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HomeMy WebLinkAboutcoa.lu.ca.Condominiumization of Lodges.1980CA- IgQp- Ol Condominiumization of Lodges MEMORANDUM TO: Aspen Planning and Zoning Commission FROM: Richard Grice, Planning Office RE: Lodge Condominiumization/Lodge Preservation DATE: February 28, 1980� Many of Aspen's nonconforming lodges are no longer viable economic operations. The reasons most often cited are: (1) (2) (3) Limitations on reconstruction and/or renovation imposed by nonconforming status, and Refinancing di'ficulties arising from nonconforming status, anJ The economics of scale are not available to the small operations. The following are possible solutions to the above problem: (1) (a) Amend the nonconforming section of the Code so as to allow for the reconstruction, renovation, or modification of nonconforming lodges provided all new construction meets the area and bulk requirements of the underlying zone district and, provided that no increase in the square footage or the number of lodge units occurs. Such new construction could be accomplished simply by meeting the requirements of the Uniform Building Code unless the proposal involves construc- tion within a Mountain Viewplane or in an Historic District. In those cases, the Planning and Zoning Commission and the HPC would become involved respectively. These amendments would result in a significant simplification of the Code in that most lodges would be able to renovate or reconstruct simply by applying for a building permit. In addition, since these lodges would remain nonconforming uses, the question of adjacent property owners being allowed to create new lodges is eliminated. (b) Create a new zoning category to be called the Lodge Preser- vation (LP) zone. The LP zone would be intended as a means of encouraging the renovation of and preservation of the unique mix of existiing lodges as to scale, character, size, type, location, quality, services, amenities, ambience and price. The zone would be applicable to those lodges which were constructed outside the lodge zones prior to the adop- tion of the 1973 Master Plan, i.e., all lodges which are nonconforming as the use. In order to legally justify the new zone category and the elimination of nonconforming status without allowing adjacent properties to build new lodges, we would also need to adopt a Lodge Preservation PLAN to act as a guide for the administration of the zone. The Plan could include criteria for evaluating the merits of any expansion proposal. However, we do not feel that expansion should be allowed for reasons covered in detail later in this memo. Finally, as the 1980 Planning Office budget did not include the staff time which would be neces- sary for reviewing proposals under the newly created plan, some other budgeted task(s) would have to be eliminated. (2) Lodges experience refinancing difficulties with or without nonconforming status due to the fact that investors view lodges as a high risk. Even without restrictions imposed by nonconforming status, the marketplace will allocate where investors place their money and each lodge must stand on its own merits. In the capital -short money market which exists today in the United States, funds for refinancing will continue to be difficult to acquire even without restrictions EST Memo to Aspen P & Z Re: Lodges February 28, 1980 Page Three 1. In order to promote full utilization of existing residential and lodge facilities, amend the nonconforming section of the Code by the creation of a new section, 24-12.9 "Residential Preservation Clause": "All single-family, duplex -family, multi -family, lodges and hotel residential uses that were lawfully established and continually so -used thereafter are nonconforming uses but are considered to be allowed uses and are not subject to the provisions of Section 24-12.4 and 24-12.5; provided, however, that all new construction, renovation, reconstruction, or modification must meet the area and bulk requirements of the underlying zone district, and, provided that no increase in the square footage or number of units shall be allowed." 2. In order to clarify that it is not our intention to prohibit the condominiumization of developed nonconforming uses, amend Section 20-9(c) to read: 1 ,. "No subdivision of land shall be approved which is inconsistent with the provision of any zoning ordinance or other ordinance of the City of Aspen or law or regulations of the State of Colorado." 