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HomeMy WebLinkAboutagenda.council.special.20031209TO: ASPEN CITY COUNCIL 'FROM: NEILROSS, CFP RE: BURLINGAME DATE: 9 DECEMBER 2003 Why proceed with Buflingame? First, cost. Since the City of Aspen has already committed $10,000,000 to infrastmCture development costs for the Budingame project, I can see no justification for jettisoning its involvement now. Substituting another parcel of land would involve prohibitive capital investment. As far as environmental concerns go, I find it persuasive that only five (5%) percent of the total Buflingame acreage would be taken up by employee housing in Phase I. Approximately 50 of the 300 acres have been committed to the 12 to 15 free market homes. The remaining phases II & Iii Will occupy only another five (5%) or a total of ten (10%) of the property. Sprawl? Again, the housing occupies a mere fraction of the total acreage at the site. Even more compelling, the project would not be Visible from Highway 82. All in all, I cannot find any real justification for abandoning Burlingame in favor of another (almost certainly prohibitively expensive) site ..... if it even exists. Buflingame best serves not only the economic considerations but also the environmental and social respOnsibilities which the City has to itself and its citizens. Neil Ross 08 03 05: 12p Soldne~ Consul~an~ 668 0P87 p.1 Paul and Stcphanic Soldner PO Box 90 Aspen. CO 81612 . December 8.200:3 To: Mayor of Aspcn. Hclcn Klandernd Dear Helen, I understand that Tuesday December 9'" Aspen City Council will bc making a final decision about whether or not to go ahead with the Burlingam¢ Housing proposal. As you can imagine, Paul and i are hopeful that a decision NOT to go forward with the Burlingame Housing project will occur. AsPen has always prided itself on choosing to retain the small scale of our Community, whether the size of business signs, the height of buildings, or the redevelopment of a hotel or even thc Music Tent. All o1" these decisions were made consciously with the goal of maintaining the special character of the Aspen we all love. Certainly the purchase of the Burlingame property by the City of Aspen can be seen as a great success having already resulted in an increase of alternative housing in the Aspen area. Bod~ of the existing afl'ordable housing developments that have been (or ;irc beirig) built have made social,, economic and envjronmenm. I sense. We have historically stzpported each of these projects and understand their impurtance. Communities nationwide are becoming increasingly concerned about the complex effects of urban sprawl. Thc propo.scd Burlingamc Village is ti prime example of such sprawl. The proposed size of the development, 335 units, housing 600-I 000 people is completcly out of scale fbr our commtmity, Imagine 2000-3000 additional road trips on Hwy 82. No comprehensive study has been conducted that the public has been made aware o1' that accurately measures the huge impact a development this size will make on our schools, hospital, police and fire departments, roads, sewer, water and transportation costs etc. Aspen is facing serious fis~:al challenges. Meeting the financial obligations of this development once it has begun may become impossible. The remote location and size of the proposed Burlingame Village is contrary in every way to S,nan Growth. The fact that dogs will not bc allowed reflects thc sensitive nature of thc area. Dec OB 03 06: ]2p Soldner Ret Consultant 9?0 GG8 0237 Aspen has a renlistic and exciting opportunity to create f'or future generations a place of contemplation and recreation as well as a buffer between humans and wildlife by joining to~e~her and placing under conservation casement four environmentally important wildlife areas; Red Butte, {already protected but isolated) with Deer l lill-Burlingame, thc Zoline land (less the 12 free market homes) and 75+ acres ~t the bottom of Maroon Creek Valley ~hrough a donation fromm Connie Harvey. Paul and ! are hopeful. We. and others are commitIcd [o comJn-u¢ to help to locate sites £or af£ordablc housing in and close t<) Aspen, especially on a more human sc;dc, ll~c Aspen scale. A healthy community and environmcn[ in eve~ sense of thc word is viral to us all, Thank you for your dedicated work on the City Council! Sincerely, Stephanie and Paul Soldner CC: Terry Paulson, Torre Burlingame Village Facts; Prepared by Tim Semrau, Aspen City Council Distance from town; 3.1 miles from the Jerome Hotel (Aspen schools/Aspen recreation complex 2.2 miles from Jerome Hotel) Aspen School System Enrollment Total Students Out of district'; % Out of district High school 490 116 23.6 % Middle school 425 89 20.9 % Elementary 525 99 18.9 % Total 1,440 304 21% Open space to be used by Zoline Free market homes, by contract. 