purview to make determinations about setbacks, variances and FAR bonuses and they have already made a decision about these. Councilman Semrau asked if the only variance in this project is the internal lot line variance with the existing structure. Ms. Guthrie said yes, HPC granted a setback on an internal lot line and a 500 square foot bonus. HPC will review a storage shed later this week. Ms. Guthrie noted everyone is eligible for a 250 square feet storage or garage exemption, which is why the shed does not appear in the calculation of floor area. Councilman Semrau asked if there are any perimeter setback variances. Ms. Guthrie said there are not. Councilman Semrau asked if this house is demolished and a new structure is built would the perimeter setbacks change. Ms. Guthrie said a new structure could get closer to the perimeters than the current structure. Councilman Semrau asked about the parking variance. Ms. Guthrie said there is no parking variance. Everyone is required to have at least 2 on-site parking spaces. HPC will review the location of the parking pad. Councilman Semrau noted a rebuilt structure could have a 4,000 square foot footprint. Councilman Torre asked how the FAR bonus becomes part of historic designation. Ms. Guthrie said this has been part of the historic designatioh regulations since the 1980's with the thought that it could be good motivation for a preservation project. This is an HPC decision. Mayor Pro Tern Richards asked if the new structure will have HPC review. Ms. Guthrie said Council is designating lot 20, which is the existing property, and anything that happens on that site will have HPC review, including notice to the neighbors. Councilman Semrau moved to adopt Ordinance #3, Series of 2004, on second reading; seconded by Councilman Paulson. Councilman Semrau said when Council spent hours on the historic preservation policies, one goal was to let property owners to allow historic 10 Regular Meeting Aspen City Council March 22, 2004 preservation to be part of Aspen. Councilman Semrau said given HPC review of the new structure, this process has worked. Councilman Paulson said Council is trying to preserve what Aspen is about. The code is not perfect and he would welcome any Suggestions to make it better. Councilman Torre said the neighbor to the east is the most impacted and she has made some requests about the trees and shed. Councilman Torre said he hopes these concerns will be taken into consideration. Mayor Pro Tem Richards said chalet style architecture is a large part of Aspen's early ski history and pieces of this history need to be preserved. This is a good opportunity to keep local working families in town. Roll call vote; Councilmembers Torre, yes; Semrau, yes; paUlson, yes; Mayor Pro Tern Richards, yes. MOtion carried. ORDINANCE #6~ SERIES OF 2004 - Maroon Creek ROad Annexation John Worcester, city attorney, told Council this is the final step in annexation. The Maroon Creek road went through a series of steps, including public hearings, to determine whether the proposed annexation was in compliance with the state annexation act. Council has determined this is eligible under state statutes for annexation. Worcester reminded Council this is purely a legislative actiOn. They may apprOve or diSapProve. Randy Ready, assistant city manager, said at first reading, council asked for projected sales tax from Aspen Highlands and actual sales tax. Ready noted Highlands Village is performing at 32% of projections made in 2000. Steve Barwick, city manager, said for the general fund, the projection was that the Aspen Highlands annexation would break even. With the retail performance to date, the city is not even making back their direct costs. Brian Pettit, county public works director, said this road is a primary infrastructure that services Highlands; it has been annexed by the city and the county is 'still maintaining the road. Pettit said the city and county work cooperatively to maintain roads. The county is currently plowing the Maroon Creek road from Iselin Park up. Pettit said the issue is not the conStructability of the road; the county insured Highlands built the road up to the standards and volumes that are being serviced. This is about maintenance. Pettit noted another issue is consistent enforcement of parking as well as consistent management of the corridor. Pettit suggested an IGA for plowing and maintenance of this road. Regular Meeting Aspen City Council March 22~ 2004 Mayor Klanderud said her concern is that city staff does not feel the road is well constructed and there may be large expenses required to fix it in the near future. Councilwoman Richards said it might be appropriate to table this until there is a IGA presented for consideration along with this annexation. Councilwoman Richards said this is a request to take on all future responsibility for maintenance as well as reconstruction. Barwick agreed long term there is significant financial exposure with no revenue coming in. Mayor Klanderud opened the public hearing. Toni Kronberg said Maroon Creek road is one of the outstanding issues from the 1990's parks and recreation bond that has not been completed. Ms. Kronberg said the city has a moral responsibility to keep up this road because Highlands has been annexed into the city. Ms. Kronberg pointed out Maroon Bells is one of the biggest tourist attractions and the road should be taken care of. Ms. Kronberg said there should be wider asphalt for bicycle traffic. Ms. Kronberg encouraged