3. Amend Section 20-22, the condominiumization section, so as to allow the condominiumization of hotels and lodges in accordance with the Lodge Association's proposal provided that the proposal continues to guarantee continued short-term use. 4. Amend the definition of subdivision, Section 20-3(s)(2) so as to clarify that review under subdivision regulations will not be required for the renovation or reconstruction of nonconforming residential uses. That section should be amended to read as follows: "A tract of land including land to be used for condominiums, apartments or any other multiple -dwelling units, or for time sharing dwelling units; or" Section 20-3(s)(2) currently reads as follows: "A tract of land including land to be used for condominiums, apartments or any other multiple -dwelling units, or for time sharing dwelling units, unless the improvements with the same density has previously complied with the requirements of this chapter; or... 11 1 __4 v �n , �u✓PROPOSED ORDINANCE � �� � A. Requirements. Any applicant seeking condominiumiza- tion of an existing lodge (for the purpose of this section, a lodge is defined as a building containing three (3) or more units intended for temporary occupancy of guests and run in such I'manner prior to January 1, 1979), in addition to other require- ments set forth in Chapter 20 of the Aspen City Code (the Aspen, Colorado, subdivision regulations), shall comply with the follow- ing requirements: 1. The condominium units created shall remain in the short-term rental market to be used as temporary accommoda- tions available to the general public. The following shall con- stitute prima facie evidence that the applicant has complied with this paragraph: a. A condominium declaration for the condo- minium sought to be created shall be filed in the records of the clerk and recorder of Pitkin County, Colorado, which shall pro- Ilvide, interalia: (1) An owner's personal use of his unit shall be restricted to fourteen (14) days or less during the i5,� -0,vA& Z6, seasonal period of December through p-r 1. This seasonal period is hereinafter referred to as "high season." "Owner's personal use" shall be defined as owner occupancy of a unit or nonpaying guest of the owner or taking the unit off the rental market during the seasonal periods referred to herein for any reason other than necessary repairs which cannot be postponed or which make the unit unrentable. Occupancy of a unit by a lodge manager or staff employed by the lodge, however, shall not be restricted by this section. (2) A violation of the owner's personal use restriction by a unit owner shall subject the owner to a daily assessment of three times the daily rental rate for the unit, at the time of the violation, which assessment, when paid, shall be deposited in the general funds of the condominium association for use in upgrading and repairing the common elements of the condominium. (3) All sums assessed against an owner for violation of the owner's personal use restriction and unpaid shall constitute a lien for the benefit of the condominium association on that owner's unit, which lien shall be evidenced by written notice placed of record in the office of the clerk and recorder of Pitkin County, Colorado, and may be enforced by foreclosure on an owner's condominium unit by the association in like manner as a mortgage or deed of trust on real property. (4) A violation of the owner's personal use restriction shall be enforceable by both the City of Aspen and the condominium association. 2. The new condominium units shall provide on - site management and maintenance and other tourist accommodation services during high season consistent in quality and quantity to those provided during the high season immediately prior to the time of application when the property was operated as a lodge. If the lodge property sought to be condominiumized had provided on -site management, t e new co dominium shall provide �r contract for on -site management from 8:00 a.m. to 8:00 p.m. seven (7) days a week, on -call services twenty-four (24) hours a day, maintenance of the grounds, common elements and emergency unit repairs and a continuation of the lodging amenities and host -guest relationship consistent with that previously provided by the lodge. 