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HomeMy WebLinkAboutagenda.council.worksession.20220912AGENDA CITY COUNCIL WORK SESSION September 12, 2022 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Main Street Cabin Housing and Armory Interim Use Options I.B Waste Code Revision Update Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/84428107265? pwd=eFJpMGRDUGx6UG12eEd3d0VsZE8rUT09 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 844 2810 7265 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kbkV4IY59e 1 Page 1 of 3 MEMORANDUM TO:Mayor Torre and Aspen City Council FROM:Rob Schober, Capital Asset Director and Jen Phelan, Development Manager THROUGH:Scott Miller, Public Works Director MEETING DATE:September 12, 2022 RE:Main Street cabin and Armory: update and direction REQUEST OF COUNCIL:Following the June 20, 2022,work session with Council reviewing the Asset Management department work plan, staff has gathered information requested by Council regarding the Main Street cabin. Additionally, staff is providing an update on options for future usage of the Armory. With both buildings, staff is seeking direction and confirmation on next steps. SUMMARY AND BACKGROUND: Main Street cabin:In June, City Council directed the Asset Management department to move forward on a number of prioritized projects including the Main Street cabin. The cabin is presently home to two city departments and is being considered as a future city housing site. At the work session, additional information related to the market value of the property and the number of dwelling units that can be accommodated was requested.Staff has evaluated the zoning parameters for redeveloping the site into affordable housing, worked with an architect to evaluate the feasibility of the site as housing, and worked with a real estate agent on determining the potential value of the property. 630 W. Main Street is a 3,000 sq. ft.lot located within the Main Street Historic District and is a designated landmark. It was home to Mountain Rescue prior to the city’s use of the property. The original structure is a pan abode, a log kit building, which is an architectural style identified under the Aspen Modern preservation program. The property is located within the Public (PUB) zone district and is considered an Essential Public Facility.Surrounding properties along Main Street are generally located in the Mixed-Use zone district. As a designated landmark, exterior changes to the building require approval and other associated land use reviews will be required dependent on the final programming and design proposed for the site,such as conditional use approval to permit the development of affordable housing as well as change of use approval to convert the building from Essential Public Facility to affordable housing. Figure 1: Main Street cabin 2 Page 2 of 3 Number of dwelling units:City Council asked how many dwelling units can be provided on site. If the existing structure is converted to housing, it appears that two, 1-bedroom units can be reasonably accommodated and meet parking, trash, utilities and site circulation needs. Thisoption willbe the most cost effective by using the existing structure. Another option, that will increase the overall project cost, is to demolish the rear addition and build new, inclusive of a basement. Any new addition is required to meet the Historic Preservation Guidelines. This option may allow for an additional unit (up to 3) or at least one larger unit and better storageon-site. Overall, accommodation of on-site parking will be a constraint for the lot. Market value of property:Staff reached out to a real estate representative to answer City Council’s questions regarding the value of the property if it were to be sold. As part of the question, Council asked how a commercial deed restriction would affect the sale price. Potential worth of the property on the open market is estimated at the $2.1-$2.3 million range, and assumes the historic designation is removed. Optimization of the lot is more difficult with the historic designation and will decrease the value. The consultant thought that highest and best use would most likely be affordable housing and that the value is stronger if residential is allowed. Most likely, the property would need to be rezoned from Public to Mixed-Use if privately owned. Recent changes to the MU zone district prohibit the development of free market residential and increasesthe allowable Floor Area for affordable housing development. Armory.At the last check-in with City Council on May 16, 2022, staff discussed the remodel and reuse of the Armory that included several remodel options. As part of the discussion, high-level cost estimates were provided for each option. The remodel options ranged from a ‘Fluff and Buff’ of $7.5 million that included new carpet and paint, as well as some basic mechanical upkeep, to the ‘The Works’ option that was estimated with a top end cost of $26.5 million and included increasing the head height and size of the basement, reworking the entire interior of the building, and