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HomeMy WebLinkAboutcoa.lu.ca.Condominiumization Code.A66-93Condominiumization Code Amendments A66-93 ORDINANCE No.53 (SERIES OF 1993) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, AMENDING CHAPTER 24 OF THE MI INICIPAL CODE, LAND USE REGULA- TIONS, 10 PROVIDE THAT SECTION 7-1007, "CONDOMINIUMIZATION", SHALL BE REVISED TO DELETE HOUSING IMPACT FEES AND TO REVISE THE "PURPOSE" SECTIONS OF THE R-6, R-I5, R-15A, R-15B, R-30 AND RR ZONE DIS- TRICTS TO INCLUDE THE PHRASE "LONG TERM" IN DESCRIBING TERM OCCUPANCY LIMITS IN RESIDENTIAL ZONE DISTRICTS. WHEREAS, Section 27-7-1103 of the Municipal Code provides that amendments to Chapter 24 of the Code, to wit, "Land Use Regulations," shall be reviewed and recommended for approval by the Planning Director and then by the Planning and Zoning Commission at public hearing, and then approved, approved with conditions, or disapproved by the City Council at public hearing; and WHEREAS, the Planning Director has pro- posed and recommended for approval text amendments to Chapter 24 relating to Condo- miniumization and to residential zone district "Purpose" sections; and WHEREAS, the Planning and Zoning Commis- sion reviewed the proposed text amendments at worksessions on July 20 and August 3, 1993, and at a public hearing on August 17, 1993, and recommended approval of the amendments pursuant to the procedure as authorized by Section 24-6-205(A)8 of the Municipal Code; and WHEREAS, the City Council finds that the proposed text amendments will encourage effi- ciency in government by streamlining the land use review process and will be consistent with promoting the public welfare and the purposes and intent of Chapter 24 of the Municipal Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COL- ORADO as follows: Section 1: That Section 24-7-1007, "Condominiumiza- tion" of the Municipal Code of the City of Aspen, Colorado, is hereby repealed and reen- acted to read as follows: "Section 24-7-1007. Condominiumization. A. General. Where a proposed development is to include a conduailnium form of owner- ship, or if an existing development is to be con- verted to a condominium form of ownership, in whole or in part, a condominium subdivision exemption plat reflecting all condominiumized units, or that portion of the development to be condominiumized, shall be submitted to the Planning Director for review and approval as a subdivision exemption pursuant to the terms and provisions of this section. B. Procedure. A development application for a condominiumization shall be reviewed pur- suant to the procedures and standards in this section and Common Procedures, Article 6, Division 2. 1. Contents of application. The contents of a development application for a condominium or condominiumization shall include the follow- ing: a. The general application Information required In Common Procedures, Section 24.6- 202. b. A condominium subdivision exemption plat drawn with permanent ink on reproducible mylar. Sheet size shall be twenty-four (24) inch- es by thirty-six (36) inches with an unencum- bered margin of one and one-half (1 1/2) inches on the left hand side of the sheet and a one-half (1/2) inch margin around the other three (3) sides of the sheet. It shall include: (I) Accurate dimensions for all lines, angles and curves used to describe boundaries, streets, setbacks, alleys, easements, structures, areas to be reserved or dedicated for public or common use and other Important features. All curves shall be circular arcs and shall be defined by the radius, central angle, tangent, are and chord distances. All dimensions, both linear ana angular, are to be determined by an accurate control survey in the fleid ;which must balance and close within a limit of one (1) in ten thousand (10,000). (if) The plat shall be drawn at a scale of one (1) inch equals one hundred (100) feet or larg- er. Architectural scales are not acceptable. If It Is necessary to place the plat on more than one (1) sheet, an index shall be included on the first sheet. A vicinity map shall also appear on the first sheet showing the condominium pro- ject as it relates to the rest of the city and the street system in the area of the proposed con- dominium. (III) A description of all survey monuments, both found and set, which mark the boundaries of the subdivision, and description of all monu- ments used in conducting the survey. The Col- orado Coordinate System may be used. (iv) A statement by the land surveyor explaining how bearings, if used, were deter- mined. (v) A certificate by the registered land sur- veyor as to the accuracy of the survey and plat, and a statement that the survey was performed in accordance with Colorado Revised Statutes 1973, Title 38, Article 51, as amended from time to time. (vi) A certificate by a corporate title insurer, that the person or persons dedicating to the public the public rights -of -way, areas or facili- ties as shown thereon are the owners thereof in fee simple, free and clear of all liens and encumbrances. (vii) Certificates showing approval of the final plat by the City Engineer and Planning Director. (vial) A certificate of filing for the Pitkin Coun- ty Clerk and Recorder. (ix) Copies of any monument records required of the land surveyor in accordance with Colorado Revised Statutes 1973, Title 38, Article 53, as amended from time to time. 2. Recordation: The approved condominium subdivision exemption plat shall be recorded in the office of the Pitkin County Clerk and Recorder within one hundred eighty (180) days of Its approval by the Planning Director. Failure on the part of the applicant to record the plat within one hun- dred eighty (190) days following approval by the Planning Director shall render the plat Invalid and a new application and approval will be required. 3. Subdivision Exemption Agreement. No sub- division exemption agreement need be pre- pared or entered into between the applicant and the city pursuant to a condominium or condominiumization approval unless the Plan- ning Director determines such an agreement is necessary. C. Minimum Lease Deed Restriction: Mini- mum lease deed restrictions imposed by the city council as a condition of condominiumiza- tion approval prior to July 1, 1992, shall only by modified or removed with the consent of the city council. Section 2: That Section 245201, "Medium -Density Resi- dential (R-6)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-201. Medium -Density Residential (R-6). A. Purpose. The purpose of the Medium -Den- sity Residential (R-6) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximi- ty to residential uses are included as condition- al uses, lands In the Medium -Density Residen- tial (R-6) zone district are generally limited to the original Aspen Townsite, contain relatively dense settlements of predominantly detached and duplex residences, and are within walking distance of the center of the city." Section 3: That Section 24-5-202, "Moderate -Density Residential (R-15)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-202. Moderate -Density Residential (R-15). A. Purpose. The purpose of the Moderate - Density Residential (R-15) zone district is to provide areas for long term residential purpos- es with customary accessory uses. Recreation- al and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate -Densi- ty Residential (R-15) zone district typically con- sist of additions to the Aspen Townsite and subdivisions on the periphery of the city. Lands within the Townsite which border Aspen Mountain are also included in the Moderate - Density Residential (1115) zone district." Section 4: That Section 24-5-203, "Moderate -Density Residential (R-15A)" of the Municipal Code of the City of Aspen, Colorado, is hereby amend- ed to read as follows: "Sec. 24-5-203. Moderate -Density Residential (R-15A). A. Purpose. The purpose of the Moderate - Density Residential (R-15A) zone district is to Provide areas for long term residential purpos- es with customary accessory uses. Recreation- al and institutional uses customarily found in proxim'•j'to residential uses are included as conditional uses. Lands in the Moderate-Densi ty Residential (R-15A) zone district are similar- ly situated to those in the Moderate -Density Residential (R-I5) zone district and are lands annexed from Pitkin County from zone districts .in which duplexes are a prohibited use." Section 5: That Section 24-5-204, "Moderate -Density Residential (R-15B)" of the Municipal Code of the City of Aspen, Colorado, is hereby amend- ed to read as follows: "Sec. 24-5-204. Moderate -Density Residential (R-15B). A. Purpose. The purpose of the Moderate - Density Residential (R-15B) zone district is to provide areas for long term residential purpos- es with customary accessory uses. Lands in the Moderate -Density Residential (R-15B) zone dis- trict are similarly situated to those in the Mod- erate -Density Residential (R-15) and (R-15A) zone districts, but are those in which single- family structures are a permitted use and duplexes are prohibited." Section 6: That Section 24-5-205, "Low -Density Residen- tial (R-30)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-205. Low -Density Residential (R- 30). A. Purpose. The purpose of the Low -Density Residential (1130) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximi- ty to residential uses are Included as condition- al uses. Lands in the Low -Density Residential (R-30) zone district are typically located along river frontages in outlying areas of the city. Section 7: That Section 24-5-208, "Rural Residential (RR)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-208. Rural Residential (RR). A. Purpose, The purpose of the Rural Resi- dential (RR) zone district is to allow utilization of land for low density, long term residential purposes with the recreational, institutional, public and other compatible uses customarily found in proximity to those uses allowed as permitted uses or conditional uses." Section 8: That Section 24-3-101, "Definitions", of the Municipal Code of the City of Aspen, Colorado, is hereby amended to include a new definition to read as follows: "Long Term means the occupancy of a dwelling unit for residential purposes for a time period not less than six (6) consecutive months and shall include rental occupancies, except that two shorter rental occupancies may be allowed per dwelling unit per year." Section 9: The repeal as provided herein of Sections 24- 7-1007 A (1) (b) and (c), which required mini- mum lease deed restrictions and the payment of affordable housing Impact fees, respectively, as a condition of approval for condominiumiza- tion shall be applied retroactively to those con- dominiumization approvals granted in Ordi- nances 92.44, 92-69. 93-26, 93-28 and 93-33. At the applicants' request, the City Council will remove the deed restrictions and refund the employee housing mitigation fees that were required as a condition of the above cited con- dominiumization approvals. Section 10: This Ordinance shall not effect any existing litigation and shall not operate as an abate- ment of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 11: 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 inde- pendent provision and shall not affect the validity of the remaining portions thereof. Section 12: A public hearing on this Ordinance shall be held on the 8th day of November, 1993 in the City Council Chambers, Aspen City Hall, Aspen Colorado, fifteen (15) days prior to which a hearing of public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUB- LISHED as provided by law, by the City Council of the City of Aspen on the 12th day of Octo- ber, 1993. John Bennett, Mayor Attest: Kathryn S. Koch, City Clerk Published in the Aspen Times Oct. 22, 1993. C CASELOAD SUMMARY SHEET City of Aspen DATE RECEIVED: J PARCEL ID AND CASE NO. DATE COMPLETE: STAFF MEMBER: FK PROJECT NAME: Code Amendments - Condominiumization Project Address: Legal Address: APPLICANT: Applicant Address: REPRESENTATIVE: Representative Address/Phone: -------------------------- -------------------------- FEES: PLANNING $ ENGINEER $ HOUSING $ ENV. HEALTH $ TOTAL $ Aspen, CO 81611 ------------------------=-------- --------------------------------- # APPS RECEIVED # PLATS RECEIVED TYPE OF APPLICATION: STAFF APPROVAL: 1 STEP: P&Z Meeting Date PUBLIC HEARING: (Y VESTED RIGHTS: YES CC Meeting Date PUBLIC HEARING: YES I V iSTED RIGHTS: YES DRC Meeting Date REFERRALS: City Attorney City Engineer Housing Dir. Aspen Water City Electric Envir.Hlth. Zoning DATE REFERRED: FINAL ROUTING: City Atty Housing Parks Dept. Bldg Inspector Fire Marshal Holy Cross Mtn. Bell ACSD Energy Center 2 STEP • X NO NO NO NO School District Rocky Mtn NatGas CDOT Clean Air Board Open Space Board Other Other INITIALS: DUE: DATE ROUTED: I lC INITIAL:` City Engineer Zoning Env. Health Open Space Other: FILE STATUS AND LOCATION: MEMORANDUM TO: Mayor and City Council THRU: Amy Margerum, City Manager FROM: Diane Moore, City Planning Direct r Leslie Lamont, Senior Planner DATE: December 7, 1992 RE: Condominiumization - Analysis of Impact of New State Statute (CCIOA) on City of Aspen Land Use Regulations SUMMARY: On July 1, 1992, a new state statute titled the Colorado Common Interest Ownership Act ("CCIOA") went into effect. Staff has been analyzing the new statute to determine the impact of CCIOA on planning/regulatory issues within the City. Staff is providing Council with this confidential memorandum (due to potential lawsuits) and has scheduled this issue as a discussion item for the December 7, 1992 Council agenda. As you will recall, several applicants have requested condominiumization and staff has advised them that until such time as the Municipal Code is amended, condominiumizations will follow existing requlations. Two applications are scheduled for second reading on the December 14, 1992 Council agenda. On October 26, 1992, Jed provided with you with a memorandum that outlined the legal implications of the new statute. The section of the Act that addresses "Applicability of local codes" states that: (1) no local building code may impose any requirement upon any structure held in common interest (e.g., a condominium) which it would not impose upon a physically identical structure held in a different ownership (except fire walls), and (2) no zoning, subdivision, or other real estate law, ordinance, or regulation may impose any requirement upon a condominium which it would not impose on a physically identical structure or development under a different form of ownership. 