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HomeMy WebLinkAboutminutes.council.20071009Regular Meeting Aspen City Council October 9, 2007 COUNCIL MEETING ....................................................................................................... . 2 CITIZEN PARTICIPATION ............................................................................................. . 2 COUNCIL MEMBER COMMENTS ................................................................................ . 3 CONSENT CALENDAR .................................................................................................. . 3 • Resolution #81, 2007 -Gibson Street Storm Water Improvement Contract ........ . 4 • Resolution #8Q 2007 Supplemental EOTC 1/2% Transit Sales and Use Tax Budget4 • Resolution #83, 2007 -Support Ballot Sales and Use Tax for Transit Services... . 4 • Resolution #84, 2007 -Support Ballot Storm Water Property Tax ...................... . 4 • Resolution #85, 2007 -Support Ballot Hydropower Facility ............................... . 4 • Minutes -September 4, 24, 2007 ............................................................................ . 4 • Appointment of Protest Hearing Officer -Initiative Petitions ................................. . 4 REQUEST TO USE PAEPCKE PARK -Food & Wine .................................................. . 4 RESOLUTION #86, 2007 -Support Ballot Instant Runoff .............................................. . 4 ORDINANCE #45, SERIES OF 2007 -Code Amendment Historic Preservation.......... . 5 ORDINANCE #43, SERIES OF 2007 -Commercial Core and Lodging Commission ... . 7 ORDINANCE #44, SERIES OF 2007 -Disconnect Silver Lining Ranch ....................... . 8 ORDINANCE #28, SERIES OF 2007 - 508 East Cooper Avenue Subdivision .............. . 8 ORDINANCE #24, SERIES OF 2007 -Vacation of Dean Street Right-of-Way ............. . 8 ORDINANCE #40, SERIES OF 2007 -Code Amendment -Residential Parking.......... . 9 ORDINANCE #37, SERIES OF 2007 -Amendment to Commercial Core Moratorium. . 9 ORDINANCE #25, SERIES OF 2007 -Jerome Professional Building Subdivision....... . 9 ORDINANCE #39, SERIES OF 2007 -Code Amendment Increase Parking Fees ......... . 9 ORDINANCE #41, SERIES OF 2007 -Supplemental Appropriation ............................ 11 ORDINANCE #29, SERIES OF 2007 - Wienerstube Subdivision ................................. 11 RESOLUTION #82, SERIES OF 2007 -Amendment to Isis Agreement for Restaurant Use .................................................................................................................................... 11 1 Reeular Meetine Aspen City Council October 9, 2007 Mayor Ireland called the meeting to order at 4:00 p.m. with Councilmembers DeVilbiss, Johnson, Skadron and Romero present. All Council signed a wavier of notice fora 4 p.m. session. Councilman Johnson moved to go into executive session at 4:05 p.m. pursuant to C.R.S. 24-6-402(4)(a) the purchase, acquisition, lease, transfer, or sale of any real, personal, or other property interest and (4)(f) Personnel matters; seconded by Councilman Romero. Also present were Steve Barwick, Paul Menter, Scott Newman, Greg Hunter, Bentley Henderson, Jim True and Kathryn Koch. At 4:50 all staff except Jim True, Steve Barwick and Kathryn Koch left. Councilman Johnson moved to come out of executive session at 5:05 p.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. COUNCIL MEETING Mayor Ireland called the meeting to order at 5:10 p.m. with Councilmembers Johnson, Romero, Skadron, and DeVilbiss present. Mayor Ireland and Council welcomed the senior civics class from Aspen High School. CITIZEN PARTICIPATION 1. Mme Kessler, Aspen Youth Foundation, requested a contribution from Council to help bring the Northern Ute tribe to Aspen for Winterskol and the closing of the ski season. Mayor Ireland said this should be handled through the city's grant process and Ms. Kessler should submit a grant for that request. Mayor Ireland suggested it maybe appropriate for Ms. Kessler to investigate being a sister city. 2. Chip Freeman asked if a historically designated property is deed restricted as a result and is the list that was published the final list of all properties. Amy Guthrie, community development department, said the designation is recorded; however, a deed restriction may not be the correct term. 3. Bill Wiener said everyone agrees there is a traffic problem and to solve it will take a lot of different approaches. Wiener noted Rubey Park is operating beyond its maximum capacity and it is time to start thinking about how to handle more buses. 