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Home My WebLink Aboutagenda.council.worksession.20171016 CITY COUNCIL WORK SESSION October 16, 2017 5:00 PM, City Council Chambers MEETING AGENDA I. Budget: Kids First / City Housing Funds (Housing Development) II. Wheeler Restaurant Lease P1 2018 Proposed Budget October 16, 2017 P2I. Kids First Fund 2 •Dedicated Sales Tax •Rents / Utilities for Yellow Brick •Reimbursements and Grants •Investment Income 55% of 0.45% Sales Tax $1,843,400 Other Revenue $120,210 Rents and Utilities $159,080 Childcare Program Support (Grants) $20,000 Reimbursable Support $20,000 Revenues = $2,162,690 P3I. Kids First Fund 3 •Financial Aid and Program Subsidies Enrollment Support o Need based & overall tuition buy-down Program Support o Improvement grants, teacher training, direct support,capital assistance •Capital Improvements Minimal Sink and Drain Replacement: $21,200 Administrative $267,510 Facility Maintenance $201,580 Enrollment Support $673,850 Childcare Program Support $632,760 Transfers Out $266,510 Capital $21,200 Expenditures = $2,063,410 P4I. Kids First Fund 4 50% 60% 70% 80% 90% 100% 110%Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Infant 50% 60% 70% 80% 90% 100% 110%Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Toddler 50% 60% 70% 80% 90% 100% 110%Oct-14Jan-15Apr-15Jul-15Oct-15Jan-16Apr-16Jul-16Oct-16Jan-17Apr-17Jul-17Preschool Average Quarterly Enrollment P5I. Kids First Fund 5 Supporting Aspen’s Workforce All Reporting Programs* Aspen Childcare Programs Snowmass Village Childcare Program Basalt Childcare Program Total Families Reported 263 178 27 58 Families That Live or Work in Aspen 211 167 13 31 Ratio Live/Work in Aspen to Total Families 80%94%48%53% * Does not include families at the Cottage or Playgroup P6I. Kids First Fund Net Change to Fund Balance: $99,280 6 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve Requirement P7I. Housing Development Fund 7 •1.0% Housing RETT •Share of 0.45% Sales Tax •Rents / Lease Revenue Edge of Ajax, Lumberyard, Benedict Commons, Hyman & Main Street Units •Burlingame Units1.0% Real Estate Transfer Tax $6,750,000 Investment Income $654,400 Sale of Four SF Housing Units $5,000,000 Transfers In $100,000 Sales Tax (45% of 0.45%) $1,508,200 Property / Facilities Maintenance $570,600 In Lieu of Development $250,000 Other Revenue $280,238 Revenues = $15,113,438 P8I. Housing Development Fund 8 •Capital ▪2017 / 2018 Public Private Partnership ▪2020 / 2021 Burlingame (Tentative) •No Subsidies This Year •Truscott I Subsidies Continue in 2019+ •Marolt Debt Service Expires Dec 2017 Administrative $411,200 Property / Facilities Maintenance $79,150 Capital Project (Public Private Partnership) $16,480,020 Transfers Out $687,780 Expenditures = $17,658,150 P9I. Housing Development Fund 9 Net Change to Fund Balance: ($2,544,712) $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 $50,000,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense P10I. 10 FY 2018 150 Housing Development Fund ASPEN HOUSING PARTNERS (AHP) Public/Private Partnership (PPP) Development of Affordable Rental Housing Utilizing the Low Income Housing Tax Credit (LIHTC) Program Aspen City Council Work Session Oct 16, 2017 P11I. Last year at this time, we said we would… 11 AHP, with oversight by staff: ✓Community outreach process ✓Present community outreach findings to City Council ✓Submit Council-approved development applications (49 Units) ✓Final/approved development agreement with AHP ✓Entitlements process PUBLIC HEARINGS CURRENTLY IN PROCESS ❖Final designs (2017/2018) ❖LIHTC Application / Funding (2018) ❖Permitting / Construction (2018-2019) ❖Tenant qualification / Lease-up (2019-2020) ❖Operation and Maintenance (2020-2035+)P12I. Approved development agreement with AHP 12 July 2017, City Council approved the AHP development agreement which contained three potential funding scenarios… 2018 budget request = $16,400,000 Carry-forward from 2017 = $600,000 Total 2018 Available = $17,000,000 P13I. Remaining Fund Balance?.. Future Projects 13 ❖Truscott II tax credit buyout / re-syndication? / refurbishment? / reconstruction? (2018-2019?) $$ ❖T100 redevelopment (2018-2019?) $$$ ➢What are the (re)development alternatives? ➢Challenges: Parking and current tenants, logistics? ❖Burlingame Phase 2B (2019-2021?) $$$$ ➢79 affordable condos plus 2 single family homes ➢Community outreach process ➢Demand verification ➢Development model ❖Future Land Acquisition? $$$$ ❖Lumber Yard Redevelopment (when to start?) $$$$$P14I. Truscott Housing Fund 14 •Rental Rate Increases •No Subsidies for 2018 Rents $1,211,300 Other Property Income $46,440 Revenues = $1,257,740 2015 2016 2017 2018 Proj. Truscott I 3.0%1.5%1.5%1.5% Marolt Tiered 0.0%6.3%0.0% Smuggler 3.0%1.5%1.5%1.5% Truscott II 3.0%1.5%1.5%1.5% ACI 3.0%1.5%1.5%1.5%P15I. Truscott Housing Fund 15 •Property Management Fees •Debt Service Through 2021 •Capital: $18,100 Snow Removal Equipment: $10,000 Plumbing Bldg 100: $8,100 •Portion of Shared Vehicle:$6,030 Administrative $15,200 Property / Facilities Maintenance $476,980 Debt Service $707,700 Property Management Services $145,400 Capital $18,100 Transfers Out $125,800 Expenditures = $1,489,180 P16I. Truscott Housing Fund 16 Net Change to Fund Balance: ($231,440) $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve P17I. Marolt Housing Fund 17 •Seasonal Rate Increase: 1.5% Bridge Closure Boost in 2017 Change to Ladder Approach in 2018 •MAA Lease Contract through August 2019 Rental Income $1,135,690 Other Income $68,490 Cafeteria Lease / Music Room Rentals $24,400 Revenues = $1,117,160 P18I. Marolt Housing Fund 18 •Property Management Fees •Last Debt Service Payment: Dec 2017 •Capital Projects: $150,550 ▪Boiler Replacement: $49,000 ▪Exterior Paint: $30,000 ▪Carpet Replacement: $25,000 ▪Furniture & Fixtures: $15,750 ▪Interion Painting of Units: $10,000 ▪Remaining Projects (4): $20,800 Administrative $5,020 Property / Facility Maintenance $347,260 Property Management $136,300 Capital $150,550 Transfers Out $157,900 Expenditures = $797,030 P19I. Marolt Housing Fund 19 Net Change to Fund Balance: $431,550 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 2017 Forecast 2018 2019 2020 2021 2022 Ending Fund Balance Revenue Expense 12.5% Reserve P20I. Page 1 of 2 MEMORANDUM TO: Mayor and City Council FROM: Sara Ott, Assistant City Manager DATE OF MEMO: October 12, 2017 MEETING DATE: October 16, 2017 RE: Council Discussion on City-Owned Restaurant Real-Estate REQUEST OF COUNCIL: Members of City Council have requested a work session to have a policy discussion regarding the City’s role in providing incentives for local serving restaurant(s) in city-owned real estate and to be familiarized with decision points associated with any request for proposal process should city-owned restaurant space within the Wheeler Opera House become vacant. PREVIOUS COUNCIL ACTION: Approval of lease for Fiercely Local, LLC, d/b/a Justice Snow’s in May 2011. BACKGROUND: The City currently leases space to two restaurants within Aspen: Justice Snow’s located in the Wheeler Opera House and Taster’s Pizza located within the Rio Grande Office Building. The restaurant space within the Wheeler Opera House and surrounding outdoor dining are a key part in the activation of the Wheeler Opera House space. In addition to meeting the demand for restaurants, the tenant provides key catering services for Wheeler events. The current lease was awarded in May 2011 after a comprehensive year-long request for proposal process and lease negotiations. During these lease negotiations, City Council had in-depth discussion about whether: to subsidize the rent below market, to ensure the restaurant was open during slow seasons, to influence the price points of menu and drink offerings, and to determine the coordination and financial responsibilities for tenant fit up. DISCUSSION: Some possible questions to aid Council in its policy discussion are: · Does the City Council wish to ensure locally serving restaurant(s) occupy city real-estate? · What does it mean for a restaurant to be locally serving? Price point? Year around operations? Other factors? · Should rent pricing be at or below market to incentivize lower menu price points? P21 II. Page 2 of 2 Request for Proposals Process: City Council has also inquired about the likely time frame for a request for proposals process should it become necessary to seek a new tenant for the Wheeler Opera House restaurant space. It is anticipated to take approximately 6 months to run a full request for proposal process. If City Council chooses this route, staff recommends the proposed lease be included in the request for proposal. Key decision points for City Council include: o Lease terms § Rent structure and amount requirements § Menu price points/affordability, if desired § Minimum operating hours/weeks per year § Lease length and renewal options o Any minimum qualifications/experience requirements o Who is reviewing the response packages – staff, Council representative, community representative? o Agreement on the request for proposal evaluation criteria o Does City Council wish to see a recommendation from the selection committee prior or after final lease negotiations? Temporary Use of the Space: This timeline may result in a period of time in which a restaurant is vacant during a high visitor season. Because of the role this restaurant space plays in the vitality of the Hyman and Mill intersection and the Wheeler’s appeal, there is a possibility of a temporary ‘pop up’ restaurant in the space under a short-term lease arrangement. If Council wishes for staff to facilitate expressions of interest from restaurateurs, staff recommends using a request for information process for local restaurateurs to propose a 4-month concept restaurant in the space. Further, staff recommends the short-term lease terms are included in the request for information statement. Council direction would be necessary regarding any requirements of the pop-up and how the review of responses will be conducted. This pop up concept assumes that the City of Aspen has possession of the restaurant space. It is unknown at this time what equipment, fixtures and licenses may be necessary. FINANCIAL/BUDGET IMPACTS: Financial estimates will be prepared based upon City Council’s direction. CITY MANAGER COMMENTS: ATTACHMENTS: none. P22 II.