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HomeMy WebLinkAboutminutes.council.20090114Special Meeting Aspen City Council January 14, 2009 Mayor Ireland called the meeting to order at 5:10 p.m. with Councilmembers Romero, Kasabach and Skadron present. ORDINANCE #34, SERIES OF 2008 -Lift One Neighborhood Master Plan COWOP Mayor Ireland stated he appreciates the civility of these public hearings; there are pros and cons on this issue. Mayor Ireland said the COWOP was a good public process; the members were sincere and expressed their prejudices. Mayor Ireland said the COWOP process resulted in a better application. Council's decision is whether that application is adequate for this community. Mayor Ireland stated the ordinance has changed substantially from last month; some changes came from the city and some from the applicant. Mayor Ireland said Council will have to reconcile the ordinance as presented today with Council and public comments from the last meeting. Chris Bendon, community development department, reminded Council the Lodge at Aspen Mountain project previously went through a review with opponents and proponents. There were other projects in the Lift One neighborhood moving forward and there was no cohesive vision for the Lift One neighborhood. Bendon stated the COWOP process is used to have the "wouldn't it be great iP' conversation in concert with realities and legalities. Bendon said the COWOP met weekly for 6 months with members who were neighbors, who had interests, or who were citizens with no specific interests. The COWOP process resulted in this proposal. There are two lodges; Lift One Lodge and Lodge at Aspen Mountain. Lift One Lodge is a fractional lodge with 101 keys and 5 free market residences and 9,000 square feet of commercial space including a restaurant and an apres ski deck and affordable housing for 100% of the employees generated. The Lodge at Aspen Mountain proposes 75 lodge units; 26 fractional units, 5 free market residences, 18,000 square feet of commercial including a restaurant, and affordable housing for 100% of employees generated by this project. The proposal includes a high speed lift to replace the existing lA lift; ticketing for lift access, ski patrol facilities, a surface lift, improvements to the Dean street right-of--way to make it a better pedestrian experience, ski museum using the former Skier's Chalet lodge, apres ski pub using the former Skier's Chalet Steakhouse, public parking, ski lockers, a newly designed Aspen street to include pedestrian infrastructure and drainage, and a return ski area. Bendon said a member of the public asked for the standards of review. Bendon pointed out exhibit I is 40 pages which outlines the standards used by the city to review development projects. Bendon stated he feels the project meets all of the review criteria for approval and for rezoning. Bendon stated the project conforms to the Aspen Area Community Plan. Bendon noted the AACP directs lodging to the base of Aspen Mountain. The project is in town and is pedestrian oriented and walkable, is integrated into town, and proposes 100% affordable housing mitigation. Bendon said this project is Special MeetinE Aspen City Council January 14, 2009 a healthy, vibrant, year round contribution to the economy as well as rehabilitation to historic resources. Bendon said there is a community/resort dynamic; Aspen is not just a resort nor is it just a community. The proposed project contributes to the bed base and an improved lift access. Bendon said the project contributes to the community as there is housing on-site and there is access to Aspen mountain. Bendon noted this neighborhood will change; there is an approval for 14 townhouses and affordable housing. Bendon said the community development department staff was disappointed in the approval of empty townhouses at the base of the ski mountain, which does not contribute to the ski resort or to the community. The townhouse project does not contribute to a new lift nor does it fix the streets. Bendon noted the city should look at what change can happen and how can the city shape that change. The townhomes is a "lights off' project and is not an engaging project. Bendon said this project is not perfect but it is responsive to community needs and goals. Bendon said he feels this is a well reasoned plan. Bendon noted the public comments are included in exhibit E. Bendon said there are changes in the ordinance that cover affordable housing, vested rights, public benefits and mitigation, construction management planning and transportation and parking. Bob Daniel, Lift One Lodge, told Council staff and the applicants attempted to respond to Council and city attorney requests in order to receive final adoption at the December 8`h meeting. Daniel said that created frustration, trying to keep track of all the changes. Daniel pointed out the ordinance in this packet is edited to compare to the ordinance presented December 8`". Daniel said exhibit L is a letter from the applicants addressed to John Worcester, city attorney, outlining specific azeas in the ordinance where changes were made to respond to comments and questions. Daniel reminded Council at the end of the December 8`h meeting, he listed the azeas in which changes were to be made; housing mitigation, vesting, public benefits, cross obligations, construction management plan and transportation. Daniel pointed out section 16, page 32, addresses housing mitigation. The concerns from Council were (1) it was not clear to what the applicants were obligating themselves regarding additional housing beyond that provided on site and (2) how that obligation was being secured. Daniel said at the time of certificate of occupancy, the Lodge at Aspen Mountain and Lift One lodge are required to pay a fixed fee. This fixed fee is applied to housing mitigation. The denominator is what the actual cost of housing to be delivered is and the applicants get credit for how many employees that equation results in. The second is the idea there would be the ability for the two projects to pay over 3 years subsequent to the C/O the delta to get each project to 100% mitigation standard based on the actual cost of delivering the housing That is required to be provided with financial assurance at the time of certificate of occupancy. Daniel reiterated there is an obligation at C/O both for cash as well as a financial assurance. Daniel said both applicants have committed to provide for an audit to be Special Meetin¢ Aspen City Council January 14, 2009 completed within 3 years after C/O. The housing mitigation is broken into the physical housing provided, cash obligation from each project at C/O; the financial assurance at C/O and the audit. Daniel said another issue is vesting, which is addressed in Section 3. Daniel said the ordinance outlines the milepost vesting as discussed at the previous meeting. The applicants may not get to the next mile post if the previous one is not accomplished. The first milepost is that within 2 years of the effective date of the ordinance, there must be a master development agreement, resubdivision and right-of--way dedication plat. Two years after that, the individual PUD improvement agreements for each project