18 Free market dwellings totaling 153,000 sq. ft. FAR (North 40 total build out 72 homes 154,000 sq. ft. FAR) (Proposed Phase I Affordable housing 120,000 sq. ft. FAR) Cost of abandoning Burlingame Ranch affordable housing Traffic intersection already put in Land Cost Infrastructure to Zoline's, by contract City responsibility for Zoline's mitigation units (Land purchase/infrastructure for 65 +units) Total cost $1,000,000 $2,500,000 $6,000,000 $10,000,000 $18,500,000 Affordable housing mitigation required by Zoline's Free-mkt housing; Zero if affordable housing abandoned Proposed Burlingame Ranch Phase I 110 units (40 Single family lots) Occupancy Fall 2005 Total Burlingame ranch build out To be decided in future years, up to 330 units. Aspen Affordable Housing Strategic Plan Final Report March I9, 2002 Project Financial Analysis and Evaluation - This section includes a detailed financial analysis of the proposed development program for each site. OveralI development costs and revenues are estimated along with estimates of the project subsidies required to develop the recommended program. Because the development programs differ and a direct cost comparison is not possible, the sites were also compared assuming a relatively uniform Category 3 ownership program on eack site. The projects are also evaluated against other evaluation criteria to prioritize the available housing development options. Housing Production and Phasing Program - Based on h~using need, available resources, and the evaluation of development options, a p~tential housing development program and phasing schedule is detailed. This section also includes recommendations on housing development options and partnerships to leverage the most cost effective housing production. FINDINGS AND CONCLUSIONS The major findings and conclusions in each plan element are summarized below. This analysis provides the basis for the implementation strategies and actions that follow. 1. Housing Needs Analysis Current housing needs were estimated based on the goal of housing 60 percent of the Aspen area workforce. Based on 2000 total Pitkin County estimated employment of 21,472 and accounting for an average of 1.3 jobs per person, 1.8 employees per household and allowances for down-valley employment and out-commuting, there are an estimated 7,800 employee households and a target of 4,6~ouseholds to be provided in Aspen. Based on an existing su pptv of 3,684 units, there is an existing shortfall of 995 units. ' ' ----_. Based on an analysis of the existing workforce by job category, the income distribution of housing units was then estimated. The existing affordable unit mix by category was subtracted from the overall demand figures to determine the distribution of current need as shown in Table 2 below. The estimated need is conservative in that it does not account for the portion of the existing free-market housing stock that is not res~cted and is likely to be lost when employees retire or sell their residence. e- SUMIvlARY OF NATURAL B URLINGAME RANCH FEBRUARY 13, 2001 Sagebrush Shrubland: Shrublands dominated by big sagebrush (Se['iphidium tridentamm) occupy the deep, fine-grained soils of th'~e valley terraces and lower hillsides. Muck of this habitat has been replaced by irrigated hay meadows on the Hat terraces or has been impacted by cattle ~azing. Shrublands are present in the study area on the slopes of Deer Hill, the two small hills, and in scattered areas. Montane Shrubland: These shrublands, dominated by Gambel oak (Quercus gambelii), are extensive on south-facing slopes 'in the vicinity ~.l' Aspen. On some of the northern exposures, moister and cooler conditions have permitted the establishment or' individual Douglas fir (Pseudotsuga menziesii) in.termixed within the montane shrubland. In the immediate vicinity of Aspen, Deer Hill has one of the few remaining examples of this community type. Wildlife According to the Colorado Division of Wildlife (CDOW) Wildlife Resource Information System (WRIS), the project area is not identified as supporting any seasonali wildlife range or critical wildlife habitat (CDOW 2001). Sightings of elk On the project' site are rare but elk have been observed using the area during severe winters (Cardomone 2001, Ellsperman 2001) and several sources report a resident mule deer population (Cardomone 2001, Ellsperman 2001, Wright 200I). Large predators such as black bear are known to move ttirough the riparian corridor along the Roaring Fork River (Wright 2001). Bald eagles may also use this corridor but there are no known nesting or r$ffsdng sites in the area. Historically, golden eagles have roosted and probably nested on Butte (Cardomone 2001). In general, the dense montane and sagebrush shrublands in the project` a. rea provide good habitat f0-r"s:~cialist bird sPe6ieS'such as"~en-tail'ed towhee, BreWer's sPai~r~~ and common nighthawks (Cardomone 2001, Vidal 2001), Threatened, Endangered. Species According to the Colorado Natural Heritage Pro.am (CNI-tP) database for the area. the property does not' support:~,~urr~t ~"~)oiehti~ll~ ~'en'ed 0rj~_.n.-~I__ang~,..