1 0 Staff has focused on the impact of the Act on our city land use regulations, particularly Section 24-7- 1007 of the Municipal Code, that sets forth the requirements for the condominiumization of structures. This analysis focuses on the areas of review authority and the cost to the city associated with the elimination of our current condominium regulations. Staff has identified three major areas of concern: Rey Issue 1 - Affordable Housing Impact Fee: Currently, when free market residential units are condominiumized, an impact fee is paid to the Housing Fund to mitigate affordable housing needs generated by the condominiumization. Rey Issue 2 - six Month Minimum ,Lease Restriction: Currently, a six month minimum lease is required for newly condominiumized units in an effort to maintain long term tenants/residents. Key Issue 3 - Lodge Condominiumization: Lodges that are condominiumized are required to remain in the short term market so that they are available to the general public as tourist accomodations. These issues will be addressed in the Key Issues section along with staff recommendations. A summary of existing residential and lodge condominimumization regulations is attached as Exhibit "B". CONDOMINIUMIZATION BACKGROUND: Our current condominium regulations were developed as a direct result of impacts created by the condominiumization of units within the community. Previous research on the impacts of condominiumization resulted in a 1977 report. As a result, the Planning and Zoning Commission identified the following problem statements: 1. Condominiumization has served to reduce the rental supply over time. Rental supply is difficult, if not impossible to replace, particularly at the low income level. 2. Condominiumization is likely to result in displacement of low and moderate income households over time, as the sale price of condominiumized units increases with each resale. Many of these units continue to be rented for a period of time, but usually not rented to the tenant who lived in the unit prior to condominiumization. While this has provided some ownership opportunities for locals in the past, this is not likely to continue as prices spiral further upward. 2 In 1987, the city planning staff addressed the policy concerns associated with condominiumization. They also believed that condominiumization was much less of a problem in 1988 than in 1980 because much of the housing stock had already been condominiumized. The planning staff conducted research to document the relationship between residential development and the need for affordable housing. Their experience was that "condominiumization resulted in an increased propensity for units to be occupied by tourists, rather than residents". It was also clear from their research that units which house tourists require significantly greater levels of employee services than do units housing residents. They quantified an employee housing impact attributable to condominiumization. The result was the creation in 1988 of the affordable housing impact fee that has since been applied to condominiumizations; this is the fee that exists in our current regulations. Condominiumization Data In order to understand the extent of the condominiumization of lodges and residential units within the City, staff undertook background research on these.units (See Exhibit "C"). The research information can be summarized as follows: * Most of the large free-market residential developments such as Hunter Creek, Lone Pine, Riverview, and a majority of duplex units, which are typically occupied by long term tenants, have been condominiumized and currently have six month minimum lease restrictions in place. It should be noted that the new state statute cannot be applied retroactively, thus the existing six month minimum lease restrictions would not be rendered invalid. Other free-market multi -family residential developments that are located within the L/TR zone district at the base of Aspen Mountain, such as the Dolomites, Gant, Aspen Alps etc ... are exempt from the six month minimum lease restriction and may be leased without limitation. These units did not have to undergo city review for condominiumization because the city code did not require it at that time. Additionally, current regulations exempt residential units in the L/TR zone district from the six month minimum lease restriction. These units are typically occupied by tourists or residents desiring shorter term occupancies and a six month minimum lease restriction would not be appropriate for their use. * Most of the tenant displacement from condominiumization has already occured since a majority of the condominiumizations have taken place in the 1970's and 19801s.' Within the past 3 several years, most of the condominiumizations approved by City Council have been for duplex units. Staff also discovered that there were several citizens petition's in the 1970's protesting condominiumizations due to tenant displacement. * Since 1988, approximately $251,527.00 has been collected in affordable housing impact fees from condominiumization. * A limited number of waivers have been granted by City Council for the six month minimum lease restriction. * Approximately eight lodges have been condominiumized which represents a small portion of the lodge inventory within the City. STAFF ANAYLSIS OF KEY ISSUES: Staff has focused on the impact of the new state statute on Section 24-7-1007 of the Municipal Code as this Section sets forth the requirements for the condominiumization of structures. Assuming that this section will be eliminated from our land use regulations, three key issues were identified by staff. The following paragraphs will discuss those issues and recommended action. Key Issue 1 - Affordable Housing Impact Fee: Currently, when free market residential units are condominium ized, an impact fee is paid to the Housing Fund to mitigate affordable housing needs generated by the condominiumization. Response: Since 1988, the City has collected approximately $251,527.00 in affordable housing impact fees from condominiumization. These funds have been used to subsidize the affordable housing program. There are several existing ordinances in place that would address some of the concerns if this fee were eliminated. For example, Ordinance 1 was adopted in January of 1990. Council had determined, as a result of market pressure to redevelop residential properties as housing for tourists and second home owners, that portions of the existing housing inventory were threatened with demolition. This produced a depletion in the stock of affordable housing resulting in the displacement of residents and changing the character of existing neighborhoods. The adoption of Ordinance 1, Series of 1990, required the following: 1. In the demolition of resident multi -family housing, the owner shall construct replacement housing equal to at least 50% of the square footage of the residential area demolished. The replacement housing (50%) shall be deed restricted as 4 affordable housing. 2. New or reconstructed single family and duplexes are required to mitigate employee housing impacts by one of the following methods: a) Payment of an affordable housing impact fee. b) Provision of an accessory dwelling unit for single family development. c) Duplex units have various options for employee mitigation. While the method used to address the existing affordable housing inventory in Ordinance 1 is different than the affordable housing impact fee for condominiumization, the goal is the same i.e. maintaining the community's stock of affordable housing. Since the current condominiumization affordable housing impact fee is imposed on existing and new residential units, then the "affordable housing" pru;;-sions of Ordinance 1 would address those residential dwelling units that result from the demolition of resident multi- family structures, or from new or reconstructed single-family and duplex dwellings. An area that would not be addressed (if the existing condominiumization regulations were eliminated) is if an existing multi -family structure would condominiumize, then the provisions of Ordinance 1 would not apply. It is not clear as to how many existing multi -family structures would fall into this category and the loss of dollars to the housing/daycare fund. The City has collected approximately $116,052.00 in housing impact fees since the adoption of Ordinance 1 in 1990. Another area in the Code that would address the construction of new residential development is Article 8, Growth Management Quota System. If new residential development is proposed, then the applicant is required to provide affordable housing for a minimum of 35 % of the employees generated by the proposed development. This effectively addresses the provision of affordable housing through growth management competition. Staff believes that existing ordinances will address most of the affordable housing issues associated with the elimination of the condominiumization affordable housing impact fee. Recommendation: Staff recommends that the sunset provision for Ordinance 1, Series of 1990, be eliminated as Ordinance 1 will play an important role in maintaining our affordable housing inventory. This is also a recommendation contained within the draft Aspen Area Community Plan. Key Issue - Six Month Minimum Lease Restriction: Currently, 5 a six month minimum lease is required for newly condominiumized units in an effort to maintain long term tenants/residents. Response: Concern regarding the elimination of the six month minimum lease has focused on the following: * If the restriction is eliminated from existing or future condominiums, units may be short termed more often, potentially displacing local tenants/residents. * In discussions with a local appraiser, the six month minimum lease restriction may impact the sales price for lower priced units by keeping the sales price lower. A six month minimum lease restriction on luxury/high end condo units has a minimal impact. The implication is that if the restriction is.eliminated, the price of units could increase and potentially impact the price of new residential units or units not currently. subject to. deed restrictions. * Residential condominiums within the residential zone districts such as R-6, R-15, R-15A, R-15B, R-30 etc... zone districts are currently required to adhere to the six month minimum lease restriction (except for two shorter tenancies per year). If future six month minimum restrictions are eliminated; then our traditional residential neighborhoods may see an increase in short-term use of the units and impact the character of the neighborhood. Staff s research has shown that most of the multi -family structures (and a majority of the duplexes) within the City have already been condominiumized so the eliminination of the restriction would only impact newly constructed structures and some of the existing non- condominiumized structures. Additionally, the Housing Authority, the City of Aspen and Pitkin County have been active in the construction of affordable housing for the community; approximately 525 affordable housing dwelling units have been constructed since 1985. The affordable housing supply has increased somewhat since the 1970's and 1980's and this offers residents more housing options. *The new state statute is not retroactive, thus the existing six month minimum lease restrictions currently in place would not be rendered invalid. Although existing condominiums would be able to apply (as they are today) for removal of the six month restriction, staff would strongly encourage Council to maintain the six month minimum lease restriction on existing condominiums. Another item to consider is that both the Planning Department and the Housing Authority staff do not actively enforce the six month minimum lease restriction. Within the past two years, the Planning Department has received two calls inquiring about the six month minimum lease restriction. 6 Recommendation: Staff recommends that Council consider addressing the land use issues posed by the elimination of the six month minimum lease restriction through amendmends to the permitted use section within the various residential zone districts. For example, the permitted use section of the residential zone districts would restate the six month minimum lease restriction (along with exceptions for shorter tenancies). The language could be wrl'.}ten so that all residential units would have to adhere to this restriction, or the language could be specific for duplexes or multi -family structures. **his approach would be a major policy decision as the focus would be on the use of all residential dwellings within the zone district, not just condominiumized residential units. There probably would be considerable backlash -to this concept in -addition to an increase in enforcement. If the language was specific to duplexes and multi -family residences within the zone districts, then single family homeowner resistence would be eliminated. Rey Issue 3 - Lodge Condominiumization: Lodges that are condominiumized are required to remain in the short term market so that they are available to the general public as tourist accomodations. Response: The concern is that the lodges remain in the short term rental market and provide for the lodging needs of the resort. Our research has shown that a small portion of the lodges within the city have been condominiumized. One way to approach these concerns is to amend the permitted use sections for the Lodge/Tourist Residential (L/TR) and the Lodge Preservation (LP) zone districts to restrict any long term leasing of the lodge units and encourage short term usage of these units. For your information, staff has not had discussions with lodge owners regarding this issue. Recommendation: Staff recommends that Council consider amending the permitted use sections of L/TR and LP zone districts to restrict long term leasing of the lodge units. RECOMMENDATION SUMMARY: 1) Eliminate the sunset provision for Ordinance 1, Series of 1990. 2) Amend the permitted use sections of the various residential zone districts to restate the six month minimum lease restriction for duplexes and multi -family units. 3) Amend the permitted use sections of the L/TR and LP zone districts to restrict long term leasing of lodge units. 