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HomeMy WebLinkAboutordinance.council.005-18 ORDINANCE NO. 5 SERIES OF 2018 AN ORDINANCE OF THE ASPEN CITY COUNCIL AMENDING CITY OF ASPEN LAND USE CODE SECTION 26.470.050—CALCULATIONS TO ADOPT A REVISED AFFORDABLE HOUSING MITIAGTION FEE-IN-LIEU RATE SCHEDULE. WHEREAS,pursuant to chapter 26.470, Growth Management Quota System, of the City of Aspen Municipal Code, applicants may, under conditions specified by the Chapter, pay fees to satisfy requirements to provide affordable or employee housing; and WHEREAS, pursuant to Section 26.310.020(B)(1), the City of Aspen conducted Public Outreach through various fee-in-lieu work sessions with Council, the Aspen-Pitkin County Housing Authority Board of Directors, and the Community Development Department; and WHEREAS,pursuant to prior resolutions and ordinances of the City, the City Council has historically established these fees, referred to in Chapter 26.470 as an affordable housing impact fee, affordable housing mitigation fees, and cash-in-lieu payments; and WHEREAS,Land Use Code Section 26.470.050(E), Calculations- Employee housing fee- in-lieu payment,prescribes that the Fee-In-Lieu rates shall be updated every five years and adopted by city council ordinance, and that during intermediate years, the City may choose to update the fee-in-lieu schedule, by ordinance, based on the change in the engineering news record inflation index; and WHEREAS,The City is electing to update the fee-in-lieu schedule based on the change in the Engineering News Record,Construction Cost Index,which shows a 7%increase from the time of the fee-in-lieu adoption in December 2015 and December 2017; and WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health, safety, and welfare; and NOW, THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO THAT: Section 1: Adoption of Fee-in-Lieu rates. Section 26.470.050(E), Calculations-Employee housing fee-in-lieu payment,of the City of Aspen Land Use Code, which section prescribes the method of calculating employee housing impacts and mitigation requirements, shall be amended to read as follows: 26.470.050 Calculations. E. Employee housing fee-in-lieu payment. Whenever a project provides employee housing via a fee-in-lieu payment,in part or in total,the amount of the payment shall be based upon the following Ordinance 5. Series of 2018 Affordable Housing Fee-in-Lieu Increase Page 1 of 3 (fee-in-lieu is only allowed for Categories 1-4, Categories 5-7 is calculated only for use in the Housing Certificates Program): Fee-In-Lieu(per FTE): Category 1: $381,383.31 Category 2: $342,599.02 Category 3: $306,549.65 Category 4: $238,687.04 Category 5: $168,289.60 Category 6: $142,114.19 Category 7: $111,438.36 Payment shall be calculated on a full-time-equivalent employee (FTE) basis according to the Affordable Housing Category designation required by this Title. Unless otherwise stated in this Title or in a Development Order, Fee-in-Lieu payments shall be collected by the City of Aspen Building Department upon and as a condition of Building Permit issuance. The Fee-In-Lieu rates shall be updated every five years and adopted by city council ordinance. During intermediate years, The City may choose to update the fee-in-lieu schedule, by ordinance, based on the change in the engineering news record inflation index. The following methodology was used to determine the above fee-in-lieu schedule: The subsidy per FTE was calculated by subtracting unit sales revenue per FTE from the total development costs per FTE. Total development cost per FTE was determined by using an average of recent City of Aspen projects and foreseeable future City of Aspen projects for which land has already been acquired and program/density has been deliberated,where in each case actual land costs were used in the calculation. The Program/Density projections for future projects were based upon assumptions suitable for the respective neighborhood, public outreach, and program/density review by City Council. Development cost calculations included all "hard" and "soft" costs associated with development. Section 3• Any scrivener's errors contained in the code amendments herein, including but not limited,to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 4• This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the resolutions or ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior resolutions or ordinances. Section 5: If any section, subsection, sentence,clause,phrase,or portion of this resolution is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a Ordinance 5,Series of 2018 Affordable Housing Fee-in-Lieu Increase Page 2 of 3 separate,distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 6• A public hearing on this ordinance was held on the 26 day of February, 2018, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers,Aspen City Hall,Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ, AND ORDERED PUBLISHED as provided by law by the City Council of the City of Aspen on the 12th day of February, 2018. ATTEST: Linda Manning, City Clerk Steven Skallron, Mayor 1 FINALLY,adopted,passed and approved this 26th day of February, 2018. Steven Skadron,Mayor— ATI ayorATTEST: APPROVED AS TO FORM: \, Linda Manning,City lerk _ James R True, City Attorney Ordinance 5, Series of 2018 Affordable Housing Fee-in-Lieu Increase Page 3 of 3