HomeMy WebLinkAboutminutes.council.19811119Mayor Edel called the special meeting to order with Councilmembers Knecht, Michael and
Parry present.
Sunny Vann, planning director, said the first item on the agenda, Aspen Inn request for
an amendment to the 1978 G~P, has been tabled' for several months for the staff to be able
to make decisions as to whether or not the application complies with the city's zoning
regulations. The applicant has been compiling additional information, the staff thought
this was complete but the building department has problems with the latest submission. The
staff requests this be tabled until this matters can be taken care of and be tabled to a
date uncertain. When the applicant notifies the staff, this will be scheduled for Council.
Council agreed.
Vann told Council the second item, the 1982 lodge competition, there have been two appeals.
Both applicants have appealed the process. Vann said the staff was prepared to present
this; however, the continuing staff review of the Aspen Inn GMP amendment for 1978 has
raised some questions regarding the 1982 application for further extension of the 1978
project, which may or may not relate to this particular appeal. This may make some portion~
of the appeal a moot issue. The staff has contacted both applicants for the 1982 lodge
quota and is requesting additional information from the Aspen Inn in order to make final
determination as to whether this will affect this year's appeal. Staff is also requestin~
this be tabled to a date uncertain until staff can resolved 1982's Aspen Inn submission.
Council agreed to table this.
1982 QUOTA/GMP
Alan Richman, planning office, told Council normally determining the quota would not be
of much controversy. There are several sections of the Code which provide methodology
for staff to calculate the quota in lodge, residential and commercial. This has to do with
the number of units constructed, those not allocated in the past, those which have been
rescinded or have expired, those available on!a yearly basis, which is 18 lodge units.
Richman presented a memorandum explaining the methodology of calculating this year's lodge
quota as well as a 1980 memorandum from Ron Stock who helped establish the methodology
to calculate lodge quotas. In 1979 there were 14 units available; there were also some
expired allocations since Mountain Chalet did not go ahead with its plan. Therefore, there
were 30 units available in 1980 for the 1981 competition. This would suggest that these
30 units were carried over to this year, as well as the 18 units available for this year
for a total of 48 units. There is a potential for 33 per cent bonus on this year's alloca-
tion, Which is a potential 6 unit bonus. This total 54 units for this years competition.
Richman told Council when the city Council made the first allocation in 1978, it made two
awards for lodge; one to the Aspen Inn for 36 tourist units and 24 employee units; the
second award was to the Mountain Chalet for 8 tourist and 8 employee units. This was a
total of 60 units to the Aspen in and 16 to the Mountain Chalet. The way the Code read
at that time was that all the units, not just the tourist units, were subtracted from the
quota. This is not the procedure followed at the current time. Currently only the free
market tourist units are deducted from the quota. The appeal that has been presented for
the lodge quota is that the 24 employee units granted to the Aspen Inn should not in 1978
have been deducted from the lodge quota. The applicant is asking Council to return those
24 units to the lodge quota to be available for this year.
The applicant has stated, to justify bringing these 24 units back into the quota, is that
employee units are now exempt from the quota and are not deducted. The applicant has
also stated even if these should appropriately be deducted as employee units they are not
lodge units, they are housing residential units. At a minimum, the applicant requests
those units be deducted from the residential, not the lodge quota. The staff, in reviewin~
this appeal, is concerned about looking back at an action when in 1978 the Council, by
resolution, said very clearl~ that those units shOuld be taken from the quota and should
be taken from the lodge quot~. The resolution suggests year by year how each of those
units could be made up and iqdicated there would not be a competition in 1979 as a result
of the ~nits coming out. There would be a certain amount of units available in 1980 and
in 1981, the resolution set ~he exact procedures on what quota would be available on a
year to year basis.
Richman told Council in the 1978 GMP ordinance, there were very different employee housing
exemptions. Richman said the staff believes those exemptions that existed result from
the resolution initially adopted the GMP at which time Council was discouraging the use
of exemption whatsoever, At the time of the initial GMP, Council was moving in the direc-
tion where all growth should come out of the quota, regardless of whether these were
employee units or not. The city's position has moved quite a ways from that original
premise; at this time, units that have a rationale benefit to the community should not be
deducted from the quota. This has resulted in a dual growth rate; a regulated and an
unregulated growth rate. Richman said the initial premise of the GMP and the way the
Council was moving was a very sound one; deducting all units from the GMP is a very sound
basis for conducting the GMP. The staff does not support an action, which was well
founded in 1978, deducting the units from the quota and reversing that decision. The
staff objects to that proposal. Richman told Council if they do believe there was any
error in judgment, the only basis the staff can find for being an error in judgment is
those employee units were deducted from the lodge quota rather than the residential quota.
