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HomeMy WebLinkAboutminutes.council.20081027Regular Meeting Aspen City Council October 27, 2008 ENVIRONMENTAL LEADERSHIP AWARD ................................................................ 2 CITIZEN COMMENTS ..................................................................................................... 2 COUNCILMEMBER COMMENTS .................................................................................. 3 CONSENT CALENDAR ................................................................................................... 3 • Resolution #102, 2008 -Appointment of Deputy Municipal Judge ...................... 3 • Resolution #106, 2008 -Settlement lawsuit - City of Aspen vs. Shadow Mountain ......................................................................................................................... 3 • Minutes -September 22, 29, October 6, 17, 2008 ................................................. 3 RESOLUTION #104, 2008 -Annie Mitchell Roof Repair ............................................... 3 RESOLUTION #105, 2008 -Contract -Parking Pay by Phone ....................................... 3 RESOLUTION #103, 2008 -Citizen Budget Task Force Recommendations ................... 4 ORDINANCE #34, SERIES OF 2008 -Lift One Master Plan .......................................... 5 ORDINANCE #32, SERIES OF 2008 -SPA Amendment Paepcke Auditorium Aspen Institute .....................................................................................................................:......... 6 RESOLUTION #74, SERIES OF 2008 -Aspen Walk (404 Park Avenue and 414 Park Circle) Conceptual PUD ..................................................................................................... 6 1 Regular Meeting Aspen City Council October 27, 2008 Mayor Ireland called the meeting to order at 5:05 with Councilmembers Skadron, Romero, Johnson and Kasabach present. ENVIRONMENTAL LEADERSHIP AWARD Jannette Whitcomb, environmental health department, presented Council with Silver Partner in the Colorado Department of Public Health and Environment's Environmental Leadership Program Award. The Environmental Leadership Program is for government and businesses that want to go beyond environmental regulation and form partnerships with others that have also decided to uphold the highest environmental standards. Aspen was asked by the Colorado Department of Public Health and Environment to apply to this program given our longstanding commitment to the environment and our many achievements in the protection of the environment. Our recent EPA air re-designation as a maintenance area for PM10, the Canary Action Plan and our internal chemical management program and our Goals and Outcomes system are just a few of the programs that caught the attention of the State. Ms. Whitcomb told Council the city will apply for a gold partner. CITIZEN COMMENTS 1. Emzy Veazy asked if there is a place that press packets are available. Veazy suggested Council look at New York City where restaurants cannot have more than . grams of transfat. Veazy said LA county posts the environmental health scores for restaurants on the front of the restaurant and suggested Aspen do the same. 2. Katherine Lutz, 205 Independence Place, told Council there has been a construction project cutting rocks on site for the last 9 months. Ms Lutz said city staff has been very responsive regarding the noise ordinance and her complaints and/or questions. Ms. Lutz suggested there are some parts of the noise ordinance that should be examined, like 9 months is not "temporary". The noise ordinance does not address a suppression plan, nor does it request times be posted on the site. Council said they will look at Ms. Lutz' outline and discuss amending the ordinance with staff. 3. Toni Kronberg said at the budget meeting, staff recommended the outdoor swimming pool construction be put off to make sure funding is in place. Council also suggested dropping the mill levy. Ms. Kronberg said the voters voted on keeping the excess revenues with some expectation that an outdoor swimming pool will be built. Ms. Kronberg requested Council leave the mill levy where it is so that the pool maybe looked at later in the budget .year. 4. Andrew Kole suggested Council examine the food budget for board and other city meetings. There may be a $25,000 savings by not serving food. That money could be saved or it could go to anon-profit organization. 