have to be completed. Then there is a 5 year vesting time period. If the first two hurdles are not achieved, there is no vesting. The next discussion point was public benefits, when are they delivered, how is there a sense of assurance. Daniel pointed out table 1, page 2Qwhich obligates the parties based upon their individual certificate of occupancy or either certificate of occupancy for either project as to when specific public improvements need to be delivered.. Another issue was the construction management plan, Section 19, page 41, the ordinance tries to be more specific regarding the CMP as requested by Council. Items such as required intercept parking, specific allowances and numbers of on-site parking, parking prohibitions in residential neighborhood, worker transit project, JOBOXes on site to facilitate the use of mass transit, as well as compliance with the city's noise ordinances will be addressed in the CMP Daniel told Council the applicants looked at transportation and it is addressed in the ordinance in 3 places; page 16 where the components of the master development agreement are enumerated that the parties are obligated to provide prior to approval of the master development agreement. Daniel said the city engineer requested the applicants address the concept of quality of service, not just vehicular trips. Section 19 discusses construction and the required component part of the CMP. Section 28 states before there is a building permit for either project, there has to be a comprehensive demand management plan for each project approved by the transportation department which includes plans for reduction of vehicle trips by employees, guests and residences. Daniel said the applicants met with the city's transportation department, outlined in exhibit K. Daniel noted based on the city's use tax generated by these 2 projects, there will be about $3.2 million worth of use tax to be used for transportation project. Daniel said the applicants have discussed with staff extending the Galena street shuttle or the cross town shuttle to incorporate this neighborhood if it is warranted. David Myler, Lift One Lodge, went over the new language and noted in section 16 it was not entirely clear. Myler said the applicants were trying to preserve an opportunity for the housing units produced by the city with the additional funding from the applicants up to 60% mitigation for the applicants' employees to have priority on those units. Myler said this language related to the extent to which the applicants would have any control Special MeetinE Aspen Citv Council January 14, 2009 over the mitigation housing. Myler said the applicants will have control over the housing on site and they would like to preserve an opportunity to put their employees in some of the mitigation housing built by the city with money provided by the applicants. Myler said the issue on the Mine Dumps is whether the Lodge at Aspen Mountain will control the Dean Street condominiums available on a right of first refusal to previous tenants of the Mine Dumps. These units will only be available for sale and Lodge at Aspen Mountain will not control those units. Another issue is whether the Lodge as Aspen Mountain is mitigating both for the replacement housing required due to the demolition of the Mine Dumps and 100% mitigation for job generation and the answer is yes. The Lodge at Aspen Mountain is mitigating for both the employees to be housed as a result of the replacement obligation as well as 100% of the job generation obligation. Myler said the next issue is the assumption used by the applicant to determine initially what the employee housing mitigation requirement should be. Myler said the applicants are using assumptions required by the city and whether these aze accurate is moot because there is an audit requirement 3 years after operation and pursuant to that audit, differences can be reconciled between the assumptions and the ultimate mitigation requirements. Myler said there is a question about the FTE subsidy, the cost to the city to produce affordable housing, which forms the basis for the 100% affordable mitigation formula. Myler stated they agreed to the change which makes it clear that the land cost component of the calculation will be based on free market land, not deed restricted land. Myler said there was confusing language in the prior version of the ordinance and use of the mitigation amount paid at issuance of C/O. The language was changed and is in the present version making it cleaz there is a fixed payment due to issuance of C/O and the balance based on FTE calculations is to be paid within 3 years and secured within reasonable financial assurances. Myler said the city attorney raised a question about language having to do with a real estate transfer assessment as a source of funding for the FTE subsidy to get to 100% mitigation. Myler said the reta has been eliminated as the source for that additional payment and the applicants have agreed to pay cash and to provide a security bond for the amount of that payment. Myler said the applicants have agreed to incorporate language in the ordinance or in the master development agreement requiring the applicants to establish reta mechanism. If the applicants could not provide a bond sufficient to assure the city they would pay the FTE subsidy after the issuance of a C/O, the reta would provide a source of funding for that purpose. The funds collected under the reta would be paid directly to the city to be held in escrow to satisfy the FTE obligation of the applicants. Myler said it makes sense to create the mechanism so it is not a surprise to any buyers who would be obligated for it. Councilman Romero said this would be set up prior to first sales. Myler said it would be. 4 Special Meeting Aspen Citv Council January 14, 2009 Myler said the next comment is that the city would instititue strict fines for parking violations and the applicants expect nothing less. Myler said they understand the importance of controlling parking in the neighborhoods. Myler said there was a suggestion the applicants need to spell out the number of vehicles that can be parked at a site and this is something that will have to be resolved through the MDA. Myler noted the city controls the number of parking permits through the master development agreement.. Myler said the next issue is what happens if one project proceeds ahead of the other and if the project that is proceeding is not obligated for construction of a particular public amenity. Myler suggested including language in the development agreement to require the project moving forward that has a contribution obligation to put that obligation in escrow with the city who would have the ability to build that amenity and would have to fund the difference. The city could reimburse themselves when the second project went forward. Myler requested a reasonable time limit on the city's decision to go forward and if that amenity was abandoned, the contribution would be refunded. Myler said this agreement needs some fine tuning but the applicants feel they can meet the city's request. Myler said another issue is if the Lodge at Aspen Mountain was not built, would Lift One Lodge have access to its parking