There is some rationale for deducting these from the residential quota, employee units are
residential units - not tourist units. Secondly, if there has been excessive growth in
the city over the last four or five years, it has not been in the lodge sector. There
has been excessive build out in the residential sector with employee units and other units
exempt from the GMP, and excessive growth in the commercial sector. If Council made a
decision to put the 24 units in the available residential quota, this would be hindering
future growth in the residential area. The Council would be wiping out the residential
quota for this year; based on the build out, for 1981 residential there are 19 units avail-
able for competition for next year. The recommendation of staff is not to change the
previous action. The decision of Council in 1978 was a sound one; deducting the 24 units
from the quota would result in comprehensive and uniform growth rate. Richman said this
is consistent with the original GMP.
Mayor Edel asked how the staff got to 30 lodge units availabe. Richman told Council
there have been five competitions in Aspen at 18 units each year, a total of 90 lodge
units. The first year Council gave 36 lodge and 24 employee units to the Aspen Inn and
an award to the Mountain Chalet. That award expired. Riehman told Council he under-
stands~ the logic of what the applicant is saying, that these are not tourist units and
should not have been deducted from the lodge quota. However, Richman is reluctant to
recommend to reverse a decision made on a sound basis in 1978. Richman is also reluctan'
to ask Council to preclude this year's residential competition. Richman said if Council
was inclined to putting those units back in the lodge quota, would be to remove them
from the residential quota to stay consistent.
Councilwoman Michael said if the Council goes with the argument that these are not lodge
units but these units should be deducted from the residential quota, how does the city
justify the fact they built an employee housing project that did not go through the
growth management plan. Richman said the exemption was written differently in 1978;
there was no latitude to exempt employee units. New sections of the Code have been
written to address exemptions for employee housing. Vann told Council the planning offi. e
is leaning back toward the 1978 approach. Vann said that the planning office is propos-
ing that all units should be subtracted from a quota; this quota will include everything.
Council will have to make a value judgment every year on employee units versus free
market, etc. Vann said the staff is urging Council not to award excess allocations
this year; next year's competition is a whole new ball game. The planning office will
hopefully wipe out all the quotas and come in with a brand new basis. Mayor Edel asked
if the planning office meant for the Council to award only 18 units. Vann said yes.
Spencer Schiffer, representing the Aspen Inn, related some past correspondence. There
is a July 21, 1981, memorandum from Richman stating that the lodge quota would be 54
units; there is another memorandum from Richman dated October let which also says there
will be 54 units available. The P & Z recommended to Council in a motion that the
quota be 54 units; now staff is recommending to Council that the 24 units go back into
the quota and that only 18 units be~awarded. Schiffer stated he felt this was absurd.
Both applicants based their applications on the available quota this year. Vann said
the staff has always represented the maximum allowable is 54 units. There are 54 units
available if Council wants to allocate prior quotas. Council is not required to allocat
prior quotas; they are required to allocate 18 units if someone wins. Staff is making
a recommendation, based on the direction this is headed, that only 18 units are appropri~
John Kelly, representing the Lodge at Aspen, said projects make no sense at 18 units;
why would anyone bother to compete for 18 units. Hans Cantrup agreed 18 units cannot be
paced for each year. Cantrup said the 18 units chosen was a political decision; a more
normal quota would be 40 units. 18 unit~quota is based on 1000 square foot units when
in effect lodge units are more like 300 or 400 square feet. Vann agreed that 18 units
is probably not an applicable quota; the staff does not know what the appropriate number
is. The staff is trying to reassess and reestablish the growth rate based on problems
the Council has identified. Vann said he cannot recommend using quotas that have
accrued over time with no understanding of the impact or the appropriateness of these.
The position of the planning office is that since the Council has committed politically
to award 18 units per year, award the 18 units and hold up any excess. The Council is
doing this in the commercial quota. Vann said there have been concerns raised by the
lodging association; there is a new ski area approved for in town and a potential one
at Snowmass. The staff has no understanding of the bed base relationships.
Schiffer stated the issue here is whether 24 units should be added back to the quota,
not whether there are 54 units available. Schiffer said it is a foregone conclusion
that the quota this year should be 54 units; the P & Z adopted a resolution recommending
54 units. The issue is whether to restore the 24 units which were erroneously taken
out of the lodge quota. Schiffer said there was a mistake; the 24 units were employee
housing units. To say these units should have been taken out of the lodge quota, which
is only 18 units a year, is ridiculous. Schiffer said there has been some scknowledge-
ment this was a mistake. Schiffer said the legislation is place now is what should be
looked at. Cantrup stated employee units are exempt; there are projects now being built
that are exempt, they are not part of the quota.
