HomeMy WebLinkAboutminutes.council.20080929~ecial Meetine Aspen City Council September 29, 2008
Mayor Ireland called the meeting to order at 5 p.m. with Councilmembers Skadron and
Johnson present.
John Worcester, city attorney, explained that Councilman Romero has recently put a
contract on a piece of property within 300 feet of the subject property for this discussion
and has recused himself.
RESOLUTION #74, SERIES OF 2008 -Aspen Walk (404 Park Avenue/414 Park
Circle Conceptual PUD)
Jennifer Phelan, community development department, told Council the applicants are
requesting conceptual PUD approval for demolition and redevelopment of 404 Park
Avenue and 414 Park Circle. Ms. Phelan said there have been seen changes since
Council last saw this August 25`". At that meeting, Council made comments suggesting
reduction in mass and scale and more creative parking solutions. The applicants have
returned with a substantially different project which divides the above ground portion of
the building into two structures rather than one. The overall size of the project has been
reduced; the overall density has been reduced by reducing the affordable housing from 22
to 18 units with 23 pazking spaces for affordable units and 28 pazking spaces for the free
market units. The application proposes two electric vehicles for affordable housing.
Ms. Phelan told Council this project meets the underlying zone district standards for
height, setbacks and floor area. The applicant requests an increase in floor area from
1.25:1 to 1.28:1, which is about 980 square feet from that allowed by underlying
requirements. Ms. Phelan noted there are two affordable housing components of this
application; one is demolition and replacement of the affordable housing owned by
APCHA and the other is demolition and replacement of the free market component.
Ms. Phelan noted to replace affordable housing, only the same number of employees
needs to be housed. The unit type and count can change. The applicant has mitigated for
16.75 employees, which is based on the number and type of units in the initial
application. Since the initial application, the housing department has provided an
amended unit and type count. According to the land use code, this new mix houses 18.25
employees; however, Resolution #14, 1991, notes the existing aparhnent houses 17.5
employees so there is a discrepancy in the existing number of employees living there.
Ms. Phelan told Council the applicant will need to increase the number of employees
housed from 16.75 to 17.5 or 18.25 based on Council's determination of the correct
number. The proposed replacment for the existing affordable housing will not meet
employees housed requirement.
The second component of the project is to demolish the existing free market units and
replace them with a percentage of affordable housing in order to redevelop the free
market units. The previous application was a 100% replacement housing mitigation
associated with the free market component. This project chooses the 50% replacement
option which requires 50% of the existing free market units be replaced as affordable
housing and 50% of the existing bedrooms be replaced as affordable bedrooms and 50%
Special Meetine Aspen Citv Council September 29, 2008
of the net livable area of the free market component be replaced as affordable housing.
This 50% requirement will require 7 affordable housing units, 12.5 bedrooms and 4,712
square feet of net livable azea. The applicant proposes one studio and 6two-bedroom
units to meet the 50% requirement. This meets the 50% requirement and the free market
component can be rebuilt. Ms. Phelan pointed out any expansion in free market net
livable is required to be mitigated with affordable housing at 30% of the increased net
livable area. The applicant will need to provide 3,019 square feet of additional net
livable affordable housing to mitigate for the expanded free market net livable.
Ms. Phelan said the applicant proposes acash-in-lieu payment of $982,000. Ms. Phelan
noted Council needs to determine whether to accept acash-in-lieu payment or to require
actual units of 3,019 square feet.
Ms. Phelan noted the proposed project has 3 levels of affordable housing, one garden
level partially above and below grade. Ms. Phelan pointed out the land use code requires
a certain amount of affordable housing be provided at or above grade, specifically the
code notes each unit shall be designed such that the finish floor level of 50% or more of
the unit's net livable area is at or above natural or finish grade, whichever is higher. In
this amended project, it appeazs as if almost 100% of the net livable area of the garden
level is below grade, which does not meet the design requirements of the land use code
for affordable housing units.
The applicant has made changes to the project in response to Council comments at
previous meetings. Council needs to decide if they are comfortable with this for
conceptual SPA approval. Staff recommends, if Council gives conceptual approval,
items to be addressed at final are the APCHA housing to be demolished and replaced be
found to house 18.25 employees; staff recommends cash-in-lieu not be permitted but that
off-site location for affordable housing might be allowed. Staff recommends the
proposed affordable housing units meet the design requirements of the land use code.
Council should decide if the proposed pazking is acceptable and if an increase of 980
squaze feet of additional floor area be approved.