the city to annex this road. Mayor Klanderud entered letters into the record from Georgia Hanson and Lynn Mace in support of the annexation. Mayor Klanderud closed the public hearing. Mayor Klanderud asked if staff has a cost estimate on repairs necessary on that section of road. Barwick said staff has not made these cost estimates. If Council wants to annex that section, Barwick would recommend table this action until staff does have cost estimates. Ready said this is a long-term liability issue; there will be continued erosion of the hillsides and edges of the pavement. Pettit told Council the developers addressed the geotechnical issues when they rebuilt the road. Barwick said the city's engineers feel there are some serious long-term problems with the road. Councilwoman Richards said the city has very tight budget concerns as she does not want to add financial burdens to the general fund. Councilwoman Richards moved to adopt Ordinance #6, Series of 2004, on second reading; seconded by Councilman Semrau. 12 Regular Meeting Aspen Ci,ty Council March 22, 2004 Mayor Klanderud said she is going to vote against this. The complaints of residents on this road should be directed 'to the county. The issue of law enforcement on Maroon Creek is a longstanding issue. Mayor Klanderud pointed out Highlands area and Maroon Creek are the most highly served with transportation in the upper valley. Roll call vote; Councilmembers Paulson, no; Torre, no; Richards, no; Semrau, no; Mayor Klanderud, no. Motion NOT carried. RESOLUTION #22, SERIES OF 2004 Merrick & Company Contract for Digital OrthophotographY Mary Lackner, GIS department, presented two contracts for aerial photography; one is 1"=500 and 1"=250 and the latter costs more money. Staff recommends 1"=250 which can be flown at a lower elevation and will provide more clarity. Ms. Lackner told Council GIS maps generate between $40,000 to $50,000 annually. This is a product that developers like. Ms. Lackner said it also provide a good city archive; the city has acquired aerial photographs from the 1960's to the present. Councilman Paulson moved to approve Resolution #22, Series of 2004, with the 1"=250 contract; seconded by Councilman Semrau. All in favor, motion carried. RESIDENCES AT LITTLE NELL BUY DOWN OF AFFORDABLE UNITS Julie Ann WOods, community development department, told Council the applicants for the Residences at Little Nell would like assuranCes from Council they will get credit for affordable housing mitigation for buying down units from Obermeyer that they were directed to pursue at conceptual approval before they sign the contract. Jim Curtis, representing The Residences, reminded Council at conceptual, approval one of the options in Resolution #33 was the ability to buy down RO units to deed restricted units for affordable housing mitigation. Curtis said representatives of Obermeyer and The Residences have been working on a buy down agreement for months. Obermeyer has approval for 21 resident occupied units, in 6 two- bedroom units and 15 one-bedroom units. The buy down agreement would be to take the 15 one-bedroom units buying 7 of them to category two and 8 of them to category three. The buy down agreement will pay to Obermeyer 13 Regular Meetin~ Aspen City Council March 22~ 2004 $3.2 million, which is the difference between the deed restricted price and the RO price. Obermeyer will sell the category 2 units to qualified buyers for $87,2000 and the category 3 units for $135,200. Curtis told Council the Obermeyer project is ready to activate the construction loan and they need to show a level of pre-sales to the lender, including 20% non-refundable earnest money. The Residences will be writing a check for their buy down units and they would like assurances that they have an asset, which is credit for housing 26.25 employees. The city will get 15 deed restricted category 2 and 3 units; Obermeyer can activate their construction loan, and the Residences get housing credits. The housing credits will come to Council again as part of the final planned unit development approval. The Residences would like assurances that this credit has been created. Brook Peterson, representing the Residences, said if Council recognizes this asset, he needs assurances that if the Residences are not approved or are not built that the Residences has the ability to recoup that money by selling the units to another developer. Ms. Woods suggested this credit be tied to the Residences. In the event that project does not get approval or does not go forward, they would have the ability to come back to Council and discuss where these units might be applied. John Worcester, city attorney, pointed out depending on the nature of a project, Council allows on-site or off-site affordable housing. Worcester noted Council cannot make a decision on housing for a particular project and these off-site affordable housing credits without any specifics. Worcester said accepting these credits may put pressure on Council.during consideration of the Residences. Worcester said he is also concerned about selling these credits to a 3rd party. It would also have to be made clear that there is no precedential value in granting these. Worcester asked if the deal can be structured so the money for the units is refundable if the Residences do not get approved or built. Tim Belinski, representing Obermeyer, said the deed restriction will not be applied until the transaction is closed and the units are completed. Peterson said it is his understanding once they have committed to down payment, that money is not refundable even if the Residences do not get approved. Peterson said he cannot give $600,000 to Obermeyer without knowing he is getting an asset. 