5. Marilyn Marks agreed with Andrew Kole about not serving food at board meeting. Ms. Marks asked if Council has formed a committee to look at Council 2 Regular Meeting Aspen City Council October 27, 2008 compensation and rules and responsibilities. Mayor Ireland said Council has not yet done that. Ms. Marks suggested this committee also be asked to look at ethics and code of conduct. The Charter on that item is not very comprehensive. COUNCILMEMBER COMMENTS 1. Mayor Ireland reminded everyone the presidential election is in 8 days, everyone should vote and vote early, if possible. CONSENT CALENDAR Councilman Skadron requested Parking Pay be Phone contract be pulled. Councilman Johnson requested Annie Mitchell Roof Repair and Citizen Budget Task Force recommendations be pulled. Councilman Romero moved to approve the consent calendar as amended; seconded by Councilman Skadron. The consent calendar is: • Resolution #102, 2008 -Appointment of Deputy Municipal Judge Resolution #106, 2008 -Settlement lawsuit - City of Aspen vs. Shadow Mountain • Minutes -September 22, 29, October 6, 17, 2008 All in favor, motion carried. RESOLUTION #104, 2008 -Annie Mitchell Roof Repair Councilman Johnson noted the roofs have been an issue at Annie Mitchell since the project was built. Councilman Johnson asked if this solution does not work, what is next. Tricia Aragon, city engineer, told Council this is a temporary measure as it is close to winter and the roofs need to be repaired to minimize the costs of snow removal. Ms. Aragon said staff is looking at a more permanent measure. Mayor Ireland said this sounds like it is the developer's fault and why isn't the developer paying. John Worcester, city attorney, said the case against the developer was settled long before this issue came to light so it is beyond the liability of the developer. Mayor Ireland agreed the city has to deliver a safe roof to the homeowners. Mayor Ireland said the city needs a process in the future that creates liability for the people who create the problem rather than the city Councilman Romero moved to approve Resolution #104, Series of 2008; seconded by Councilwoman Kasabach. All in favor, motion carried. RESOLUTION #105, 2008 -Contract -Parking Pay by Phone 3 Regular Meeting Aspen City Council October 27, 2008 Councilman Skadron asked how proof of payment is communicated to the enforcement officer. Tim Ware, parking department, told Council a smart phone device will be used and the plates will be listed by number on a website. Councilman Skadron asked if there is any user education planned other than the informational signs. Ware said when a user calls the phone number on the sign, an actual person will talk them through the process. Councilman Skadron asked if the level of information provided is adequate. Ware said staff feels it is and this is one payment option; people may still use the meters. Councilman Skadron asked if this is to be used as an auto disincentive. Ware said this program is to replace the in-car meters and it is paid parking. Mayor Ireland suggested putting people into the system when they paid rather than having the enforcement officers scan the license plate. Ware said that information will be in the system. Councilman Skadron moved to approve Resolution #105, Series of 2008; seconded by Councilwoman Kasabach. All in favor, motion carried. RESOLUTION #103, 2008 -Citizen Budget Task Force Recommendations Councilman Johnson said he would like to have more discussions about the recommendations from the task force before approving the resolution. Councilman Johnson noted one of the recommendations is "the development of policies and procedures to ensure the accuracy of voter information and financial projections" and the response is this is to be the responsibility of the finance director and city manager. Councilman Johnson said that should be the ultimate responsibility of Council. Councilman Johnson noted under the tax and finance subcommittee there is a recommendation for an objective methodology for evaluating the proposed subsidy element of all future affordable housing development projects. The response says it is understood to include all relevant cost estimates of a housing project. Councilman Johnson said "all" and "relevant" are not defined. Councilman Johnson said he does not want to adopt this resolution without defining some of the terms. Councilman Johnson asked if the city is sufficiently learning from the past and if some of the recommendations might be too much in reaction to recent events and not wise policy. Councilman Johnson said he is not indicating this is a flawed report but that Council's work is not finished. Mayor Ireland said this resolution merely accepts the report of the task force and it does not say the city is going to implement these recommendations. Council will go forward with specific implementation steps. Mayor Ireland said Council needs to address whether parks are part of a subsidy or just a neighborhood park. Councilman Johnson pointed out this states the Council is "receiving and accepting". Councilman Johnson said the city is receiving this and plans to further evaluate each recommendation. Mayor Ireland moved to approve Resolution #103, Series of 2008, amending it by striking "and accept" in the title and in the first paragraph and adding, "City Council further resolves to evaluate and implement steps on each of the recommendations as appropriate after further consideration; seconded by Councilman Johnson. 