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HomeMy WebLinkAboutminutes.council.20091026Regular Meeting Aspen Citv Council October 26, 2009 PROCLAMATION -Aspen Middle School Football Team ........................................... .. 2 HISTORIC PRESERVATION TASK FORCE REPORT ............................................... .. 2 AMERICAN PLANNING ASSOCIATION AWARD for Public Involvement .............. .. 3 CITIZEN COMMENTS ................................................................................................... .. 3 COUNCILMEMBER COMMENTS ................................................................................ .. 4 CONSENT CALENDAR ................................................................................................. .. 5 • Resolution #87, 2009 -Contract -Ozone Monitoring System ............................. .. 5 • Minutes -October 13, 2009 .................................................................................. .. 5 RESOLUTION #88, 2009 -World Cup Banners on Main Street .................................... .. 5 RESOLUTION #91, SERIES OF 2009 -Withdrawal of Local Marketing District Ballot Question ............................................................................................................................ .. 6 RESOLUTION #86, SERIES OF 2009 -Temporary Use Dark Horse Alley Coffee Ca rt 7 ORDINANCE #22, SERIES OF 2009 -Opt Into Local Energy Improvement District.. .. 8 ORDINANCE #21, SERIES OF 2009 -Red Butte Cemetery PUC ................................ .. 8 RESOLUTION #52, SERIES OF 2009 -Lift One Lodge Conceptual PUD ................... .. 8 RESOLUTION #78, SERIES OF 2009 -Wheeler Opera House, 320 East Hyman, Conceptual PUD ............................................................................................................... 12 RESOLUTION #89, SERIES OF 2009 -Code Interpretation Appeal -Man-made landfonns .......................................................................................................................... 17 RESOLUTION #78, SERIES OF 2009 -Wheeler Opera House, 320 East Hyman, Conceptual PUD ............................................................................................................... 17 1 Regular Meeting Aspen City Council October 26, 2009 Mayor Ireland called the meeting to order at 5:00 p.m. with Councilmembers Torre, Skadron, Romero and Johnson present. PROCLAMATION -Aspen Middle School Football Team Mayor Ireland and Council proclaimed October 26 as 7`h grade football team day and honored the football team for having an undefeated season. HISTORIC PRESERVATION TASK FORCE REPORT Bill Stirling, chair of the task force, reminded Council this task force was appointed in February 2008. Forty people applied to be on the task force and Council selected 23 diverse community members. Stirling told Council city staff to the task force, Amy Guthrie and Sara Adams, both did a wonderful job. Stirling noted there were over 100 community meetings over the past 20 months. Stirling reminded Council when they met with the task force, Council told the task force not to leave any stone unturned in the field of historic preservation. Stirling said there were split votes on the task force whether a voluntary or involuntary program should be part of the recommendations to Council or whether there should be new historic districts in town or whether historic designation was a negative or a positive for monetary value and whether height, mass, scale are within the purview of HPC. Stirling noted the task force split into a group of ardent preservationists and the other group felt all voluntary historic program was preferable. Stirling told Council this report was adopted 19 to 1 on October ls` by a motion stating this report with the attached table of contents and all other attachments was an accurate accounting of all task force discussions and final votes to be submitted t Council for consideration. There is a summary of recommendations categorized by why preserve, voluntary and involuntary, what to preserve and how to preserve. Stirling noted of the 42 votes of the HP task force, only 8 failed, 80% of the votes carried. Stirling noted there are 9 minority reports attached to this report. Stirling told Council these minority reports were discussed by the task force but not voted on. The ground rules state minority reports would be included but not voted on. Stirling said 5 committees were formed, voluntary and involuntary; historic districts; criteria of post WWII properties; economics and incentives, and the downtown core and architecture. Stirling stated there was public participation throughout this 20 months; grassroots televised the meetings and some of the later meetings are webcast. There were 2 one- hourpublic meetings October 9`h. Stirling requested a work session date to go over this report with Council. Stirling said the task force did not deal with multi-family buildings and lodges. Mayor Ireland thanked all the members of the historic preservation task force and noted the work session with the task force is scheduled for November 17`h at 4:30 p.m. 2 Regular Meeting Aspen City Council October 26, 2009 AMERICAN PLANNING ASSOCIATION AWARD for Public Involvement Chris Bendon, community development department, announced the community development department received an award for the city's process in updating the Aspen Area Community Plan. Bendon outlined the state committee noted this public involvement used unexpected methods to engage the public rather than traditional meetings, used meeting in a box, a monopoly game, citizens drew their visions, small groups sessions, jeopardy-style show for Grassroots TV, facebook, all to get public feed back for the community plan. Bendon noted Jessica Garrow and Ben Gagnon were critical in developing this strategy. Mayor Ireland stated he is proud of the citizen outreach process. Mayor Ireland noted there was strong alignment amongst the clicker session and the citizens who took the paper survey. Mayor Ireland noted he will ask the Council to add a discussion of the Local Marketing District question to the consent calendar 1. Sarah Pletts showed a picture of the land owned by the Living Arts Foundation and told Council the Brady foundation has offered a $5,000 matching grant towards preserving this land. Ms. Pletts asked the Council is they can fund the other $5,000. Ms. Pletts reminded Council of her invitation to Council to attend a retreat on this land in the summer. Steve Barwick, city manager, noted funding for the Living Arts is one of the items on those issues not yet resolved for the 2010 budget and will be discussed October 27`h or November 2"d 2. Jack Wilke brought up the realignment of the bike path under the Castle Creek bridge. Wilke said one reason for this realignment was to increase sight distances. Wilke told Council he walked this new alignment and does not feel the sight distances are any better. Wilke asked the city to look at this before the project is completed. 3. Si Coleman noted later on the agenda is a request from the Aspen Institute for a waiver of a stormwater fee. Coleman stated he does not feel the Institute provides service to the general public in Aspen. Coleman suggested one standard for granting a waiver be based on the non-profit providing service to the community. 