01 E 3. The condominium units shall rema' a ailable to the general tourist market. This condition maybe t by inclusion of the units of the condominium in a local relservation system for the rental of lodge units in the City of Aspon. 4. The common areas of the lodge shall r�main common areas and be maintained in a manner consistent with its previous lodge character. Any changes, alterations or renovations made to common areas shall not diminish the size or quality of the common areas. 5. The lodge shall be physically upgraded as a result of the condominiumization either by applicant's fulfilling the requirements set forth in subparagraphs a and b, infra, or in the alternative by applicant's compliance with subparagraph c, infra, as follows: a. An amount equal to twenty percen (20o) of the assessed value of the property is applied to the pgrading of the lodge facility pursuant to plans submitted to and approved by the City within six (6) months of condominiumization pproval and the upgrading is completed within nine (9) months after the building permit for such upgrading is issued. Tw housand, fi e hundred dollar fm�• �Zu f 6 ,��� ,� RVI ($2,500.00) per to ging unit s spent on he upgr ding o each rental unit pursuant to plans submitted to and approved y the City within six (6) months of condominiumization approva and the upgrading is completed within nine (9) months after 'building permit for such upgrading is issued. 6j � 46XZ ,mot. The applic nt demonstrates by cle convincing evidence to the City 1 that funds previ expended by the applicant have upgraded the lodge to a h enough quality so as to make further upgrading unnecessa condition to condominiumization and that the upgrading d previous to the condominiumization will allow the condom lodge to continue to accommodate its clientele in a mann r and usly gh y as a e iumized AA consistent with or better n qu lity than the accommoda ion (provided previous to c do miniu-Eiization. Due considera ion shall be.given by City Council to the fact that the lod es of Aspen attract clientele from diverse economic sectors, certain lodges catering to certain sectors, and the intent herein is not to create a uniformity in lodge character and roles but instead Ito upgrade the physical appearance and facilities that each lodge provides. B. Applicability. All conditions set forth wi hin this ordinance shall be made binding on the applicant, the ap licant's successors, heirs, personal representatives and assigns nd shall govern the property which is the subject of the ap lication for the life of the survivor of the present City Council of Aspen plus twenty-one (21) years. A condominiumization of a lodge pursuant to this section shall be modified only by the written agreement of the City Council and the owner or owners of the condominiumized lodge property. C. Procedure. Condominiumization of an existing lodge shall be accomplished pursuant to the exception or exemption process rather than through the full subdivi ,�lu�{ fa newze X - `6� /lu oR /,tea Uc� 4lY//112� G�%�-w✓� �fi i W�� CoG�dtLy `� MEMORANDUM TO: Aspen City Council FROM: Richard Grice, Planning Office RE: Report on the Lodge Condominiumization Ordinance DATE: January 21, 1980 The Planning Office, the Lodge Association and Gideon Kaufman, as well as several members of the City Council and the Planning and Zoning Com- mission have been working on the Lodge Condominiumization Ordinance. The final product is not completed; however, we're getting close. In its present form, the ordinance addresses the three major concerns identified by the Planning & Zoning Commission and City Council: the need to physically upgrade, long-term management, and continuation of short-term availability. There seems to be some continued disagreement regarding how much upgrading and employee housing should be required as a condition of condominiumization. Gideon Kaufman is putting what hope- fully will be the final draft together at this time. We hope to be able to present to you a copy of the latest draft on Monday. In any case, we need for you to extend the moratorium long enough to allow a public hearing before Planning & Zoning, as well as first and second readings before City Council - roughly 75 days. (The code requires 15 days notice prior to the Planning & Zoning public hearing; agenda deadlines