4. Mike Maple told Council he and Marilyn Marks have been working with community development department on Ordinance #45; however, that has a long way to go. Maple said two critical things are the super-majority vote by both HPC and Council and the issue of economic value or economic damage by historic designation. 5. Penny Carruth said she does not feel Ordinance #45 as presented is in conformance with the direction of previous Council meeting. Ms. Carruth said she is 2 Regular Meeting Aspen City Council October 9, 2007 confounded by the process. Ms. Carruth told Council she has worked with other people in the real estate business to try and figure out how to evaluate property values, economic information and incentives and it is very complicated. 6. Ms. Kronberg said in the past she has decorated the library plaza for Halloween and asked whether the city intends to do that or not or may she have permission to do so. Mayor Ireland suggested Ms. Kronberg talk to the city manager about regulations regarding the park. COUNCIL MEMBER COMMENTS 1. Councilman Skadron noted citizen comments are for issues not on the agenda and questioned allowing people to address issues that are on the agenda. Mayor Ireland said he was trying to accommodate people who have to leave the meeting. 2. Councilman Johnson noted the item on 508 East Cooper includes a memorandum of law, and he has not been able to discuss this with counsel. Councilman Johnson requested continuing the item until he can meet with Council. This will be discussed at public hearing. 3. Mayor Ireland said he attended an affordable housing seminar in Vail last Wednesday, a CDOT transportation meeting in Denver, on Thursday, and met Senator Salazar about water issues over the weekend. 4. Mayor Ireland congratulated the Aspen High School football team on winning a big game against Olathe. Mayor Ireland noted the football program is doing well. 5. City Clerk Kathryn Koch requested Council add to the consent calendar, appointment of a protest hearing officer for the initiative petitions regarding the entrance to Aspen. Mayor Ireland moved to add to the consent calendar, appointment of protest hearing officer for initiative petitions regarding the direct connection and modified direct connection; seconded by Councilman Romero. All in favor, motion carried. 6. Councilman Skadron reported he attended the ACRA board meeting last week; it was very productive. Councilman Skadron said he attended the Colorado Association of Ski Town meeting in Jackson Hole, Wyoming. Councilman Skadron said the Shecter presentation on Dynamics of Growth in Resort area was excellent and that the impacts Aspen is feeling are not unique to Aspen. Councilman Skadron said Jackson Hole is initiating an affordable housing program and their approach is to go with public/private partnerships. CONSENT CALENDAR Reeular Meetin¢ Aspen City Council October 9, 2007 Councilman Skadron asked to pull Request to Use Paepcke Park for Food and Wine and Resolution #86, Supporting Ballot Instant Runoff. Councilman Johnson moved to adopt the consent calendar as amended; seconded by Councilman DeVilbiss. The consent calendar is: • Resolution #81, 2007 -Gibson Street Storm Water Improvement Contract • Resolution #80, 2007 Supplemental EOTC 1/2% Transit Sales and Use Tax Budget • Resolution #83, 2007 -Support Ballot Sales and Use Tax for Transit Services • Resolution #84, 2007 -Support Ballot Storm Water Property Tax • Resolution #85, 2007 -Support Ballot Hydropower Facility • Minutes -September 4, 24, 2007 • Appointment of Protest Hearing Officer -Initiative Petitions Mayor Ireland asked if the GO bonds for the hydropower facility will be paid for from revenues or from property taxes. Steve Barwick, city manager, told Council the proposal is to pay these bonds with revenues; however, in the case that those revenues are insufficient, they will be paid for from property taxes. Mayor Ireland noted one of the ballot questions proposes to lower an existing sales tax, which funds in town transit, from .25% to .15%. The additional revenue will come from taxing construction materials on projects over $100,000 that are being brought into town. Mayor Ireland noted he fully supports the storm water run off project measure on the ballot. All in favor, motion carried. REQUEST TO USE PAEPCKE PARK-Food & Wine Devin Padgett, Food & Wine, told Council this is the 26`h year of Food & Wine in Aspen. The event has grown into the summer opening event of Aspen. Padgett said their goal is to break even every year. There is a challenge with venues; there is construction, venues are closed. The event has not changed; Food & Wine requires multiple venues for all the different activities. The event is capped at 5,000 participants. There is no intention to make it any larger. Council agreed it is a great event for the city. RESOLUTION #86, 2007 -Support Ballot Instant Runoff Councilman Skadron asked if the ballot question is supposed to be about procedures of instant runoff voting. Kathryn Koch, City Clerk, told Council the Charter amendment question asks about allowing instant runoff procedures to be developed. 