Mayor Ireland asked what assurances the city has that this project can be financed and
completed in light of recent developments. John Worcester, city attorney, told Council
he met with the applicants who assured him before final they will provide the types of
assurances the city may require to prove there is financing and that the project will be
completed as represented. Worcester said if Council grants conceptual approval, there is
a condition that the applicants provide that assurance to the city attorney's office. Mayor
Ireland noted the events surrounding the principle of this applicant are unusual and he is
apprehensive this could end up in bankruptcy court. Mayor Ireland said when Council
requested the mass and scale of the project be reduced, the applicants reduced the
affordable housing. Mayor Ireland noted it is difficult and extremely expensive for the
city to be able to build affordable housing. The cash-in-lieu does not cover the current
costs of providing affordable housing.
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Special Meeting Aspen City Council September 29, 2008
Councilman Johnson said he thought the intention of continuing this application was to
come back with a project that worked. Councilman Johnson said it is difficult to compaze
this proposal with the previous proposal. There is no summary of what was presented,
this presentation and the differences and the code requirements. Mayor Ireland said he
would like from staff a definitive number on how many bedrooms exist and how many
will be required. Ms. Phelan recommended basing this on the land use code and using
18.25.
Tom Clausen, representing the applicants, said Council was cleaz about their
expectations from the last meeting. One was project size, massing and scale for the
neighborhood. Clausen said he heazd reduce affordable housing and market rate
together to better fit the neighborhood. Council requested the applicant look at building
design options; the number of parking spaces and allocation, be creative; FAR, tying it to
sizing and scale; sales versus rental, reaching out to the existing tenants. Clausen said
the applicants went back to the beginning and developed 6 different site plans and
options. The applicants presented these to APCHA and to staff to make sure they heard
Council correctly. The option the applicants selected addressed the most of Council's
concerns. Clausen told Council they received an approval from APCHA to proceed.
The applicants met with staff to make sure the calculations were correct.
Clausen told Council this project has been reduced by 15%. The free market square
footage has been reduced by 3,361 square feet and the affordable housing has been
reduced by 4,121 square feet. Clausen noted the reduction in free market square footage
equals one free market unit. Clausen told Council the applicants have met with brokers
to see which scenario would market best. Clausen said although it seems there has been
heavy cutting in the affordable housing, based on the average unit sizes there has been a
material reduction in the free market units.
Clausen told Council they have studied the code language referring to above grade of
affordable units and feel the definition being interpreted is that a unit cannot be 2" below
ground. The applicants have sought counsel in interpreting the code. Clausen said the
emphasis in the code is what percentage of net livable squaze azea, different from total
floor area, that 50% of the net livable square area is above grade, which is what has been
used in the design of these units. Councilman Johnson asked if the applicants asked for a
code interpretation. Ms. Phelan noted a formal code interpretation has not been
requested although she has discussed net livable area with the applicant; net livable area
is a two dimensional measurement, not volumetric. Ms. Phelan said there is a difference
between what the code says and what the intent may have been. Ms. Phelan said the city
may have intended a certain amount of volume to be below grade but that is not how the
code is written. Ms. Phelan stated there is 10,442 square feet of free market space that
cannot be counted as a net increase in this project for affordable housing mitigation
because it has a finished floor below grade, an additional exemption from affordable
housing if that floor was at or above grade. Councilman Johnson said if this is a PUD,
are there not trade offs. Ms. Phelan agreed the PUD section allows dimensional
requirements to be varied, like height, setbacks. There is a cap on unit size which could
be varied. Ms. Phelan said the 50% requirement is in the growth management section of
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Special Meeting Aspen City Council September 29, 2008
the land use code, not in the underlying zoning, so Council would have to make a
determination that it could be varied.
Claussen said the applicants continue to be passionate about a totally integrated facility;
however, the reduction in square footage has the design going to two buildings with a 20'
courtyard between the two. The applicant intends to maintain so that both buildings are
treated the same.
Claussen pointed out there are now some tandem parking spots in the affordable housing
garage and 3 tandem spots in the free market. The interior of the building has been
shrunk so the land swap with the city is not requirement nor is a setback variance. This
proposal offers 1.28 parking spaces/affordable units. The applicants will offer two
electric cars that can be stacked tandem in one space. These cars will be owned and
managed by the affordable housing HOA. Claussen said there is a covered bike storage
area proposed in the garage.