Vann skid new units being built are exempt; the planning office has a problem with the
duality of the growth rate and they will be addressing this. The staff will be recommen~
ing to Council that employee units be brought back under in the future. When the GMP
started off employee units were under GMP. The point is these 24 units were taken out
of a quota in 1978; this position the staff strongly supports. Vann opined the 1978
Council did not make a mistake. If they did make a mistake, it was to take the
employee units out of the wrong quota. The Code clearly said these units should be
subtracted from the quota. In subsequent years, Council decided, because of the employee
housing problem, Council would exempt employee housing from quotas. ~ann told ~ounc~
there have been problems associated with this. Vann said the Counci± can use ~ouncl±
could use the current legislation to solve a problem, but in 1978 zoning laws were
different, too, and the staff does not go back and allow people to build what they
could in 1978
Mayor Edel said of all the things Council has done, exempting employee housing has
created the most antipathy. Exempting employee housing has stirred more controversy
than any other issue; this has prompted other rethinking. Lee Pardee, P & Z member,
told Council the rules should not be changed. Both applicants were told 54 units were
available and both applicants participated under this. Vann said the 24 units is over
and above the 54 units available. Pardee agreed and said these should be left to die.
Mayor Edel said he understood the 54 units available and had no problem with that;
however, he does have problems with the 24 employee units. Hans Cantrup said the
allocation is not 18 units it is 12 units if you take out the 24 employee units. Mayor
Edel said they were taken out sometime ago and did not exist. Bringing up the 24 units
now is a totally spurious a~gument.
3195
Special Meeting Aspen City Council November 19, 1981
Mark Danielsen told Council the application specially metnioned these 24 units and these
units were realized to go back into the lodge quota. What has been done in 1978 has been
changed. This is not an issue that has come up overnight. Schiffer said Council's
concern is what will happen to these units. Schiffer told Council the applicant, Cantrup,
would be willing to relinquish the 24 units plus the bonus to the other applicant. That
way both projects could get built; this would obviate the necessity for hearing this
challenge. Councilman Knecht said he felt Aspen desperately needs good lodging; there
are two applications here that can give the city that. Councilman Knecht said he would
like to add the 24 units while the chance is here; the 24 should not be eliminated out of
the residential quota. Since these units are exempt as employee housing, the lodge quota
should be redone. Employee hOusing should be part of the overall quota system.
Councilman Knecht moved to use the 54 units as the total and add the 24 units on top of
it and eliminate them from the residential quota; seconded by Councilman Parry.
Councilman Parry said he feels that good lodging is very, very important and both projects
are badly needed in town.
Councilman Knecht clarified his motion that the 24 units NOT be taken out of the residenti~ t
quota and these are to be exempt.
Mayor Edel asked if Council had the capability of going back to 1978 and saying these
units should have been exempted. City Attorney Taddune told Council they could give the
staff some guidance as to what Council's intent was; there was a different Council but
this Council still is the Council. At the time of this allocation in 1978, there was no
exemption for employee housing the way there is today. Richman told Council that Council
set up some very specific expectations for growth by saying what the quotas would be in
the future. By going over the growth fOr the last five years, many needs have been
found for going around those expectations. Taddune said he did not have a problem with
the 24 units going back into the quota.
Councilwoman Michael said in 1978 the Council wanted those 24 units as part of the lodge
quota. Councilwoman Michael said she did not understand that logic. The growth manage-
ment plan called for planned growth in lodge units, residential units and commercial
space. Councilwoman Michael said it is clear that an employee unit is not a short-term
tourist unit. Councilwoman Michael said she did not buy the argument that the Council
cannot make some decisions regarding this issue without waiting for a full-on plan.
Council knows the quotas are going to change; 18 units quota per year in a resort town
with a deteriorating lodge base, that number will not go down. Councilwoman Michael
said she did not want to impact the residential quota at this late date.
All in favor, motion carried.
1982 COMMERCIAL GMP QUOTA
Councilwoman Michael excused herself due to conflict of interest. Alan Richman told
Council staff wanted some direction so staff could draw up a resolution for a regular
meeting.
Councilman Knecht moved the quota go to 27,500 square feet and approve all the units that
are in the competition; seconded by Councilman Parry. All in favor, motion carried.
Richman asked Council if they wanted an action on the excess quota from previous years;
the Council has a right to carry over or not carry over. Mayor Edel said he wanted it
all wiped out. Council agreed. Mayor Edel said Council wanted one resolution for
allocation 27,5000 square feet for 1982. As far as the resolution to wipe out the excess
quota, this should come up before the full Council as another discussion.
Councilman Parry moved to adjourn at 6:35 p.m; seconded by Councilman Knecht. All in
favor, motion carried.
~h~ City Clerk