constructing an addition along the alley. City Council preferred ‘Somewhere in the Middle’,estimated to be in the range of $18 -$23 million, more than the $7.5 million currently allocated for the life of the project. City staff also summarized the outreach results undertaken with the community and the broad themes that were identified. Overall, participants indicated a preference for community use of the Armory with top uses identified as: casual dining, community center, multi-purpose space, non-profit services, and lower price point retail (co- working dropped from 5th to 6th in the second round of engagement when community center was added as a potential use). DISCUSSION:Staff would like to confirm with City Council its desire to move forward with the Main Street cabin housing project in light of the additional information provided. Secondly, recognizing that the city Figure 2: Site Figure 3: Armory 3 Page 3 of 3 does not currently have the funding to cover the expense of an extensive remodel of the Armory, staff would like to propose some options for the interim use of the building. Main Street cabin. Staff has provided information on the estimated value of the property, which includes removing the landmark designation and would like to confirm that maintaining the property within the city’s portfolio is preferred. Secondly, if redevelopment into affordable housing is the preferred option, staff would like to confirm that remodeling the existing structure into two units is the preferreddesign rather than demolishing the rear addition and building a new addition with a basement containing two to three dwellings. Besides minimizing potential landfill materials, the lifetime budget of this project is $2.1 million which is not enough to accommodate the latter development scenario. Armory. Without the funds to remodel the Armory to a level Council has indicated, a plan for moving forward is needed. Staff is proposing that the Armory be leased for the foreseeable future as long-term options are considered. Lease the building.Pitkin County is expected to vacate the building in the fall. The city can consider opportunities to lease the building until it is ready to move forward with some form of remodel. As an Essential Public Facility, there may be some limiting factors to what uses may occupy the building. Staff is expecting to work with ACRA and potentially a USFS visitor component to move into part of the building. As a property located in the Public zone district, the following uses are permitted by right: library, museum, post office, hospital, essential governmental and public uses, fire station, schools, arts and cultural uses, nonprofit uses and child care. The former governmental offices are considered an Essential Public Facility and it will be easier to move in a use that is similarly considered an Essential Public Facility. Temporary Uses may also be an option for a limited time. Any lease of the building will require development of the term of the lease,typical city leases run from 5 - 10 years. Shorter leaseperiods provide less incentive for investment compared to longer terms. Staff is requesting direction on the preferred term of the lease and if tenants should fit in with the preferred uses identified in the public outreach? Public/private partnership vs. solely city project. In considering options for long term redevelopment of the site, City Council should consider two paths for redevelopment. Rather than solely redevelop the property within a longer timeline, the Council can consider developing a public private partnership with private sector developers. This may provide an accelerated timeline and additional, needed capital but would need to be developed in such a way as to ensure community expectations are met. If this option is an option Council would like to pursue, Staff is requesting a clear understanding of City Council’s use preferences so that staff can develop a clear proposal. RECOMMENDATION: Staffrecommends confirmation ofthe redevelopment direction for the Main Street cabin and for staff to move forward on leasing the Armory. EXHIBITS: Attachment A: Program Analysis, Main Street cabin 4 The Outpost Studio Affordable Housing Program Options: OPTION 1:Convert the 20’-0” x 30’-0” (600 SF) Pan Abode into Unit 1 - 1-Bedroom/Studio Maintain the 600 SF garage - 2 parking spaces Convert the 20’-0” x 35’-0” (700 SF), 2nd floor into Unit 2 - 1 or 2 Bedroom Unit Parking: 2 or 3 spaces required, 2 provided 5 The Outpost Studio OPTION 2:Convert the 20’-0” x 30’-0” (600 SF) Pan Abode into Unit 1 - 1Bedroom/Studio Garage reduced to 400 SF, Trash/Recycling Added Unit 2 - Remodel remaining 850 SF to 2-Bedroom Parking: 3 spaces required, 2 provided OPTION 3:Convert the 20’-0” x 30’-0” (600 SF) Pan Abode into Unit 1 - 1-Bedroom/Studio 6 The Outpost Studio Remove Addition New Addition including full basement Unit 2 - Entry on Main Level, 2 Bedroom on Upper Level Unit 3 - Entry on Main Level, 1 Bedroom in Basement Parking: 3 spaces required, 2 provided (w/ 60% would be okay) OPTION 4:Convert the 20’-0” x 30’-0” (600 SF) Pan Abode into Unit 1 - 1-Bedroom/Studio Remove Addition New Addition extending to alley (no setback) Unit 2 - Entry on Main Level, 2 Bedroom on Upper Level Unit 3 - Entry on Main Level, 2 Bedroom in Basement Parking: 3 spaces required, 2 provided (w/ 60% would be okay) Additional Considerations: Accessibility: Depending on the number of units, the IBC may be the governing code in which case accessibility considerations would be required. The City of Aspen has the opportunity to make 1 accessible unit (Pan Abode) with minimal impact to the Historic resource. Accessible parking is not feasible. Unit Design: Above grade requirement of 50% of a unit would require modification. 