garage. There is separate access up Aspen street for Lift One Lodge. Daniel noted a construction management plan is required prior to building permit and the CMP has to comply with the adopted manual of June 2007. If there aze more stringent parking requirements, those will be obligations to the applicant at the time of building permit. Councilman Romero suggested staff describe the network of financial assurances in combination with the overall strategic intent and in the different categories, like affordable housing, restoration of the site, construction management. Daniel said there are the standard public improvements assurety that any applicant has to have regazding streets, rights-of--way, etc. and there is a series of community public benefits committed to from the high speed lift, improvements to Willoughby Park, the ski museum, volleyball courts which are obligated to be bonded or for which the applicants provide financial assurance. Daniel said there is a requirement about restoration in the event ahalf-completed project and if there is ability for a bond restoration. On top of those financial assurances, there aze the on-site affordable housing requirements as well as the additional requirement to get to 100% mitigation financial assurances. There is the money to complete these benefits or to restore things. Myler noted section 19 of the construction management plan requires financial assurance to damages to streets caused by excessive construction traffic. Page 16 5(0) the applicants agree to provide evidence to the city, in confidence, that the projects have the financing in place to be completed. Councilman Romero said there seems to be checks and balances to insure that the things the applicants have committed to do will be done. Councilman Romero asked how the city conducts estimates of value for the pieces that have financial assurances. Bendon said that is a staff operation that will occur during the master development agreement process. Bendon said staff will look at the public infrastructure and will do estimates of what it would cost the city to install those benefits. Special Meeting Aspen City Council January 14, 2009 Those estimates will be put in the master development agreement. Worcester pointed out section n on page 16 clarifies that the developers hires an estimator to work for the city to help make those estimates. Daniel said this ordinance outlines what the master development agreement will be required to contain and it does not require these financial instruments be done prior to permitting. The applicants understand the forms and amounts will be flushed out after the adoption of the MDA. Councilman Romero said the complexity of this agreement and the intent to provide checks and balances and protection for the community, this elevates the concern that the city is dealing with experienced applicants for the next 2 years. Daniel reiterated that there are milestones set out, like adopting the master development agreement, and if these are not reached, the approvals disappear. Councilman Romero said the affordable housing, both to be constructed by the applicants and the cash payments, and after an audit is completed and if there is additional mitigation required, the city will get additional payments. Councilman Romero noted if there are payments for mitigation required, the rate of those payments will be adjusted to the cost of affordable housing through that period. Councilman Romero said the collection of assurances being put together is unprecedented. Mayor Ireland asked if Council is being asked to rest a public decision on information to which the public does not have access. Councilwoman Kasabach asked if owners of the Dean Street condominiums will have parking in the underground parking. Daniel said they will. Councilwoman Kasabach asked if there is parking for the public. Sarpa said there will be public spaces. Councilwoman Kasabach asked about the egress onto Gilbert street. Daniel said the applicants have committed to address this to the satisfaction of the city engineer. Councilwoman Kasabach brought up mass and scale, based on the designs, the mass is great, particularly the Lodge at Aspen Mountain. Due to the public benefits and the lift, Lift One Lodge has had to break the mass up. Councilman Skadron asked how much floor area there is in the two lodge projects. Bendon said if the public streets, rights-of- way and parks are subtracted, just looking at the private land, the total building area divided by the land area, the FAR is 1.34:1. The allowable FAR in the zone district is 2.5:1. Bendon pointed out the square footage is broken down by property in the ordinance and the 13,000 square feet for the Dean Street condominiums is not the total affordable housing on the project; there is affordable housing within the lodges. Councilman Skadron said affordable housing is a key element in the desire to maintain the balance between resort and community. Councilman Skadron said there is a need for affordable housing today. Councilman Skadron asked how much affordable housing in this project addresses today's need for housing. Bendon said replacement housing, the demolition and replacement of the Mine Dumps, meets that need. The remainder is mitigation for the employee generation from the project. Bendon noted the code requirement is 60% mitigation and this project is mitigating at 100%. 6 Special Meeting Aspen City Couucil January 14, 2009 Councilman Skadron said this project seems to be giving the community a lot of affordable housing; however, it is mitigating for the project's employee generation and does not do anything to address the current lack of housing. Mayor Ireland stated there have been 6 versions of Ordinance #34 and provisions have come and gone. Mayor Ireland asked why the applicants propose that the affordable housing be changed to allow the developer to control the rental or ownership of 60% of the mitigation units. Mayor Ireland said at the COWOP it was represented that the housing would be open to the entire community. Myler stated the intent was not to assert control but to preserve an opportunity for priority. Myler said if the language states control, it was overstated. Myler said the practice has been for employees of a project to have priority in the affordable housing. Myler stated if that is unacceptable, this provision is not a deal breaker. Mayor Ireland said his issue is the representations made at the COWOP meetings and the reliance of the COWOP members on those statements when voting for a project. Sarpa pointed out a lot of things have changed since the COWOP at the Council's request. The COWOP made decisions based on how much affordable housing would be provided and they were not comfortable with 60% mitigation and said they felt the affordable housing mitigation should be 70 to 80%. Sarpa agreed that other than the rental units, all other units would be in the pool. Sarpa said Council made it clear that 80% mitigation was not enough and it should be 100%. Mayor Ireland asked what happened to the rationale for the elimination of the $4 million letter of credit naming the city as a beneficiary for the construction of a new lift. Mayor Ireland said this was in the ordinance