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HomeMy WebLinkAboutagenda.council.worksession.20150623 CITY COUNCIL WORK SESSION June 23, 2015 4:00 PM, City Council Chambers MEETING AGENDA I. School District Sales Tax - No Packet Material II. Cash in Lieu of Housing III. Civic Space Relocation Project Conceptual Design Page 1 of 6 MEMORANDUM TO: Mayor and Council THROUGH: Barry Crook, Assistant City Manager FROM Mike Kosdrosky, APCHA Executive Director Chris Everson, Affordable Housing Project Manager DATE: June 17, 2015 MEETING DATE: June 23, 2015 RE: Fee-In-Lieu (FIL) Mitigation Methodology/Models REQUEST OF COUNCIL: Staff seeks a final decision by Council regarding Fee-in-Lieu (FIL) methodology/models for affordable housing (AH) mitigation. The goal is not to establish a specific fee, but to develop a reliable, defensible, predictable, and updatable methodology/mode upon which a fee can be calculated and the ordinance that established that fee can be amended . PREVIOUS COUNCIL ACTION: Council generally agreed FIL should eventually be phased out as an AH mitigation option, but also agreed it should remain an option for the present. Council directed staff to investigate and advance the following methodologies/models:  Explore and refine Option No. 4 (below) – a new methodology using assessor actual land value and prevailing construction cost; and  Some combination of Option No. 5 and Option No. 6 (below) – historical cost to develop plus estimated future development costs. BACKGROUND: At the March 31, 2015 work session City Council reviewed seven AH mitigation options: 1) Continue current methodology used in APCHA Guidelines; 2) Market affordability gap method proposed by RRC/Rees Consulting in 2012; 3) Staff-modified market affordability gap method; 4) New gap methodology separating land cost from construction cost; 5) Historical cost to develop method; 6) Estimated future development cost method; and/or 7) Remove FIL as an AH mitigation option altogether. P1 II. Page 2 of 6 Council directed APCHA and City staff to recommend a methodology to calculate fee-in-lieu (FIL) mitigation rates. Aspen’s fee-in-lieu mitigation option has long been in place as one of several available to offset the employee housing impacts resulting from development or re-development of commercial and residential property. Some consider the City’s current FIL rate so low that it is, for all but fractional mitigation purposes, an unreliable mitigation tool. The concern being that FIL may not generate enough revenue to offset the cost of providing additional employee housing. DISCUSSION: The assigned task was not to establish a specific fee, but to recommend a FIL methodology/model based on the criteria that it be reliable, predictable, updatable, and defensible. Staff has come up with the two FIL methodologies/models per City Council’s request plus an alternative to Option #4 (above) based on average, not actual, assessor land value. 1. Fee-in-Lieu Model #1A: 2015 Average Assessor Land Value with Future Estimated Development Cost Based on Recent Construction Cost. 2. Fee-in-Lieu Model #1B: 2015 Actual Assessor Land Value with Future Estimated Development Cost Based on Recent Construction Cost. 3. Fee-in-Lieu Model #2: Combination of Historical and Future Estimated Development Cost with Historical Land Cost. Density projections for each project are based on assumptions we have been using for some time now, and cost projections follow using escalation assumptions as listed in the tables. Fee-in-Lieu Model #1A This proposed methodology estimates future AH project costs based on recent construction cost experience and an average 2015 land value calculated from Pitkin County assessor data. This removes any specific land from the subsequent calculations and provides a kind of “land gap cost” approach to establishing the cost of land in any model to construct affordable housing. Average land value was calculated using assessor data with corresponding neighborhood codes from assessor’s office and by omitting the top and bottom 10% of values. This is done to address the concerns that very high property values – which we would not target for a building program – would not be part of the cost calculation. It also removes properties from the lower end of the cost spectrum and focuses the cost calculation on the “middle” portion