4 Regular Meeting Aspen City Council October 27, 2008 Mayor Ireland said when the Citizens Budget Task Force was first formed, the city had no idea people would be as thorough and comprehensive in looking at their task. Mayor Ireland noted Council has already adopted recommendations from the task force and will have more recommendations. Mayor Ireland said Council appreciates the work that has been done. Some of the recommendations are so thorough, Council needs time to flush them out to a better understanding. All in favor, motion carried. ORDINANCE #34, SERIES OF 2008 -Lift One Master Plan. Councilman Johnson is recused because he has a personal financial interest in possible replacement housing. Councilwoman Kasabach said she is on the board of the Aspen Historical Society but does not feel she has a conflict of interest. Councilman Romero noted the company he used to work for had a relationship with the Lodge at Aspen Mountain. Councilman Romero is no longer working for that company and no longer has a personal or financial interest in this project. Chris Bendon, community development department, told Council this is the final entitlement ordinance for the Lift One master plan reflecting the recommendations of the COWOP task force. Bendon noted the first public hearing is November 10th, which will be a focus on the overall project, how the city got into a COWOP process; the result of that COWOP ~rocess; the vision for the redevelopment for the base of Lift One. November 24t will focus on the details of the project, the massing and architecture, energy efficiency, lodge programs. December 1St will focus on technical questions and experts will be present to answer questions. These areas will be lift operations, project financing, energy efficiency. December 8th is scheduled as the final public hearing, which will be a final review of the ordinance and any outstanding answers. Bendon noted public comment is expected at all of these meetings. Bendon said there is information on the Lift One project on the city's website. Bill Wiener, COWOP member, said this project might not be able to be built; the lifts might not go forward; it would be difficult to separate the two lodges; the ski museum may not become a reality; the two historic chalet buildings are not protected. Wiener said the vesting is requested to be for 15 years, which is too long. The task force was told this was due to the present economic conditions. Wiener stated it is not the responsibility of the city to bail businesses out. Wiener said the program will change in the next 15 years. Wiener stated the building size is excessive. Two buildings across the street will create a canyon with not much light. Wiener presented concept W to allow the two projects to function independently; vacate south Aspen street giving the bottom half to the west project and the upper half to the east project, making each lot wide enough to allow for more architectural variety. Wiener said the COWOP decision was not unanimous. Wiener presented drawings of his concept W. Councilman Romero moved to read Ordinance #34, Series of 2008; seconded by Councilman Skadron. All in favor, motion carried. Regular Meeting Aspen City Council October 27, 2008 ORDINANCE N0.34 (SERIES OF 2008) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN AMENDING AND CONFIlZMING THE BOUNDARIES AND APPROVING THE LIFT ONE NEIGHBORHOOD MASTER PLAN AND GRANTING FINAL LAND USE APPROVALS AND A DEVELOPMENT ORDER FOR ALL PROPOSED DEVELOPMENT WITHIN THE MASTER PLAN INCLUDING PROPERTY LOCATED ON BOTH SIDES OF SOUTH ASPEN STREET SOUTH OF DEAN STREET OWNED BY THE CITY OF ASPEN, THE ASPEN SKIING COMPANY, ASPEN LAND FUND II LLC (AKA CENTURION PARTNERS LLC), AND ROARING FORK MOUNTAIN LODGE-ASPEN LLC, ALL WITHIN THE CITY OF ASPEN, PITKIN COUNTY, COLORADO Councilman Romero moved to adopt Ordinance #34, Series of 2008, on first reading; seconded by Councilwoman Kasabach. Roll call vote; Councilmembers Romero, yes; Skadron, yes; Kasabach, yes; Mayor Ireland, yes. Motion carried. ORDINANCE #32, SERIES OF 2008 -SPA Amendment Paepcke Auditorium Aspen Institute Councilman Romero moved to continue Ordinance #32, Series of 2008, to November 10, 2008; seconded by Councilwoman Kasabach. All in favor, motion carried. RESOLUTION #74, SERIES OF 2008 -Aspen Walk (404 Park Avenue and 414 Park Circle) Conceptual PUD Mayor Ireland said Council has seen this conceptual PUD twice before and two Council objected that this did not meet the criteria of the AACP. Councilman Johnson said his objections were not based solely upon the AACP but also other criteria in the code. Councilwoman Kasabach said she attended both meetings on Aspen Walk; she lives at 980 King street, beyond the 300 feet, and has commented on losing rental housing. John Worcester, city attorney, asked if Councilwoman Kasabach can continue to be impartial in judge this project. Councilwoman Kasabach said she believes she can. Worcester asked the applicant whether he has difficulty with Councilwoman Kasabach hearing the application. Stan Clauson, representing the applicant, stated they do not. Jennifer Phelan, community development department, reminded Council this is a continued public hearing. The application is to redevelop two sites with affordable and free market housing. The application has been amended to less building on site; broken up into two buildings and the applicant is proposing additional off site affordable housing. One unresolved issue is how many employees are housed at the APCHA property. Staff did a site visit and recommends that Council determine 17.5 employees are housed at that site. 6 Regular Meeting Aspen City