Council reviewed in early December. There is no explanation why it was there and why it is no longer there. Sarpa said the way in which the letter of credit is set up has not changed, so that provision should still be in the ordinance. Daniel said there was no attempt to skirt an obligation and in 5(e) the improvement is discussed. Section 5(n) talks about the provision of bonds and financial guarantees acceptable to the city for improvements listed in (e). Daniel said there is no attempt not to provide surety for the improvements. Mayor Ireland asked about language for vesting of the townhome site until the issuance of a PIJD, which was agreed to by all parties. Mayor Ireland said it seems as thought the approval for the townhouses and this project will exist simultaneously. Sarpa said the vesting for the townhouses should only existing until the master development agreement is executed. Mayor Ireland said the city received a letter from the applicants stating neither of them is proposing a real estate transfer assessment to provide a source for the FTE subsidy and describes how that FTE will be paid for. Mayor Ireland said there has been a representation that a real estate transfer assessment is okay and the applicants would be willing to do that. Mayor Ireland said a real estate transfer tax has to be part of the adoption of this ordinance so that if the property is conveyed between now and any of the guideposts, the subsequent owner could not assert this tax is void under Colorado law Special Meeting Aspen City Council January 14, 2009 because of TABOR. Mayor Ireland said the real estate transfer assessment needs to be part of this ordinance. Myler said the applicants anticipate a real estate transfer assessment; however, it is not in the ordinance because the applicants thought Council wanted to agree to concepts. Myler said he will craft the real estate transfer assessment and will address the TABOR issues. Myler said he feels a real estate transfer assessment can be crafted to minimize the risks of a TABOR challenge which is why the RETA is being offered as a back up to the bonds. Mayor Ireland said unless the city gets the money up front, the city could be faced with applicants stating they can no longer afford to pay for the public benefits. Mayor Ireland said he does not want a future Council to have to renegotiate the community benefits. Councilman Skadron said the mission of the COWOP was to return with a project that honors Aspen's history. Councilman Skadron asked if this project honors Aspen's history or is the history being leveraged to justify development. Councilman Skadron said lodges that are historically Aspen are not of this style. Councilman Skadron said he would like to see buildings generally smaller and broken up and that the resulting built environment of this project has a closer relationship to Aspen's history, not 60' buildings that do not speak to historic definitions of community character. Councilman Skadron said these buildings should be more like the Skier's Chalet, or the Lodge at Aspen Mountain be broken up into smaller buildings. Councilman Skadron said this project appears to result in a formidable fortress of 5 star properties and inaccessibility. Councilman Skadron said this pattern of development does not speak to the inclusive desires of the Aspen Area Community Plan. Councilwoman Kasabach agreed she would ideally like to see the Lodge broken up in some manner. Councilwoman Kasabach stated she will not support architecture that looks like the Skiers' Chalet. Councilwoman Kasabach said the city has to accept the fact that Aspen visitors have changed. Councilwoman Kasabach said small lodges that are inexpensive cannot happen in this market. Councilman Skadron said it is the city's responsibility to return to that area a project that honors Aspen's history and this design falls short of satisfying that mission. Councilwoman Kasabach agreed while respecting the past, the business is to get on with future life. Councilman Romero said there is an effort for preservation with the Skiers' Chalet and the Skiers' Steakhouse and by moving them to the front of the property. Councilman Romero said the COWOP was consistent about honoring the preservation of the past. Councilman Romero said mass and scale was a theme at the COWOP and there were discussions about mass and scale in context of the trade offs. Daniel said what has created interest in Aspen is the juxtaposition of the new and the old. Sarpa noted through the COWOP, the Lodge at Aspen Mountain was redesigned to have breaks in the facade. Sarpa said this is a hotel and the Lift One Lodge functions differently. The Lodge at Aspen Mountain has space requirements, like meeting rooms, spa facility, that make it a different design. Sarpa said the lodge developers were asked to work with the community to develop a master plan. Sarpa said the COWOP was a Special MeetinE Aspen City Council January 14, 2009 broad group of people who looked at the objectives and the vision for this area; the history of the azea and how it evolved. Sarpa said the HPC looked at this plan and were convinced that this was a great in the historic aspect. Sarpa said the applicants heard that the building on the west of the plan was too big and should look more residential so the building was broken up and moved away from the adjacent property owners. The lift being the center of the master plan became a driving factor for everyone involved. Sarpa said the center of the plan was designed to be open to feature the ski lift. Sarpa said in order to have a surface lift, the Lift One Lodge had to be pulled back and to go into Aspen street, which then had to go into the Lodge at Aspen Mountain property. Sarpa said there were many moving parts to the master plan. The COWOP spent months on the site plan and what is important to the community and the community's vision. The site plan preserved as much green space in the middle, de- emphasized traffic on Aspen street, and plans all service and delivery underground. Councilman Skadron said other concerns are what is being left for Aspen's future and the general development on this site and how it relates to development overall in Aspen. Councilman Skadron said vitality results in people, which results in development. Councilwoman Kasabach said the city created the size of this project by asking for a master plan and the other community benefits. Councilman Skadron agreed and said the issue is whether the end result is worth the cost. Mayor Ireland said the city does not control the price of real estate and the market that drives that higher and higher. Mayor Ireland said his concern is that the community needs to have access for moderate income people, rather than just affluent visitors. The essence of vitality is bringing in the new. The economy is changing and the resort needs to have the flexibility to service people of lesser means. Mayor Ireland said it would have been good if the COWOP had been able to see story poles or a 3-dimensional rendering of this project. Mayor Ireland said the ordinance in 2007, the employee generation was 197 employees and this states that 153 employees are needed to run the larger proposed Lodge at Aspen Mountain. Mayor Ireland asked how size can go up and the number of employees goes down. Bendon said these figures are from the land use code and are based on experience from lodge operations. Mayor Ireland noted page 20 of the ordinance states that the two applicants are jointly paying for community benefits. There is a shared cost in the table for items like the relocation of the lodge. The ordinance states the applicant is willing to agree if one of the applicants drops out, the other is willing to put up a share for the improvements and the city can pay for a percentage. Mayor Ireland noted Table 1 on page 20 does not outline what the percentages are. Daniel said they aze comfortable with the concept of the obligation being fulfilled by another party. Daniel said the applicants can figure out the percentages for each one for each community benefit. Mayor Ireland opened the pubic hearing. 