of the available land in the UGB. With a resulting sample size of 1,474 parcels within the Urban Growth Boundary (UGB), the average land value was calculated to be $8.6 million per acre. This value is then prorated to the size of each parcel for each project shown. Density projections for each project are based on assumptions shown and development parameters, and cost projections follow using escalation assumptions. P2 II. Page 3 of 6 RESULT: This methodology results in an average 21% increase over the existing fee-in-lieu subsidies per Full-Time Employee (FTE). AH Existing Model #1A Category Subsidy/FTE Subsidy/FTE $ Change % Change Cat 1 $295,077 $351,670 $56,593 19% Cat 2 $246,881 $290,269 $43,388 18% Cat 3 $232,946 $258,197 $25,251 11% Cat 4 $144,393 $199,545 $55,152 38% Fee-in-Lieu Model #1B This proposed methodology estimates future AH project costs based on recent construction cost experience and actual 2015 Pitkin County assessor land values for each parcel in the city inventory. In this approach, those critics who say our embedded cost includes land we purchased at the height of the boom period should not be used to calculate costs going forward. In some cases where actual 2015 Pitkin County assessor land values were not readily available, values for comparable properties were prorated. RESULT: This methodology results in an average 18% decrease from the existing fee-in-lieu subsidies per FTE. AH Existing Model #1B Category Subsidy/FTE Subsidy/FTE $ Change % Change Cat 1 $295,077 $252,944 -$42,133 -14% Cat 2 $246,881 $207,997 -$38,884 -16% Cat 3 $232,946 $175,926 -$57,020 -24% Cat 4 $144,393 $117,274 -$27,119 -19% Fee-in-Lieu Model #2 This proposed model uses a combination of historical projects and future estimated projects. In each case, historical land costs are used. This model represents our best estimates as to the actual total cost of our developing housing on the parcels we currently own. RESULT: This methodology results in an average 6% decrease from the existing fee-in-lieu subsidies per FTE. AH Existing Model #2 Category Subsidy/FTE Subsidy/FTE $ Change % Change Cat 1 $295,077 $284,483 -$10,594 - 4% Cat 2 $246,881 $234,280 -$12,601 - 5% Cat 3 $232,946 $202,208 -$30,738 -13% Cat 4 $144,393 $143,556 -$ 837 - 1% P3 II. Page 4 of 6 Conclusions The criteria to evaluate each methodology/model are:  Is it reliable, predictable, updatable, and defensible? For context, Reliable means that something is consistently good in quality or performance; able to be trusted. Predictable means that something is expected, especially on the basis of previous or known behavior. Updatable means that something can be brought up to date by adding new information or making corrections. Defensible means that something can be defended in argument and is justifiable. The sources of data used to construct each methodology/model include:  the 2015 Pitkin County Assessor,  the Burlingame Phase 2A actual project costs, and  the parcel/property information for each land-banked project site. Each methodology/model’s future project costs estimates are based on verifiable – and therefore more reliable, predictable, updatable and justifiable - information using these three sources. The more unpredictable variables affecting each methodology/model’s FIL subsidy/FTE calculation include:  density;  inflation (land and construction costs);  revenue escalation;  Floor Area Ratio (FAR) at each property;  the number of units built; and  the type of category(ies) built. These variables are often more unpredictable because they are based on assumptions, which can vary widely depending upon future economic conditions and changing political/regulatory circumstances and priorities. Higher densities make the resulting calculations for fees lower. More efficient use of the land spreads the per FTE costs across high land values with more units – thus creating lower values. For example, if the densities at 488 Castle Creek and the Lumber yard were reduced by a third, then the resulting percentage change for each methodology would become +30 percent, -16 percent and +2 percent, respectively. The impact of density change is less on Model #1B and Model #2 than on Model #1A because #1B and #2 result in much lower total land cost and thus land becomes less of a percentage of the overall subsidy. In fact, #1B and #2 both result in roughly