4. Jack Johnson requested Council's help in obtaining public records: Johnson said the reason to have an election commission is to make sure Aspen has fair and reliable elections. Johnson said in May, instant runoff voting worked and produced a satisfactory result. Johnson said some people do not seem to accept those results. Johnson noted in August, two members of the election commission questioned the election process and the legitimacy of the election. Johnson noted those two members spoke of a "flood of e- mails" supporting this position and requested funds to hire independent counsel. Because of an inherent conflict of interest of the city attorney's office. Johnson told Council he filed an open records request to look into the flood of e-mails. Johnson told council he found no flood of e-mails which would lead someone to conclude they take action. Reeular Meeting Aspen City Council October 26, 2009 Johnson told Council based on the information he received, he founds that Marilyn Marks and Elizabeth Milias are violating principles of transparency and accountability in their activities. Johnson stated two members of the election commission, Chris Bryan and Elizabeth Milias, seem to have had ex parte communications and conflicts of interests to the exclusion of the third member of the election commission. Johnson said it appears Bryan and Ms. Milias held improper and private meetings to discuss official business of the election commission, including Marilyn Marks' lawsuit, and thus violating the public trust. Johnson noted it appeazs Ms. Marks is manipulating the actions of the election commission. Johnson told Council the "non-secret ballot" scandal appeazs to have been an invention of Ms. Marks. Johnson told Council Ms. Milias refuses to provide the public documents requested by the Colorado Open Records Act and asked that Council compel Ms. Milias to comply with the September 17`h open records request. Johnson told Council he has lists of public records missing from the September 17`h request, which he outlined. Johnson noted he suspects there are communications between Ms. Marks and Ms. Milias about official election commission business that have not been provided to him. Johnson said he had found evidence that at least 16 such meetings were proposed by Ms. Marks or Ms. Milias and there were no public notices of those meetings or any minutes of these meetings. Johnson insisted on the public record being made complete so that the public many fully examine it. Mayor Ireland requested this be submitted to John Worcester, city attorney, so that Council can get legal advice. Councilman Skadron asked if there is a time frame. Johnson stated the state requires records to be produced in 3 days. There was a 7 day extension requested. John Worcester, city attorney, told Council his office will continue to work with Johnson and Ms. Milias to get the records that have been requested. 5. Marilyn Marks told Council she has made one request of the election commission, to preserve election records over which they have control, and the commission has honored that request. Ms. Marks said she is willing to go through her a-mails and she will supply anything having to do with election commission business. Ms. Mazks said she has made the election commission awaze of election deficiencies and would be happy to have those all made public records. Ms. Marks said she does accept the results of the last election and has congratulated al] members of Council. Ms. Marks reiterated she has no interest or a legal ability to upset the last election. Ms. Marks stated her lawsuit is about the production of public records that were shown election night. Ms. Marks said she has accepted the election results and would like to work toward election reform. Mayor Ireland asked if Ms. Mazks met with members of the election commission, Ms. Milias and Bryan. Ms. Marks said as far as she recalls, she never met with Ms. Milias and Bryan about election commission business except during a Council meeting in the sister cities room. COUNCILMEMBER COMMENTS 1. Councilman Torre reminded everyone to keep recycling and to make arrangements for recycling this winter. 4 Regular Meeting Aspen Citv Council October 26, 2009 2. Mayor Ireland congratulated all the Aspen high school athletes. It is great that the community shows up to support the various sports that high school athletes take part in. 3. Mayor Ireland said Sunday was 350 day to encourage the country to get to 350/ppm of C02 within the decade or people will be able to sail through the polar ice cap. 4. Mayor Ireland reminded everyone to get their mail ballot in. Ballots are due to the county clerk's office by 7 p.m. Tuesday November 3`a. There is no voting at polling places. If you have moved and did not receive a ballot, voters must contact the county clerk's office. 5. Mayor Ireland requested to add Resolution #91, withdrawing the local marketing district question from the ballot. Steve Barwick, city manager, asked Council to delete VIII(a) Aspen Institute Request a Waiver of Storm Water fee from the agenda. Barwick told Council staff and the applicant are working on a solution. Mayor Ireland moved to add Resolution #91 to the agenda and to delete Aspen Institute' request for waiver of storm water drainage fees; seconded by Councilman Torre. All in favor, motion carried. CONSENT CALENDAR Councilman Johnson requested (b) World Cup Banners on Main street be taken off the consent calendar. Councilman Johnson noted he works for the Aspen Skiing Company and has a conflict of interest. Mayor Ireland moved to approve the consent calendar as amended; seconded by Councilman Torre. The consent calendar is: • Resolution #87, 2009 -Contract -Ozone Monitoring System • Minutes -October 13, 2009 All in favor, motion tamed. RESOLUTION #88, 2009 -World Cup Banners on Main Street Councilman Johnson recused himself. Councilman Skadron asked if there is a downside to approving banners on Main Street. John Worcester, city attorney, said there is the concept of the First Amendment and then there is an issue of when a place for signs becomes a "public forum". Worcester told Council there is a recent Supreme Court case addressing public speech and government speech where a government allowed a Ten Commandments to be placed in a public park. The Court opined this did not necessarily advance religion and can be a form of government speech. Worcester noted this decision has diminished his concerns about using the lamp posts. Worcester reminded Council the more they allow the lamp posts to be used, the closer they become to public forum. Regular Meeting Asaeu Citv Council October 26, 2009 Councilman Skadron moved to approve Resolution #88, Series of 2009; seconded by Councilman Torre. All in favor, motion carried. RESOLUTION #91, SERIES OF 2009 -Withdrawal of Local Marketing District Ballot Question Mayor Ireland brought up the difficulty the city has had in identifying the people who should be allowed to vote in the local marketing district. Mayor Ireland said the problem with the LMD election does not affect any other question on the ballot. All the county ballots will be counted; it is still a valid election. Mayor Ireland stated this election is part of a statewide system; the ballots are not controlled by the city clerk. This is a TABOR election that has to be done in November; the voter roles are in the hands of the county clerk. Mayor Ireland pointed out this is the first time Pitkin County is doing an all mail ballot using the state voter registration system. The state designates who is in the district and who is eligible to vote. Mayor Ireland said making changes to this system have to be made at the state, not in Pitkin County. Mayor Ireland said this is the first time there is a district that is only part of the city. Mayor Ireland pointed out this district has 127 sides and is in 3 pieces. Mayor Ireland told Council the city clerk has been trying to fix the voting district since last week. The county clerk worked with the city to add voters Monday and Tuesday, to correct the "innie" and the "outies" and it appears to be about 105 voters Mayor Ireland said originally the district was going to be the entire city. In August the local marketing district was adopted by the Council in a smaller segment. There aze 221 street segments from which the voter role is produced. Mayor Ireland showed the map, which was missing street names, Dean street, Spring street and Trainor's Landing. Mayor Ireland showed a slide of how some