dictate that there will be 20-21 days between the Planning & Zoning hearing and the first reading by City Council; and finally, additional time will be lost in scheduling the second reading before City Council, as it is a public hearing with 30 days notice.) Note: (3:00 P.M. Tuesday) Gideon has just delivered the latest Draft of the Condominiumization Ordinance to the Planning Office. We have not had time to review the draft, but are including it in your packet so that you will have time to review it prior to the meeting on Monday. D R A F T December 18, 1979 TO: Planning cc fice, City Attorney ant City '-tanager ASoon P it Aspen City Council ALA Executive Committee ACR Board and Betty FROV: Al Blo-quilt, ALA Task Force on iron -conformance SUBJECT: Proposed New Lodge Overlay ?une --- Plus. This report deals with the problem of NON-CO\FO11'0IING LODGING. Karen S^it:i obtained and suggested that the ALA consider t`:e Phconix "Special Conser•.atic:. District" ordinance for a model. -. e attached craft of a LODGE CVERLAY :-.';h ::.ilizes t .e Pheonix approach. The ►hconix ordinance included a nei?'.borl:cod self -planning feature. For Aspen the new zoning provision is called an "Overlay" zone because it leaves the und--rlYing districts and re-niations applicable to all. uses except "exist :: - lodgin-y", to xhic% the ever la a -)-plies. It creates lodging as a snccial "class" of ')usincss use and makes Cxisti-7 lodging within the overlay zone `::lly le^a' and enable:'. and encouraged to up -grade. h A-1;'.itional research done by the ALA suq,,ests that ::ore than just a Lodge Overlay lone is needed. If the following objectives are to be achieved: 1. Le alize, without reservation, lodging in two mixed use neighborhoods where such lodging is now nor. -conforming. �. Allow limited expansion and unlimited ungrading of existing lodges without automatically enablinn *l:cr properties, to be used for totally new i fit, . ;. P-COSe]'Je the n:xe1 ;:se character an.: neijibor- :•f -")th the 1_11iauc•w ';:•.; �t.^.;� .^a lili) ilolc Par:, CSi::^.C1.1_-1GJ�i•�^ i1C�^^...iT' ;. Iis:1 to igin^ as the business of �rovidin^ short azczmadations .l_7:.. r -5itor . J . .,►0: iGe rJ. 1:Ceas:•'^_ to the e:1d i::.^.t the lo,'"_ ij.:C:1t:1 and sales tax fun tions are conplIcte, accurate, and cur7cnt. o. Pro: _de in opI—or tnnity for t:1e S:...�c:: �Jr :... e Park n ' lan for �c ..:e.. _:::1.. _ 'aa: 0"'CMCn JOt`: ..S t: nl an,! as 1cI!7:. C' ::COGS -a.)l;sh A R as a quaSx . :�- l.ortc:i cnti y frce from accusations of it and a `rcc to .is,tors with all Aspen lcdgimp re')res:^tc. . 10 acaleve the abovC objectives, the follol:in,7 arO^ ams 5.:0.:1 .' _Mn! i- .... n t e d . PP.OG't"! ON'!: -- h0(!GE 0!'ER►AY ":_ (a) Anend Purl,ose, Section 24-1.2, to include a ne:: n!irpose: (i) To Protect and encourage the improvement of lodc,,inp, as an !,pen business that offers the visitor v bitty as to size, tv.)e, lug at:ja, gL.ai . Y, servJ za.s, .,, caC t * c5, a.-alAeilco a;.,i prize. ;unen;l Pefinitions, Section 24-3.1, to distin ,wish JQt:tiCen "toi',giag" as the business of provid:a,- S'lor t te:.1 rental ncco:'oclations :For the As^en visi- t,,,-. �..l.::n .:IiC.. sal a tax is CO.ICCtCd and ...�_ «- as :o::ti t3:�.i :.3:.ta: andC:Ji1... vCCL:i.^...^.C.y lot .Or rc .tal : isitor use. i^ate :ae c:es- hotel t L, 1-- Ca jo. ...:....::..� anyany.i.er O..'t.�:14..,.�S .._.,.1 C. .-..-._Ons s!:o::-te:- :erSi1S lU:a2-te:il 1S CO:1s2Sit::at t.:r:._.�.. ... Cole. ^^:'Z:6' 1�;0 --_ 3USI: ESS LIC:FNSE ^•nend the Business License Ordinance, Section to require all Lodging (short term rentals) to have a separate Lodging business license for each prorerty (as identified by the Assessor's Parcel `tether-H digit m'.e). Said License shall not include a restaurant or other business - only the lod!�ina function. Other businesses on the same parcel shall have a separate license. PROGRAM THREE --- SALES TAX ACCOiiVT I.UMBt-R the sa:cs 'i :c urilinarize, Sc.tiva , to require all :*iales Tax Account :;umlo'rs to correspond to tll.' al)J'v ' bl:::_.1�'S3 ldc:,n-;e 'NiLm'aar ::,;.i A.;sc_:s�r's Par;el as-afabove so tllat z:iic ..Jili.L; sales ta:. C.'_')is .. aozouii Sisal. re.ri:ct :1cC:.: Lei; Lila short on ..iC il�,,..:rtie$ s:i 1..Clitlfic.il. "--'4 CFF CALES TAX .....eTti! .:;c Sales Tax Cr:..- a ncC, :cis:: , LO cnticns' CXC:7t for ........'