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HomeMy WebLinkAboutminutes.council.20070430 Continued Meetin!! Aspen City Council April 30. 2007 Mayor Klanderud called the meeting to order at 5:05 p.m. with Councilmembers Johnson, Tygre and Torre present. ORDINANCE #10. SERIES OF 2007 - Lodging Zones Code Amendment Jennifer Phelan, community development department, told Council these code amendments cover the L, CL, LP (lodge preservation) and LO (lodge overlay) zone districts. At Council's direction, bed and breakfast has been included as a permitted use in all the lodge zones. Ms. Phelan noted in these zones the residential has been separated, a certain percentage of the lot area is needed for a free market unit; no requirement for affordable housing. This is a clarification in the code. The dimensional standards have been changed. The overall height allowance has been reduced, depending on the density of the project, from 38' for sloped roofs to 42' for flat roofs. For a project with one or more lodge units at 500 square feet oflot area, the recommendation is a base 36' height, which may be increased to 40' through design review. This is a reduction of the currently allowable height. Ms. Phelan said ifan application contains a smaller average unit size of 450 square feet, a 2' higher height maximum of 38', which may be increased to 42', through design review, is allowed. Ms. Phelan told Council the current FAR allowed is 3:1. Staffrecommends a reduction to 2.75: I for parcels of 27,000 square feet or less in size. Ms. Phelan said in the current regulation with a density of one unit/500 square feet with an average room size of 500 square feet, 25% of the floor area can be free market as an incentive for the lodge development. Ms. Phelan noted HVS, the city's consultant, worked on this incentive idea. Staffrecommends an allowable free market percentage based on a sliding scale. An average room size of 600 square feet or greater, 5% of a project can be free market. The smaller the average unit size, the greater the free market incentive. There is a table in the packet showing a 15% incentive when the rooms average 600 square feet; a 40% when the room average 500 square feet; 60% when they average 400 square feet and 80% when the rooms averages 300 square feet. Ms. Phelan said the code currently contains a floor area incentive, which is a percentage ofthe floor area of the project. This amendment suggests the incentive be net livable area to get more of an equal ratio. Ms. Phelan said a 10,000 square foot lodge, wall to wall net livable which met the 500 square foot allowance, one would get 4,000 square feet of net livable of free market space as an incentive. P&Z reviewed several different incentive options presented by HVS. HVS reviewed the different ratios to see which were the most feasible options as lodging incentives. Ms. Phelan reminded Council there is a cap on residential multi-family size of units of 1500 square feet, increasable to 2000 square feet through extinguishing a TDR while not increasing the bulk on site. This would allow for enlargement of individual units. This also affects straight free market projects. Ms. Phelan said Council has indicated concern about negotiating the percentage of free market units in a lodge project. This ability to negotiate that percentage has been removed in this code amendment. I Continued Meetin!! Aspen City Council April 30. 2007 Ms. Phelan said the height allowance in the CL zone district is 28' for two story elements and 36' for 3 story elements. This is a reduction in height from the current code. With an average unit size of 450 square feet or less, there is an incentive for more height. The proposed FAR has been reduced to 2.5: I rather than the current 3: I. There is a cap on the unit size in this zone of 1500 square feet which can be increased to 2000 with the landing of a TDR. The incentive for free market residential in a lodge project references the table in the Lodge zone district and contains the same ratios. In the LP (lodge preservation) and LO (Lodge overlay) zone the percentage of free market residential is also the same sliding scale as referenced in the lodge zone. Councilman DeVilbiss came into the meeting. Ms. Phelan told Council P&Z discussed a smaller percentage of free market as an incentive but based on the city's lodging consultant, the percentage was increased for the 400 and 300 square foot units. The original recommendation for 400 square feet units was 50% and for 300 square feet, it was 60%. The consultants suggested the free market component for the small size lodge units be increased. Ms. Phelan illustrated how the lodge, net livable and free market residential would work. Councilman Torre said the overall floor area will not change; however, one can make the non-units space smaller. Ms. Phelan said this section addresses the concern of how much of the building is actual lodge space. Councilman Torre said he still has concerns about maximum height of 42' and Council discussed that height supportable in commercial core but maybe not in the lodge zones. The lodges do not need the extra height for the first floor. Councilman Torre said he does not agree with the percentages for free market residential as outlined in the letter from HVS International and the percentages should be lowered. Mayor Klanderud asked if there is room for variation. Ms. Phelan said the sliding scale allows one to amend the density and still get the incentives. There is flexibility to look at unit size, incentives, project by project. Mayor Klanderud opened the public hearing. Suzannah Reid said there is concern about eliminating or discouraging amenity space in lodges that are semi-public spaces. These spaces add vitality to lodges. Mick Ireland asked if mechanical space counts. Ms. Phelan said above grade mechanical space counts toward FAR. Ireland asked with a 2.5:1 and a sliding scale for free market space would the city get anything other than a 4 story building. Ireland said the HVS memo asserts a hotel with a smaller size will likely generate lower occupancy. Ireland asked ifthere is any evidence in the record that smaller hotel rooms in Aspen have lower occupancy rates than larger hotels. Ms. Phelan said Council and staff conducted a lodge tour and there was some concern that in the off season larger hotels can under price the smaller hotels. Ms. Phelan said she will ask the consultants from where they got this data. Mayor Klanderud said ACRA does occupancy reports; however, these are not broken out per property because this is proprietary information. 