~ ~$$ourc~$ Corporation Three Myths #1: "Most of us live in affordable housing" #2: "Burlingame would bust the school budget" #3: "AH residents are aging and housing doesn't serve younger workers" Or: I~/~hy we will never house 60% of the workforce, the schools may have to import more students from out of district and how even Burlingame won't stem the loss of worker housing. By Carlos Green ~ ~ Carlos Green is a fictional character (see 1998 Community Plan Update) who can't take credit for the many people who contributed information contained in this document including the citizen planners for AACP 1993 and 2000, the housing office, the state demographer's office, Linda Ventroni and Northwest Colorado Council of Governments and the Aspen School District capacity committee. Thanks to all of you, prepared by Mick Ireiand, not paid for with tax payer dollars and not endorsed by any PAC, government or source referenced herein. 78OO 6800 Burlingame 5800 won't come close to 46oo replacing 3600 losses 2800 of local housing. ~6oo 80O to Aspen AH 66%' 34% -200 !1~ Added downvalley households, 2013 [] Downvalley households [] Free Market ee housing [] Burligame [] Existing AH inventory Year2003 4t16 1747 1937 Year2013 981 4116 436 330 1937 Chart 1 As free market housing continues to be converted to second homes and vacation uses, the local worker population will decline even if330 units are built at Burlingame. ccording to the Aspen Area Affordable Housing Strategic Plan, the Aspen Ayrban Growth Boundary hosts about 47.4% of the workers who fill 14,000 ;on the books" jobs here. Those working households occupy roughly 3,684 units and are almost evenly split between free market properties (1,747) and designated affordable housing (1,935) units? The Aspen Area Community Plan of 1993 set a goal of housing 60% of the workforce, an objective reaffirmed by the city council last week. The Strategic Plan calls for 995units to be added to the present 3,684 in order to reach the goal of 4,679 local working units housing about 60% of the work force. The Strategic Plan specifically notes that the free market units are included in the total needed to reach 60%. 2 Politically correct mythology holds that "two thirds of us live in affordable housing." The report's finding that workers are evenly split is corroborated by the tables included in the Draft of the infill ordinance. See Strategic Plan, pages 5-9. The state demographer predicts Pitkin County will have 50% more "on the books"jobs by the year 2015, see www. http://dola.colorado.gov/demoWEconomy/CBEFLFOut, cfi;.} Housing Myths - Carlos Green Page 2 of 10 The data in Chart 1 shows why this goal is unlikely to be attained. Even with no growth in the work force over the decade, the converSion of free market housing to vacation homes, second hOmes and other uses will probably swallow up any likely additions of affordable housing, leaving Aspen with a smaller local working population and lower percentage of workers housed then today.3 The Strategic Plan states (Page 6): "It should be emphasized that the portion of the housing stock that is not restricted (the 1, 74 7 units described above) is not likely to be resold at affordable rates in the future. Thus, the City should monitor the number of local employee-households residing in restricted as well as market rate homes to ensure that both types of housing are accounted for in evaluating the City's total need for housing. ' 3 The 2000 AACP wisely chose to look at housing through a "critical mass" perspective calling for 800 to 1,300 units in hopes of establishing a sufficient local population to for a sustainable community. The 60% goal may be unrealistic given the loss of so much free market for local workers and the expected continued growth in jobs. The state demographer's office forecasts a 50% increase in jobs by 2015 in Pitkin County, about 25,000 jobs instead of the present 17,000. Meeting that goal would require 2,340 units to house 60% of the new jobs, 995 units to reach 60% of the existing jobs and replacement units for the loss of free market units currently occupied by workers that are convened to vacation homes. Housing Myths - Carlos Green Page 3 of 10 800 West End Aspen Age Group Changes t990-2000 [[]2ooo 7O0 60O 5O0 4O0 300-- 2O0 100 0_~ -100 I 0-4 I ~2000 16 .~$% 69 23 103 115 104 157 76 663 64 33 123 163 154 107 49 727 8% -30% -16% -29% -32% 47% 65% -9% Chart 2 The predominantly free market neighborhood between Main Street and the Roaring Fork River and from Highway 82 (original) to the river on the East End lost population from 1990 to 2000. Every adult age group under 50 years old lost population and those losses were not offset by the growth in the 50 plus groups. (Www.census.gov) Burlingame, even at the 330 build out projection, is unlikely to replace even half of the units lost to conversion over the next decade. The data over the last 15 years shows conversions result in second or third home ownership and falling populations in neighborhoods that are predominantly free market. Chart 2 is based on census block comparisons between 1990 and 2000 for a neighborhood that includes the grid streets south of Main Street on Aspen's West End and the neighborhoods of East Aspen. In spite of a handful of AH projects in this neighborhood (mostly along Main Stree0,the net population loss was 9% and particularly large losses were experienced by younger age groups. 