7 4) Approxre the pending condominiumization applications under existing ordinances with a reservation stating if the condominiumization ordinances should change after an approval (within a reasonable period of time thereafter), the applicant will be allowed the benefits of any change by way of the retroactive application of the new ordinance (e.g. if the requirement of an impact fee is repealed, the applicant will get its previously paid fee refunded).. s A G E N D A ------------------------------------------------------------------ ------------------------------------------------------------------ ASPEN PLANNING AND ZONING COMMISSION REGULAR MEETING August 3, 1993, Tuesday 4:30 P.M. 2nd Floor Meeting Room Cit Hall I. COMMENTS Commissioners Planning Staff Public II. MINUTES III. PUBLIC HEARING A. 939 E. Hyman Survey Monument Landmark Designation, Amy Amidon (This item was tabled at the HPC meeting of 7/28/93 to give the landowner additional time to consider potential development on the site. As a result, the P&Z public hearing needs to be continued to September 7, 1993. The P&Z needs to formally open the public hearing and vote on continuance of this item.) IV. OLD BUSINESS A. Land Use Code Text Amendments Discussion - Condominiumization, Francis Krizmanich (Continued from July 20) V. DISCUSSION A. AACP Update, Cindy Houben B. Floor Area Ratio Discussion, Kim Johnson VI. ADJOURN ORDINANCE 81 SERIES OF 1992 - Undergrounding Improvement District Cemetery Lane Councilwoman Richards moved to read Ordinance #81, Series of 1992; seconded by Councilwoman Pendleton. All in favor, motion carried. ORDINANCE #81 (Series of 1992) AN ORDINANCE THE TE I TY COUNCIL OF THE CITY OF ASPEN, COIARADO, TO CREATE A LOCAL IMPROVEMENT DISTRICT WITHIN COR THE PURPOSE OF THE BOUNDARIES OF OVERHEAD ELECTRIC AND COMMUNICATIONS CONVERTING EXISTING FACILITIES TO UNDERGROUNDTHEREFOR LOCATION; was read byPthe city ION OF DETAILS AND SPECIFICATIONS • clerk assistant city manager, reminded Council they took Cindy Wilson,g. This district has to action on this district at the 1 ublic hearing will be January 11, be approved by ordinance. The p 1993. ed to adopt Ordinance #81, Series of 1992, Councilwoman Richards mov seconded by Councilwoman Pendleton. Roll call on first reading; vote; Councilmembers Pendleton, yes; Richards, yes; Mayor Pro Tem Peters, yes. Motion carried. DOMININIZATION DISCUSSION CON Tanning director, reminded Council last July the Diane Moore, p Act went into effect. Staff has Colorado Common Interest Ownership made some recommendations on Aspen's regulations. Ms. Moore said the first issue is the affordable housing impact fee. Curis paid rently iniumized, an impact fee when a free market unit is co a th itigate e housing needs generated by the to the housing fund to mth condominiumization. The sired in an effort to maintain llonglterm restriction, which is requ lodge residents. The third issuis in theshortdtermlrentall marketodge for units are required to re tourist accommodations. his Ms. Moore told Council staff has done extensive retroactively research in tand area. The new state statute cannot be applied the existing 6 month minimum leases cannot be rendered since Ms. Moore told Council under the housing impact fee, the city has collected $251,000. There are existing ordinances in place which address affordable housing not through condominiumi- The growth management quota system also addresses nation. units. Ms. Moore recommended construction of affordable housing 6 Reaular Meeting Aspen City Council December 7, 1992 the sunset provision of Ordinance #1, 1990 be eliminated as this ordinance addresses key elements of affordable housing. Ms. Moore told Council a lot of existing units in Aspen have already been condominiumized and the 6 month minimum lease restrictions will remain in place. Any existing unit can apply to Council for elimination of that restriction. Ms. Moore said in lodge condominiumization the consideration is that the units remain in the short term market. Very few lodges in Aspen have been condominiumized. Ms. Moore suggested staff look in the LP or LTR zone district permitted and conditional uses to regulate this. Leslie Lamont, planning office, pointed out the ordinance #1 fee is either paid or an applicant provides an accessory dwelling unit. Councilwoman Pendleton asked how ordinances become self -enforcing. Mayor Pro Tem Peters said in the past there have been strict penalties for non-compliance. Councilwoman Richards said there seems to be no enforcement for the 6 month minimum lease restric- tions. Amy Margerum, city manager, said this is usually self - enforcing with condominiumization associations or neighbors. Mayor Pro Tem Peters said enforcement is a different issue Council can address. Mayor Pro Tem Peters asked if condominiumization is enough like subdivision to require certain mitigation and impacts. Jed Caswall, city attorney, said an argument can be made that condomin- iumization is a certain form of subdivision and that is where it is located in the city's land use code. Caswall said the state legislature does not agree. Caswall said an argument can be made that land use is not of state concern but is of municipal interest. This attempt by the legislature to diminish the city's subdivision regulations is in violation of Article XX of the Colorado Constitu- tion and unenforceable in home rule cities. Caswall said the legislature may have intended to pre-empt local government. Caswall said the city could mount a legal challenge to this statute; however, the real issue is whether the city would rather look at alternatives outlined by staff and other legislation to address areas of concern. Caswall told Council Aspen is the only municipality that has an ordinance that could conflict with this state statute. Mayor Pro Tem Peters said the original purpose of the condominiumi- zation regulations is still valid. Councilwoman Pendleton said the Community Plan also recommended the elimination of the sunset provisions in Ordinance #1. Councilwoman Richards agreed and said she would like to look at other language in Ordinance #1 that would make it clear for changes in use that they will fall under this 7 Regular Meeting Aspen City Council December 7. 1992 ordinance. Mayor Pro Tem Peters agreed with the elimination of the sunset provisions of Ordinance #1. Mayor Pro Tem Peters supported the planning office recommendation to limit the allowed uses in the residential zone district to basically long term uses. Councilwoman Pendleton agreed with staff recommendation. Councilwoman Pendleton requested staff look at the enforcement issues. Mayor Pro Tem Peters said he would like all residential zones covered. Councilwoman Richards said taking units in a residential zone and turning them into short term business licensing and sales taxes should come into play. Mayor Pro Tem Peters said short term uses in residential zone districts should be eliminated other than those like Christmas rentals. Mayor Pro Tem Peters said the LTR and LP zone districts have allowed short term uses by right. Councilwoman Pendleton said these uses should be kept in the LTR and LP districts. Ms. Moore said staff has not had discussions about changing the lodge districts with local lodge owners. Ms. Moore pointed out the community has always encouraged maintaining small lodges. Mayor Pro Tem Peters said there should be exemptions for some long term units for owners, managers and staff. Councilwoman Richards said she would like to hear comments of the lodge owners from staff. Mayor Pro Tem Peters said he would like to hear from staff on more areas for self -enforcement. Amy Margerum, city manager, said the code may have to be amended in.some areas to impose fines. Councilwoman Pendleton said for the amount of money the city collects, she would just as soon eliminate the condominium fee. Councilwoman Richards said she is more interested in maintaining the character of neighborhoods and the inventory of affordable housing. Mayor Pro Tem Peters agreed with eliminating the fee for housing impact. Caswall recommended Council hold up all condominium applications while staff processes a code amendment rather than process applications and accept fees. Caswall said the city can schedule first reading for condominiumization ordinances but put off second reading until code amendments are adopted. (Mayor Bennett came into the meeting). Ms. Margerum said she is concerned about holding people up while an amendment is processed. Ms. Margerum suggested applicants could proceed and the city could hold the fee is escrow. Caswall said applicants would have to file a legal action within 30 days after approval of the condominiumization challenging the city's right to impose conditions upon them. Councilman Peters said Council has agreed to eliminate the sunset provision in Ordinance #1; to start amending zone districts to 3 Re ular Meeting Aspen City Council December 7 1992 limit uses to long term and short term as appropriate; to get direction back regarding the impact on lodge owners, and an interim strategy on the fees. ASPEN MOUNTAIN LODGE NON-COMPLIANCE Jed Caswall, city attorney, reminded Council this is a continuation of an October 26th hearing on the issue of possible sanctions for non-compliance on the Ritz -Carlton not meeting the deadline for a certificate of occupancy for the hotel. There was also a hearing to extend the construction deadline for the Ritz. Council granted a request to extend the schedule for the Ritz and that they obtain their final c/o by December 4, 1992. Caswall reported on December 4 the c/o was signed. Council decided to continue determination on the non-compliance to December 14th. Caswall told Council Savanah Limited Partnership agreed to move this hearing up to this meeting. At this meeting, Council is to make a determination on whether a sanction or penalty should be imposed against Savanah for failure to meet the December 1, 1992, deadline for a c/o. Caswall recommended that Savanah reimburse the planning staff for the time spent in having to address the non-compliance as a possible sanction. Bob Hughes, representing the applicant, reminded Council they found that the reasons for the delay were beyond the control of the applicant. Hughes said if there were any mistakes, it was in deciding not to seek an extension sooner than they did. Hughes said he does not feel this is appropriate for sanctions. Amy Margerum, city manager, said if an extension were sought, the applicant would have been charged for staff time. Mayor Bennett closed the public hearing. Councilman Peters moved to impose a $3800 penalty reflecting the increased costs of staff time associated with Savanah's failure to complete by the appropriate date; seconded by Councilwoman Pendleton. Mayor Bennett said he feels this is reasonable and appropriate. Councilwoman Richards asked if all other conditions have been met. Ms. Margerum told Council staff went through the PUD agreement to make sure all conditions were met. Ms. Margerum noted the c/o is not for the entire building. Caswall said the c/o that was issued reserves certain rights to the city; because of the weather and continuing construction, staff was unable to conduct a thorough site visit. Councilwoman Richards said she understood the ice rink site was not to be used as a parking lot. Perry Harvey said the portion of the site used for construction storage is to be cleaned 0j ALTERNATIVE "A" - STAFF RECOMMENDATION In order to comply with CCIOA and to address the issues outlined in the memo, staff recommends the following revisions to the Land Use Code: 1. Amend Section 24-7-1007, "Condominiumization", to state: "A. General. If a conversion of an existing or proposed development to a condominium form of ownership is proposed, a condominium plat shall be submitted to the Planning Director for review and approval as a subdivision exemption pursuant to the standards for subdivision plats contained in Section 7-1004, "Subdivision Approval"." 2. The zone district "Purpose" sections generally appear to contain adequate descriptions of the intent to have residential or hotel uses. The staff has added "long term" to strengthen the purpose sections in the residential sections in the residential zone districts. The zone district Purpose sections are quoted below with "long term" inserted where appropriate in bold print. For your review and discussion, the relevant existing definitions follow: Dwelling means a permanent building or portion thereof which is used as the private residence or sleeping place of one or more human beings, but not including hotels, lodge units, clubs, hospitals, temporary structures such as tents, railroad cars, trailers, street cars, prefabricated metal sections, or similar units. • Dwelling, multi -family means a dwelling containing three (3) or more attached dwelling units, not including hotels and lodges, but including town houses, with accessory use facilities limited to an office, laundry, recreation facilities and off-street parking used by the occupants. One (1) or more dwelling units located within an office, retail, or service commercial building shall also be considered a multi -family dwelling. • Dwelling unit means a separately enterable, self-sufficient room or combination of rooms which contain kitchen and bath facilities and which are designed for or used as a residence by a single family or guests, independent of other families or guests. • Hotel/Motel/Lodge means a building containing three (3) or more individual rooms for the purpose of providing overnight 4 lodging facilities on a short term basis to the general public, for compensation, with or without meals, and which has common facilities for reservation and cleaning services, combined utilities and on -site management and reception. A hotel unit shall not contain kitchen facilities. • Residential use means used or intended for use exclusively for dwelling purposes, but not including hotel or lodge rooms. Sec. 24-5-201. Medium -Density Residential (R-6). A. Purpose. The purpose of the Medium -Density Residential (R-6) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Medium -Density Residential (R-6) zone district are generally limited to the original Aspen Townsite, contain relatively dense settlements of predominantly detached and duplex residences, and are within walking distance of the center of the city. Sec. 24-5-202. Moderate -Density Residential (R-15). A. Purpose. The purpose of the Moderate -Density Residential (R- 15) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate -Density Residential (R-15) zone district typically consist of additions to the Aspen Townsite and subdivisions on the periphery of the city. Lands within the Townsite which border Aspen Mountain are also included in the Moderate -Density Residential (R-15) zone district. Sec. 24-5-203. Moderate -Density Residential (R-15A). A. Purpose. The purpose of the Moderate -Density Residential (R- 15A) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate -Density Residential (R-15A) zone district are similarly situated to those in the Moderate - Density Residential (R-15) zone district and are lands annexed from Pitkin County from zone districts in which duplexes are a prohibited use. Sec. 24-5-204. Moderate -Density Residential (R-15B). A. Purpose. The purpose of the Moderate -Density Residential (R- 5 15B) zone district is to provide areas for long term residential purposes with customary accessory uses. Lands in the Moderate -Density Residential (R-15B) zone district are similarly situated to those in the Moderate -Density Residential (R-15) and (R-15A) zone districts, but are those in which single-family structures are a permitted use and duplexes are prohibited. Sec. 24-5-205. Low -Density Residential (R-30). A. Purpose. The purpose of the Low -Density Residential (R-30) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Low -Density Residential (R-30) zone district are typically located along river frontages in outlying areas of the city. Sec. 24-5-208. Rural Residential (RR). A. Purpose. The purpose of the Rural Residential (RR) zone district is to allow utilization of land for low density, long term residential purposes with the recreational, institutional, public and other compatible uses customarily found in proximity to those uses allowed as permitted uses or conditional uses. Note: The purpose sections of the R/MF, R/MFA, AH, and MHP zone districts presently contain language that addresses long term residential use. P. ALTERNATIVE "B" Alternative "B" represents the original proposal and is not staff s preferred approach regarding code amendments. 