Council October 27, 2008 Another issue is the proposed garden level affordable housing units, those above and below grade. Ms. Phelan recommended if Council feels these are livable units, as garden units are not currently allowed in the land use code, a code amendment can be written by staff. Ms. Phelan noted Council received exhibits R, S, T, U and V after the packet was produced. Ms. Phelan said this project meets goals of the community by providing affordable housing. The building was a much larger building than it is now. If Council is inclined to approve project this at conceptual, staff has some conditions to recommend to the approval. Ms. Phelan said some previous affordable housing projects had the units completely subgrade. The land use code was amended to state 50% of the finished floor had to be at or above grade. This code amendment did not address unit where the floor level was a few feet below grade and much of the volume would be above grade. Councilman Skadron asked what happens if the off site employee housing is allowed where the location has not yet been identified. Ms. Phelan said the applicant will not return to Council without an appropriate landing site for these employee units. Mayor Ireland said staff is recommending the affordable housing be counted even though it does not technically meet the 50% or more above grade standard. At the previous presentation, it was said there were free market units that do not meet that standard and will not be counted as free market units and will not require mitigation. Mayor Ireland asked if that inconsistency has been resolved. Ms. Phelan said if the garden level units are counted toward housing mitigation, the garden level free market is not required to having housing mitigation because the floor is below grade. Ms. Phelan pointed out conditions to be added if Council approves conceptual. One is that the ownership be clarified, prior to final approval, as in exhibit T that Mr. Petters not be involved in the project. Anew subsection (5) talks about the project financing and that prior to the issuance of a final PUD approval there be evidence of sufficient financing for the project and sufficient financing may include but is not limited to letters of credit, escrow or completion bonds. Ms. Phelan said the application is still asking for a 1.28 FAR above the allowable 1.25. The affordable housing section will need to be amended to allow for the applicants to mitigate for the existing Smuggler apartments at 17.5 and to clarify that off-site affordable housing is allowed. Councilman Skadron if the 1.28:1 FAR is less than the original application. Ms. Phelan noted the FAR in the original application was 1.56:1. Councilman Skadron said the floor area has been reduced from 51,000 square feet to 40,000 square feet and asked if the majority of that is the removal of affordable housing. Ms. Phelan said it is removal of affordable housing but also some less free market square footage. Councilman Skadron asked about rental versus ownership units. Ms. Phelan told Council APCHA submitted an exhibit stating they have had problems with mixing rental and sale units. Stan Clauson, representing the applicant, showed 3 renderings, exhibit D, one of which is the footprint of the building superimposed on the site. Clauson pointed out the parking garage extends the entire site, underground, and the building is broken up into two 7 Regular Meeting Aspen City Council October 27, 2008 buildings. There is a courtyard through Park Circle to the back of the property; Clauson pointed out a rendering showing that courtyard. There will be substantial landscaping Clauson said when the building was separated into two masses, there was a reduction in floor area from 1.56 to 1.28 FAR. Clauson said the design may get to 1.25:1, however, it is currently at 1.28:1. Clauson noted there are no requests to vary the height or the setback. The parking is allocated at one space/unit with spaces that can be allocated for guests. The applicants propose two electric vehicles available for the affordable housing units, and that could also be made available to the free market units. Clauson said the prior proposal reduced the project by 7,000 square feet, of which 3,000 square feet is free market reduction and 4,000 square feet is affordable housing reduction, which was based on 50% housing mitigation. The applicants asked for approval of cash- in-lieu payment for over 50% mitigation. Council indicated they would not favor the cash-in-lieu proposal. The applicants are proposing 100% mitigation, every square foot of the building at 404 Park Avenue will be replaced. Clauson noted because of the site constraint, they propose 18 units, 6 studios, 6one-bedroom and 6two-bedroom units, on site and the balance will be provided off-site. The on-site units will be ownership units at the request of APCHA. Clauson said the off-site mitigation could include rental units. Clauson told Council they have looked at 4 properties, 3 of which are owned by the city and could be developed for the city as affordable housing and contain rental units. Clauson said the code does not specify at conceptual approval that off-site mitigation needs to be