14 Regular Meeting Aspen City Council March 22~ 2004 Councilwoman Richards asked what is the cost of the RO units. Councilman Semrau said these are being bought down from about $290,000. Councilwoman Richards said instead of 21 ROs and 15 affordable units, the city is only getting 21 total housing units. Mayor Klanderud said this will be a very mixed-use project with free market, RO units, category units, SCI uses, and medical offices. Mayor Klanderud said she likes the value to the community of getting 15 category 2 and 3 units. Councilman Semrau said the Residences are paying $205,000/bedroom buy down subsidy. Councilman Semrau reminded Council the argument the Residences made for off site affordable housing was that the land next to the ski area was much more valuable for short term accommodations. Councilman Semrau said rather than allowing these units be available for trade, he would like to see the deal structured some other way. Councilwoman Richards asked if the deed-restricted units will be the same size as the RO units would have been. Belinski said the overall square footage dedicated to housing will be the same as was approved in the agreement. Councilwoman Richards asked if these units will be smaller than they would have been had they been sold as RO. Belinski pointed out the overall square footage and unit count was determined in the conceptual approvals. Belinski said if the deal with the Residences does not work, Obermeyer will have 15 one-bedroom 700 square foot units that they can either sell to another developer in a bUy down or sell as RO units. Councilwoman Richards said it seems as if the Residences are not buying down RO units but are buying category 2 and 3 units. Councilman Semrau agreed that Obermeyer is substituting category 2 and 3 units, which can be much smaller. The original agreement was buy down RO units, not substitute category 2 and 3s. Belinski said the RO units will be 2 bedroom 2 bath of 1100 square feet. Steve Semanski, development team, said there was a reallocation of size. The total square footage for affordable units will still be 15,750. Dwayne Romero, Obermeyer, told Council the category 2 and 3 units will be 650 to 700 square feet; the ROs will be over 1000 square feet. All units will have underground parking, extra storage space. Peterson suggested for the credits, they would be subject to Council's approval in connection with the planned unit development or Council approval for anOther project. Peterson said he does need an assurance if the Residences give Obermeyer project $600,000 and they cannot use these, some other project might be able'to buv and use them. Councilwoman 15 Regular Meeting Aspen City Council March 22, 2004 Richards said the community is not getting the original agreement, which was 21 RO units. Belinski said there is still 15,750 square feet of affordable housing and 21 units are still in the project, just in a different configuration. The city is still getting 21 deed-restricted units. Councilwoman Richards said there is a reduction in the total number of units that could have been built between these two projects. Councilman Semrau moved to direct staff to write a letter to the applicant for the Residences at the Little Nell with the change that the application of these housing credits to another project if the Residences is not approved is subject to Council's approval and this is no guarantee of approval of the Residences; seconded by Mayor Klanderud. Councilwoman Richards asked if these units will be in a housing lottery. Belinski said under the approvals with Council, Obermeyer has the right to find the first buyer, as long as they are qualified by APHCA. Belinski said they hope to offer these first to employees of the SCI uses on site. Belinski said they would also like to offer these to employees of Sport Obermeyer. All in favor, with the exception of Councilman Paulson. Motion carried. RESOLUTION #3~ SERIES OF 2004 - SPARC Agreement John Worcester, city attorney, reminded Council they have seen this agreement amendment earlier. The issue was two sheets of ice and how and where to accomplish that. Worcester said the city and SPARC agree that (d) can be eliminated entirely and the agreement will meet the intent of both parties. The city continues to commit to two sheets of ice for a period of 30 years. If the city wants to replace either existing sheet of ice, they may do so as long as a second sheet of ice is built somewhere. Councilman Paulson moved to approve Resolution #3, Series of 2004; seconded by Councilman Semrau. All in favor, with the exception of Councilman Torre. Motion carried. Councilman Semrau moved to go into executive session at 8:15 pursuant to C.R.S. 24-6-402(4)(a) discussion of real property acquisition, 24-6-402(4)(b) personnel and 24-6-402(4)(e) negotiations with counsel; seconded by Councilman Torre. All in favor, motion carried. 16 Regular Meetin~ Aspen City Council March 22~ 2004 Councilman Paulson moved to come out of executive session at 9:45 p.m.; seconded by Councilman Semrau. All in favor, motion carried. Councilwoman Richards moved to continue the meeting to March 23 at 7 p.m. to discuss the Bar/X Soldner Access Road Agreement; seconded by Councilman Torre. All in favor, motion carried. K~/y~ S. Koch, City Clerk 17