1. Residential zone districts would be amended to reflect their orientation toward long-term accommodations versus short-term housing. Residential districts would contain a requirement that rentals must be long-term (6 months or more), while allowing two short-term rentals per year in order to maintain the residential character of Aspen's neighborhoods. Conversely, tourist accommodation zone districts should prohibit long-term rentals or permanent housing in order to maintain a viable tourist base. 2. Amend Section 24-7-1007 "Condominiumization" to state "A. General. If conversion of an existing development to a condominium form of ownership is proposed, the condominium plat shall be reviewed and approved as a subdivision exemption by the Planning Director pursuant to the standards for plats contained in Section 7-1004 "Subdivision Approval". Z o n e Districts Recommendation • R-6, Add a new subsection, "F. Occupancy Restrictions". R-15, The rental of detached residential dwellings and R-15A, duplex residential dwellings shall be limited to six- R-30 month minimum leases, with no more than two (2) shorter tenancies per year. • R-15B Add a new subsection "F. Occupancy Restrictions". The rental of a detached residential dwelling shall be limited to six-month minimum leases, with no more than two (2) shorter tenancies per year. • R/MF, Add a new subsection "F. Occupancy Restrictions". The AH rental of detached residential dwellings, duplex residential dwellings and multi -family dwellings shall be limited to six-month minimum leases, with no more than two (2) shorter tenancies per year. • R/MFA Add a new subsection "F. Occupancy restrictions". The rental of residential dwellings and multi -family residential dwellings shall be limited to six-month minimum leases, with no more than two (2) shorter tenancies per year. • RR, Add a new Subsection F which states "Detached residential dwelling units and multi -family residential dwellings shall be restricted to six- month minimum leases, with no more than two (2) shorter tenancies per year. • L/TR Add a new Subsection F, which states "Residential dwelling units may be leased without limitation." • LP Add a new Subsection F, which states "Lodge units, including those with kitchens, shall be rented to provide overnight lodging facilities on a short-term basis to the general public." • L Add a new Subsection F, which states "Lodge units shall be rented to provide overnight lodging facilities on a short-term basis to the general public. All residential dwelling units shall be restricted to six-month minimum leases with no more than two (2) shorter tenancies per year." 0 EXHIBIT 1 RESOLUTION OF THE ASPEN PLANNING AND ZONING COMMISSION RECOMMENDING THAT THE ASPEN CITY COUNCIL AMEND CHAPTER 24 OF THE MUNICIPAL CODE, LAND USE REGULATIONS, TO PROVIDE THAT SECTION 7-1007, "CONDOMINIUMIZATION", BE REVISED TO DELETE HOUSING IMPACT FEES, AND TO REVISE THE PURPOSE SECTIONS OF THE R-6, R-15, R-15A, R-15B, R-30 AND RR ZONE DISTRICTS TO INCLUDE THE PHRASE "LONG TERM" IN DESCRIBING TERM OCCUPANCY LIMITS IN RESIDENTIAL ZONE DISTRICTS AND TO ADD "LONG TERM" TO THE DEFINITIONS SECTION OF THE CODE. Resolution No. 93-1Z WHEREAS, Section 27-7-1103 of the Municipal Code provides that amendments to Chapter .24 of the Code, to wit, "Land Use Regulations," shall be reviewed and recommended for approval by the Planning Director and then by the Planning and Zoning Commission at public hearing, and then approved, approved with conditions, or disapproved by the City Council at public hearing; and WHEREAS, the Planning Director has proposed and recommended for approval text amendments to Chapter 24 relating to Condominiumization and to residential zone district "Purpose" sections; and WHEREAS, the Planning and Zoning Commission reviewed the proposed text amendments at worksessions on July 20 and August 3, 1993, and at a public hearing on August 17, 1993, and recommended approval of the amendments pursuant to the procedure as authorized by Section 24-6-205(A)8 of the Municipal Code; and WHEREAS, the Planning and Zoning Commission finds that the proposed text amendments will encourage efficiency in government by streamlining the land use review process and will be consistent with promoting the public welfare and the purposes and intent of Chapter 24 of the Municipal Code. 1 NOW, THEREFORE, BE IT RESOLVED BY THE PLANNING AND ZONING COMMISSION that it recommends that the City Council approve the following amendments to Chapter 24 of the Code as follows: Section 1• That Section 24-7-1007, "Condominiumization" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Section 7-1007. Condominiumization. A. General. If conversion of an existing or proposed development to a condominium form of ownership is proposed, a condominium plat shall be submitted to the Planning Director for review and approval as a subdivision exemption pursuant to the standards for subdivision plats contained in Section 7-1004, "Subdivision Approval"." Section i That Section 24-5-201, "Medium -Density Residential (R-6)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-201. Medium -Density Residential (R-6). A. Purpose. The purpose of the Medium -Density Residential (R-6) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Medium -Density Residential (R-6) zone district are generally limited to the original Aspen Townsite, contain relatively dense settlements of predominantly detached and duplex residences, and are within walking distance of the center of the city." Section 3• That Section 24-5-202, "Moderate -Density Residential (R-15)" of the Municipal Code of the City of Aspen, Colorado, is hereby 1 amended to read as follows: 2 "Sec. 24-5-202. Moderate -Density Residential (R-15). A. Purpose. The purpose of the Moderate -Density Residential (R-15) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate -Density Residential (R-15) zone district typically consist of additions to the Aspen Townsite and subdivisions on the periphery of the city. Lands within the Townsite which border Aspen Mountain are also included in the Moderate -Density Residential (R- 15) zone district." section 4• That Section 24-5-203, "Moderate -Density Residential (R-15A)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-203. Moderate -Density Residential (R-15A). A. Purpose. The purpose of the Moderate -Density Residential (R-15A) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Moderate -Density Residential (R-15A) zone district are similarly situated to those in the Moderate -Density Residential (R-15) zone district and are lands annexed from Pitkin County from zone districts in which duplexes are a prohibited use." sect -.ion 5 That Section 24-5-204, "Moderate -Density Residential (R-15B)" of the Municipal Code of' the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-204. Moderate -Density Residential (R-15B). A.. Purpose. The purpose of the Moderate -Density Residential (R-15B) zone district is to provide areas for long term residential purposes with customary accessory uses. Lands in the Moderate -Density Residential (R-15B) zone district are similarly situated to those in the Moderate - Density Residential (R-15) and (R-15A) zone districts, but are those in which single-family structures are a 3 permitted use and duplexes are prohibited." ection 6 That Section 24-5-205, "Low -Density Residential (R-30)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-205. Low -Density Residential (R-30). A. Purpose. The purpose of the Low -Density Residential (R- 30) zone district is to provide areas for long term residential purposes with customary accessory uses. Recreational and institutional uses customarily found in proximity to residential uses are included as conditional uses. Lands in the Low -Density Residential (R-30) zone district are typically located along river frontages in outlying areas of the city. Section 7• That Section 24-5-208, "Rural Residential (RR)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: "Sec. 24-5-208. Rural Residential (RR). A. Purpose. The purpose of the Rural Residential (RR) zone district is to allow utilization of land for low density, long term residential purposes with the recreational, institutional, public and other compatible uses customarily found in proximity to those uses allowed as permitted uses or conditional uses." Section 8: That Section 24-3-101, "Definitions", of the Municipal Code of the City of Aspen, Colorado, is hereby amended to include a new definition to read as follows: "Long Term means the occupancy of a dwelling unit for residential purposes where term occupancy limits shall be restricted to six-month minimum leases, with no more than two 4 shorter tenancies per year." BE IT FURTHER RESOLVED that the Planning and Zoning Commission hereby recommends that the Aspen City Council refrain from removing the six month minimum lease restriction from previously approved residential condominiums, unless and until further study shows that the six month lease restriction is not necessary to protect Aspen's long term residential housing supply. APPROVED by the Commission at its regular meeting on August 17, 1993. Attest: Jan Erney, Depu4 City Clerk 5 Planning and Zoning commission: Bruce Kerr, Chair EXHIBIT 2 MEMORANDUM TO: Mayor and City Council THRU: Amy Margerum, City Manager FROM: Diane Moore, City Planning Direct r Leslie Lamont, Senior Planner DATE: December 7, 1992 RE: Condominiumization - Analysis of Impact of New State Statute (CCIOA) on City of -Aspen Land Use Regulations F.`Ui%ibjZT� On July 1, 1992, a new state statute titled the Colorado Common Interest Ownership Act ("CCIOA") went into effect. Staff has'been analyzing the new statute to determine the impact of CCIOA on planning/regulatory issues within the City. Staff is providing Council with this confidential memorandum (due to potential lawsuits) and has scheduled this issue as a discussion item for the December 7, 1992 Council agenda. As you will recall, several applicants have requested condominiumization and staff has advised them that until such time as the Municipal Code is amended, coridominiumizations will follow existing requlations. Two applications are scheduled for second reading on the December 14, 1992 Council agenda. On October 26, 1992, Jed provided with you with a memorandum that outlined the legal implications of the new statute. The section of the Act that addresses "Applicability of local codes" states that: (1) no local building code may impose any requirement upon any structure held in common interest (e.g., a condominium) which it would not impose upon a physically identical structure held in a different ownership (except fire walls), and (2) no zoning, subdivision, or other real estate law, ordinance, or regulation may impose any requirement upon a condominium which it would not impose on a physically identical structure or development under a different form of ownership. !staff has focused on the impact of the Act on our city land use regulations, particularly Section 24-7- 1007 of the Municipal Code, that sets forth the requirements for the condominiumization of structures. This analysis focuses on the areas of review authority and the cost to the city associated with the elimination of our current condominium regulations. Staff has identified three major areas of concern: Rey Issue 1 - Affordable Housing Impact Fee: Currently, when free market residential units are condominiumized, an impact fee is paid to the Housing Fund to mitigate affordable housing needs generatedby the condominiumization.' Rey Issue 2 - six Month Minimum.Lease Restriction: Currently, a six month minimum lease is required for newly condominiumized units in an effort to maintain long term tenants/residents. Rey Issue 3 - Lodge Condominiumization: Lodges that are condominiumized are required to remain in the short term market so that they are available to the general public as tourist accomodations. These issues will be addressed in the Key Issues section along with staff recommendations. A summary of existing residential and lodge condom inimumization regulations is attached as Exhibit "B". CONDOMINIUMIZATION BACKGROUND: Our current condominium regulations were developed as a direct result of impacts created by the condominiumization of units within the community. Previous research on the impacts of condominiumization resulted in a 1977 report. As a result, the Planning and Zoning Commission identified the following problem statements: 1. condominiumization has served to reduce the rental supply. over time. Rental supply is difficult, if not impossible to replace, particularly at the low income level. 2. Condominiumization is likely to result in displacement c` low and moderate income households over time, as the same price of condominiumized units increases with each resale. Many of these units continue to be rented for a period of time, but usually not rented to the tenant who lived in the unit prior to condominiumization. While this has provide some ownership opportunities for locals in the past, this __d not likely to continue as prices spiral. further upward. 