buildings were missed that are physically located on a street and have voting addresses on another street. Mayor Ireland said he worked with the city clerk's office on getting the proper voting members of the district and presented this to the county clerk for another patch. The county clerk said she will not accept further patches; it is too late and takes too much time to program. The county clerk said doing more fixes would invite disaster. Mayor Ireland said the issue is what can be done to solve this problem. Mayor Ireland suggested advancing money to the local marketing district pending an election in November 2010. Participating lodges could have a voluntary 1% guest service chazge. Councilman Torre said the presentation was well done to explain a complicated issue. Councilman Torre said he would like to discuss this issue with the LMD and the Chamber. Mayor Ireland agreed there should be a meeting soon to look at how the city can fund some mazketing money. The staff should continue to work on getting the district correct. Councilman Romero agreed this was a series of difficulties and complexities and he supports an advance of some mazketing money. Stan Clauson told Council he designed the map in an effect to get the maximum number of commercial Regular Meeting Asuen City Council October 26, 2009 properties and the least amount of residential area. Clauson said no one recognized the map would need to be made into a segment by segment of blocks for voting purposes. Clauson noted this district has received a lot of support from the community. Clauson said he hopes everyone can come together for a interim solution. Debbie Braun, Chamber, told Council she has been in touch with the lodge community hoping to get voluntary participation in an assessment. Ms. Braun pointed out all reservations already made have been done without that 1% assessment. Ms. Braun suggested the city move the $200,000 special event fund to mazketing to keep the marketing budget whole for 2010. Councilman Torre moved to adopt Resolution #91, Series of 2009; seconded by Councilman Skadron. All in favor, motion carried. RESOLUTION #86, SERIES OF 2009 -Temporary Use Dark Horse Alley Coffee Cart Drew Alexander, community development department, told Council Dark House Alley is requesting a temporary food vending permit to locate a vending cart in the interior arcade of the Ute City Banque building, 501 E. Hyman. Alexander reminded Council the applicant has been operating Dark House Alley last summer and fall and the feedback from the community has been positive. Alexander noted the applicant is seeking an indoor location rather than be outside in an alley space. Alexander noted temporary food vending is not allowed indoors under the existing land use code. Alexander said the temporary permit would allow food vending inside the Ute City Banque building. Alexander reminded Council they had a work session in September and discussed outdoor merchandising and food vending and directed staff to allow more flexibility. Alexander said it will take awhile to process land use code amendments and a temporary use permit seems the timeliest and most reasonable. Alexander noted the applicant has received approval from the building owner and from adjacent business owners. Alexander said the applicant will meet other code requirements, like the sign code and health code. Alexander recommended approval as staff feels this will add vitality to the area. Councilman Skadron said this application is loaded with creativity and results in vitality in this courtyard. Councilman Skadron said he likes that this application capitalizes on an existing economic opportunity and that it is purely private sector. Mayor Ireland opened the public hearing. Wendy Smith, applicant, said she feels this will increase the flow of pedestrian traffic to this building and to other businesses in the area. Ruth Kruger entered a letter into the record from Patti Patterson, owner of Bloomingbird's. Mayor Ireland closed the public hearing. Councilman Romero moved to approve Resolution #86, Series of 2009; seconded by Councilman Johnson. All in favor, motion carried. Reeular Meeting Asaen City Council October 26, 2009 ORDINANCE #22, SERIES OF 2009 -Opt Into Local Energy Improvement District Mayor Ireland opened the public hearing. Mayor Ireland explained this issue would allow homeowners to borrow money and make energy improvements to their property and tax themselves. Mayor Ireland closed the public hearing. Councilman Romero asked if there is a limit on the homeowner's loan and what is the maximum term of that loan. Dylan Hoffinan, energy program manager Pitkin County, told Council those details will be determined once the bonding authority is given to the county. The county will meet with stakeholders to have a program that works for everyone. Councilman Johnson asked how the administration of this program will work; will it overburden the existing county staff. Hoffinan told Council 3 counties have ballot measures to create an energy smart program. If all are successful, an intergovernmental agreement will be entered into to house the administration centrally. Hoffman noted there is some money from the governor's office to get this program going. Hoffinan said there will be significant staff time needed to get the program implemented. Mayor Ireland asked how the program will work between bond issuance and requests for loans. Hoffman said all interested parties will submit applications for loans, these will be aggregated into one amount and a bond sale will be run on that amount. Mayor Ireland asked if each applicant pays their share of administrative cost for the loan. Hofftnan said that is included. Councilman Skadron moved to adopt Ordinance #22, Series of 2009, on second reading; seconded by Councilman Johnson. Roll call vote; Councilmembers Romero, yes; Skadron, yes; Johnson, yes; Torre, yes; Mayor Ireland, yes. Motion carved. ORDINANCE #21, SERIES OF 2009 -Red Butte Cemetery PUC Councilman Skadron moved to continue Ordinance #21, Series of 2009, to November 9, 2009; seconded by Councilman Torre. All in favor, motion carried. RESOLUTION #52, SERIES OF 2009 -Lift One Lodge Conceptual PUD Councilman Johnson left the room due to a conflict of interest. Chris Bendon, community development department, reviewed the resolution for Council. The resolution describes the components of the project and the types of uses on each of the parcel. The Whereases describe the process the project has been through. Section 1 refers to an exhibit describing the conceptual PUD which will concisely describe the conceptual approval with text and graphics. Section 2 describes all things the city would like to see in the final application, it sets out the expectations for final review. Section 2(d) requires a street vacation and right-of--way dedication plat to list all the actions on one plat. Section 2(e) describes a development agreement typical of any planned unit development in an agreement between the property owner and the city. The notable items in 2(e) are the proposed improvements to lift lA; public locker facilities, most of the other items are Regular Meeting Asaeu City Council October 26, 2009 routine for a development agreement. The final application requires a detailed time share and membership operation plan on a day to day basis. Bendon noted an architectural plan, landscape plan, drainage plan aze routine for final applications. A draft construction schedule and construction mitigation plan will be required. Bendon went over Section 3, which is the financial assurances and requires a draft agreement between the developer and the city to protect the city. Section 4 addresses the accessibility to the apres ski deck to assure continued public access to that area. Bendon pointed out a desire to have greater setbacks on the east lodge, which has been incorporated into the plans and the resolution memorializes