2 Continued Meetin!! Aspen City Council April 30. 2007 Ireland asked what current use restrictions would inhibit condominiums from becoming residences and how does that occur. Ms. Phelan said in the lodge zone and through Colorado law, the form of ownership cannot be regulated. The city can regulate how these units operate. The current regulations require a lobby, staffing, operating like a lodge. Mayor Klanderud noted long term leasing is required with two short term rentals in zones other than lodge and a 30-day restriction on use in the lodge zone. Ms. Phelan reiterated Colorado law forbids dictating the form of ownership; it is an enforcement issue to ensure properties are managed according to the approvals. Ireland said the premise of this report seems to state that a 500 square foot lodge room is what Aspen's customer demands. Ms. Phelan said the 500 square foot was a target for an average room size developed through the infill process. Ireland said he does not think a 500 square foot lodge room will lead to moderately priced lodges. Ireland said there is nothing in the legislation that would prevent the lodge rooms from becoming condominiums. The land use amendments allow free market residential as a use by right as opposed to a conditional use. Ireland said Aspen has a surfeit of second homes and the city does not need to create density bonuses in the lodge district for more free market residential units. Michael Wampler agreed 500 square feet does not seem like a moderate unit. If the percentage of free market residential is reduced, applicants could make more smaller rooms. Mayor Klanderud closed the public hearing. Councilman Torre said the regulations are to incentivize smaller lodge units. Councilman Torre asked if there is a way to maintain non-condominiumization of hotel rooms. John Worcester, city attorney, said he could structure the regulations to incentivize an application to not condominiumize their units. Councilman Torre said he would like the allowed height reduced to 40' and would like to make some changes to the incentive table; at 500 square foot units, reduce it to 25%; at 400 square feet, 40% and 300 square feet units the 80% is too much for him to support. Ms. Phelan pointed out the free market residential units will have an affordable housing mitigation associated with them. The regulations should create less incentive to put those units on a property than lodge units. This will have to be balanced. The creation of "hot beds" is the desirable outcome in the lodge zone. Councilman DeVilbiss asked if multi-family could be a conditional use in the lodge zone. Ms. Phelan said that would be done. Alan Richman pointed out there is a lot of free market multi-family in the lodge zone now. Richman said many of the condominiums in this zone also act as rental units. Councilwoman Tygre said if 80% FARis allowed for residential and 20% for lodge use, the residential will dominate that structure. Ms. Phelan illustrated what part of a lodge building one would get for free market units. Councilwoman Tygre said with 20,000 square feet of300 square feet or less units, one would get 16,000 square feet at an 80% incentive. Councilwoman Tygre said that ratio is a problem and also a problem is the way the building will function. 3 Continued Meetin!! Aspen City Council April 30. 2007 Councilman Johnson said moderately sized rooms would result in more moderately priced rooms; however, what the local operators and the HVS memorandum state is that Aspen's market will not provide moderately priced rooms. Councilman Johnson suggested if a hotel with moderately sized and priced rooms does not result, then something else should be tried. Councilman Johnson said the course the city has charted to get what they want is not acceptable regarding height and free market residences. The previous legislation has compromised parking and affordable housing mitigation. Councilman Johnson said he could support a luxury-lodge on-mountain zone with no incentives and "other". HVS suggested public subsidies or public/private partnership. Councilman Johnson said Council should find a model lodge in Aspen; analyze it and see what it would take to re-create it and encourage that type of redevelopment. Mayor Klanderud said she would like to see a mix of units that embrace a diversity of visitors. Mayor Klanderud said she would not support subsidizing hotels. Councilman Torre said he feels these recommendations are a step in the right direction; however, he would like the allowable height decreased from 42' to 40' in both CL and Lodge zone. In the free market incentives, there should be none for units of 600 square feet or greater; for 500 square feet it should be 25%; for 400 square feet, 40%, for 300 square feet it should be 60%. Councilman Torre said with this formula, an applicant could get 3 residential units with a hotel of 33 to 35 units. Mayor Klanderud said she would like to know if this formula works for the industry before adopting it. Councilman DeVilbiss requested staff report back on whether the numbers work. Councilman DeVilbiss said he would also like to know about deed restrictions against condominiumization. Councilman Torre agreed about deed restrictions. Councilman DeVilbiss moved to continued Ordinance #10, Series of2007, to May 15, 2007; seconded by Mayor Klanderud. Councilwoman Tygre said her concern is that the applications have had residential free market units sold in fractions, rather than hot beds. Councilwoman Tygre said any incentives should be for lodging, not free market units. Councilwoman Tygre said she would prefer incentives for lodge units, not second homes. Councilwoman Tygre said she would like to look at the LP area which has been a difficulty for the city for years. LP projects are difficult to evaluate as they are generally in residential zones. Councilwoman Tygre noted the city has tried many different techniques in the past to save the small lodges and nothing has worked. Mayor Klanderud agreed lodges in residential area come up against neighborhood character. All in favor with the exception of Councilman Torre. Motion carried. Ordinance #11. 