2 In 1987, the city planning staff addressed the policy concerns associated with condominiumization. They also believed that condominiumization was much less of a problem in 1988 than in 1980 because much of the housing stock had already been condominiumized. The planning staff conducted research to document the relationship between residential development and the need for affordable housing. Their experience was that "condominiumization resulted in an increased propensity for units to be occupied by tourists, rather than residents". It was also clear from their research that units which house tourists require significantly greater levels of employee services than do units housing residents. They quantified an employee housing impact attributable to condominiumization. The result was the creation in 1988 of the affordable housing impact fee that has since been applied to condominiumizations; this is the fee that exists in our current regulations. - condominiumization Data In order to understand the -extent of the condominiumization of lodges and residential units within the City, staff undertook background research on these. units (See Exhibit "C"). The research information can be summarized as follows: * Most of the large free-market residential developments such as Hunter Creek, Lone Pine, Riverview, and a majority of duplex units, which are. typically occupied by long term tenants, have been condominiumized and currently have six month minimum lease restrictions in place. It should be noted that the new state statute cannot be applied retroactively, thus the existing six month minimum lease restrictions would not be rendered invalid. Other free-market multi -family residential developments that are located within the L/TR zone district at the base of Aspen Mountain, such as the Dolomites, Gant, Aspen Alps etc ... are exempt from the six month minimum lease restriction and may be leased without limitation. These units did not have to undergo city review for condominiumization because the city code did not require it at that time. Additionally, current regulations exempt residential units in the L/TR zone district from the six month minimum lease restriction. These units are typically occupied by tourists or residents desiring shorter term occupancies and a six month minimum lease restriction would not be appropriate for their use. * Most of the tenant displacement from condominiumization ;i:s already occured since a majority of the condominiumizatio-.s have taken place in the 1970's and 1980's. Within the pa.s` 3 ._;everal years, most of the condominiumizations approved by city council have been for duplex units. Staff also discovered that there were several citizens petition's in the 1970's protesting condominiumizations due to tenant displacement. * Since 1988, approximately $251,527.00 has been collected in affordable housing -impact fees from condominiumization. * A limited number of waivers have been granted by City Council for the six month minimum lease restriction. * Approximately eight lodges have been condom iniuimized which represents a small portion of the lodge inventory within the City. STAFF ANAYLSIS OF REY-ISSUES: Staff has focused on the impact of the new state statute on _Section 24-7-1007 of the Municipal Code as this Section sets fortis the requirements for the condominiumization of structures. Assuming that this section will be eliminated from our land use regulations, three key issues were identified by staff. The following paragraphs will discuss those issues and recommended action. Rey Issue 1 - Affordable Rousing Impact Fee: Currently, when free market residential units are condominiumized, an impact fee is paid to the Housing Fund to mitigate affordable housing needs generated by the condominiumization. Response: Since 1988, the City has collected approximately $251,527.00 in affordable housing impact fees from condominiumization. These funds have 'been used to subsidize the affordable housing program. There are several existing ordinances in place that would address some of the concerns if this fee were eliminated. For example, Ordinance 1 was adopted in January of 1990. Council had determined, as a result of market pressure to redevelop residential properties as housing for tourists and second home owners, that portions of the existing housing inventory were threatened with demolition. This produced a depletion in the stock of affordable housing resulting in the displacement of residents and changing the character of existing neighborhoods. The adoption of Ordinance 1, Series of 1990, required the following: 1. In the demolition of resident multi -family housing, the owner shall construct replacement housing equal to at least 50% of the square footage of the residential area demolished. The replacement housing (500) shall be deed restricted as W affordable housing. 2. New or reconstructed single family and duplexes are required to mitigate employee housing impacts by one of the following methods: a) Payment of an affordable housing impact fee. b) Provision of an -accessory dwelling unit for single family development. c) Dupldx units have various options for employee mitigation. While the method used to address the existing affordable housing inventory in Ordinance 1 is different than the affordable housing impact fee for condominiumization the goal is the same i.e. maintaining the community's stock of affordable housing._ Since. the current condominiumization affordable housing impact fee is imposed on existing and new residential units, then the "affordable housing" provisions of Ordinance 1 would address those residential dwelling units that result from the demolition of resident -multi- family structures, or -from new or reconstructed single-family and duplex dwellings. An area that would not be addressed (if - the existing condom iniumization regulations were eliminated) is if an existing multi -family structure- would condominiumize, then the provisions of Ordinance 1 would not apply. It is -not clear as to how many existing multi -family structures would fall into this category and the loss of dollars to the housing/daycare fund. The City has collected approximately $116,052.00 in housing impact fees since the adoption of Ordinance 1 in 1990. Another area in the Code that would address the construction of new residential development is Article 8, Growth Management Quota System. If new residential development is proposed, then the applicant is required to provide affordable housing for a minimum of 35 % of the employees generated by the proposed development. This effectively addresses the provision of affordable housing through growth management competition. Staff believes that existing ordinances will address most of the affordable housing issues associated with the elimination of the condominiumization affordable housing impact fee. Recommendation: Staff recommends that the sunset provision for Ordinance 1, Series of 1990, be eliminated as Ordinance 1 will play an important role in maintaining our affordable housing inventory. This is also a recommendation contained within the draft Aspen Area Community Plan. Key Issue - Six Month Minimum Lease Restriction: Currently, 5 a six month minimum lease is required for newly condominiumized units in an effort to maintain long term tenants/residents. Response: Concern regarding the elimination of the six month minimum lease has focused on the following: * futur If the restriction is eliminated from existing otentialle condominiums, units may be short termed more often, p y displacing local tenants/residents. * In discussions with a local appraiser, the six month minimum lease restriction may impact the sales price for lower priced units by keeping the sales price lower. A six month minimum lease restriction on luxury/high end condo units has a minimal impact. The implication is that - if the restriction is.eliminated, the price ofunits l ounatsor increase units notentially currently. impact subj subject price to. deed new residentia restrictions. * Residential condominiums within the residential zone districts such as R-6, R-15, R-15A, R-15B, R-3o etc... zone districts are currently required to adhere to the six month minimum lease restriction (except.for two shorter tenancies per year). If future six month minimum restrictions are eliminated, then our traditional residential neighborhoods may see an increase in short-term use of the units and impact the character of the neighborhood. Staff's research has shown that most of the multi -family structures (and a majority of the duplexes) within the City have already been condominiumized so the eliminination of the restriction would only impact newly constructed structures and some of the existing non- condominiumized structures. Additionally, the Housing Authority, the City of Aspen and Pitkin County have been active in the construction of affordable housing for the community; approximately 525 affordable housing dwelling units have been constructed since 1985. The affordable housing supply has increased somewhat since the 1970's and 1980's and this offers residents more housing options. �kThe new state statute. is not retroactive thus the existing six month minimum lease restrictions currently in place would not be rendered invalid. Although existing condominiums would be able to apply (as they are today) for removal of the six month restriction, staff would strongly encourage Council to maintain the six mt�nth minimum lease restriction on existing condominiums. Another item to consider is that both the Planning Department and the Housing Authority staff do not actively enforce the six month minimum lease restriction. Within the past two years, the Planning Department has received two calls inquiring about the six month minimum lease restriction. G Recommendation: Staff recommends that Council consider addressing the land use issues posed by the elimination of the six month minimum lease restriction through amendmends to the permitted use section within the various residential zone districts. For example, the permitted use section of the residential zone districts would restate the six month minimum lease restriction (along with exceptions for shorter tenancies). The language could be wrJ.1ten so that all residential units would have to adhere to this restriction, or the language could be specific for duplexes or multi -family structures. *this approach would be a major policy decision as the focus would be on the use of all residential dwellings within the zone district, not just condominiumized residential units. There probably -would be considerable backlash•to this concept In -addition to an increase in enforcement. If the language was specific to duplexes and multi -family residences within the zone districts, then single family homeowner resistence would be eliminated. Rey Issue 3 - Lodge Condominiumization: Lodges that are condominiumized are required to remain in the short term market so that they are available to the general public as tourist accomodations. Response: The concern is that the lodges remain in the short term rental market and provide for the lodging needs of the resort. Our research has shown that a small portion of the lodges within the city have been condominiumized. One way to approach these concerns is to amend the permitted use sections for the Lodge/Tourist Residential (L/TR) and the Lodge Preservation (LP) zone districts to restrict any long term leasing of the lodge units and encourage short term usage of these units. For your information, staff has not had discussions with lodge owners regarding this issue. Recommendation: Staff recommends that Council consider amending the permitted use sections of L/TR and LP zone districts to restrict long term leasing of the lodge units. RECOMMENDATION SUMMARY: 1) Eliminate the sunset provision for Ordinance 1, Series of 1990. 2) Amend the permitted use sections of the various residentia_ zone districts to restate the six month minimum lease restrictio7 for duplexes and multi -family units. 3) Amend the permitted use sections of the LJTIr and LP z, districts to restrict long term leasing of: lodge units. 7 4) Appro-e the pending condom iniumization applications under the existing ordinances with a reservation stating if approval condominiumization ordinances should change after an app' (within a reasonable period of time thereafter), the applicant will be. allowed the benefits of any change by way of the retroactive application of the new ordinance (e.g. if the requirement of an impact fee is repealed, the applicant will get its previously paid fee refunded) .. 8 Exhibit "B" Section 24-7-1007 of the Municipal Code sets forth the condominiumization regulations for residential and lodge units. The regulations are summarized as follows: 1) Condominiumization of residential units a. Existing residents must be given a right of first refusal on the sale of an existing unit that is being condominiumized. b. Residential condominiums may only be leased for terms of not less than six months, with the exception of two shorter tenancies per year (to allow locals to rent their units over the holidays) and this applies to .residential dwelling units in the R-6, R-15, R-15A, R-15B,. R-30, R/MF, MHP,-SCI, NC,. and C zone districts. Residential dwelling units in the RR, C-1 and O zone districts shall be restricted to six month minimum leases unless an applicant .can prove that unit is in an area that is predominantly short term accomodations. Residential dwelling units in the L/TR zone district or any zone district with Lodge (L) overlay may be leased without limitation. c. An affordable housing impact fee is applied to the condominiumization of existing and new residential units, however, the condominiumization shall be exempt from the impact fee if affordable housing has been provided pursuant to GMQS. The fee ranges from $3,350 to $8,050 per unit. The fee is not applied to the condominiumization of units restricted to the affordable housing guidelines. An applicant may request a waiver of the impact fee by demonstrating that the unit will remain available to employees of the community, however, it would still be subject to six month minimum lease requirement and deed restricted as a resident occupied unit. 2) Condominiumization of lodges a) The condominium units shall remain in the short term rental market and shall be used as temporary tourist accommodations available to the general public. b) The lodge shall provide minimum sleeping accommodations for two employees. W c) The condominiumized lodge shall provide on -site management and maintenance. d) The lodge condominium units shall remain available to the general tourist market and this condition may be met by inclusion of the units in a local reservation system. e) The common areas of the lodge shall remain as common areas. 10 Exhibit "C" 1) Residential Condominiumization: The earliest record of a condominiumization that required city review occured in 1973. There are many units that were condominiumized prior to 1973; a rough conservative estimate would be 350 dwelling units. These units, such as the Gant, Aspen Alps, and Dolomites did not have to undergo city review to condominiumize their structure because the code did not require it. Number of free market units condominiumized (after 1973) in accordance with city regulations: Approximately 750 units NOTE: Fully deed restricted affordable housing units are not included in this figure.. 2) Six month minimum lease The end of 1977 appears to have been the approximate date when,six month minimum leases were established in the city land use regulations. However, some projects as early as 1973 had six month minimum lease restrictions placed on them. Approximately 15% of the 750 units condominiumized do not have six month minimum lease restrictions. This is due to the fact that waivers were granted, city regulations were not in place that required six month minimum lease restrictions, units in the L/TR zone district were exempted along with historic landmarks. It should be noted that the city rarely granted waivers from the six month minimum lease restriction. 