approved; it only specifies Council will say whether or not they would approve that off-site mitigation. The applicants would come back with a proposal for off- site mitigation that would garner Council's approval and would meet staff's approval for mitigation. The applicants agree that mitigation for 414 Park Circle should be 17.5 employees. Clauson said he has received Council approval for subgrade units when 50% of the unit was below grade but volumetrically 50% of the unit was above grade. Clauson noted the code does not allow that; however, staff and the applicants agree the code could allow that. There are units proposed that are 2 or 3' finished floor subgrade. Clauson said there are full height windows, a livable unit with tall ceilings and the building still meets the height requirement and the bulk and massing has been reduced. Clauson said the applicants feel this is a good solution, the building does not impose itself on the neighborhood as strongly and still produces livable affordable units. Clauson requested Council approve a code amendment regarding subgrade units before final approval. Clauson said if that code amendment were not approved, the applicants would have to come up with a different design. Clauson said staff agreed the applicants could come up with a code amendment that would address an assessment of livability of units and allow units to be partially subgrade. Clauson told Council the applicants have looked at 3 city and one private location for alternative housing. Clauson said the applicant needs conceptual approval to move forward with discussions on these alternate locations. Councilman Skadron said the project is 18 affordable housing units of 12,006 square feet and 14 free market units at 29, 932 square feet. Councilman Skadron noted based on that the average size of the affordable housing units is 676 square feet and the average size of Regular Meeting Aspen City Council October 27, 2008 the free market units is 2100 square feet. Councilman Skadron asked if it would make sense to convert a free market unit and get 3 affordable units. This would reduce the requirement and costs of off site mitigation. Clauson said under the 100% replacement plan, the number of units to be produced is fixed. Tom Klassen, representing the applicant, said one answer is that the applicants do not know that yet. There are questions identifying the off site capacity and capability. Klassen noted the economics of rental versus sale units are very different. Klassen said they would like the capacity to be able to enter into discussions and see the different solutions and different sites. Councilman Skadron said he does not want to give up looking at creative options. Clauson said housing staff provided Council a memorandum on the costs of replacing the Smuggler Mountain apartments, which are between $3.6 million to $4.45 million. The project is providing a benefit in redevelopment of Smuggler Mountain apartments and these units are in bad condition. Clauson said a minimum cost to refurbish the building is $225,000. Clauson noted the AACP discusses the desirability of engaging the private sector in developing affordable housing. Clauson said this project meets the AACP in terms of compatibility with the neighborhood, engaging the private sector for development, and produces new deed restricted affordable housing. Clauson said the applicants need conceptual approval in order to start the analysis on the off-site mitigation as well as to solve the problems of the investors, removing an investor and to attract new investors. Clauson said when the project goes to 100% replacement, the requirement to mitigate free market based on 30% excess no longer applies. Klassen reiterated with the off-site housing, they are going back to 100% replacement. Clauson said the underlying density allows an FAR of 1.25:1 and the requested variation of 1.28:1 is very minimal. Clauson said when the building is further refined, that variation may not be needed. Clauson said the number is fixed because at 100%, the number is exactly what exists at 404 Park Avenue plus the 17.5 employees from 414 Park Circle. Ms. Phelan said if the application goes back to 100% mitigation, there are 11 units of APCHA property and the 7 units or 5600 square feet of net livable for the free market mitigation, an additional 3800 square feet would be required. Councilman Skadron asked the likelihood a variation for the FAR would not be required. Clauson told Council the RMF zone permits a sliding scale or 1.5:1 FAR for a denser project, which the applicants are not proposing. One could have 44 units on site, based on the sliding scale and an FAR of 1.5:1. Councilman Johnson asked the impediments of a straight landuse proposal with no variations requested. Clauson said the variations are limited; a slight FAR variation to 1.28:1 and the request for off-site housing. Clauson said the parking requirement is 2 spaces/unit based on the RMF zone district. Clauson reminded Council there is a full plate of underground parking with no ability to get any more parking on that level. Another level of parking changes the economics of the project. Clauson said the applicants feel the parking is an enhancement to the project; it is covered parking, on-site, with an electric vehicle. 