4 Reeular Meetine Aspen Citv Council October 9, 2007 Councilman Skadron amended Resolution #86, Series of 2007, to include the word "procedure"; seconded by Mayor Ireland. All in favor, motion carried. Councilman Johnson moved to approve the use of Paepcke Park by Food and Wine and Resolution #86, Series of 2007, as amended; seconded by Councilman DeVilbiss. All in favor, motion carried. ORDINANCE #45. SERIES OF 2007 -Code Amendment Historic Preservation. Amy Guthrie, community development department, told Council this ordinance incorporates the concerns of the citizens' group as well as other considerations. Ms. Guthrie said this has been narrowed down from every property over 30 years old to a specific list, which is attached to the ordinance. Ms. Guthrie told Council 4 properties that did not rise to the level of historic significance have been dropped from the list and 20 properties have been added. Staff has sent letters to every property owner and is scheduling meetings with property owners. Ms. Guthrie noted the city Charter conflicts with the notion of super majority so that is not included in the ordinance. A super majority vote at HPC is included in the ordinance and HPC agreed with that concept. Staff is trying to come up with a process regarding economic hardship of designation and will work with realtors on that process. Staff envisions a hearing officer or small panel to make a recommendation regarding economic hardship to Council on second reading of a landmark ordinance. Jim True, counsel for Council, noted the Charter states an ordinance is passed by a majority vote of the Council, or 3 members. To require a super majority would be inconsistent with the Charter and in order to allow a super majority, the Charter would have to be amended by a vote of the electorate. Councilman Romero said Council's intent was to have a higher threshold for involuntary designations. Councilman Romero asked if there is a different method to achieve the same higher threshold. Councilman Romero asked about the condominium projects with multiple owners and how the procedure to designate an entire condominium would work. Councilman Romero said Council used the term fair consideration for financial impact, an acknowledgement there maybe impact on value and a process to address that, and the language in the ordinance should go further to address that. Councilman Romero said he would like to insure the language is fair regarding the time line and the procedures when a private property owner has to take action. Councilman Romero said the city should move slowly when it's the private property owner's step and quickly to their benefit when it's the city's step. Councilman Romero thanked the citizens who have stayed involved in this process. Councilman Skadron asked about the application procedure. Chris Bendon, community development department, said staff worked with citizens on the procedure; this is a significant issue and the citizens are concerned. Bendon told Council there will be revisions to the ordinance before second reading. Bendon said there maybe options on Regular Meeting Ashen City Council October 9, 2007 this issue for Council to consider. Councilman Skadron asked why Councihnan DeVilbiss is opposed to super majority. Councilman DeVilbiss noted the Charter embodies the notion that a majority is sufficient to enact ordinances. Councilman DeVilbiss said that is so that legislation does not get stalled. Councilman DeVilbiss said once a super majority is used at HPC for involuntary designation, it could be extended to other issues. Bendon said for HPC a super majority would only be used for designation against a property owner's consent. Bendon said a super majority might be incorporated into Council's code amendment, rather than amending the charter. Councilman Romero suggested rather than one hearing officer that a small committee or task force be appointed. Councilman Romero said the discussion about building community consensus around a set of criteria everyone can approve is not included in this ordinance. Councilman Romero said the long range goal is education and consensus. Ms. Guthrie said the preservation ordinance contains intent statements and goals. Staff could look at weaving the task force and criteria into that section of the ordinance. Bendon agreed it is appropriate to discuss with Council the next steps for historic preservation. Mayor Ireland agreed