3) Affordable Housing Impact Fees: As discussed previously, these fees were added to the condominiumization regulations (residential units c�ily) in 1988. The City has collected $251,527.00 in. affordablE -ousing impact fees from condominiumization. 4) Lodge Condominiumization City records indicate that eight lodges have been condominium. zed that required city review. I t Exhibit "D" Summary of Ordinance 1, Series of 1990 Resident Multi -family (historically occupied by working residents): 1) In the demolition of a resident multi -family housing, the owner shall construct replacement housing of at -.least 50% of the square footage of the residential area demolished. The replacement housing (50%) shall be deed restricted as affordable housing. Single-family and Duplex: 2) Remodeling and expansion of existing- single-family and duplex units is exempt and ..is_. not required..to _mitigate_ .for _affordable. housing. 3)- New or reconstructed single-family and duplexes will be required to mitigate employee housing impacts by one of the following methods: a. Payment of an Affordable Housing Impact Fee. b. Provision of an accessory dwelling unit (ADU) for single family development. - c. Duplex units have the following options: the applicant provides one free market/one resident occupied unit; two free market units with one accessory dwelling unit; two resident occupied units; or the affordable housing impact fee_ 12 EXHIBIT 3 Condominiumization Text Amendments - Review Criteria Pursuant to Section 24-7-1102 of the Aspen Municipal Code, the review standards for amendments to the Code are as follows: A. Whether the proposed amendment is in conflict with any applicable portions of this chapter. Response: There are no apparent conflicts with any other sections of the Municipal Code. B. Whether the proposed amendment is consistent with all elements of the Aspen Area Community Plan. Response: The AACP does not specifically address condominiumization regulations. However, retaining a housing base for long-term residents is a goal on the Plan. As mentioned in previous staff discussions with the Commission, housing needs for the community must be addressed by other means within the land use code. Condominium regulations are not the appropriate avenue tc secure housing units or housing funds. The City has been trying to address the need to streamline governmental processes. This code amendment will eliminate the one-step City Council review for condominium (ownership) approval. C. Whether the proposed amendment is compatible with surrounding Zone Districts and land uses; considering existing land use and neighborhood characteristics.. Response: This amendment is not site specific. On a case -by -case basis, ownership interests in a multiple dwelling structure has no discernable impacts. Removal of minimum lease requirements for new condominiums (duplexes or multi -family structures) will have negligible impacts to neighborhoods, simply by virtue of the limited number of units to be condominiumized. D. The effect of the proposed amendment on traffic generation and road safety. Response: This standard does not apply to ownership interests created by condominium approval. E. Whether and the extent to which the proposed amendment would result in demands on public facilities, and whether and t:ne extent to which the proposed amendment would exceed zhe capacity of such public facilities, including but not limi--ed to transportation facilities, sewage facilities, water supp,', parks, drainage, schools, and emergency medical facilities_. Response: This standard does not apply to ownership interests created by condominium approval. F. Whether and the extent to which the proposed amendment we --Id result in significantly adverse impacts on the natural environment. Response: This standard does not apply to ownership interests created by condominium approval. G. Whether the proposed amendment is consistent and compatible with the community character in the City of Aspen. Response: The only compatibility issue is perhaps the minimum lease requirements of the current code language which must be removed in compliance with the new State regulations. However, the proposed amendments would strengthen the purpose section of the residential zone districts to state that the purpose of the zone district is to provide areas for long term residential uses. H. Whether there have been changed -conditions affecting the subject parcel or the surrounding neighborhood which support the proposed amendment. Response: The State.'s enactment of the CCIOA regulations prohibits the City from treating condominium structures differently from non- condominiumized structures of the same type. This is a city-wide issue rather than a neighborhood -specific issue. I. Whether the proposed amendment would be in conflict with the public interest, and is in harmony with the purpose and intent of this chapter. Response: According to the State legislation, our current language regarding condominiums is not in the public interest. Therefore, the City of Aspen is obliged to revise its condominiumizat'on regulations. ORDINANCE No (SERIES OF 1993) I AN ORDINANCE OF:THE CIT CiL OF THE CITY OF ASPEN,AMENDING CI ukPT•ER 24 OF THE MUNICIPAL CODE, LAND 1bE REGULA- TIONS, TO PROVIDE THAT SECTION 7-1007;' 'CONDOMiNIUMIZATION". SHALL BE REVISED' TO DELETE HOUSING IMPACT FEES AND TO REVISE THE'PURPOSE' SECTIONS OF THE Rio, R-15, R-15A, It-15B, R30 AND RR ZONE DIS- TRICTS TO INCLUDE THE PHRASE 'LONG TERM" IN DESCRIBING TERM OCCUPANCY LIMIT'S 1N RESiDFM7AL ZONE DLSmRICTS. WHEREAS, Section.27-7-1103 of the Municipal Code provides that amendments to Chapter 24 of the Code, to wit, "Land Use Regulations," shall be reviewed and recommended for approval by the Planning Director and then by the Planning and Zoning Commission at public hearing, and then approved, approved with conditions; or disapproved by the City Council at public heaArtg; and WHEREAS, the Planning Director has pro- posed and recommended for approval text amendments to Chapter 24 relating to Condo- - mWumization and to residential zone district . 'Purpose" sections; and WHEREAS. the Planning and Zoning Commis- sion reviewed the proposed text amendments at worksesslons on July 20 and August 3, 1993, And at a public hearing on August 17. 1993, and recommended approval of the amendments pursuant to the procedure as authorized by Section 24-6-205(A)8 of the Municipal Code; and WHEREAS, the City Council finds that the Proposed text amendments will encourage effl- clency In government by streamlining the land use review process and will be consistent with promoting the public welfare and the purposes and Intent of Chapter 24 of the Municipal Code. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COL ORADO as follows: Section 1: That Section 24-7-1007, 'Condominiumlza- tion' of the Municipal Code of the City of Aspen, Colorado, Is hereby repeated and reen- acted to read as follows: 'Section 24-7-1007. Condominiumization. A. General. Where a proposed development Is to Include a condc,.rinium form of owner- ship, or If an existing development is to be con- verted to a condominium forth of ownership. In whole or In part, a condominium subdivision exemption plat reflecting all condominiumized units, or that portion of the development to be condominlumized, shall be submitted to the Planning Director for review and approval as a subdivision exemption pursuant to the terms and provisions of this section. B. Procedure. A development application for a condominlumlzation shall be reviewed pur- suant to the procedures and standards in this section and Common Procedures, Article 6, Division 2. 1. Contents of application. The contents of a development application for a condominium or condom IatumizatIon shall include the follow- Ing: a. The general application Information required In Common Procedures, Section 24b 202. b. A condominium subdivision exemption plat drawn with permanent Ink on reproducible mylar. Sheet size shall be twenty-four (24) inch- es by thirty-six (36) Inches with an unencum- bered margin of one and one-half (1 1/2) Inches on the left hand side of the sheet and a one-half (1/2) Inch margin around the other three (3) sides of the sheet. It shall Include: (I) Accurate dimensions for all lines, angles and curves used to describe boundaries, streets, setbacks, alleys, easements, structures, areas to be reserved or dedicated for public or common use and other Important features. All curves shall be circular arcs and shall be defined by the radius, central angle, tangent, arc and chord distances. All dimensions, both linear and angular. are to be determined by an accurate control survey In the !44d :which must balance and close within a limit of one (1) in ten thousand (10,000). (II) The plat shall be drawn at a scale of one (1) Inch equals one hundred (100) feet or larg- er. Architectural scales are not acceptable. If it Is necessary to place the plat on more than one (1) sheet, an Index shall be included on the first sheet. A vicinity map shall also appear on the first sheet showing the condominium pro- ject as It relates to the rest of the city and the street system In the area of the proposed con- dominium. (Ili) A description of all survey monuments, both found and set, which mark the boundaries of the subdivision, and description of all monu- ments used In conducting the survey. The Col- orado Coordinate System may be used. (Iv) A statement by the land surveyor explaining how bearings, If used, were deter- mined. L "` (v) A certfflcall ihe-registered,land sur- veyor "to the 4ccutracy of the survey.and plat, $Oal! a state 1.. that the survey was performed vt ioeordaota'trith Colorado Revised'$t totes r?973 aide ]B Abide 54 as amended time +F ; at A oa WcaSe by a corporate tit�e hisurer, F.that the person or persons dedlcittiiQ to the �­publlc the pubifc.rlgfiudwaY: steal facW tles as.:!town thereon are 11re ,; tiJn fee aimple.hiOe4tYdt3ear-.O[all,- 1''Amd encumbrances:- (vii) Certificates ahowing apprtival.oi the final plat by the City Engineer andYltu'ning Director. (will) A certificate of filing for the Puldn coun- ty Clerk and Recorder. - Ox) Copies of any monument records required of the land surveyor In accordance with Colorado Revised Statutes 1973, Title 38, Article 53, as amended from time to time. 2. Recordation: The approved condominium _subdivision exemption plat shall be recorded In the office of the Pitkin County Clerk and Recorder wlthln one hundred eighty (180) days of Its approval by the Planning Director. Failure on the part of the applicant to record the plat within one hun- dred eighty (180) days following approval by the Planning Director shall render the plat Invalid and a new application and approval will be required. - 3. Subdivision Exemption Agreement No sub- division exemption agreement need be pre- pared or entered Into between the.applicant and the city pursuant to a condominium or condotm minNtratlon approval unless the Plan- Ing Director determines such an agreement Is necessary. C. Minimum lease Deed Restriction: Mini- mum lease deed restrictions Imposed by the i city council as a condition of condominiumiza- tlon approval prior to July 1, 1992, shall only by modified or removed with the consent of the I city council. jl Section 2: " That Section 245-201, -Medium-Density Resl- dental (R-6)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: - "Sec. 24-S-201. Medlum-Density Residential (R-6) A. Purpose. The purpose of the Medlum-0en- $fly Residential (RS) zone district Is to provide areas for long term residential purposes with customary accessory uses. Recreational and Institutional uses customarily?ound in proximi- ty to residential uses are Included as condition- al uses. lands In the Medium -Density Residen- tial (RS) zone district are generally limited to the original Aspen Townsite, contain relatively dense settlements of predominantly detached and duplex residences, and are within walking distance of the center of the city." Section 3: That Section 24-5-202, "Moderate -Density Residential (R-15)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: - "Sec. 24-5-202. Moderate -Density Residential (R-I5). A. Purpose. The purpose of the Moderate - Density Residential (R-15) zone district is to provide areas for long term residential purpos. es with customary accessory uses. Recreation- al and institutional uses customarily found in proximity to residential uses are included as conditional uses. lands in the Moderate -Densi- ty Residential (R-15) zone district typically con- sist of additions to the Aspen Townsite and subdivisions on the periphery of the city. Lands within the Townsite which border Aspen Mountain are also included In the Moderate - Density Residential (RIS) zone district." Section 4: That Section 24-5-203. "Moderate -Density Residential (R-ISA)" of the Municipal Code of the City of Aspen, Colorado, is hereby amend- ed to read as follows: "Sec. 24-5-203. Moderate Density Residential (R-I SA). Exhibit 4 Purpose. The ptirpose of the Moderate- Ity Residential (11•15A) zone district is to le areas for long term residential purpos- h customary accessory ttses, Recreation. ' al and, Institutional uses customarily found In p.otdmlty to residential uses are Included ass' conditional uses. Lands In the Moderate-0eiisk�.,: ty Residential (R-1SA) zone diltrlct are slmllar-= ly situated to those in the Moderete-Density Residential (R-15) zone district and are Lands annexed from Pilkin County from zone districts In which duplexes are a prohibited ttse.' , Section 5: That Section 24.5-204, 'Moderale•Denslty 4 Residential (R-1SB)' of the Municipal Code of the City of Aspen. Colorado, Is hereby amend- ed to read as follows: "Sec. 245-204. Moderate -Density Residential (R-15B). A. Purpose. The purpose of the Moderate Density Residential (R-15B) zone districtisto-f provide areas for long term residential purpos. es with customary accessory uses. Lands In the Moderate -Density RestdentW (R-1SB) zone dis- trict are similarly situated to those In the Mod - erase -Density Residential (R-IS) and (R-ISA) zone districts, but are those hr.which single- family structures are a permitted use and duplexes are prohibited." Section 6: - That Section 24b205. " ow-Denslty Reskfen; tW (R30)" of the Municipal Code of the City of Aspen, Colorado, is hereby anon red to -read as "t follows: -- "Sec. 24-5.205. Low -Density Residential (R- _ 30). A. Purpose. The purpose of the Low4)ensity ;• Residential (R30) zone district is to provide ; areas for long term residential purposes with - customary accessory uses. Recreational and institutional cues customarily found In prordml- h ty to residential uses are Included as condition- ' al uses. lands in the Low -Density Residential (1130) zone district are typically located along river frontages In outlying areas of the city. - Sectton 7: - That Section 24-5-208. 