. fib in? .... i :-'., j`.ate .^.^.. n County to make .::Y ::::;• a'e^t to collect t::eir sales ,...::es from City ::n- to ao so mo :..:lly. .. ♦.�� ♦ —�:.._"- .3 .�^..vS scasona_,,a.on_,., ` ogress nec.!3 to mc�S :.^ ! .. _ ^.t@:, a�..�. in a ti.,ci rcc._ .J w.7 -... .. .._..w ' • J.�..lVs tax cJi ♦VV. most :cc: -rate r:flcc._:e --....--x nvai' w.c :::r:�.,.-`:oat t' e cur. !! .:e✓e� :lile scmc v, crtics ":�`•t ......:thl;�, :y -_.::�:": '�... ,•, .."::i r7r some or their .i,nli recet.-ts cc... :o:. .a s'..,_stics as :.1`c as April or '!ay. '.15, *'je _.Tics tax I'^ccipts, as now re- nortc', (to not accurately—2fleCt the extrcre Seasinal?r • of the local econo- . PROGRAM FIVE --- COMPUTER REPORTS The Finance Office should rre;)are monthlv computer Print:).ts lqn t!ir ho rt tern renta : - in the Ci t i' !'or )i o" t'!c :onin;; rnrorcoment Officer, the pianners ail .i the lou'l;th lll.lustr y /\� 1�, ALA, etc.) . 121C LSJnLi1l'• listing wou'L6 inJcnt1f. all i)al:.els ltsscJJJ, i-� Uigit parcel identification nurniber) . The.�JI11nn, ii:J OtSsiaess license number, the sales tax account number, t:le SIC, the sales tax collczted for the pac-.''/Ot1S ::Jnt: , :nd any properties licensed but not pad:n- :his �;.olt:l. iile muntal", a::alvtical st::.mary : oala report to.a: rcce:;);s, number of participants and number of del=..:,::eac'_es....?:1- Lonccod and SIC for t:le c::rrent r..onth, a:.1 L.lc =7-s __.. the same month a year •.,o, and last month. sc-ni-l-nntlal six month report cn, lce-,ir- _..:�: s:ry ^`-750- mance each winter and, each st:^^er wculd be eYw: , ••� s ✓�Y. cc al anal sis cC �tr_M�'A the Assessor's invnn `.�)rY of '_cdRin,- with the City Finance Office inventory and the ACIR inventory. Each .c;,ort :soul! also cc.;;.are st.: �ler ".!ay ,...... Octo'aer) and winter (ltiover..ber, thru ni::il) ;.erfor^a::ces, measure :he off-season lows, idcntify lc ; tcrn trcn:'s, ct_. Each .-.ould include a saccific report cn "? lo•' e ..ni. quota and its relationship to market conditions and the growth control objectives. PR�ICMM SIX ___ A QUASI -PUBLIC CORPOnATE1CR ACR is the third or fourth or more in a series of un-again and down -again reservations services Purporting to represent all or most lodging availability -- each intended as a con- vellicnce to the Aspen visitor. It is time to s..tic on urge ;)ernanent entity, oils nationall advertised teleilnune nur:;%ar a,l.l c„li c the financing directly i)roi:urtional to the ;-Iross r.�: cults or cazh lod; -nc, ,:runcrt;: . To assure tile i).'ri:anence and effe,:tivencss of ACR It SAJUI.� i1J:•< oc creatcd, as a quasi 1'clMic! entity f1n:I:1Ced .>,: a fl:a.^.. percentage of (.Its• sales tax receipts iro.,, i.ud�IIl� �SilOr: :c:l to :c)resent all lic ::SC:; in t:lc ::_t• I_..._;s, and t:lose ,.tslde the ^.ity limits contract for a fee. Its c`iarter s°o,:.� ?_..._: to tao da_-..:c:.tor. Jf aJa.�-^.lJi::t:', .. ^...^.._'Jaa�b:rt-Sc_! tc_:')::Oi.: ... :;.. . e to ea::l c:t:i:.;, reser:^.ticn:sts, ctc . cn:: no :packa;-es, etc., ezzy. Its board of directors s::o:._.. _... _..�c ..:c ante Office, c :cne - or ...^ ^^~ c'.e: tc.' fro:I each of the t:.ree _o an c!s res'_c':cnt of t!:� .: d t::e ipres:cc .` M'I:Cc !:cTON The al)c,ve six )rograms in.terelate to strcn;_then the Aspen to '­Jn-, indrastr:.- by n.iving it new status in laic and some imr.roved central and data services. They eliminate several ciirrent hindrances to ludginp effectiveness and they give to each owner considerable freedom to improve operations and �uptirn,!e facilities. As such they comprise incentives to i .tr•, ' , ;!'t)`'(• ;!-!vide o 'u the Vi Ito?,. TO: Aspen City Council FROM: Jim Reents, Housing DATE: December 18, 1979 Director , )" SUBJECT: Low, Moderate & Middle Income Housing Price Guidelines When initially established in 1978 the housing price guidelines were designed to reflect the current cost of construction. At the time of initial adoption, the Council in their resolution also adopted a method of updating these guidelines on an annual basis. The formula that was proposed was an averaging of the Denver regional house pricing index and the national housing index. For 1979 the average of these two indices was approximately 170 increase over the previous year. The intent of the housing price guideline was to set a level at which housing could be produced within the community. It was felt that by having rental and sale price restrictions lower than the cost of construction would be a disincentive rather than an incentive. However, at the time the guidelines were developed, no consideration was given to the fact that construction prices within the community vary V..