7 MEMORANDUM TO:Mayor and City Council FROM:Ainsley Brosnan-Smith, Waste Diversion and Recycling Program Administrator THROUGH: Tessa Schriener, Sustainability Manager, CJ Oliver, Environmental Health and Sustainability Director Phillip Supino, Community Development Director MEETING DATE: September 6, 2022 RE:Organic Waste Diversion and Solid Waste Code Changes ____________________________________________________________________________ PURPOSE: The purpose of this memo and corresponding work session is to provide Council with an update on changes to the Solid Waste Chapter of the Municipal Code (Title 12) to prohibit the landfilling of organic materials. PREVIOUS ACTIONS AND BACKGROUND: On August 10, 2021, City Council adopted Resolution #76,Series 2021, which directed staff to reduce Aspen’s Greenhouse Gas emissions.The resolution directs staff to: “take meaningful action and provide leadership in reducing the Aspen community’s contribution to greenhouse gas emissions by the amount which is scientifically proven to limit global temperature change. This will be accomplished through: a.Maximizing efficiency and minimizing carbon emissions in all of Aspen’s emissions inventory sectors including: Waste Reduction and Diversion, Transportation, and the Built Environment b.Leading climate policy and legislative efforts at local, regional, national, and global scales” In January 2022, City Council adopted new science-based targets for GHG emissions reductions of 63% by 2030 and net zero by 2050, and waste reduction targets to help achieve these emission reductions of: Reduce organic material going to landfill by 25% by 2025 and 100% by 2050  Reduce all waste going to landfill by 70% by 2050  Adopting these targets supports Council’s adopted Greenhouse Gas Emissions goal and Aspen’s participation in the ICLEI Race to Zero campaign, to which Aspen is a signatory. 8 At the February 28, 2022 work session, staff presented council with an update on the state of organic material in municipal solid waste and policy and program options to achieve further organic waste diversion. Council directed staff to draft revisions to the Solid Waste Chapter of the Municipal Code (Title 12)that prohibits the landfilling of organic waste and return with an ordinance for council consideration. Aspen’s Municipal Solid Waste (MSW) is 57% divertible organic material such as yard waste, food waste,and compostable materials. Since 2011,through a variety of voluntary policies, programs, and incentives, Aspen has steadily increased the amount of organic material diverted to compost from 0 tons to an estimated 700 tons per year While these efforts have been successful, they have resulted in diverting only 3-4% of organic material found in the municipal waste stream, which is far below the 37% of food material identified in the 2015 composition study of municipal solid waste in Aspen. National studies have indicated retail food businesses’ waste composition as 60-80% organic, food waste.Staff identifies the retail food sector in Aspen as one of the largest generators of food waste,yet an estimated 10% of these establishments divert their organic waste from the landfill. Since the introduction of food waste diversion through composting,organic material diversion through voluntary participation has stagnated.Based off annual reporting,an average 4% of the organic waste generated in Aspen is diverted to compost. From this, staff suggests voluntary buy-in as an ineffective way to achieve Council’s adopted waste goals. In winter of 2021/2022, staff received feedback from a variety of retail food establishments on organic waste diversion. A majority of these stakeholders supported organic waste diversion for the environmental benefits but identified wildlife safety concerns, space constraints for additional compost receptacles, and inequitable cost burdens as the key barriers to entry.A summary of this feedback can be found in Exhibit A. DISCUSSION: Incorporating stakeholder feedback from community businesses and the public, staff drafted revisions to the Solid Waste ordinance,Title 12,supporting organic waste diversion per Council direction in February 2022. The process of updating Title 12 is a collaborative effort with the Aspen Police Department, Community Development, Engineering,and Parks Department;this stakeholder group provided input on the implementation of an organic materials prohibition from the