that super majority should not be used lightly. In the democratic process it is used on threshold issues. Amending the Charter seems more than is necessary if Council can agreed 30-yeaz old properties should have a high threshold for designation. Mayor Ireland said the condominium projects will have to be addressed. Mayor Ireland said Council agrees there ought to be full information about the economic impact when considering an involuntary designation, including an estimate of how the property value might be changed and information about incentives available to that particular property. Mayor Ireland said he would like evidence presented that a property is 30 years old, that the burden of proof be on the city. Mayor Ireland said he hopes when this is adopted, property owners will be able to go to HPC and get their property listed or unlisted so they can get on with things. Mayor Ireland stated he does not have a problem with super-majority at HPC; Council agreed. Mayor Ireland said there should be a high threshold for properties between 30 and 50 years old. Council agreed. Mayor Ireland requested legal analysis around the condominium issue. Mayor Ireland proposed a requirement that Council be presented with and review the economic impacts on the property including any diminished property value and the value of any incentives before an involuntary designation is enacted. Council agreed. Councilman Romero requested the timelines, like the 30 days for appraisals, need to be looked at. Bendon said there aze restrictions on how long staff takes to review certain things but that a property owner should be able to manage the pace of the process. Councilman DeVilbiss moved to read Ordinance #45, Series of 2007; seconded by Councilman Skadron. All in favor, motion carried. ORDINANCE N0. 45 (Series of 2007) 6 Regular Meeting Aspen City Council October 9, 2007 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING CHAPTER 26.415 OF THE ASPEN MUNICIPAL CODE, DEVELOPMENT INVOLVING THE ASPEN INVENTORY OF HISTORIC LANDMARK SITES AND STRUCTURES OR DEVELOPMENT IN AN "H," HISTORIC OVERLAY DISTRICT Councilman DeVilbiss moved to adopt Ordinance #45, Series of 2007, on first reading; seconded by Councilman Skadron. Roll call vote; Councilmembers Johnson, yes; Romero, yes; Skadron, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried. Penny Carruth said there is a conflict between the theoretical and the practical in fair consideration, incentives and criteria. Ms. Carruth told Council her group took 3 properties off the list and tried to apply the list of incentives; it was challenging and on some lots impossible to come up with solutions for certain properties. There is also the shape of the lot, underlying zoning, and covenants of the subdivision. Ms. Carruth asked if Council is willing, if no incentives work, to go through the appraisal process and pay the property owner fair market value. Mayor Ireland said that question has to be answered for each property. Mayor Ireland agreed there will be no single solution; it will be case by case. Marilyn Marks asked what is the process between now and second reading; how can citizens affect changes. Mayor Ireland said citizens can contact staff and submit suggested changed in writing. ORDINANCE #43, SERIES OF 2007 -Commercial Core and Lodging Commission Councilman DeVilbiss moved to read Ordinance #43, Series of 2007; seconded by Councilman Romero. All in favor, motion carried. ORDINANCE NO.43 (Series of 2007) AN ORDINANCE CREATING THE COMMERCIAL CORE AND LODGING COMMISSION, DESCRIBING THE COMPOSITION, TERM AND QUALIFICATIONS OF COMMISSION MEMBERS, THEIR POWERS, AND DUTIES; PROVIDING FOR APPEALS BY PERSONS AGGRIEVED BY ACTIONS OF THE COMMERCIAL CORE AND LODGING COMMISSION AND ESTABLISHING RULES OF PROCEDURE TO BE FOLLOWED BY THE COMMERCIAL CORE AND LODGING COMMISSION IN EXERCISING its FUNCTIONS. Councilman Johnson stated he does not support a budget of $40,000 for this Commission. Councilman Johnson moved to adopt on first reading; seconded by Councilman DeVilbiss. Roll call vote; Councilmembers Skadron, yes; Romero, yes; Johnson, yes; DeVilbiss, yes; Mayor Ireland, yes. Motion carried. Reeular Meetin¢ Aspen City Council October 9, 2007 ORDINANCE #44, SERIES OF 2007 -Disconnect Silver Lining Ranch Councilman DeVilbiss moved to read Ordinance #44, Series of 2007; seconded by Councilman Skadron. All in favor, motion carried. ORDINANCE N0.44 (Series of 2007) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING THE DISCONNECTION OF CERTAIN TERRITORY FROM THE CITY OF ASPEN, COLORADO, KNOWN AND DESIGNATED AS THE "LITTLE STAR FOUNDATION RANCH DE-ANNEXATION." Jim True, counsel to Council, stated the standazd will be a determination