that. There aze some specifics about Willoughby Park and a request from the city's parks maintenance staff to have a storage area within the pazking garage to store maintenance vehicles. Section 7 has more detail on the maintenance agreement between the Ski Company, the applicant and the city for the ski back corridor. Bendon said there is a reference to an agreement for the treatment of the Deep Powder cabins; the Ski Company will take and use the cabins on mountain for their operations. Bendon noted some detail about the maintenance of the Skier's Chalet buildings during this period of planning is referred to in the resolution. Bendon said staff would like more detail and assurance from Winteruational representatives about the operation of Winteruational during and after construction. Section 11 addresses energy usage. Section 12 discuses a special improvement district for this area and details for final review. Section 13 outlines the ways in which this project is being measured for heights for floor area. Bendon reminded Council for this project absolute heights have been used, and these should be used and detailed for the final application. For floor area, what is above grade and what is below grade aze what should be shown on the application. Section 14 goes over reconstruction credits for the entire property. Section 15 goes into employee generation and affordable housing requirements. The applicant has committed to 100% mitigation. The application has the components of employee generation from lodging uses, commercial uses, and free market residential spaces. This section also captures the commitment to house at least 40% of the employees on site and the remaining will be housed within the Aspen growth boundary. Bendon pointed out Section 16 is requirement for monitoring of ground stability, which is important at the base of Aspen mountain to determine if there is movement and to pinpoint if this construction is responsible for that movement. There is pro forma language addressing the school dedication and other fees. Bendon noted this addresses the meaning of conceptual; that this is not a final application, it authorizes the submission of a final application. Councilman Romero asked about the two year vesting request. Bendon noted one-year vesting is typical; however, this has a requirement for two-year of submission of final application. Bendon said the property descriptions have not been added to the resolution. Bob Daniel, applicant, told Council the request for two-year vesting is from the applicant because of the complexity of the project; because there is a pending COWOP application for a project across the street which may affect this 9 Regular Meeting Aspen City Council October 26, 2009 conceptual approval requiring more time to address. Councilman Romero told Council the Obermeyer had gone-year vesting from conceptual and it was too short for that project. Councilman Romero said he could support two-year vesting. Councilman Skadron asked how Council might expect the forthcoming revisions of the AACP to affect the land use code in the incentive lodge provisions of the L zone district. Bendon told Council he does not have a grasp of how the land use code maybe changed as a result of the AACP update process. Bendon reminded Council lodge development at the base of the mountain is encouraged and the struggle is how to accept the impacts of development. Councilman Skadron asked about the graduated scale and room size incentives for lodge in the land use code. Councilman Skadron asked if there is a concern about allowing this application to move forward if it does not meet the goals. Bendon said the AACP does not get to the level of detail of room sizes. The community plan has broader statements not detail like contained in actual code amendments. Bendon noted this project has the right to rely on the codes under which it was submitted. Councilman Skadron said if the AACP is sufficiently revised, the community may end up with a project that does not meet community goals. Councilman Skadron said mass and scale is an issue with this project, mass is driven by room size. The proposed room sizes aze allowed under the current ]and use code because of the graduated scale. Councilman Skadron asked about variations from the underlying zone district and what is driving those variations, mitigation necessities, business plan, and community goals. Bendon said all requested variations can be detailed by the next meeting. Councilman Skadron said he would like to know in what ways the current zone district regulations, specifically Conservation, lodge and park, differ from the zone district regulations in effect when the original application was submitted. Councilman Torre said the only concept with which he is comfortable is that there will and shall be some development in this location. Councilman Torre said he will have an issue with approving this conceptual review. Councilman Torre said this has gone to COWOP, back to Council, there has been amulti-week review, dividing the project in pieces. Bendon said staff's purpose is to give an overview of the resolution and will polish it up for final review. Councilman Romero said the draft resolution has been helpful. Staff and the applicant have reviewed piece by piece, program by program, what is intended with the project and to refer to visions and values of the AACP. Councilman Romero said during the new weeks of review, tying this project to the AACP and the community goals, values and visions statements, achieves community interest while achieving private benefit. Councilman Romero stated the treatment of historic resources, the management and mitigation of traffic and congestion, the acknowledgment of employee generation and the appropriate handling of that, the offering of financial assurances, and a review of scale and mass, and the purpose and use of lodge and how that, if applied correctly, matches up and satisfies vision statement of the community and how the tourism business in the future will be a re-emergence of the primazy business of Aspen. Councilman Romero 10 Regular Meetin8 Aspen City Council October 26, 2009 noted this project could help the city to re-affirm the azimuth towards tourism. Councilman Romero stated as a family the idea of being able to stay at the base of Aspen mountain with flexible unit size and number of bedrooms helps strengthen the tourism industry. Councilman Skadron said the applicant for the lodge property to the west that is currently in a COWOP has reduced room sizes as one means to reduce scale and massing. Councilman Skadron said this application results in average rooms sizes of over 500 squaze feet. Councilman Skadron noted the market desire for large rooms might change and this might be an opportunity to create room sizes more applicable to the tastes of the market place. Councilman Skadron stated conceptual approval signals accepting the basic pazameters of the project, one of which is massing and scale, and he has reservations about conceptually approving this mass and scale. Mayor Ireland agreed there are community goals relating to friendly size and scale and community goals relating to more lodge rooms at the base of Aspen mountain as well as flexibility. Mayor Ireland stated he is concerned this maybe building for the last mazket, more luxury, rather than people downscaling their expectations. Mayor Ireland said he does like the flexibility. Mayor Ireland said he is concerned with over parking or with encouraging the idea that one needs a car in Aspen. Mayor Ireland stated Council needs to think long term, to think about the future of tourism as Aspen's economy. Mayor Ireland said the financial assurances have to include the ability to fund restoration of the site if the project fails. Mayor Ireland opened the public hearing. Toni Kronberg noted the applicant has stated that approval of the conceptual PUD will allow