9 Special Meeting Aspen City Council January 14, 2009 Mary Anne Meyer, COWOP member, said they examined height and mass with drawings and with comparisons, the topo of the project, and were well tuned to the height and mass of the project. Ms. Meyer said one can take the drawings and walk the site to understand the project and to see that the Lodge at Aspen Mountain is tucked into the mountain. Tim Ditzler said citizen democracy is important and the COWOP worked hard to build a consensus among HPC, P&Z, Aspen Valley Ski Club, ACRA and the Board of Realtors. Ditzler said Council should not send the wrong signal to the citizens of Aspen by disregarding all the work of the COWOP. Ditzler reminded Council citizens members of the COWOP reported back to their boards and brought any concerns to the COWOP. Peter Grene said as a young member of the community, if this is not approved, what is next. What developers would want to work so closely with the community and when will this dilapidated neighborhood is redeveloped. Grene said this master plan is not perfect but it is something the community could be proud of. Grene urged Council to support this proposal. Kerrie Johnson, Juan street homeowner, said they are surrounded by this project on two sides. Ms. Johnson said this has gone through an exhaustive process and this site is the right place for lodge development and the plan is good for the local economy. Les Holst said the Aspen Area Community Plan was not used as a guideline by the COWOP and it should have been. Holst said iconic historic buildings are used by the community; this is not a community building. Howie Mallory said the renderings are not very representational of the final product. Mallory noted the community is concerned about the mass and scale of the proposed development. Mallory suggested Council require story poles be erected to show corners and high points of the proposed buildings. Mallory said it is difficult for many people to visualize projects in 3-dimensions so Council should suggest fabric is erected between the story poles to represent the scale of the project and to give a better sense of the project and so Council knows what they are voting on. Helen Klanderud said she is concerned about the future. The past is important and it is essential to preserve the best of the past; however, we live in the present. Ms. Klanderud said the annoyance of construction project is short-lived and one has to look beyond that to be building for the future. Ms. Klanderud said this project is the future of Aspen. Ms. Klanderud pointed out this does follow the 2000 Aspen Area Community Plan, which directs lodging to be at the base of Aspen Mountain. Ms. Klanderud said this project will bring vitality and she supports the project. David Schoenberger said the COWOP was a group that came together with many different opinions and created compromise. Schoenberger said it is fair to give the citizens the prerogative to vote on this project. Bridgette Starri agreed with what Howie Mallory said. Ms. Starri suggested the decision on this project by the electorate could be in the best interest of the community. 10 Special Meetine Aspen City Council January 14, 2009 Peter Greene said Aspen was a wonderful town 50 years ago but everything has changed, some for the better and some not. Greene encouraged Council to approve the project. Greene said the COWOP worked hard. This project is big, but the area needs to be redeveloped. The current economics do not allow little lodges to be built. Bob Hoover, representing the Mountain Queen, told Council their objections are to the mass and scale of this project. Hoover noted the developers are asking for the master planned area to be expanded along the southwestern border of the Mountain Queen. Hoover said the Mountain Queen has a drainage and emergency access easement in that area, and they have concerns about the grading and drainage and grade cut for the new lift. Hoover said developers of a project this large would not be on the brink of approval if they had gone through the ordinary land use approval process. Bob Grueter urged Council to listen to what the COWOP and the staff recommend. Grueter said the times are changing and Aspen should be changing with them. Mike Monroney complimented Aspen citizens to be willing to be part of the COWOP and the public process. Monroney said the small lodges existed because of circumstances, a valley with a small population. Monroney urged Council to support the result of the COWOP and to vote yes on this project. Mark Cole, Aspen Valley Ski Club and a COWOP member, said there are parts of this project, like the apres ski deck, the brew pub, ski lockers, that will pull in locals and will make it something that is not an impenetrable fortress. Cole said if not this project, then what and what willbe better about that and what process will lead to a significantly better conclusion. Louis Buettner, surveyor, said the Eames addition has never been subdivided and platted. It is an old area; the boundaries are unknown. Buettner told Council he was asked to calculate streets and rights-of--way being vacated. Buettner said alt the maps and plats of the area he looked at had contradictory information on the property boundaries. Buettner asked if the city owns the streets and alleys being vacated; does the city have fee title or easements. Buettner asked how this development addresses the view planes and will Council give a variance from that view plane. Buettner said there is an 8040 greenline and how does that affect those properties. Mary Barbee asked if the further approvals required will allow public hearing. Mayor Ireland said the construction management plan is done by staff with their existing rules. Mayor Ireland said one of his concerns is that some provisions are left vague with no opportunity for public input. Mayor Ireland said this is the final process. Ms. Barbee requested that the affordable housing unit on the Barbee property be included in the right of first refusal. Ruth Kruger agreed concerns about affordable lodging are real; however, no private developer is going to build an affordable lodge in Aspen where land costs are so high. Ms. Kruger said this is the best project for this neighborhood. Ms. Kruger said the major 11 Special Meetin¢ Aspen City Council January 14, 2009 community benefit