by Council that the best interests of the city will not be prejudiced by this disconnection. True said there was a similaz petition presented to Council and voted down in May 2007. True noted nothing prohibits the applicant from filing the petition again. Councilman Johnson moved to adopt Ordinance #44, Series of 2007, on first reading; seconded by Councilman Romero. Roll call vote; Councilmembers DeVilbiss, no; Romero, yes; Skadron, yes; Johnson, yes; Mayor Ireland, no. Motion carried. ORDINANCE #28, SERIES OF 2007 - 508 East Cooper Avenue Subdivision Councilman Skadron recused himself as he voted on this application at P&Z. Mayor Ireland said Council expressed interest in continuing this application as there is a lengthy memorandum of law from the applicant and counsel has noted they have not prepared an analysis of that memo. Dave Lenyo, Garfield & Hecht, reminded Council at first reading, the applicant was asked to address specific issues including employee housing mitigation and replacement issues, height and use restrictions, the view plane and impacts on the development. Lenyo submitted a memo of ]aw that addresses these issues, case law and state statutes. Jim True, counsel, told Council he needs more time to analyze the cases and cites submitted in order to give a comprehensive response. Mayor Ireland noted the memorandum of law indicates Council does not have discretion to deny the application and requested counsel address that and if it is trlre, how that gets resolved. Councilman Romero moved to continue Ordinance #28, Series of 2007, to November 12; seconded by Councilman DeVilbiss. All in favor, motion carried. ORDINANCE #24, SERIES OF 2007 - Vacation of Dean Street Right-of--Way The applicant submitted a request to withdraw this request. Council agreed Ordinance #24 is withdrawn. Regular Meeting Aspen City Council October 9, 2007 ORDINANCE #40, SERIES OF 2007 -Code Amendment -Residential Parking Tim Ware, parking department, requested this ordinance be withdrawn as work needs to be done on periphery issues, like buses, parking etc. Shelly Roy requested Council remand this issue back to the citizens committee who reviewed all these issues when paid parking was instituted in 1992. This committee researched and understood the carrots and sticks surrounding paid parking and parking in residential area. Council agreed Ordinance #40 is withdrawn. ORDINANCE #37, SERIES OF 2007 -Amendment to Commercial Core Moratorium Chris Bendon, community development department, reminded Council this is an amendment to the commercial core moratorium to allow retail to replace office spaces on basement or ground floor. Sunny Vann, representing the applicant, reminded Council once a space reverts to retail, it cannot go back to office space so the amount of non- nonconformingoffice space will be diminished. Councilman Johnson moved to adopt Ordinance #37, Series of 2007, on second reading; seconded by Councilman Skadron. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Roll call vote; Councilmembers Romero, yes; Skadron, yes; DeVilbiss, yes; Johnson, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #25, SERIES OF 2007 -Jerome Professional Building Subdivision Mayor Ireland opened the public hearing. Councilman Johnson moved to continue Ordinance #25, Series of 2007, to October 22nd; seconded by Councilman Romero. All in favor, motion carried. ORDINANCE #39, SERIES OF 2007 -Code Amendment Increase Parking Fees Tim Ware, parking department, told Council this is an across the board increase in parking fees of approximately 30%. This is the first increase in 5 years. Ware reminded Council the reason for paid parking and for this increase is to help keep traffic at 1993 levels and to help the garage sustain its budget for the next 5 years. Ware pointed out parking will cost $2 for the first hour; $2 for the second hour $3 for the third hour and $4 for the fourth hour. With a 4 hour limit, parking will cost $11 for those 4 hours. The day passes will go from $5 to $7 and the garage pass will go from $40 to $50. Councilman Skadron said the ordinance allows for an increase of 2 additional FTEs. Ware said yes. Councilman Skadron asked how new technology will help or hinder the ReQUlar Meetine Aspen City Council October 9, 2007 additional employees. Ware said that technology was for the expanded residential pazking, which is not being done at this time. Waze said the 2 FTEs were seasonal and there were no applicants. The parking department is picking up peripheral enforcement to make these 2 FTEs permanent employees. Councilman DeVilbiss asked what it would cost for the city to drop paid parking. Ware said it would cost $2.2 million in revenues; a loss in bus routes and