them to develop the detailed technical information and agreements required for final with significant investment of human and financial resources. Ms. Kronberg said the applicant is asking for 2 yeazs to return with final. Ms. Kronberg said it is not fair to have this conceptual plan approved only to have the final plan approved by Council or through a public vote. Ms. Kronberg said she would like to see the entire project presented to Council at the next Council meeting. Mayor Ireland pointed out there is an at risk provision and the applicants understand two years from now will be a different Council and maybe a different economic conditions. Bill Wiener said one aspect of the project that bothers him is that one building is over the property line into the city right-of--way, which reduces the right-of--way and reduces the open space and creates too much of a canyon. Wiener said he does not like the idea of giving up public right-of--way to make a building larger. Wiener said each of the proposed buildings is wider than the Wal-mart in Glenwood Springs. Wiener said this building is too big. Wiener said he feels this is a marginal project. Wiener said he is afraid the project will be converted to condominiums, sold and taken out of the rental market. 11 Reeular Meetin¢ Aspen Citv Council October 26.2009 Junee Kirk said this project is the same mass and scale of the last project and the historic integrity of the neighborhood is not being preserved and the historic grid is being diminished by at least half. Mayor Ireland closed the public hearing. Mayor Ireland moved to continue Resolution #52, Series of 2009, to November 9th; seconded by Councilman Romero. All in favor, motion carried. RESOLUTION #78. SERIES OF 2009 -Wheeler Opera House, 320 East Hyman, Conceptual PUD Councilman Torre left the room due to conflict of interest. Chris Bendon, community development department, went over conceptual review giving examples of past projects of different sizes and intensities; some projects have a joint conceptual/final PUD review and the type of review and how involved are decisions made between the applicant and the city staff. Bendon noted the reason for conceptual review is to have foundational issues resolved and to set forth the expectations for the final review. Bendon said the Wheeler Opera house expansion is a simple project from a planning perspective, there was a desire to have a conceptual review to set out the parameters for the project. Bendon said there is an issue of whether there is enough information in this conceptual application. Bendon reiterated there are no major questions about the zoning, about the access; it is a massing question. Bendon noted the applicants wanted to have an answer about the massing question first then enter into an azchitectural discussion on final review. Bendon reminded Council there were a lot of questions about financing of the project from first review. Financial information and planning approvals can be sepazated and handled independently. One issue of conceptual review is a comfort level with the massing; amendments do happen at final review. Bendon told Council for the Truscott project, a lot of the financial planning occurred post conceptual approval. Conceptual approvals can accommodate later decisions about financing. Saza Adams, community development department, said conceptual review defines the size of the box rather than focusing on the details with the intention that once the massing is correct for the site, staff will work on the details of the skin of the building. Ms. Adams told Council during P&Z and HPC review, the discussions were steered away from details; these are more appropriate for final review. Ms. Adams said conceptual review should not be so restricted that HPC does not have the opportunity to use their expertise and to apply their guidelines during final review. Ms. Adams noted there are 3 different facades included in the packet; all have the same massing and the same box. These facades can be changed with materials and detailing. Ms. Adams told Council staff is not convinced this is the best architecture to enhance the Wheeler. Staff does think the massing is appropriate at conceptual. Staff has confidence in the final review process which involves HPC, P&Z and Council and will develop the 12 Reeular Meeting Aspen Citv Council October 26.2009 architectural details. Councilman Skadron asked relative to what is the massing appropriate. Ms. Adams said relative to the context and in looking at the historic guidelines. HPC and P&Z struggled with the fourth floor of the addition and that floor was eliminated. Ms. Adams told Council for the planning review she was looking at the physical volume and how it relates to the Mother Lode, additional and historic Wheeler and whether this contributed to the historic district, to the pedestrian experience. The review criteria does not talk about program but is more about defining the box in the setting. Councilman Skadron asked what priority the historic asset has. Ms. Adams said the historic Wheeler has top priority and is the focal point, one of the main pieces of architecture in the downtown. That should be the inspiration for the addition. Councilman Romero agreed the financing and the planning can be separated; however, he has previously stated he would like those two concepts to stay connected and neither get too far ahead of the other. Bendon said at some levels the finances and the planning have to remain independent and flexible. Bendon said the city is both the owner and the Council is the traditional body reviewing planning issues. Councilman Romero said the Council owes it to the community to gain more information and to continue the process of input to help refine the program and the overall project and to have a fiduciary responsibility to make sure the project can be financially covered. Bendon said the community development department makes a recommendation to continue on the planning issues. Gram Slaton, Wheeler Opera House, is representing the city as owner. Slaton is the applicant and community development department is the review body. Michael Farewell, Farewell, Mills and Gash architects for the Wheeler project partnering with John Rowland, local architect, said they would like to explain the methodology for designing the project and to put it in real world terms of contracting and expending city funds. Steve Bossart, capital assets department, told Council staff is using the integrated project delivery method fro the Wheeler expansion. Bossart reminded Council 2 years ago staff went through their method of project delivery and decided to have process improvements. There was a citizens' budget task force and a construction experts group, an outside real estate consulting firm was engaged as well as McMahon & Associates who did a financial audit. These groups all looked at the city's overall approach to capital projects as well as to have an efficient and transparent project delivery. Bossart noted in this method, the contractor is brought in early in the process as the city is going through the design. This gives checks and balances through the design stage. This addresses integrating the finances and the design work; these are integrated from the beginning. Bossart told Council the city engaged a firm specializing in design, construction and real estate issue and decided on the integrated project delivery method. Bossart said IPD gives more control to the owner, to the Council and staff. IPD gives a clear picture of the product and the cost. Bossart said the completed implementation documents take a project to shovel ready with a guaranteed maximum price. The project is designed to fit the owners' cost constraints. The city can move step by step through the process and move forward with a next step when they are comfortable. Bossart said construction 13 Regular Meeting Asaen Citv Council October 26, 