of this project is the added beds at the base of the mountain and jobs that accompany added beds. Ms. Kruger said Council should approve this project. Ken Adelman said the point of an exercise in government is to come out with something that is acceptable and to do it civilly. Adelman said the community does not need more dead spots, which the approved town houses would be. Adelman said one of the ways to get new blood into the community is to keep the community vital and Council has an obligation to think ahead of a project that makes sense. Andrew Kole said the surface lift would honor history; it is small and fits into the landscape. Kole said this is only a better project if it is built. Kole stated Aspen is a high end resort with the many benefits that come with that. Kole said it is easy to criticize the COWOP but it is hard to understand all the work and compromise that went into the process. Patrick Sagal said he supports small lodges and urges Council to vote no on this project. This project would make a wall across Aspen Mountain. The project should be scaled down. Larry Yaw said during the review of the Little Nell, the city was facing the future rather than looking backwards. Yaw said Aspen is in the business of honoring the past and also creating context for the future. Norma Dolle, Snow Queen Lodge, said they run a small bed and breakfast lodge in Aspen. Ms. Dolle said her concern is alleys that disappear when they are built on. Ms. Dolle said this project is too large; she is concerned about construction traffic. Dave Ellis, Timberridge, said this master plan is the result of the COWOP with many interests and it is a compromise. Ellis said he is in favor of this project. Ellis questioned the process if this is denied, other than getting townhouses and a dark neighborhood. Sheryl Tennile, resident of Washington DC, told Council she is loyal to Aspen's lodges and in the era of the smart and the green and inclusive, accessible mountains, clean water, fresh air and walkable space should be emphasized. Tennile requested Council keep Aspen a mountain home, not a large city. Mike Maple thanked citizens, Council and staff for all the time and effort put into the COWOP. Maple urged Council to agree with the COWOP. Maple agreed mass and scale are troubling and people like things that are smaller. Maple said this is not possible because of the cost of developing in Aspen, like providing 100% affordable housing mitigation and the community benefits. The trade off for getting community benefits is more mass and scale. Junee Kirk said the survey of streets, rights-of--way and parks the city is giving up is 4.5 acres of public lands, which is assessed at $80 million. Ms. Kirk said the community should not have to put up with the mass and scale, the loss of views and the loss of the historic grid. Ms. Kirk urged Council to deny this plan; it is too massive and the trade offs are inequitable. Toni Kronberg said there are 8 areas within the Aspen Area Community Plan by which this project is required to be judged, like mass, scale, character and density. Ms. Kronberg said story poles were requested, a transportation plan was required of the COWOP process. Ms. Kronberg said the platter lift is not ski access. Mary Janss, COWOP member, told Council the reason the height and mass increased in this project 12 Special Meeting Aspen City Council January 14, 2009 was that the COWOP insisted on more on-site affordable housing to increase vitality on site and to decrease traffic. Ms. Janss said people who use lift one will use the platter lift. Ms. Janss agreed everyone would like to turn the clock back; however, the COWOP came to understand the present realities. Phyllis Bronson said she feels Aspen has been going in the wrong direction; a place has to be true to its own identity to be honest. Aspen is an old mining town and ski resort. Ms. Bronson said appeazance is replacing substance. The COWOP was an advisory board, not the final mandate. Their findings do not mean other people do not have different opinions. Ms. Bronson said this project takes the town in the wrong direction and the infrastructure of Aspen will not survive this. Ms. Bronson said this project is lazge and not sustainable. Ms. Bronson said she would like to see smaller, elegant lodges with gradation up the mountain that does not destroy the beauty of the mountain. Jeremy Bernstein, south Aspen street, told Council construction on south Aspen makes it a nightmaze. Bernstein said it is not worth the end result. Bernstein said the hotel should fit the scale of town. David said young people in Aspen want to see lift one redeveloped, to see vitality increased, to have more jobs. David urged Council to make a decision in favor of this project for the future of Aspen. Mayor Ireland closed the public hearing. Councilman Skadron asked if the COWOP reviewed this project with the same criteria used by P&Z or Council. Bendon said the COWOP was not a review board. Bendon said the COWOP had the criteria and plans adopted by the city to assemble their final decision. Mayor Ireland asked for a justification for 500 car parking garage. Mayor Ireland said trying to address traffic by adding parking does not work. Mayor Ireland said there is a critical problem with the roundabout and he would like the number of on- site parking spaces reduced. Sarpa said the number of pazking spaces is driven by the requirements, contractual obligations, and requests from the COWOP and from the neighbors. Sarpa said the requirements for Lodge at Aspen Mountain are 104 for the hotel room, 30 required for the Aspen Ski Company replacement pazking, and 80 public parking spaces, tota1214 parking spaces. There are 40 to 44 spaces to replace the neighborhood pazking that is being lost. Daniel said the code requirement for Lift One Lodge is 100 spaces, there is some parking required by the Aspen Ski Company, employee car pool spaces and shuttle spaces, affordable housing parking on site and membership parking spaces. They committed to some spaces for the Aspen Historical Society and a few spaces for the parks department. Mayor Ireland moved to amend the Ordinance #34, Series of 2008, to reduce the total of parking to 300 spaces. Motion DIES for lack of a second. Councilman Romero moved to adopt Ordinance #34, Series of 2008, on second reading; seconded by Councilwoman Kasabach. 