'Rural Residential (RR)" of the Municipal Code of the City of Aspen, Colorado, is hereby amended to read as follows: 'Sec. 24-5-208, Rural Residential (RR) A. Purpose. The purpose of the Rural Rest- dential (RR) zone district Is to allow utilization of land for low density, long term fesidential purposes with the recreational. Institutlonal, public and other compatible uses customarily found in proximity to those cues allowed as permitted uses or conditional uses' 1 Section 8: That Section 243101, 'Definitions of the Municipal Code of the City of Aspen, Colorado, is hereby amended to Include a new definition to read as follows: 'Long Term means the occupancy of a dwelling unit for residential purposes for a time period not less than six (6) consecutive months and shall Include rental occupancies. except that two shorter rental occupancies may be allowed per dwelling unit per year.' Section 9: The repeal as provided herein of Sections 24- 7-1007 A (1) (b) and (c), which required mini- mum lease deed restrictions and the payment of affordable housing Impact fees, respectively, as a condition of approval for condominiumlza- tion shall be applied retroactively to those coo- dominlumization approvals granted In Ordi- nances 9244, 92-69. 93-26, 93-28 and 93.33. At the applicants' request, the City Council will remove the deed restrictions and refund the employee housing mitigation fees that were required as a condition of the above cited con- dominlumization approvals. Section 10: This Ordinance shall not effect any existing litigation and shall not operate as an abate- ment of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 11: 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 Jurlsdic0m, such portion shall be deemed a separate. distinct and inde- pendent provision and shall not affect the validity of the remaining portions thereof. Section 12: A public hearing on this Ordinance shall be held on the 8th day of November, 1993 In the City Council Chambers, Aspen City Hall, Aspen Colorado, fifteen (15) days prior to which a hearing of public notice of the same shall be published In a newspaper of general circulation within the City of Aspen. INTRODUCED, READ AND ORDERED PUB- LISHED as provided by law. by the City Council of the City of Aspen on the 12th day of Octo- ber, 1993. John Bennett. Mayor Attest: Kathryn S. Koch. City Clerk Published In the Aspen Times Oct. 22. 1993. Villa MEMORANDUM TO: Mayor and City Council v/rk THRU: Amy Margerum, City Manage THRU: Diane Moore, City Planning Directo���\ FROM: Francis X. Krizmanich, Deputy Director RE: Condominiumization Amendments - Second Reading and Public Hearing of Ordinance 53, Series of 1993. DATE: November 8, 1993 ----------------------------------------------------------------- ----------------------------------------------------------------- SUMMARY: This is the second reading and public hearing of Ordinance 53, which proposes to amend the City Condominiumization procedure. The staff recommends that the Council approve the attached Ordinance. PREVIOUS COUNCIL ACTION: The Council reviewed the proposed amendments to the City Condominiumization procedure at the first reading on October 12, 1993. BACKGROUND: The Colorado Common Interest Ownership Act (CCIOA) requires that local laws cannot treat properties differently merely because of the form of ownership; it appears that the Aspen condominium regulations, as written, may be in conflict with this statute. The Planning Staff discussed proposed amendments to Section 7- 1007, Condominiumization, at worksessions with the Planning Commission on July 20 and August 3, 1993. On August 17, 1993, a public hearing was held. At the conclusion of the hearing, the Planning Commission recommended approval of the proposed amendments and requested that the staff draft a resolution recommending approval to the City Council. This resolution is attached as "Exhibit 111. The staff has recommended that the condominiumization regulation be amended to be a simple administrative subdivision platting process, and that the requirements for housing mitigation would be deleted. Staff also recommended adding "long term" to the purpose sections of the residential zone districts to reflect their residential nature. A definition for "long term" is also proposed. The Planning Commission agreed with these recommendations. The staff notes that the proposed ordinance differs from the Planning Commission recommendation in two areas: 1) The definition of long-term was modified at the recommendation of the City 1 Attorney for clarity. 2) The Planning Commission resolution refers to a condominium application to the entire subdivision regulation (Section 7-1004) for the applicable platting standards. Upon further consideration, staff has provided for a separate procedure for condominium subdivision exemption plats so that the process is as straight forward as possible to aid both the public and the staff. HISTORY: Based on direction from the City Council in December of 1992, the staff met with the Planning Commission on July 20, 1993, and proposed that the permitted use sections of the residential zone districts be restricted to long-term occupancy (six month minimum lease) with two shorter tenancies per year allowed. Alternatively, short term accommodations (hotels, motels, lodges and some residences) were proposed to be limited to short term occupancy. This proposal recommended adding a new subsection "F" to the residential and lodge zone districts. Subsection "F" generally would have required six month minimum leases in all residential zone districts; in lodging districts, short term rentals were required. The Planning Commission expressed the following concerns with this proposal regarding the addition of a six month minimum lease to all the permitted use sections and short term requirements for lodges: • It does not appear that the proposed restrictions are necessary at this time. • The trend appears to be away from the short term rental of dwellings in residential zones, in part due to an increased supply of quality hotel accommodations in Aspen. • The market tends to "adjust" itself to maintain a balance between resident and short term accommodations. • Enforcement of lease restrictions would be extremely difficult and would probably be somewhat unpopular with the general public. • It does not appear necessary to require short term rental of lodge properties at this time. At the second worksession with the Planning Commission on August 3, 1993, the staff discussed a different approach to occupancy restrictions. The staff opinion at that time was that the existing zone district "Purpose" sections and the Land Use Code definitions adequately define and regulate residential and tourist accommodations; however, in an attempt to strengthen the residential nature of certain zone districts, "long term" was added to the purpose section. The definition of "long term" and the purpose sections are included in "Exhibit 111, the Planning 2 Commission's recommendation. The second worksession on August 3, 1993, also focused on the need to require six month minimum lease restrictions in the permitted use section of the residential districts as well as requiring short term leasing in the lodging districts. Members of both the City Council and the Planning Commission, as well as the Planning staff, had originally voiced concerns that removing the six month minimum lease restriction could lead to increased displacement of local residents from long term rental housing. Based on our previous research (See Exhibit 11211) and discussions with the Planning Commission, the staff opinion at this time is that removing the six month minimum lease restriction from the condominiumization process will have little effect because most of the larger projects that house employees have been condominiumized and/or contain six month minimum lease restrictions. In fact, it appears from reading the Colorado Common Interest Ownership Act (CCIOA) that the six month lease restriction (based on a condominiumization application) is precisely the type of regulation that is prohibited. While the staff was originally concerned that CCIOA would negatively impact the local housing market, it appears at this time that other regulations will fill this void; including Ordinance 1 and the Growth Management Quota System for new projects. These issues are outlined in the attached Exhibit 2. While the CCIOA prohibits regulations that treat condominium interests differently than other property ownerships, this Act is not retroactive. All previously restricted residential condominiums which have a six month restriction would remain restricted unless those restrictions are repealed by City Council. One approach which the Planning Commission discussed at the August 3 meeting was to amend the condominiumization regulations to make them a simple platting procedure (to comply with CCIOA), while making the recommendation to the City Council that the six month minimum lease requirement not be removed for any previously approved condominiumization. In addition, it appeared that broadly applying a six month lease restriction to all residential properties ignores the diverse qualities that make each neighborhood unique ("messy vitality"). By adding "long term" to the purpose section of the residential zone districts, this concern will be addressed. Based on the above, the Planning Commission discussed the potential of holding a future worksession with City Council and the possibility of analyzing the true effect of occupancy restrictions - short and long term - as they affect the character of Aspen. Staff finds that the proposed text amendments outlined in the proposed ordinance meet the review criteria for text amendments (Section 24-7-1102) as outlined in the attached Exhibit 3. SUMMARY: The proposed amendments will: • Provide for a simple administrative subdivision process. • Eliminate the affordable housing fee for future condominiumizations. • Eliminate the 6 month minimum lease requirement as a requirement of condominiumization. • Add "long term" to the purpose section of residential zone districts. • Add a definition of long term to strengthen residential zone districts. RECOMMENDATION: The Planning and Zoning Commission and the Planning Staff recommend that the City Council amend the Land Use Code as outlined in the attached Ordinance. PROPOSED MOTION: "I move to approve Ordinance 53, Series of 1993, amending the condominiumization regulations and amending the purpose sections of the residential zone districts and including a definition of long term in the Definition section." CITY MANAGER COMMENTS: ATTACHMENTS: Ordinance 53, Series of 1993 Exhibits: 111" P&Z Resolution recommending approval of the proposed revisions to the Land Use Code 112" Memorandum to Council re: Condominiumization, dated 12/7/92 from Leslie Lamont 113" Condominiumization Text Amendments - Review Criteria 114" Public Notice 4 MEMORANDUM TO: Mayor and City Council THRU: Amy Margerum, City Manage THRU: Diane Moore, City Planning Director FROM: Francis X. Krizmanich, Deputy Director RE: Condominiumization Amendments - First Reading of Ordinance, Series of 1993 DATE: October 12, 1993 SUMMARY: The Colorado Common Interest Ownership Act (CCIOA) requires that local laws cannot treat properties differently merely because of the form of ownership; it appears that the Aspen condominium regulations, as written, may be in conflict with this statute. The Planning Staff discussed proposed amendments to Section 7- 1007, Condominiumization, at worksessions with the Planning Commission on July 20 and August 3, 1993. On August 17, 1993, a public hearing was held. At the conclusion of the hearing, the Planning Commission recommended approval of the proposed amendments and requested that the staff draft a resolution recommending approval to the City Council. This resolution is attached as "Exhibit 111. The staff has recommended that the condominiumization regulation be amended to be a simple administrative subdivision platting process, and that the requirements for housing mitigation would be deleted. Staff also recommended adding "long term" to the purpose sections of the residential zone districts to reflect their residential nature. A definition for "long term" is also proposed. The Planning Commission agreed with these recommendations. The staff notes that the proposed ordinance differs from the Planning Commission recommendation in two areas: 1) The definition of long-term was modified at the recommendation of the City Attorney for clarity. 2) The Planning Commission resolution refers to a condominium application to the entire subdivision regulation (Section 7-1004) for the applicable platting standards. Upon further consideration, staff has provided for a separate procedure for condominium subdivision exemption plats so that the process is as straight forward as possible to aid both the public and the staff. 