2009 economics has been a Council topic; staff has studied this to see the best advantage they can take of the economics. An IPD allows the city to be staged and ready to move before the costs might change. Scott Miller, capital assets, said this is a transparent process; staff intends to check in with Council monthly. Miller said this project can be go/no go every month as Council sees fit. Fazewell reminded Council this process started in Februazy 2008 and there has been participation from staff, HPC, P&Z and City Council. Farewell said the Wheeler Board of Directors has been involved in the project from the beginning; there is a financial advisory board working with Slaton developing a financial pro forma for the new building. The city hired a program management, Pfocus, as the owners' representative and manager of the process. Farewell showed slides of theatres on which his firm has worked; Farewell said every theatre they have worked on is unique; the community and the context shape the architecture. Gram Slaton, director Wheeler Opera House, told Council he has worked on programming and financial pro formas. The staffing levels are based on current staffing levels plus two when the expansion is complete. The user fees are based on modest increases. Slaton told his philosophy on long range planning is to be conservative on revenues and heavy on the expenses. The projections take into account insurance, maintenance, capital replacement, over head and loan interest, if applicable. The numbers do not take into account replacement of materials for the new building since that is not known. Don Taylor, finance director, told Council staff has run many financial scenarios on the consolidated Wheeler Opera House for operating expenses. Staff brought 3 forward to Council. The first is a budget assuming a $30 million expansion, a $3 million bond issue amortized over 10 years. Mayor Ireland asked why only 10 yeazs for the bonds. Taylor said that amount is small and can be amortized over that short period of time. Taylor pointed out the real estate transfer tax is conservatively projected on these spread sheets. The bonds can be amortized over a longer period of time. Taylor noted the 2009 RETT revenues aze projected at $2.7 million; in 2008 the revenues were $3 million. Taylor told Council the assumptions aze that the real estate transfer taxes will continue lower than in the past. Taylor pointed out for each line, the expansion is showed separately so Council can see the Wheeler historic facility and revenues from the annex in order to compare. Taylor told Council staff has reviewed these projections carefully. The projection of ticket sales and operating costs have come from the Wheeler staff, tested by the finance staff. Revenue from the annex will not start unti12013 for half a yeaz. Taylor told Council there is $27 million in the bank generating interest, $756,000 this yeaz. In 2014, the fund balance will be only $2 million and will generate about $60,000 in interest. Taylor pointed out ticket sales are projected at $80,000 for the annex compared to $360,000 for the existing facility. Taylor told Council there are ticket sales made bynon-profit entities 14 Re¢ular Meeting Aspen City Council October 26, 2009 that aze not incorporated into these revenues. Taylor noted in this scenario, the lowest fund balance is $1.8 million in 2016. This is more than the established minimum reserve for this fund. Taylor said another scenario contemplates a project with no borrowing, which is $29.3 million project. The reason for the difference is that the city would not be paying interest on the borrowed money and more fund balance will be used for the construction. In this scenario, the year of the minimum fund balance is 2013 and is $988,000. The third scenario is not building the expansion and what happens to the endowment fund. Taylor told Council all 3 scenarios assume the real estate transfer tax is extended to at least 2030. Taylor noted in 2019, the amount of the endowment is $35.8 million, which is not sufficient to provide a level of subsidy to the Wheeler so the RETT would have to be extended even without an expansion. Councilman Romero asked how $30 million for the expansion was arrived at. Slaton said this figure came from the architects for a box the size presented with as much underground as contemplated. Slaton said a lot of expense comes from excavation. Councilman Romero asked if Slaton has refened this to local excavation companies for their assessments. Slaton told Council he has been waiting for conceptual approval. Farewell told Council they have a geotechnical engineer to help with soil profile and developing construction methodology. Farewell said the excavation is planned to go down 30' below the sidewalk. There is no contractors estimate yet. Councilman Romero said there is a lot of expertise in the community on site excavation, site retainage, to review the estimates. Councilman Romero asked if staff has looked at this project by determining a total budget first, like what a $20 million project would look like. Councilman Romero said he feels this helps the confidence in a project. Slaton told Council staff will work on that exercise before the next Council hearing. Mayor Ireland asked if the PRD model allows the finished product to be competitively bid. Farewell told Council the contractor is brought into the process early and each component of the project will be competitively bid. Fazewell reiterated there is a construction manager as part of the team. Mayor Ireland said competitive bids will eliminate someone bidding to the maximum price. Councilman Romero said to get to an exact bid, there has to be investments in the design detail. Councilman Johnson asked about the audited 2008 financials, revenues unrelated to the RETT or the interest, are $800,000 and outgoing expenses appear to be over $2 million, requiring a subsidy of $1.5 million. Slaton reminded Council $400,000 of that is dedicated to grants for arts groups. Councilman Johnson said he subtracted that amount. Taylor said that subsidy is correct. Councilman Johnson asked the level of comfort that this project pencils out. Taylor told Council there are costs with the historic facility that go to subsidize the annex; personnel is accounted for in the original budget. Taylor said staff feels this smaller annex will be more efficient for turning a profit. 15 Regular Meeting Aspen City Couucil October 26, 2009 Councilman Johnson stated there is a large community benefit with an expanded Wheeler; however, a return on investment financially seem to be a struggle. Taylor noted these are the incremental revenues related to the facility received by the city. There is more revenue that non-profit users get. Councilman Johnson asked if there is a way to quantify those revenues. Mayor Ireland said it is appropriate to go over costs and subsidies thoroughly; however, establishments like the Wheeler add to Aspen's edge in the arts and cultural world. This benefit is harder to quantify. Councilman Johnson agreed and said he would like staff to list these other benefits. Mayor Ireland said in Aspen golf, cross country skiing, transportation are all subsidized and things that make Aspen a great place. Mayor Ireland said concerns return on investment are legitimate but should not be the sole component of the decision. Slaton said what changes with the new building, like film. Slaton said film would migrate to whichever theatre is not being used. Slaton said staff s projection are based on limiting the Wheeler's use of the new facility to 30 events, mostly associated with on- going festivals. Slaton noted a significant amount of time for the new space will be used by local groups and Aspen's arts and humanities community. Slaton noted staff figured the subsidy for the Wheeler is $4400/day taking into account fixed and staffing costs. Slaton said the anticipated subsidy