Claussen said there is a 7,457' reduction in floor area and there are now two smaller
buildings. These smaller buildings allow a setback and on the north side, the building has
been pushed from 15'6" to 34' from the Tailings to accommodate view corridors
associated with the Tailings.. The proposed FAR is 1.25. The applicants are requesting
up to 1.28 to deal with issues like subgrade on the units and potential design changes
between now and final. On sales versus rental, there is a letter and survey information
from existing tenants indicating desire to purchase units rather than rent them.
Tom McCabe, housing office, told Council staff sat down with the applicants to review
all changes and different designs. The housing board likes this proposal best and feels it
meets Council concerns the best. The mass and scale and setback from Tailings seemed
to be important to Council. McCabe said projects with mixed ownership and rental units
end up in conflict. The housing board feels these should be for sale units, which will
work better with the free market units. McCabe said Council's intention in the above
grade was to make sure there was a way to get daylight into affordable housing not to
disallow an entire unit to have some floor space below grade. McCabe said the trade off
for a smaller building was to lose 6 affordable housing units. It was difficult to make the
project work on this tight site and responding to the mass and scale was to lose some
affordable housing units.
Councilman Skadron said there is a disproportionate reduction to the affordable units of
this project. Councilman Skadron asked if the city is not a partner in this project.
Claussen noted that the free market project brings in almost 10 times what the affordable
housing units would bring in. Mayor Ireland asked if the cash-in-lieu is $980,000 can
six affordable housing units be built for that amount. McCabe said if the city had the
land it could be done. Mayor Ireland noted 57% of the reduction of this project is
affordable housing. If the city takes cash-in-lieu, the responsibility for developing
affordable housing falls on the city rather than the developer.
Special Meetine Aspen City Council September 29, 2008
Mayor Ireland opened the public hearing.
Mazcia Goshorn, housing board, told Council the housing authority property has been
protected in the contract. The property does not get turned over until the project is built.
Ms. Goshorn said the 17.25 replacement requirement comes from when the project was
accepting by the housing office. The 18.25 reflects the code using 1.25 persons/unit and
those studios do not hold 1.25 persons. Ms. Goshorn said the arrangement includes a
payment of $750,000 to use however they see fit; this is not a sales price of the 11 unit
building. Ms. Goshorn said her point in this is to get housing for the community at no
cost from the housing office.
Jay Maytin, Tailings condominium, said $1 million in cash-in-lieu will not cover units
needed by the community. Maytin applauded sensitivity to the neighbors. Maytin
requested story poles if this goes farther. Dionne, 414 Park, said she likes the mix of
units but not does like the proposed segregation of affordable housing units. Dionne said
it appears the affordable housing units are getting smaller and lower in the ground. Sara
Garton, adjacent property owner, said she likes the building being lowered. Ms. Garton
said the cash-in-lieu offer makes this an unequal partnership and places a large burden on
the housing authority and on the community.
Mayor Ireland closed the public hearing.
Councilman Johnson moved to approve Resolution #74, Series of 2008; seconded by
Councilman Skadron.
Councilman Skadron noted there should be more discussion on the employee count and
would agree with staff s recommendation of 18.25. Councilman Skadron stated he does
not agreed with cash-in-lieu to mitigate for affordable housing. Councilman Skadron
said he wants to further consider whether these units meet the land use code definition of
50% net livable space above ground. Councilman Skadron stated he is not yet ready to
support this application.
Councilman Johnson said this is conceptual review and there are threshold issues with
which he cannot agree, cash-in-lieu being a major issue. Councilman Johnson said the
city continually has to beaz the burden of approving projects that do not move the
affordable housing issue forward. Councilman Johnson said this application does not
meet the PUD criteria (a) general requirements, consistency with Aspen Area Community
plan or consistency with existing land uses or that it will not adversely affect the future
development of the surrounding area. Councilman Johnson said he cannot find in favor
of the scale and massing or in support of (e) architectural character.
Mayor Ireland agreed the housing shortfall is growing greater. The land use code
addressed affordable housing mitigation for free market units on a per unit basis that
understates the generation of employees by free market projects.
Special Meeting Aspen City Council September 29, 2008
Mayor Ireland moved to continue Resolution #74, Series of 2008, to October 14" ;
seconded by Councilman Skadron. Councilman Skadron and Mayor Ireland in favor;
Councilman Johnson opposed. Motion carried.
Councilman Johnson moved to continue the meeting to September 30 at 4 p.m.; seconded
by Mayor Ireland. Council left at 6:20 p.m. All in favor, motion carried.
Kathry .Koch, ity Clerk