2007 - Code Amendments Commercial Zones Jennifer Phelan, community development department, pointed out the ordinance has been changed regarding floor area ratios to clarify the maximum may not be achievable when there are dimensional and design standards and view plane requirements to meet. This will be added to all the zone districts. Ms. Phelan pointed out that the residential free 4 Continued Meetin!! Aspen City Council April 30. 2007 market units size cap is 2000 square feet up to 2500 square feet with the extinguishing of a TDR and that language clarifying how those TDRs can be extinguished is added to all the zone districts. Ms. Phelan told Council staff has been focusing on the lodge zone, commercial core, height of buildings and design guidelines. Ms. Phelan pointed out changes to the S/C/I zone district have been suggested and staff has not given that zone district the same energy as other zones. P&Z recommended offices as an allowed use on the second floor. Ms. Phelan said there a lot of goals for the S/C/I, like having light industrial, like encouraging incubator space, concern about not making a lot of non-conforming uses. Some of the suggestions for the S/C/I zone are to do nothing; to extend the moratorium just on the S/C/I zone district; to amend the permitted uses. Ms. Phelan said she feels the changes to the S/C/I district will need more time and consideration than the time that is available. Mayor Klanderud said she supports S/C/I being pulled from the code amendments and leaving it in the moratorium. Councilmembers Johnson and DeVilbiss agreed. Councilman Johnson said he does not have an issue that lodging is included in the CC zone but does have an issue with a 3:1 FAR. Councilman Johnson said he is also concerned abut the FAR of 1.5:1, the 500 net livable and lock off units. Councilman Johnson said he wants an idea from staff what that would to do the creation of more retail commercial and office commercial because that is what should be encouraged in the CC zone. Mayor Klanderud opened the public hearing. Mick Ireland suggested S/C/I space might be incorporated in the commercial core by giving bonuses for that type of space. Ted Guy told Council he owns 6,000 square feet on Main street. Guy said he feels it is a mistake to combine mixed use immediately adjacent to the commercial core along Main street. These are two different neighborhoods and this may destroy Main street as a residential/commercial/lodge neighborhood. Guy suggested removing the commercial/residential ratio from Main street. Suzannah Reid, architect S/C/I zone, thanked Council and staff for taking extra time to work on the issues in that zone. Mayor Klanderud closed the public hearing. Guy said he likes the residential feel of Main street and there should be a larger percentage allowed for free market in the mixed use zone. Guy suggested mixed use could be reviewed lot by lot rather just a blanket use. Ms. Phelan said a certain percentage of commercial is required to the free market residential in order to insure that a mixed use building does not turn into a mainly free market residential unit. Ms. Phelan said the current code requires I: I, every foot of free market residential requires one foot of commercial. This has been changed to 1.5: I of free market residential to commercial. Councilman Torre said he supports the code amendment as written; Councilwoman Tygre agreed. Councilman Johnson said he would like to see more commercial on Main 5 Continued Meetin!! Aspen City Council April 30. 2007 street to help increase the amount of commercial in town. Mayor Klanderud said she likes the mixed use concept; Main street could look very dark with all residences. Councilman Johnson suggested on variation of building hei~#s, he would like a range for each floor, like 13 to 15' for the I st floor; 9 to 10' for the 2n and 3rd floors to decrease all the height being used in the first floor. Councilman Johnson said he does not want the 2nd floor to lose out to 3rd floor free market residential and to 1 st floor commercial. Councilman Johnson said his concern about the commercial zones is to include community or affordable commercial in those zones. Councilman Johnson said when the moratorium started, that was a major concern to Council. This was identified as a concern in 1993 and reaffirmed in 2000 and in the economic sustainability report and Council should make sure this is part of the code amendments adopted as part of this process. Councilman Johnson stated he has a list of services that are locally serving and these should be part of the competition in GMQS scoring. Councilman Johnson suggested the F ARs be lowered in commercial zones so that affordable commercial space will be encouraged. Councilman Johnson requested staff respond to his proposal at a future code amendment meeting. Councilman Torre said he could support these ideas but not at the expense of continuing the moratorium. Councilman Johnson said he could accept greater height and density if Council could get what they want within the building; if not, Councilman Johnson said he would rather have a smaller building. Mayor Klanderud asked that staff take these suggestions to the Commercial Core and Lodging Commission. Mayor Klanderud said if incubator space is included, it has to be structured so that it is only to get started and not a commercial enterprise that starts and stays and stays. Councilmembers DeVilbiss, Torre and Mayor Klanderud said they could support staff looking into these suggestions. Councilman DeVilbiss moved to continue Ordinance #11, Series of2007, to May 1st at 5 p.m.; seconded by Councilman Torre. All in favor, motion carried. Councilman Torre moved to continue the meeting to 4:30 p.m. May I, 2007; seconded by Councilman DeVilbiss. All in favor, motion carried. Council left Chambers at 8:10 p.m. J~ 6