with an expansion is incrementally larger if the engineering team can achieve its goal. Slaton told Council there is no point in having a facility for the arts if the arts groups are not being helped out by the Wheeler. The revenues are projected at $336,000. The unknown in the expenses is whether the Resource Engineering Group will be able to affect their energy goals and lower the costs for running the building. A large part of the revenues is increased rents for the current box off space and repurposing the basement space and the rent from affordable housing. Slaton told Council staff will talk to local promoters and local non-profits, people who have run multiple stage facilities to see if the numbers make sense and will go to the financial advisory board for review. Slaton told Council staff is planning a community financial workshop for testing the numbers. Mayor Ireland asked what type of subsidies do other communities with opera houses or theatres experience. Slaton said staff will get those numbers. Slaton suggested the debt for the expansion be kept to a minimum. Slaton said Council may be interested in some type of fund raising; there maybe some naming rights. Slaton noted staff does not contemplate fund raising that will compete with local arts groups. Slaton said there are performances that will look better in a smaller seat theatre. Slaton told Council he has discussed having another facility in town with local promoters, with the owner of Belly Up. Slaton noted the valley has great theatre sources that cannot find a home in the summer months. There is a lack of sit down concert venue in the summer. Slaton said he is talking to groups about expanded on-going festivals, like Aspen Film, like the Meeting, like Jazz After Dark; there are also groups that would be much better in a 250 seat theatre rather than a 500 seat theatre. Slaton noted the multi-purpose room would fit purposes like rehearsal space for theatre, break out spaces for conferences or films. The new lobby space will be 3 times bigger than the existing lobby and will create a community space. 16 Regular Meetin¢ Aspen Citv Council October 26, 2009 Farewell reviewed the design work to date and stated their goals are to preserve the historic Wheeler, to provide new performing arts space and create a complimentary theatrical experience. Farewell said this is a major investment to the city and should have good architecture to stand the test of time. Farewell showed some slides of additions to historic buildings in other cities. Farewell presented 3 different facade designs in response to comments from the public, Council and the Wheeler board. Farewell noted this is an on going process. Farewell said all the proposed facades are the same mass for the program inside. Farewell said this architecture should be about place making and should connect to the materials, the geology and landscape of a place. Mayor Ireland asked if the expansion has been looked at in context with the rest of the block. Farewell told Council they have done a model and have done a sketch up mode] to look at the relationship with the block. The volume is needed for all the required programs inside the expansion. Councilman Johnson asked what it feels like going from the historic part of the building into the expansion. Farewell said there is a new monumental public stair up to the major lobby space where one could go into the historic lobby. The goal is to bring one into the new building and pass into the historic building. RESOLUTION #89, SERIES OF 2009 -Code Interpretation Appeal -Man-made landforms Mayor Ireland suggested putting off until tomorrow the code interpretation appeals due to the late hour. Council agreed to continue Resolution #89 and 90, Series of 2009, to October 27 at 4 p.m. RESOLUTION #78, SERIES OF 2009 -Wheeler Opera House, 320 East Hyman, Conceptual PUD Mayor Ireland opened the public hearing. Bill Wiener said the architects have listened to comments and the project is getting there. Wiener asked if all the plans can be put on line for public access. Wiener stated he supports the expansion of the Wheeler but has problems with the architectural solution. Wiener asked if this solves the civic needs, does it function property, and does it pay homage to the historic Wheeler. Wiener said the program is to build a theatre; however, town lacks a grand public meeting space. Wiener said he would like to have the lobby turned into a large, grand public meeting space. Mayor Ireland suggested these comments be forwarded to Council and the Wheeler. Wiener suggested a kitchen space for catering events. Jackie Kasabach stated she supports the expansion of the Wheeler. Ms. Kasabach quoted, "art is important to the way people experience their world and we especially need these things in tough times". Ms. Kasabach said it is essential to support the arts and the Wheeler expansion. Ms. Kasabach noted the community has subscribed to the idea of mind, body and spirit. The city has built the ARC and subsidizes recreation for the body 17 Regular Meeting Aspen City Council October 26, 2009 at about $1.6 million. Ms. Kasabach said at this level, the Council and community should be discussing need rather than architecture, style and mass. The community has been talking about a performing arts facility for years. The Wheeler staff has talked about the needs of the community with the arts and non-profit groups. Ms. Kasabach said there is a financial basis with the Wheeler endowment. Andrew Todd, Aspen Public Radio, told Council the radio is interested in this as a user group for their semi-annual events in flexible use space. Todd said they are interested in being part of the Wheeler to do live broadcast and to help disseminate these programs. Todd told Council there is a need for the local classical artists to have flexible space for performances. Lisa Markalunas noted the HPC approved this with a 2 to 1 vote at conceptual; there was not overwhelming support. Ms. Markalunas said the Wheeler is significant to the community and the program needs to take a secondary seat to the historic building. Ms. Markalunas said the budget should be examined carefully and pointed out there is $3 million in the 2010 budget for a project that is not yet approved. Ms. Markalunas noted Council needs to know what is being subsidized and to look at the bottom line, the expenses. The interest on the endowment will decrease dramatically and will never get back to where the interest is now. Ms. Markalunas said if the Wheeler is not worthy of the time to flesh out all the details, nothing is. Alexa Fitzpatrick pointed out the importance of the proposed space for the community. Ms. Fitzpatrick told Council it is unfortunate that local groups do not have smaller spaces in which to perform and it would be wonderful to have a real theatre space and to create art about the community. The town needs more venues that are flexible. Dan Sadowsky told Council he has strong feeling that the city should build this, they should build it right and they should build it now. Sadowsky said he feels the creative community is ready for a flexible multi-purpose space. Sadowsky said this space will be great to help sell Aspen and the arts in Aspen. When the Wheeler Opera House was built, Jerome B. Wheeler wanted to make a monument to culture. Don Davidson stated he is not convinced the need for another theatre really exists. Davidson noted one argument that the need exists is that the Music Festival uses the Wheeler for 10 weeks in the summer and it is not available for other organizations. Davidson said during the summer there is the Given Institute, Physics lectures, Music Festival, the Ballet, Theatre in the Park, Aspen Institute lectures. Davidson said there are already more things to do here in the summer than in other resorts. Davidson said the Wheeler is currently used more than half the year for film and questioned whether that is the highest and best used and should $30 million be spent for another theatre. Junee Kirk said it has been touted that the city is trying to treat the historic Wheeler as a focal point. Ms. Kirk said by having this addition, that is not being done. Ms. Kirk suggested a smaller theatre below grade and preserve the historic integrity of the Wheeler. Ms. Kirk said 3 stories is unnecessary. Ms. Kirk said a smaller building will lessen the expense of a building. Ms. Kirk questioned giving up the endowment for this project. 