9 Regular Meeting Aspen City Council October 27, 2008 Mayor Ireland asked if Mr. Petters has any interest in this project. Klassen said they previously indicated that Petters would have to be removed from the project. Mayor Ireland said he understood Petters had no connection to this project. John Worcester, city attorney, told Council the applicants represented they would take Petters completely away from this project before final. This is a condition that can be added to conceptual approval. Mayor Ireland objected to granting a conceptual approval that might be ensnared in Petters' financial mess. Clauson said at conceptual, the applicants are not taking any title to the properties but only looking at buildings on site. Mayor Ireland said he asked whether there was a connection between Petters and the applicant. Klassen told Council he has provided the attorney's office with documents of all the hearing records and Petters is no longer in control of any investments in Aspen. The city attorney has documents the method of Petters removal. Petters' asset is in receivership. Klassen said their bills are paid, the city's bill has been paid. Mayor Ireland said his concern is that the receiver may uncover pledges against this property, which will create problems for this project. Worcester said from the last discussion, he thought all of this was to be cleared up to the city's satisfaction by final but not as part of the conceptual. Worcester said under Colorado law, conceptual approval does not give the applicant any interest in APCHA's property. Councilman Johnson asked for a definition of receivership. Worcester said it is where the court takes the property as a trustee for the bankruptcy of the assets. Worcester explained the Mayor is concerned that by granting conceptual approval, the city is creating an interest in this property for which the court or the trustee of the estate will bring this conceptual approval into court and possibly tie up APCHA's property. Clauson noted the applicants have an agreement with APCHA to move forward and they do not believe this puts APCHA at risk. Clauson said he does not think conceptual approval does anything more than talk about a building the Council would accept on site. Councilman Johnson said this project is improving and likes the 100% replacement. Councilman Johnson said he feels all proposals ought to be 100% replacement regarding affordable housing, especially public/private partnerships. Councilman Johnson said he likes,further consideration to garden level design. Councilman Johnson agreed with the conceptual FAR and that this design is more, but not fully compatible with the neighborhood. Councilman Johnson agreed with the concept of a partner paying for the redevelopment of an aging building. Councilman Johnson said the notion of treading water for affordable housing is difficult. Councilman Johnson said this seems like accepting more development to stay in the same place rather than getting ahead. Councilman Johnson said the applicants are proposing drawing on the city's land for off- site mitigation for this project. Councilman Johnson said this does not get the city any further ahead of the affordable housing goals. The city's purchases of property is not a bank to further development or employee mitigation for other projects. Councilman Johnson said trading the housing site on Park Circle for a less desirable site for affordable housing is not a great concept,. Councilman Johnson said replacing category 1 rental with category 2 to 4 sales is not easy to accept. Councilman Johnson said he does not support cash-in-lieu. Councilman Johnson said the parking allotment should be worked 10 Regular Meeting Aspen City Council October 27, 2008 out for final. It is important that the people who live in the project every day need space to park their cars. Councilman Johnson requested an executive session to discuss the financial aspects of the project before voting on it. Councilman Johnson reiterated the project is improving. Councilman Johnson said the notion that replacing 11 deed restricted affordable housing units plus 14 de facto affordable unit with 24 units where people can live and work in Aspen. Councilman Johnson said this project is only returning 18 units or possibly 24 and the cost is the better site where people live now is where the free market housing is going. Councilman Johnson stated the town does not need any more free market units and projects in front of Council are free market heavy. Councilman Johnson said it is the Council's responsibility to turn that upside down. Clauson said the Smuggler apartments are deteriorating and are sub-standard and cash will have to be put in to redevelop or upgrade those units. Clauson said there are 25 units ofsub-standard housing, of which 14 are not deed restricted. Clauson said this is a large cost to replace units and this project balances free market development against replacing these units. The applicant is also giving the housing authority additional cash to deal with relocation and with buy-downs to help mitigate issues with this replacement. It will