-4 ^ '_ ------._nt2: T''ith4 commPrnial- rnrP. which already allows an1FAR bonus to construct employee housing, there are very different fire code requirements, thus the cost of building is much higher. Over the past year the cost of construction has inflated at a more rapid rate than was- anticipated for the method of updating within the housing price guidelines. Thus any units to soon•be constructed but approved under the old guidelines are now not even in a break- even situation. In the original resolution No. 20 that was presented to you, it was proposed to update the existing guidelines and at the -same time adopt new guidelines to reflect current construction prices. In addition, this proposal was to reflect a staggered cost of construction reflecting the difference between residential construction without line costs to commercial construction without line costs. I believe we have already passed a point at which we can consider the development of low income housing within this valley. The only w4y we will be able to obtain low income units within the community is through the process of conversion of existing units -rather than new construction. At best the guidelines should be considered just that, guidelines. If we set a guideline rental or sale level too low, there is no incentive to build. If we set a rental guideline too high, it's no longer moderate income housing. I feel the only equitable way to O City Council - 2 o December 18, 1979 e evaluate projects is on an individual basis and make variations from the guidelines based on that while still retaining them as target figures. Attached is a photo copy of the previous Resolution 20 as well as some information developed by Don Fleisher and Associates with regards to cost of development. At the same time, there is no policy of screening or qualifying rental applicants so that the housing is in fact provided to individuals within the community who fall into a definition of low, moderate or middle income. JR:ds Attachments RENT REQUIRED FROM EMPLOYEE HOUSING IN THE COMMERCIAL CORE TO GIVE A ZERO RETURN ON CASH INVESTED. Assume a rent per s.f. of net leasable area of $1.00/s.f. Operating expenses, based on experience with other income properties, include taxes, insurance, water and sewer, repairs, custodial, management, etc., totalling about 20% of gross income. The net income to the owner is therefore 80�/s.f. of the net leasable area. This is the income per s.f. of net leasable area. After allowing for hallways, stiars, mechanical rooms and other common building areas, a building can be designed for about an 80% efficiency of net leasable area to gross building area. Net income to the owner is therefore 64�/s.f. of gross building area. Estimated raw construction costs of apartments in commercial core in 1980 (including carpets and appliances.) is $75.00/s.f. Architectural fees, financing costs, development fees and other costs (NOT SAND) tocai 36� ur raw construction costs, based on experience, i.e. 22.50/s.f. Total cost of construction, excluding land is $97.50/s.f. Assuming 70% financing for 30 years at 101-,% interest, the monthly mortgage payment per gross s.f. is 6231¢. On'an investment of $30/s.f., an owner will receive a return of lit per annum, or 0.5% per annum. In practice, due to the poor cash return an owner would not be able to borrow 70% of the -cost of the building, making his cash outlay even larger, though his cash return would also be larger. Based on the initial assumption, therefore, of rent of $1.00/s.f., an owner will receive a basically zero cash return on his investment in the employee apartments. S_ d X1 0 0 0 0 0 '-•i on 10) LLJ 1 MOOON McY lc\j XI OOOO-::rr-.o LL.1 1--1 Ir� N O Ott tT O Ql •O M s •r O N N I ILf) ::I- S_ r }) 3 In O N � •r Q1 � N Z tB _1 X I 0 0 (V lD M M '-+ Lo a,LLJ M c1' M -4 1-4 O +-) F-- c O M � !� 1 (V lD OO /000 Iko NI pJ XI OOONkDcoko lc\j LIJ .-1 M J( cY tt m M co O M 1--i -zj- .--1 O Ln ­4 W ! .-ti —1 1-1 M M LP n d Low NOo00r) I 1--i NIj- C7 Cn mIrLn1.01�0001 1�1-1-1�t,-I,, 1,- 1 rnrnrnm0)m N -+ .-1 •-i —1 --1 --4 t\ Ol e--i