a loss in controlling the number of vehicles coming into town. Councilman DeVilbiss stated there is a parking garage, which is not going away. The city has streets and bridges that have to be maintained, resurfaced, plowed and none of that comes free. Councilman DeVilbiss stated there is no such thing as free parking. Mayor Ireland said when the city adds staff, the city ought to add housing. Mayor Ireland asked if it would make more sense to have a lower fee the first hour and a higher rate for the second hour to encourage more turnovers. Ware told Council the average transaction at the pay stations is 2.1 hours. The cost for the first hour has not been increased in 10 yeazs. Ware said staff feels the city is obtaining its goals with this pay structure. Councilman Johnson asked why parking is allowed for 4 hours. Ware said at the last rate increase, staff heard from many people 2 hours was not enough time for visitors to lunch and shop. Mayor Ireland said a scanning system for enforcement outside the core area is more flexible and he suggested hearing from staff about that at a work session. Councilman DeVilbiss asked how enforcement works now. Ware told Council staff enters license plates into the hand held meters, which is time consuming. Councilman Skadron asked if the increase in revenue takes into account the expected decrease in cazs parking in the garage. Ware told Council the last time there was a rate increase, there was about a 10% reduction in cazs, which has been recaptured. Ware told Council they took this issue into account in outlining the revenues. Mayor Ireland opened the public hearing. High school student asked what the funds raised by this 30% increase cover. Mayor Ireland said the increased revenue will pay for the necessary garage repairs, for 2 FTEs to enforcement. These increases are so that the garage and parking system pay their own way. Councilman DeVilbiss agreed the pazking garage is sorely in need of repairs; the roof is leaking. Mayor Ireland closed the public hearing. Councilman Skadron moved to adopt Ordinance #39, Series of 2007, on second reading, deleting the residential paid parking fees; seconded by Councilman Johnson. Roll call vote; Councilmembers DeVilbiss, yes; Skadron, yes; Johnson, yes; Romero, yes; Mayor Ireland, yes. Motion carried. 10 ~ _. Regular Meeting Aspen City Council October 9, 2007 ORDINANCE #41, SERIES OF 2007 -Supplemental Appropriation Don Pergande, finance department, told Council this ordinance will approve new requests of $11,837,000 less technical adjustments of $3,458,000 for a total of $8,378,000. This includes previously approved and new requests. The majority of the requests of $9.5 million are formal appropriation of property acquisitions for affordable housing. Pergande noted $3.5 million of current appropriation for Burlingame is being shifted to 2008 to match expected expenditures. Councilman Johnson moved to adopt Ordinance #41, Series of 2007, on second reading; seconded by Councilman Romero. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing.. Roll call vote; Councilmembers Johnson, yes; DeVilbiss, yes; Romero, yes; Skadron, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #29, SERIES OF 2007 - Wienerstube Subdivision Councilman DeVilbiss and Councilman Skadron are recused on this item. Mayor Ireland opened the public hearing. There were no comments. Mayor Ireland closed the public hearing. Councilman Romero moved to continue Ordinances #29, Series of 2007, to November 12; seconded by Councilman Johnson. All in favor (3 Council voting), motion carried. RESOLUTION #82, SERIES OF 2007 -Amendment to Isis Agreement for Restaurant Use Chris Bendon, community development department, told Council there is an agreement between the city and the operators of the Isis building and a land use amendment to allow for retail component of the Isis, which was a change in use approval. This is an amendment to the agreement as well as the change in use. The current agreement prohibits restaurants, which the previous Council thought would create additional employee generation. The application is technically for a restaurant but is a wine tasting with some food which qualifies as a restaurant under the land use code. This request is for a portion of the retail side and there is an exhibit attached to the resolution illustrating where the restaurant use would be. Bendon noted restaurants are an allowed use in the commercial core zone. Restaurants were prohibited because of the employee generation issue. Bendon told Council staff supports a mix of restaurant retail uses downtown; this is an appropriate location for a restaurant. 