13 ~ecial Meetine Aspen City Council January 14, 2009 Mayor Ireland moved to amend Ordinance #34, Series of 2008, to change on pages 35 and 38, the mitigation requirement, giving the applicants priority on 60% of the units built on site; seconded by Councilman Romero. Mayor Ireland said the amendment will alter the ordinance so that so there is no priority above the 60% for the applicants. All in favor, motion carried. Mayor Ireland moved to amend Ordinance #34, Series of 2008, effective immediately that all the land is burdened with a deed restriction imposing by a real estate transfer assessment of 1 % to be escrowed by the city and paid to the city for the purpose of funding affordable housing mitigation that is not paid for otherwise under the ordinance and further that in the event the applicants propose a bonding mechanism or other financial instrument suitable to the city that the voluntary real estate transfer assessment can be removed at the discretion of the property owner; seconded by Councilman Romero. This would be effective tonight, burdened with the property. Worcester asked if this is acceptable to the applicants. Daniel said the language that this will fulfill the FTE subsidy obligation is an important clarifier. Mayor Ireland amended his motion to include that this will fulfill the FTE subsidy obligation; seconded by Councilman Romero. Worcester asked if this is a voluntary assessment. Myler said it is a voluntary assessment and it will be recorded to be effective with the ordinance. Mayor Ireland stated this requirement is effective tonight, not when the ordinance is recorded. Mayor Ireland amended his motion that the transfer of sales of deed restricted property be exempt from this assessment; seconded by Councilwoman Kasabach. All in favor, motion carried. Mayor Ireland moved to amend Ordinance #34, Series of 2008, to reinstate the original language as proposed in the ordinance of December 8th, which states if the new lift is not operational when the Lodge at Aspen Mountain is ready for occupancy in order to grant a right of occupancy, the applicant shall provide to the city and the Aspen Skiing company as co-beneficiaries a letter of credit in the amount of $4 million less any portion thereof advanced by the applicant, in a form satisfactory to the city attorney; this will replace section 26.2 and 26.1 deleting the strike outs in tonight's version; seconded by Councilwoman Kasabach. All in favor, motion carried. Mayor Ireland moved to amend Ordinance #34, Series of 2008, that the ordinance is subject to submission of percentage allocations for community benefits table on page 20, the submission subject to approval of the city attorney or at his discretion to be referred to Council; seconded by Councilman Romero. All in favor, motion carried. 14 Special Meeting Aspen City Council January 14, 2009 Mayor Ireland moved to amend the construction management plan to adopt a limitation on operation of the dump trucks carrying the fill so that dump trucks aze not in the traffic mix during peak hours and there should be a limitation to no more than 80 cars pazked at anytime on the construction site and be registered with the city; seconded by Councilman Romero. Mayor Ireland said the applicants have agreed on an off-site parking area and car pooling. Mayor Ireland reiterated the town does not have excess traffic capacity. Sarpa said limiting the hours of operation will extend construction time and will increase cost of the project. Sarpa said being able to go out of town against traffic dining peak time is important to the applicants. Mayor Ireland said the traffic is 60/40 during the peak hours; there is not a 90/10 balance of inbound and outbound. Sarpa said the plan is to have trucks parked overnight on site and these trucks will go out of town to alleviate the coming into town traffic clog. Daniel said this provides the opportunity to enforce and support a transportation solution for employees. This will be 7 to 10 trucks parked on site and going out of town in the morning peak hours. Councilman Romero agreed to 80 cars on site limit and with trucks parking on site overnight and going out of town at peak hours. Mayor Ireland withdrew his original motion and amended it to limit the number of cars on site to 80 and to limit the number of trucks going out of town in peak morning hours to 7 and no trucks going out of town between 330 p.m. and 6 p.m.; Mayor Ireland in favor; Councilmembers Kasabach, Romero and Skadron opposed. Motion NOT carried. Mayor Ireland moved to limit the on site to 80 vehicles said vehicles to be registered with the city and limit outbound traffic to 7 trucks; seconded by Councilman Romero. All in favor, motion carried. Mayor Ireland moved to delete the newest language on vesting appearing at page 47 staring with "it is understood and agreed" which is superfluous language and creates ambiguity; seconded by Councilman Romero. Bendon noted the vesting rights for the townhouses will expire July 2011 or the recordation of the master development agreement. Mayor Ireland agreed that is what the motion means. Sarpa said this language came from the COWOP resolution. Bendon said the multiple applications limitation in the code does not allow two simultaneous land use applications. This was important as to have a master planning process for this area, the Lift One Lodge application was put on hold and if the master planning process stops, the Lift One Lodge application is still valid. That is why the language was in the COWOP resolution. Bendon said there can only be one plat for one piece of property and the recordation of the master development agreement would terminate the townhouse approval. Mayor Ireland in favor; Councilmembers Skadron, Kasabach and Romero opposed. Motion NOT carried. 15 Special Meeting Aspen City Council January 14, 2009 Mayor Ireland moved to amend Ordinance #34, Series of 2008, that the city's only obligation to spend the escrowed monies under 5.4 on page 20 that within a reasonable amount of time the city shall spend that money; to require the city whenever contributions from a project in the event the other project does not go forward according to the table, the city would have the obligation to make good faith efforts within a reasonable amount of time to spend that money on the purposes for which that money was escrowed; seconded by Councilman Skadron Bendon suggested an actual time, like 7 years which is contained in the code rather than a "reasonable time". Councilwoman Kasabach agreed Council is trying to remove ambiguities and "reasonable" is ambiguous. Daniel said their letter proposes at the termination of vested rights. Mayor Ireland said one has to expect the city to act reasonably. Councilman Skadron and Mayor Ireland in favor; Councilmembers Kasabach and Romero opposed. Motion NOT carried. Mayor Ireland moved to amend Ordinance #34, Series of 2008, to provide that the city will have 7 years from the date of payment of funds to spend that money; seconded by Councilman Romero. All in favor, motion carried. Mayor Ireland brought up the requirement to heat the streets and asked how that will be accomplished. Daniel said the intent is a systemic approach for 28(a), that an environmental budget for the overall project be looked at. The recommendation of the consultant is that there be a budget and the project commit that whatever energy goes into heating the street has to be within that budget. It could be a boiler or the ground source system. Mayor Ireland moved to amend Ordinance #34, Series of 2008, to add (e) to section 28 that any street heating shall be done exclusively with renewable resources; seconded by Councilman Skadron. Sarpa said it is his understanding that the boiler is necessary to heat the street given the severity of the temperatures in Aspen. Sarpa said only a combination of boilers at the peak times with other renewable energy could the street be kept dry and warm. Daniel said renewal energy sources are best used for duration events, not peak events and heating the street is a peak event and it is more efficient to use renewable energy for the buildings. Mayor Ireland moved to amend the previous amendment to provide that (e) read that all energy used to heat the streets shall be from renewable sources as much as is technically feasible in the opinion of the city engineer; seconded by Councilman Skadron. All in favor, motion carried. 