achieve some permanence for affordable housing. Clauson pointed out the code provides for some free market housing to pay for affordable housing. The code provides clear guidelines about what kind of replacement can take place from the free market standpoint. Councilwoman Kasabach said until the city changes the rules to require 100% replacement of de facto rental units, the city cannot expect private sector to replace 100% of the units. Councilwoman Kasabach agreed the project has come a long way since it was first presented to the city. Mayor Ireland said the question for him is whether the city is better off after the approval than not granting it. Mayor Ireland said when this project is done, there will be less housing than there is now. Mayor Ireland said the community has a short fall in affordable housing; units are being lost to redevelopment. Mayor Ireland said the community cannot afford to continually have projects that create more jobs than housing is created. Mayor Ireland said also private developers should not rely on using city property to build housing; the city's property should be used to lessen the short fall. Councilman Skadron said he will need to be convinced at final review that the applicant's representations that the below grade units will be high quality, livable units with sufficient sunlight is factual. Councilman Skadron said he feels these spaces meet the intent of the code. Councilman Skadron said he can support off-site mitigation as an option rather than cash-in-lieu payment. Councilman Skadron said he would like some of the off-site units to be rental units. Councilman Skadron said the FAR variation is about 1,000 square feet which could translate into 1.5 affordable housing units. Councilman Skadron said he would like this project to ask for no variations. Councilman Skadron stated he can support staff's determination that 17.5 employees need to be replaced from the Smuggler Mountain apartments. Councilman Skadron said he wants rental units as a 11 Regular Meeting Aspen City Council October 27, 2008 component of this project at final review. Councilman Skadron agreed the code allows what is being requested by this applicant. Mayor Ireland opened the public hearing. Tom McCabe, housing office, suggested Council discuss their concerns about the financing with the housing office's attorney, Tom Smith. Mayor Ireland closed the public hearing. Councilman Johnson moved to go into executive session at 8:07 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 Skadron. All in favor, motion carried. Also at the executive session Chris Bendon, Jennifer Phelan, Steve Barwick, John Worcester and Kathryn Koch. Councilman Johnson moved to come out of executive session at 8:27 p.m.; seconded by Councilwoman Kasabach. All in favor, motion carried. Councilman Johnson moved to approve Resolution #74, Series of 2008; seconded by Councilman Skadron. Councilman Johnson said he can support conceptual approval because of the changes to the project since it was first presented. Councilman Johnson said his largest concern is off-site affordable housing on city property. Councilman Johnson said he is also concerned about the parking allotment, rental versus ownership, and the categories of units. Councilman Johnson said the legal issues are also a concern. Councilman Skadron said he, too, can support this at conceptual and at final review he would like a thorough exploration of rental units, evolving one or more free market units for 3 or more affordable housing units on site. Councilman Skadron said he would like the FAR reduced to 1.25:1 and would like further assurance that the representations of quality garden level affordable housing are in fact quality units. Mayor Ireland moved to amend the motion that this approval is explicitly conditioned upon receipt by this Council of a letter of opinion from an expert on receivership and related proceedings; said expert to be of Council's choice and paid for by the applicant. Further, Council may, at its sole discretion upon review of expert opinion of the financial state of this application including but not limited to the disposition of this property, withdraw this approval; seconded by Councilman Skadron. Mayor Ireland said Council wants an expert to tell the city that this property is free and clear of receivership or cross interest proceedings. All in favor, motion carried. 12 Regular Meeting Aspen City Council October 27, 2008 Ms. Phelan asked that the memorandum from APCHA be included in the record as exhibit W. Ms. Phelan said she will include the issues Council wants to see at final in the resolution. All in favor, motion carried. Councilman Skadron moved to go into executive session at 8:45 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; seconded by Councilman Johnson. All in favor, motion carried. Also present Don Taylor, Chris Bendon, Ashley Ernemann, John Worcester, Steve Barwick and Kathryn Koch. Councilman Skadron moved to come out of executive session at 9:20 p.m.; seconded by Councilman Johnson. All in favor, motion carried. Councilman Johnson moved to adjourn at 9:20 p.m.; seconded by Councilman Skadron. All in favor, motion carried. Kat S. I ch, City Clerk 13