landfill and identified additional updates needed to modernize Title 12. The key change in the proposed code update is the banning of food waste from the landfill. This proposed action would occur in a phased roll-out beginning with businesses holding a City of Aspen Retail Food License.The ordinance does not mandate composting but requires organic 9 waste to be designated for a recoverable management practice of choice such as food donation,animal feed,or composting.However,due to the convenience of existing collection services and readily available infrastructure for separating and collecting organics for composting,staff predicts the majority of participants will enroll in an organics hauling system for composting. In preparation for this approach, Environmental Health and Sustainability is working in collaboration with the Aspen Police Department to better assist in the enforcement of wildlife- safe waste practices through staff recommended approaches to outdoor organics storage. Staff concluded that the steel, wildlife-proof waste collection containers is the safest approach for organic outdoor storage, and these containers will be required in the updated ordinance for all businesses in the City that choose to compost. In 2019, estimates show organic material buried in the landfill emitted 3,944 tons of CO2e (carbon dioxide equivalent) whereas the composting of organic material sequesters CO2e from the atmosphere. Prohibiting food waste from the landfill is the single most impactful action that City Council can take to reduce municipal solid waste and its related emissions.Organic waste accounts for the largest portion of Aspen’s Municipal Solid Waste and immediate, tangible actions can be taken through existing systems to reduce landfilled organic material. FINANCIAL IMPACTS: For businesses that choose composting as their organic waste diversion option, there is an up- front cost for the container and collection service.Businesses who hire a hauling service for composting will incur the cost for collection dependent on the frequency of collection, size of container, and number of accounts sharing the container.Predicted material start-up costs for a composting collection service across the commercial sector is an estimated $108,000 - $179,000 ($550 -$1,200 per wildlife-proof container).Costs were estimated upon evaluation of current market prices for the steel, wildlife-proof, outdoor receptacles,and the estimated volume of organic waste generated annually.For fiscal years 2022 and 2023, Environmental Health and Sustainability has $100,000, per year,of annual, available funding to subsidize the cost of the wildlife-proof containers for commercial businesses in Aspen. Providing these wildlife proof receptacles will directly reduce the cost of composting for commercial entities. ENVIRONMENTAL IMPACTS: When organic waste is buried in a landfill it becomes starved for oxygen, producing a potent greenhouse gas, Methane, adding to the City’s emissions footprint. A prohibition on the landfilling of organic waste through Title 12 revisions would greatly influence the City’s commitment of Race to Zero, GHG emissions reductions of 63% by 2030 and net zero by 2050, and goal setting of a 25% reduction in organic material landfilled by 2025, and 100% by 2050. 10 Recovering landfilled organic material presents opportunities to feed people, feed livestock, or create compost in addition to reducing greenhouse gas emissions from landfilling organic materials. With the readily available composting operation in Pitkin County, organic material is processed into a natural, nutrient rich soil amendment and when applied to the landscape improves local soils, water retention, and carbon sequestration capabilities that harness and stores carbon from the atmosphere into the soils. ATTACHMENTS: Exhibit A _ Business Outreach Summary CITY MANAGER COMMENTS: 11 Summary of Retail Food Business Outreach on Organics Diversion From November 2021 through January 2022, staff engaged 86% of retail food establishments in Aspen that do not compost their organic waste. Outreach efforts involved in person visits to restaurants, dispersal of information through email, a webinar session, and a survey to collect data on waste habits. Restaurant owners and managers expressed high interest in organic waste diversion for the environmental benefits but identified key barriers to entry for composting organic materials. Top barriers identified by business include: Internal and external space constraints Costs of services Educating staff Wildlife safety When asked if the City should support businesses in diverting their organics from the landfill the majority of respondents answered “yes”. This was followed up with a question asking how the City could support business and the top answers were: City provision of organic collection containers Subsidized hauling services Staff has incorporated this feedback into the initial draft of the updates to the solid waste ordinance (Title 12) and will prioritize the identified barriers to entry in the roll-out and ongoing programming. 12