16 Special Meetin¢ Aspen City Council January 14, 2009 Councilman Skadron said he has supported this project in the past and his position has evolved. Councilman Skadron said this is about the Aspen Brand and a brand in its core is a promise. Councilman Skadron noted the issue is to protect and grow the Aspen Brand and a massive development erodes the Aspen Brand. Council's position is different from the volunteers on the COWOP. The COWOP members focused on issues before them and Council's responsibility is to consider needs of the entire town and how the project works within the context of the entire town. Councilman Skadron said the townhouses are within the context of development even if they are not desirable. This large development is based on vitality, which means people and development, and a critical mass of people. Councilman Skadron asked from where these people come and what impact does that have on areas like the gondola and Highlands. Councilman Skadron said he is not persuaded vibrancy comes with this project. Councilman Skadron said projects like this are well served by a COWOP; however, he is not willing to support a project of this enormity without evaluating it against the land use code. Councilman Skadron stated this is his belief that development and its mass and scale should be guided by the goals in the community plan that speak to the historic definition of community character. Councilman Skadron said this project can do a better job of meeting the definition of community character and he will not support it as presented tonight. Councilwoman Kasabach said she is going to support the project as this is a reasonable plan and has been supported by the city's commissions and by the COWOP. Councilwoman Kasabach said the developers have been cooperative throughout the project. Councilwoman Kasabach agreed she would like to see Aspen maintained as it was 35 years ago; however, buildings do not change community character. Councilwoman Kasabach noted it is people who create character of a community, which is a reason to be an advocate for affordable housing. The more people living in Aspen and this proposal offers 100% affordable housing mitigation, create vitality and context. Councilman Romero said he would like to advance progress that is in balance with what is defined as the quality of life. Councilman Romero said this is defined, for him, how one raises a family, how one performs in work, and how one demonstrates responsibility. Councilman Romero said he is proud of the effective compromise produced by the COWOP. Councilman Romero said he respects a system approach to life. The COWOP process addressed a problem with 27 different opinions and demonstrated what is powerful about this community, to see through differences and to make a better result. Councilman Romero said the lift one master plan was suggested by the community to come out with a better product and a more effective solution. The COWOP was an advisory board and they owned the responsibility of speaking for the community or for the special interest groups they represented. Councilman Romero noted there is a list of safety valves that are in or have been added to the ordinance. Councilman Romero said he believes this project lines up well with the AACP and with the visions and aspirations for this community. Councilman Romero said he can vote yes for this project. 17 Special Meeting Aspen City Council January 14, 2009 Mayor Ireland said it is Council's job to scrutinize development proposals; it is Council's responsibility to look out for the public interest. Mayor Ireland noted at the last minute, the city was asked to forego control of up to 60% of the affordable housing units. Mayor Ireland pointed out the Town of Snowmass Village is being asked to give back benefits because of changes in the economic climate. Mayor Ireland said Council needs to start thinking about being overly dependent on outside sources. Mayor Ireland said vitality is diversity, mix of people, growth and new people coming in. Mayor Ireland said the poma lift is an improvement to what access there is at lift one today. Mayor Ireland agreed the town houses are dark and there is 92,000 square feet of development. Mayor Ireland said the site plan does create better views than in the past or with the townhouses. It is a plus to move the museum and to have underground parking. Mayor Ireland said the economy is contracting in a way such that the city will make a mistake to continue to rely on the highest income earners. Mayor Ireland said his issues. are if Council approves this, it will be referred to the votes in a way that maybe confusing. Mayor Ireland said if it goes to referendum, there will have to be a special election rather than having the question on the May ballot. Mayor Ireland said this community is practically and educationally smart and they can decide on a project on a ballot. Mayor Ireland said he cannot support this because of the 500 car parking garage; cities cannot build their way out of congestion by building parking garages. Mayor Ireland said Council should not approve this before evaluating the project in 3 dimensions and at a minimum there should have been story poles. Mayor Ireland said there is a tie vote on this ordinance and the public should be able to break the tie. If the motion goes down two to two, it will put the project into limbo with no resolution. Roll call vote; Councilmembers Kasabach, yes; Skadron, no; Romero, yes; Mayor Ireland, no. Motion NOT carried. Mayor Ireland moved to refer Ordinance #34, Series of 2008, pursuant to Section 5.5 of the Charter, where Council shall have the power to submit any question to the voters in May 2009; seconded by Councilman Romero. Mayor Ireland said the COWOP process produced a better project for Council's consideration. It is important to honor the COWOP's recommendation; however, the Council cannot delegate their responsibility for a final decision to any board and the community can make up their minds. Councilman Romero said given the two to two vote, he will support putting this to a vote. Sarpa noted the applicants took a large gamble and placed their confidence and trust in a process, which did not work. Sarpa said everyone spent a lot of time, money and effort to be in the same place they were a year ago. Sarpa said he will have to come back to Council and request additional time for the vested rights for the town house project. Council agreed. Daniel said the applicants have heard that Council feels a desire and a 18 Special Meeting Aspen City Council January 14, 2009 duty to take this issue to the voters. Daniel said this question will be crafted as a yes or no issue for the community. All in favor, with the exception of Councilwoman Kasabach. Motion carried. Councilman Skadron moved to adjourn at 11:55 p.m.; seconded by Councilwoman Kasabach. All in favor, motion carried. Ka S. Koch, City Clerk 19