18 Reuular Meetin¢ Aspen City Council October 26, 2009 Marilyn Marks agreed that the community wants to support the arts and also subsidize the arts. Ms. Marks said the community should know the long term implications of how much is being spent and make sure the community can continue to support the arts and what it will really cost to subsidize the Wheeler expansion. Ms. Marks said she does not want this project to end up using more subsidy and then the city cannot support the arts. Ms. Marks said the city should see how much of a loss the business case is and see how much can be subsidized. If there is to be amulti-million dollar subsidy annually, should this go into bricks and mortar or would the community rather see it go directly to the arts. Ron Erickson, chairman Wheeler Boazd, thanked the design team and the Wheeler staff for the work they have put into this project. Councilman Skadron said this venue would be a competitor to the Belly Up club and asked if the owner has reservations about public funds being used to compete against private enterprises. Michael Goldberg, Belly Up, said public subsidy is not a new concept. Goldberg agreed this is ultimately competition; however, if the community wants it, the community should build it. Goldberg stated he is strongly in support of the arts. Goldberg said if the need fora 265 seat theatre can be justified, it should be built; if it cannot be justified, do not build it. Goldberg said his club competes against the Wheeler on occasion. Goldberg told Counci143% of the tickets to the Belly Up sold over the summer were sold to people living outside the Roaring Fork Valley. Goldberg said there are shows that work better at the Wheeler and shows that work better at the Belly Up. Goldberg cautioned Council to make sure the use for the space is there. Mayor Ireland closed the public hearing. Mayor Ireland said several concerns about azchitectural compatibility have been voiced, which have to be dealt with. Mayor Ireland noted Council also heard concerns about fleshing out financial details, demands, uses, how much subsidy there is. Mayor Ire]and said the public also wants to know the benefits this expansion would generate for non- profits, revenue, and more quantification. Mayor Ireland said staff should be prepared to address the concern that this fund want intended to be an endowment from its inception. Mayor Ireland said he would like to have the history going back to 1979 and 1983. Mayor Ireland said when the voters approved the RETT in 1979, if this was primarily an endowment fund, why was there a vote for an expansion several years later. Mayor Ireland said the intent of the ballot question will be discussed. Councilman Skadron stated he has four issues; (1) how the interior space is utilized, circulation and the placement of the offices on "the 50 yard line"; (2) look and feel of the external shell; (3) the financial component; and (4) the impact the development has on the historic structure. Councilman Skadron said he supports, in general, the expansion for the performing arts and he does not doubt more space is needed. Councilman Skadron said the Wheeler is beautiful the way it is. Councilman Skadron questioned whether growing the Wheeler is consistent with broader community vision. Councilman Skadron said Aspen is first and should remain a small town mountain community and this expansion may move away from that. Councilman Skadron asked if this addition would 19 Reeular Meetin¢ Aspen City Council October 26, 2009 be diminishing a treasure of the community and would turn the Wheeler into a performing arts center. Councilman Johnson agreed the IPD process and the investment of $3 million up front is the correct way to go; however, he would like to see that $3 million staged. Councilman Johnson said an enhanced public outreach process is needed and to reach out to the public at lazge. Councilman Johnson agreed with slowing down to get the project right both architecturally and financially. Councilman Johnson asked if the current operations could bring in more revenue and lower the subsidy. Councilman Johnson said he would like more information on how the film pieces relate. Councilman Johnson agreed the location of the office space needs to be addressed. Councilman Johnson noted it is important to make sure the Wheeler is respected and stays the Wheeler. Councilman Johnson agreed with helping the arts and does not want any decisions around this to jeopazdize the arts. The long term health of the arts at the Wheeler needs to be a top priority. Councilman Romero said he has heard from user groups that there is need for an expansion and also that there is a fear that the expense of operation and affordability of user fees maybe in jeopardy. Councilman Romero stated he is not convinced of the total cost expense, mostly first costs. Councilman Romero said he would like the staff to augment the process with local expertise, like local excavators, in means and methods, in mitigating impacts, in managing and redeveloping facilities. Councilman Romero noted when Council reviews typical land use applications, the community expects a fair degree of certainty at the conceptual stage, and this applies to the architecture. Councilman Romero said he would like to be comfortable with the tone of the architecture and he would like more refinement on the exterior as well as the program for the expansion. Councilman Romero suggested a second look at the affordable housing unit within this expansion. Councilman Romero said at this conceptual level, he would like a clear understanding of community benefits and of the need and how the need is responded to and how the community benefits will be delivered. Councilman Romero stated he has to have financial assurances that this project will not get away from the city's control. Councilman Romero said he would like to see contingency and a healthy margin to delivery. Mayor Ireland noted when he considers the mass and scale of this project, he considers the entire block. The historic character of the town does not have isolated buildings standing by themselves. Mayor Ireland said the Wheeler is predominant but not singular. Mayor Ireland stated Aspen is not a small town museum but should be a character that should be sustainable. Mayor Ireland said he feel a return on investment analysis is antithetical to inter-generational planning. Mayor Ireland said he feels that art will always been with human beings and the community needs to think about a diminished ski season due to climate change and what they can to be keep Aspen sustainable. Mayor Ireland pointed out endowments sepazate organizations from the community. Once an organization is endowed, they do not have to solicit community input. Mayor Ireland said each generation should decide whether they want to support the arts or not. Mayor 20 Regular Meeting Aspen City Council October 26, 2009 Ireland stated the examination of the long term revenue picture for this project is incumbent upon the city. Mayor Ireland said Aspen needs a rounded economy. Mayor Ireland moved to continue Resolution #78, Series of 2009, to December 7, 2009; seconded by Councilman Johnson. All in favor, motion carried. Councilman Romero moved to continue the meeting to October 27 at 4 p.m.; seconded by Mayor Ireland. All in favor, motion carried. Council left Chambers at 11:45 p.m. Kathryn och, City Clerk 21