11 Regular Meeting Aspen City Council October 9, 2007 Mayor Ireland moved to appropriate Resolution #82, Series of 2007, amending the exhibit A as appropriate to allow a restaurant use in approximately 700 to 800 square feet; seconded by Councilman Skadron. Councilman DeVilbiss asked about review at P&Z. Bendon said P&Z felt there should be a fully range of uses and restaurants should not be prohibited. Councilman Romero asked about the affordable housing mitigation. Bendon said the land use code calculates 4.1 FTEs/1000 net leasable, which is a blended average in the commercial core. Bendon said restaurants generate more than 4.1 FTEs. Bendon said the actual restaurant square footage will be assessed at 4.1 FTEs/1000 and the retail only space generates 2.6 FTEs. Courtney Lord, applicant, told Council originally they did not think restaurants could pay rent to include mitigation at 4.1 FTEs. Lord told Council he has spoken to at least 50 retailers about leasing this space. This use is exciting and different and requires Council's approval. Councilman Johnson asked whether affordable housing will be built or the applicant will pay cash-in-lieu. Lord said it will be $120,000 cash-in-lieu. Councilman Johnson said he thought this space was intended for mid-level retail and that is why he originally supported the proposal. Councilman Johnson said he cannot support this amendment because it is a restaurant, not mid-level retail. John Olsen told Council they applicant has been looking for tenants for months and has talked to and interviewed hundreds of prospective tenants. Lord told Council he forwarded to the city manager a list of 70 tenants with whom he met personally. Lord said the obligation is to use reasonable, prudent efforts to find a retail tenant. Lord said he has exhausted the list of tenants on the original list all of whom had various reasons for not wanting this location. Paul Menter, finance director, reminded Council the tenants, Isis Property Group and Aspen Film, are intended to pay the debt service on the certificates of participation. The tenants are responsible for payments to the city, whether they are being paid or not. Councilman Johnson moved to go into executive session at 9:00 p.m. pursuant to C.R.S. 24-6-402(4)(b) conferences with an attorney for the local public body for the purposes of receiving legal advice on specific legal questions; seconded by Councilman DeVilbiss. All in favor, motion carried. Also at the executive session Steve Barwick, Randy Ready, Chris Bendon, Jim True, Paul Menter, Bentley Henderson and Kathryn Koch. Councilman Johnson moved to come out of executive session at 9:11 p.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. Mayor Ireland noted Council received legal advice that it is within their discretion to grant restaurant use or not; it is not a requirement to grant that. Councilman Johnson said the proposal to save the theatre and to propose mid-level retail was from the applicant, not the Council. Councilman Johnson said at the time, Council was enthusiastic about a public/private partnership and changing this may affect Council's ability to affect these types ofpartnerships in the future. 12 Regular Meetine Aspen City Council October 9, 2007 Councilman DeVilbiss said agrees with Councilman Johnson's sentiment; however, he does not regret that Council moved forward with this deal. Councilman DeVilbiss agreed mid-level retail was a significant part of this agreement and allowing a restaurant is to Council's discretion. Councilman DeVilbiss stated he is willing to take a chance on the restaurant, which seems like a reasonable alternative. Councilman Skadron said he is concerned about wine vendors competing with locally owned liquor stores. Councilman Skadron asked if this may negatively impact one of Council's goals, which is locally owned businesses. Mayor Ireland stated he may have a conflict of interest as he has represented some of the liquor stores in the past. City's counsel does not feel there is a conflict; however, the applicant should waive, or not, a possible conflict. Lord stated they waive that possible conflict. Mayor Ireland stated the applicant has made an effort to find amid-level retail. Under the memorandum of understating, the applicant could look for high end retail. Mayor Ireland said this prospective business will create vitality. Councilman Romero said he is willing to give this a try. Mayor Ireland said this private/public partnership to save the movie theatres was the correct thing for the community. Councilmembers Romeo, DeVilbiss, Mayor Ireland in favor; Councilmembers Skadron and Johnson opposed. Motion carried. Councilman Skadron moved to adjourn at 9:40 p.m.; seconded by Councilman Johnson. All in favor, motion carried. Kathr .Koch, ity Clerk 13