18-21 year olds declined by 30%, those aged 30-39 fell 30% and 40-49s fell 32%.4 4 Source: US Census ,,www.census.gov. Similar results were found in other free market neighborhoods. The steep declines in residents under 50 were partly off set by explosive growth in the 50-59 and 60-69 age groups. Housing Myths - Carlos Green Page 4 of l0 common sense and casual observation shows that gentrification will continue to erode the local worker housing stock as has been the case since 1987 when 60% of the workforce lived in the town. A recent review of 262 local resident owned properties (Assessor data) and public data bases found the median age of owners of free market housing is approximately 60, meaning many of our locals living in flee market are at or near retirement age? Median prices for the West End properties were about $1.8 million for those homes. The pattern in Aspen is repeated in Vail, Breckenridge, Winter Park and other ski resorts where local worker earnings cannot compete with the income of part time residents. In the Northwest Council of Governments region, a recent survey of 1,350 home owners found extraordinary income and buying power for part time residents throughout the region from Winter Park to Aspen. In Pitkin County, the median survey result showed income of about $350,000 a year, the 99th percentile for the nation. The assertion that free market," ***housing stock is not likely to be resold at affordable rates in the future." probably ranks as the understatement of the year. The estimate that 75% of the free market housing stock will be converted from worker housing to part time residences is quite likely a conservative assumption. 5 Seven neighborhoods including Snowbunny, Red Butte, Homestake, Bonita, Red Butte, the West End grid streets, Aspen Grove and Mountain Valley were studies. Assessor records were analyzed for 262 locally owned properties with resident owners. Housing Myths - Carlos Green Page 5 of 10 In district enrollment fluctuates 1110 1100 1090 - 1094 ~ 1097 1080 1070 1060 lo2s · lo15 ~ 1007 1050 [~ Sedesl 1040 1030 1020 1010 1000 1997 1998 1999 2000 2001 2002 2003 2004 Another concern raised about Burlingame is the specter of overcrowded schools resulting from the creation of 330 affordable housing househOlds. "Overcrowding" is of course relative and depends on policy decisions by the district about how many children per classroom are desired and how many out of district students are served. A review of current enrollment shows that in district enrollment has not grown very much in recent years and now stands at 1,097 compared to 1,071 in 1998. Out of district enrollment stands at 325, up from 211 in 1998.6 The small increase in in-district enrollment came during a period when at least 457 AH units were added to the inventory. This suggests that the addition of 457 units did not drive enrollment because either the units captured local families who had been living in free market housing and or the increase in local families living in AH units was offset by the conversion of free market local resident housing to second home use and displacement of families down valley.. 6 The school district committee on enrollment and capacity is working hard to assessthe issues of capacity and out of district enrollment.. "Overcrowding" or excess enrollment is partially a function of policy issues like classroom size and decisions on admission of out of district students. As currently configured, it appears Burlingame's 330 units would be a small contributor to enrollment changes since the student "supply" comes from a much larger base that includes 1,937 AH units, 1,747 free market units and hundreds of second homes and hundreds of Snowmass Village free market and AH units. Housing Myths - Carlos Green Page 6 of 10 Burlingame would add only 16% to the affordable housing stock in the Aspen area and, as seen above, AH is only a portion of the housing in the area. Students reside in free market resident housing, part time resident housing and in affordable housing. It appears from the Northwest COG study that a significant portion of part time residents have children living at home but apparently in smaller proportion than local residents. The addition of 330 units on a local housing base of 3,684 units together with Snowmass Village and the second homes contributing to the system is not a huge bump. Even if Burlingame contributed an additional 100 students to the system, that gain may be more than offset by the decline in students related to the conversion of local resident free market homes to part time use.