1 HISTORY: Based on direction from the City Council in December of 1992, the staff met with the Planning Commission on July 20, 1993, and proposed that the permitted use sections of the residential zone districts be restricted to long-term occupancy (six month minimum lease) with two shorter tenancies per year allowed. Alternatively, short term accommodations (hotels, motels, lodges and some residences) were proposed to be limited to short term occupancy. This proposal recommended adding a new subsection "F" to the residential and lodge zone districts. Subsection "F" generally would have required six month minimum leases in all residential zone districts; in lodging districts, short term rentals were required. The Planning Commission expressed the following concerns with this proposal regarding the addition of a six month minimum lease to all the permitted use sections and short term requirements for lodges: • It does not appear that the proposed restrictions are necessary at this time. • The trend appears to be away from the short term rental of dwellings in residential zones, in part due to an increased supply of quality hotel accommodations in Aspen. • The market tends to "adjust" itself to maintain a balance between resident and short term accommodations. • Enforcement of lease restrictions would be extremely difficult and would probably be somewhat unpopular with the general public. • It does not appear necessary to require short term rental of lodge properties at this time. At the second worksession with the Planning Commission on August 3, 1993, the staff discussed a different approach to occupancy restrictions. The staff opinion at that time was that the existing zone district "Purpose" sections and the Land Use Code definitions adequately define and regulate residential and tourist accommodations; however, in an attempt to strengthen the residential nature of certain zone districts, "long term" was added to the purpose section. The definition of "long term" and the purpose sections are included in "Exhibit 111, the Planning Commission's recommendation. The second worksession on August 3, 1993, also focused on the need to require six month minimum lease restrictions in the permitted use section of the residential districts as well as requiring short term leasing in the lodging districts. Members of both the City Council and the Planning Commission, as well as the Planning staff, had originally voiced concerns that removing the six month minimum lease restriction could lead to increased displacement of local 2 residents from long term rental housing. Based on our previous research (See Exhibit 11211) and discussions with the Planning Commission, the staff opinion at this time is that removing the six month minimum lease restriction from the condominiumization process will have little effect because most of the larger projects that house employees have been condominiumized and/or contain six month minimum lease restrictions. In fact, it appears from reading the Colorado Common Interest Ownership Act (CCIOA) that the six month lease restriction (based on a condominiumization application) is precisely the type of regulation that is prohibited. While the staff was originally concerned that CCIOA would negatively impact the local housing market, it appears at this time that other regulations will fill this void; including Ordinance 1 and the Growth Management Quota System for new projects. These issues are outlined in the attached Exhibit 2. While the CCIOA prohibits regulations that treat condominium interests differently than other property ownerships, this Act is not retroactive. All previously restricted residential condominiums which have a six month restriction would remain restricted unless those restrictions are repealed by City Council. One approach which the Planning Commission discussed at the August 3 meeting was to amend the condominiumization regulations to make them a simple platting procedure (to comply with CCIOA), while making the recommendation to the City Council that the six month minimum lease requirement not be removed for any previously approved condominiumization. In addition, it appeared that broadly applying a six month lease restriction to all residential properties ignores the diverse qualities that make each neighborhood unique ("messy vitality"). By adding "long term" to the purpose section of the residential zone districts, this concern will be addressed. Based on the above, the Planning Commission discussed the potential of holding a future worksession with City Council and the possibility of analyzing the true effect of occupancy restrictions - short and long term - as they affect the character of Aspen. Staff finds that the proposed text amendments outlined in the proposed ordinance meet the review criteria for text amendments (Section 24-7-1102) as outlined in the attached Exhibit 3. SUMMARY: The proposed amendments will: • Provide for a simple administrative subdivision process. • Eliminate the affordable housing fee for future condominiumizations. • Eliminate the 6 month minimum lease requirement as a requirement of condominiumization. • Add "long term" to the purpose section of residential zone districts. • Add a definition of long term to strengthen residential zone districts. 3 RECOMMENDATION: The Planning and Zoning Commission and the Planning Staff recommend that the City Council amend the Land Use Code as outlined in the attached Ordinance. ALTERNATIVE: Council may wish to amend the permitted use sections of the residential zone districts to restate the six month minimum lease restriction for residential units. PROPOSED MOTION: "I move to read Ordinance , Series of 1993, amending the condominiumization regulations and amending the purpose sections of the residential zone districts and including a definition of long term in the Definition section." "I move to approve Ordinance , Series of 1993, amending the condominiumization regulations and amending the purpose sections of the residential zone districts and including a definition of long term in the Definition section." CITY MANAGER COMMENTS: ATTACHMENTS: Ordinance 5 3, Series of 1993 Exhibits: 111" P&Z Resolution recommending approval of the proposed revisions to the Land Use Code 112" Memorandum to Council re: Condominiumization, dated 12/7/92 from Leslie Lamont 113" Condominiumization Text Amendments - Review Criteria ,, q„ P"o:, NJI ce- 4 § 7-1005 ASPEN CODE �10 E. Recordation- The subdivision agreement and plat shall be recorded in the office of the Pitkin County clerk and recorder. Failure on the part of the applicant to record the plat within a period of one hundred and eighty (180) days following approval by the city council ��, shall render the plat invalid and reconsideration and approval of the plat by the commission 1Y ��� and city council will be required before its acceptance and recording, unless an extension or waiver is granted by city council for a showing of good cause. The one hundred and eight i (180) day recordation requirement contained herein shall not apply --to- the recording of ( condo urim 11 m maps, or declarations or any other documents required to be recorded to ac X omp is a con ominiumlzatlon In a lty of Aspen. VZr� Sec. 7-1006. Amendment to subdivision development order. A. Insubstantial amendment. An insubstantial amendment to an approved plat may be authorized by the planning director. An insubstantial amendment shall be limited to techni- cal or engineering considerations first discovered during actual development which could not reasonably be anticipated during the approval process, or any other minor change to a plat �►1 which the planning director finds has no effect on the conditions and representations limiting the approved plat. B. Other Amendment. Any other amendment shall be approved by the city council, provided that the proposed change is consistent with the approved plat. If the proposed change is not consistent with the approved plat, the amendment shall be subject to review as a new development application for plat. C. Plat vacation. Vacation of an approved plat or any other document recorded in con- junction with a plat shall be considered a plat amendment, and shall only be approved by the city council -if good cause is demonstrated. Sec. 7-1007. Condominiumization. %t _I ✓: r A. General. In addition to all other requirements imposed in this division, when applica- tion is made for subdivision of a parcel of land to be used for condominium development, the applicant must also comply with the following requirements during the review of the devel- opment application for plat. If conversion of an existing development is proposed, the condominiumization shall be reviewed and approved as a subdivision exemption by the city council pursuant to the terms and provisions of this section. 1. Condominiumization of residential units. a. Purchase rights of existing tenants. Existing tenants shall be given written notice when their unit will be offered for sale as a condominium, and the sale price. Each tenant shall be provided a ninety -day nonassignable option to purchase the unit at this preliminary market value. In addition, each tenant shall have a ninety -day exclusive nonassignable right of first refusal to purchase the unit which shall commence when a bona fide offer is made by a third person, and accepted by the owner. In the event that such offer is made while the initial Supp. No. 1 1746 MEMORANDUM TO: Francis Krizmanich, Deputy Zoning Administrator FROM: Diane Moore, City Planning Director 1 �1 RE: Condominiumization Memo for Council DATE: August 25, 1993 I had mentioned to you last week that this item was placed on the Council meeting of September 13, 1993 for first reading of the ordinance. There are several items that you need to address for the Council memo and they are: 1. How do we address future condominiumization of commercial properties? Presently, the code is silent as to these types of condominiumizations and staff processes them utilizing the existing language. We can talk about this further. 2. I think that I put something in your in -box regarding the time frame for recordation of a condo plat. The current code does not have a date specified as most people prepare one after, the units have been constructed. We may want to add a time frame as at least the "space" can be delineated on a plat. We have found that no one ever files a condo plat (no motivation) even though they are required to do so. Again, we can talk about this. Let me know when you are available. J) f./ Z Tuesday, August 31, 1993 - Draft memo and ordinance for Diane's review. Once you have made some of the revisions to the ordinance (based on above paragraphs) we can then give Jed a copy for his review and comments. Friday, September 3, 1993 - Deadline for final memo and ordinance to Diane. Wednesday, September 8, 1993 - Council packet deadline is at 2 pm. Thanks. M3i:iVWZi`.11110Ti TO: Aspen Planning and Zoning Commission FROM: Francis X. Krizmanich RE: Condominiumization Amendments - Public Hearing DATE: August 17, 1993 ----------------------------------------------------------------- ----------------------------------------------------------------- SUMMARY: The Planning Staff discussed proposed amendments to Section 7-1007, Condominiumization, at worksessions with the Planning Commission on July 20 and August 3, 1993. A new state statute, the Colorado Common Interest Ownership Act (CCIOA) requires that local laws cannot treat properties differently merely because of the form of ownership; it appears that the Aspen condominium regulations, as written, may be in conflict with this statute. The staff has recommended that the condominiumization regulation be amended to be a simple administrative subdivision platting process. The requirements for housing mitigation would be deleted. The Planning Commission seemed to agree with this recommendation. In addition, based on direction from the City Council in December of 1992, the staff originally proposed the requirement that most of the residential districts be restricted to long-term occupancy (six month minimum lease) with two shorter tenancies per year allowed. Alternatively, short term accommodations (hotels, motels, lodges and some residences) were proposed to be limited to short term occupancy. This proposal recommended adding a new subsection "F" to the residential and lodge zone districts. Subsection "F" generally requires six month minimum leases in all residential zone districts; in lodging districts, short term rentals are required. This proposal is attached as Alternative "B". The Planning Commission expressed the following concerns with this proposal regarding the six month minimum lease: • It does not appear that the proposed restrictions are necessary at this time. • The trend appears to be away from the short term rental of dwellings in residential zones, in part due to an increased supply of quality hotel accommodations in Aspen. • The market tends to "adjust" itself to maintain a balance between resident and short term accommodations. • Enforcement of lease restrictions would be extremely difficult 1 and would probably be somewhat unpopular with the general public. At the second worksession with the Planning Commission on August 3, 1993, the staff discussed a softer approach to occupancy restrictions. The staff opinion at this time is that the existing zone district "Purpose" sections and the Land Use Code definitions adequately define and regulate residential and tourist accommodations; however, in an attempt to strengthen the residential nature of certain zone districts, "long term" has been added. The relevant definitions and the purpose sections (with "long term" inserted in bold print) are attached as Alternative "A". This is the staff's recommended code amendment language. The discussion on August 3 also focused on the need to require six month minimum lease restrictions in residential districts as well as requiring short term leasing in the lodging districts. Originally, members of both the City Council and the Planning Commission, as well as the Planning staff, voiced concerns that removing the six month minimum lease restriction would lead to increased displacement of local residents from long term rental housing. Based on our research (See Exhibit 11111) and discussions with the Planning Commission, the staff opinion at this time is that removing the six month minimum lease restriction from the condominiumization process will have little effect because most of the larger projects that house employees have been condominiumized and/or contain six month minimum lease restrictions. In fact, it appears from reading the Colorado Common Interest Ownership Act (CCIOA) that the six month lease restriction (based on a condominiumization application) is precisely the type of regulation that is prohibited. While the CCIOA prohibits regulations that treat condominium interests differently than other property ownerships, this Act is not retroactive. All previously restricted residential condominiums which have a six month restriction would remain restricted unless those restrictions are repealed by City Council. One approach which the Planning Commission discussed at the August 3 meeting is to amend the condominiumization regulations to make them a simple platting procedure (to comply with CCIOA), while making the recommendation to the City Council that the six month minimum lease requirement should not be removed for any previously approved condominiumization. In addition, it appeared that broadly applying a six month lease restriction to all residential properties ignores the diverse qualities that make each neighborhood unique ("messy vitality"). Based on the above, the Planning Commission discussed the potential of holding a future worksession with City Council and the possibility of analyzing the true effect of occupancy restrictions - short and long term - as they affect the character of Aspen. Staff finds that the proposed text amendments outlined in 2 Alternative "A" meet the review criteria for text amendments (24- 7-1102) as contained in Exhibit 112". RECOMMENDATION: 1. The Planning staff recommends amending Section 7-1007, "Condominiumization", to state: "A. General. If conversion of an existing or proposed development to a condominium form of ownership is proposed, a condominium plat shall be submitted to the Planning Director for review and approval as a subdivision exemption pursuant to the standards for subdivision plats contained in Section 7-1004, "Subdivision Approval"." 2. The Planning staff recommends that the Planning Commission approve the recommended text amendments outlined in Alternative "A", which recommends that long-term uses for residences be added to the purpose section of the residential zone districts. 3. The Planning staff and the Planning Commission recommend that the Aspen City Council refrain from removing the six month minimum lease restriction from previously approved residential condominiums, unless and until further study shows that the six month restriction is not necessary to protect Aspen's residential housing supply. 3