* 7 Second home owners are far more likely to report having grown children no longer living at home than local residents, according to the Northwest COG survey. About one quarter of each group reported having children but no data is available on numbers and ages of children or where they attend school (public or private). As noted, the addition of 457 units since 2000 does not appear to have had much impact on local school enrollment. Housing Myths - Carlos Green Page 7 of 10 Aspen Population Growth by Age Sector 1990-2000 160% 140% 120% 100% 8O% 6O% 4O% 2O% 0% -20% 4 0 0-4 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85+ Popu ~1% Change'. 10.89122.16.76.80;35.951 -S.14 -4.03 ?.18%~,-23.22[-9.42 31.711134.5' 123.4151.77' 100.0178.87 j82.50 0.00%[0.00%= 17.13 Chart 3 Aspen loses population in ages 20-45 in spite of annexations and extensive AH unit development during 1990s. Local sales tax data and recent retail trends suggest that Aspen's economy may be suffering from structural changes in the local economy as well as national trends. As the local population continues to stagnate or decline, it is understandable that local serving businesses will have more difficulty that enterprises serving the growing part time resident sector. In addition, the aging of the local population in free market housing and the general demographics of the second home buyers changes the pattern of retail spending.8 Local free market owners and part time residents are much more similar to each other demographically than AH residents. The Northwest COG survey found the median age of second home owners to be about 62, compared to the 60 for local resident free market owners. The analysis of the Aspen grid streets between Main Street and the Roaring Fork river found a median age of about 40 for all residents including children while the Hunter Creek census block had a median age of 35. The town of Snowmass village also had one predominantly AH census block. The median age in that neighborhood was about 32. 8 Although Aspen gained population from 1990 to 2000, this may have been entirely attributable to the annexation of additional area including, Silverlode, Williams Ranch, Aspen Highlands, part of Buttermilk and other areas. Most free market neighborhoods saw declines in population from 1990 to 2000. Housing Myths - Carlos Green Page 8 of 10 All of this suggests that the local roots of retail decline in Aspen may have more to do with demographics than sign codes, parking regulations and airport runway lengths. Simply put, the new residents and older locals have different spending pattems and needs than the resort population of 20 or even ten years ago.9 Three major "locally serving" restaurants, Mother Lode, Chart House and Little Annie's are either for sale or gone the way of Aspen Drug. Other retail space that had some local serving aspects (such as Eddie Bauer) are gone. Likely candidates for replacement? Time share offices, free market residences, high end retail. The point is, the retail market is shifting to accommodate the spending patterns of the local consumers and further shifts in the present direction can be expected as the local resident population continues to decline. The shift in spending patterns may not be compatible with community visions and goals. If night clubs, restaurants and other local and tourist serving businesses can not successfully bid for space against the businesses aimed at retirees and baby boom second home owners, the resort could become less attractive to the next generations of skier/borders and summer visitors. 9 For most working people, income peaks at about age 50 and declines through retirement. Thus, Aspen resident owners in flee market housing may have less to spend on retail than in the past. The Northwest COG study suggests that part time residents may spend as much as one quarter of their income locally. However, the same study also suggests only 30% of that spending is on sales taxable items with much of the rest focused on personal services that are exempt from sales tax. Ironically, the AH resident with a smaller income may contribute quite a bit in sales tax since much of his or her spending is on sales taxable purchases. Housing Myths - Carlos Green Page 9 of 10 Conclusion: Even at 330 units, Buflingame will not come close to replacing free market units now housing workers that will be converted into second or third homes. About half the Aspen area workers now housed in the area live in free market homes that are unlikely to be sold to workers as present owners retire. The likely impact of Burlingame on school enrollment is minimal - the addition of 457 units since 1998 had little effect on school enrollment. As part time residents replace locals in the 12747 free market units housing workers, the demand for school space may decline enough to more than offset any gains caused by Burlingame. Baby boom second home owners and free market locals are predominantly 55 and older and are reshaping the retail market away from the youth/tourist orientation with the result that we may expect fewer local serving businesses, restaurants and night clubs and more real estate offices, high end retail and personal service businesses. Burlingame could offset part of the loss of local residents and help support the locally oriented retail base. Housing Myths - Carlos Green Page 10 of 10