the same in total land cost. P4 II. Page 5 of 6 To help illustrate the impact on the models of density decisions – but not to force Council to make premature decisions about density on any of the properties – we show below the impact of a 25% reduction in density on the three models. Fee-in-Lieu Model #1A Instead of in an average 21% increase over the existing fee-in-lieu subsidies per Full-Time Employee (FTE), a 25% reduction in density of future projects results in an additional 14% change on average, for a total average 35% increase. Fee-in-Lieu Model #1B Instead of an average 18% decrease from the existing fee-in-lieu subsidies per FTE, a 25% reduction in density of future projects results in an additional 7% change on average, for a total average 11% decrease. Fee-in-Lieu Model #2 Instead of an average 6% decrease from the existing fee-in-lieu subsidies per FTE, a 25% reduction in density of future projects results in an additional 13% change on average, for a total average 7% increase. To help put this in perspective, the 25% density reduction increases land cost per unit from about $150K to about $200K. 1A 1A 1B 1B 2 2 Sensitivity 100% 75% 100% 75% 100% 75% Cat1 % Change 19% 31% -14% -8% -4% 7% Cat2 % Change 18% 29% -16% -10% -5% 6% Cat3 % Change 11% 23% -24% -18% -13% -2% Cat4 % Change 38% 58% -19% -9% -1% 18% AVG % Change 21% 35% -18% -11% -6% 7% Diff + 14% Diff + 7% Diff + 13% # Units @100% /acre @75% /acre 802 West Main St 12 57 9 43 517 Park Circle 15 45 12 36 488 Castle Creek 33 40 25 30 Bgame Ph2B 79 376 N/A N/A Lumber Yrd 150 21 113 16 P5 II. Page 6 of 6 The only methodology/model option that results in an increase in the existing FIL subsidy per employee is Model #1A with an average increase of 21 percent across Categories 1-4. Models #1B and #2 actually result in decreasing the existing FIL subsidies per employee, with an average decrease across Categories 1-4 of 18 percent and 6 percent, respectively. RECOMMENDED ACTION: Based on the fact that the Pitkin County Assessor’s office does not use average land values in their practice and cautioned against such a practice in this case, and based on the impacts of changes to the density variable and the resulting very high cost of land in Model #1, staff recommends Council discard Methodology/Model #1A and choose between Methodology/Model #1B and #2. If Fee-in-Lieu is supposed to recover the cost of the government developing mitigation housing on behalf of those who have a mitigation requirement, and because Methodology/Model #2 best represents the real cost to the city to develop housing over the next 10-15 years, we recommend Council adopt Model #2. As staff moves forward with community outreach for potential housing development on land which the City owns, the density part of th e equation can be further honed. When that occurs, the calculated values for Fee-in-Lieu under the chosen methodology will be subject to change by some amount, but will likely remain near the ranges described above. ALTERNATIVES: Discontinue FIL as an AH mitigation option – thus depending more on the AH certificate program to provide for fractional and small unit number requirements, and on those with mitigation requirements actually building more housing themselves . ATTACHMENTS: FIL Models #1A, #1B, and #2 worksheets P6 II. FEE In Lieu Model #1A: 2015 Average Assessor Land Value with Future Estimated Development Cost Based on Recent Construction Cost 6/5/2015 Projects Burlingame Ph2A 802 West Main 517 Park Circle 488 Castle Creek Bgame2B Lumber Yard AVERAGE EXISTING CHANGE % Change Actual Projected Future Projected Future Projected Future Projected Future Projected Future Project Parameters: Year Occupied:2014.5 2017 2018 2019 2021 2025 Land acres:7.00 0.21 0.33 0.82 7.00 7.20 Land Sq Ft 304920 9000 14458 35895 304920 313632 FAR / Land Sq Ft 28%90%75%65%28%40.5% FAR:85600 8100 10844 23332 85790 127021 Net Area:86312 8100 10844 23332 84940 127021 FTE:195.75 20.3 27.1 58.3 193.0 317.6 Units:82 12 15 33 79 150 Bedrooms:$172 $12 $15 $33 170 263 Units/acre:11.7 56.0 46.7 40.4 11.3 20.9 FTE/Acre 28.0 98.0 81.7 70.8 27.6 44.1 Avg Category:2.94 TBD TBD TBD TBD TBD Gross Area:94631 8881 11889 25581 93670 139264 Vertical Const Only / Net Area $342 $368 $379 $390 $414 $466 Total Cost / Net Area $514 $707 $766 $821 $1,258 $1,105 $226,850.76 Cost Historical $Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Land $485,594 $1,778,288 $1,778,288 $2,856,721 $2,856,721 $7,092,406 $7,092,406 $60,248,405 $60,248,405 $61,969,788 $61,969,788 Soft Costs $6,993,065 $469,466 $469,466 $647,330 $647,330 $1,434,633 $1,434,633 $5,540,898 $5,540,898 $9,325,930 $9,325,930 Construction: Offsite Infrastructure $2,093,538 $140,546 $140,546 $193,793 $193,793 $429,491 $429,491 $1,658,798 $1,658,798 $2,791,936 $2,791,936 Construction: Onsite Infrastructure $3,301,154 $221,617 $221,617 $305,579 $305,579 $677,234 $677,234 $2,615,642 $2,615,642 $4,402,409 $4,402,409 Construction: Buildings/Landscape $29,503,361 $2,981,113 $2,981,113 $4,110,551 $4,110,551 $9,109,932 $9,109,932 $35,184,755 $35,184,755 $59,219,749 $59,219,749 Construction: Other/Mitigation $2,029,323 $136,235 $136,235 $187,849 $187,849 $416,317 $416,317 $1,607,917 $1,607,917 $2,706,299 $2,706,299 Total Development $44,406,036 $1,778,288 $3,948,975 $5,727,264 $2,856,721 $5,445,103 $8,301,824 $7,092,406 $12,067,607 $19,160,013 $60,248,405 $46,608,010 $106,856,415 $61,969,788 $78,446,323 $140,416,111 Average Existing Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Subsidy/FTE Subsidy/FTE Change % Change Category 1 Subsidy per FTE N/A $618,450 $5,108,814 $252,287 $844,480 $7,457,345 $275,090 $1,853,391 $17,306,622 $296,705 $5,889,396 $100,967,018 $523,145 $9,863,580 $130,552,531 $411,121 $351,670 $295,077 $56,593 19% Category 2 Subsidy per FTE $164,721 $1,320,153 $4,407,111 $217,635 $1,802,639 $6,499,185 $239,745 $3,956,278 $15,203,736 $260,653 $13,101,545 $93,754,870 $485,777 $21,942,509 $118,473,602 $373,084 $290,269 $246,881 $43,388 18% Category 3 Subsidy per FTE $138,118 $2,009,962 $3,717,301 $183,570 $2,744,559 $5,557,266 $204,999 $6,023,522 $13,136,491 $225,212 $18,990,941 $87,865,474 $455,262 $31,806,088 $108,610,022 $342,022 $258,197 $232,946 $25,251 11% Category 4 Subsidy per FTE $95,044 $3,330,115 $2,397,149 $118,378 $4,547,198 $3,754,627 $138,502 $9,979,800 $9,180,214 $157,386 $29,446,981 $77,409,433 $401,085 $49,317,898 $91,098,213 $286,876 $199,545 $144,393 $55,152 38% Assumptions: Annual Cost Escalation 1.03 Annual Revenue Escalation 1.02 Net Area / FAR 100% Net Area / FTE 400 2015 AVERAGE Assessor land value calculation: total parcels.. 8162 parcels with neighborhood code.. 2177 exclude types exempt, mine, housing auth.. 1858 exclude parcels with no land value assigned.. 1842 exclude highest and lowest 10% in value/acre.. 1474 avg = $8,606,915 per acre $8,606,915.00 This proposed model estimates future projects based on recent construction cost experience and using an average 2015 land value calculated from Pitkin County assessor data. Density projections are based on assumptions shown. Steps in the calculations are as follows: 1) Establish Land Area; 2) FAR per land area assumption at each property; 3) Net area is a function of FAR; 4) FTEs and Units based upon net area; 5) Land Cost based upon per acre average 2015 assessor land value; 6) Future development costs based on escalation of recent construction cost experience; 7) Sales revenues at each income level based on assumed escalation shown. P 7 I I . FEE In Lieu Model #1B: 2015 Actual Assessor Land Value with Future Estimated Development Cost Based on Recent Construction Cost 6/5/2015 Projects Burlingame Ph2A 802 West Main 517 Park Circle 488 Castle Creek Bgame2B Lumber Yard AVERAGE EXISTING CHANGE % Change Actual Projected Future Projected Future Projected Future Projected Future Projected Future Project Parameters: Year Occupied:2014.5 2017 2018 2019 2021 2025 Land acres:7.00 0.21 0.33 0.82 7.00 7.20 Land Sq Ft 304920 9000 14458 35895 304920 313632 FAR / Land Sq Ft 28%90%75%65%28%40.5% FAR:85600 8100 10844 23332 85790 127021 Net Area:86312 8100 10844 23332 84940 127021 FTE:195.75 20.3 27.1 58.3 193.0 317.6 Units:82 12 15 33 79 150 Bedrooms:$172 $12 $15 $33 170 263 Units/acre:11.7 56.0 46.7 40.4 11.3 20.9 FTE/Acre 28.0 98.0 81.7 70.8 27.6 44.1 Avg Category:2.94 TBD TBD TBD TBD TBD Gross Area:94631 8881 11889 25581 93670 139264 Vertical Const Only / Net Area $342 $368 $379 $390 $414 $466 Total Cost / Net Area $514 $736 $742 $582 $699 $721 $226,850.76 Cost Historical $Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Assessor $Future $Total Land $485,594 $2,016,000 $2,016,000 $2,600,000 $2,600,000 $1,500,000 $1,500,000 $12,742,165 $12,742,165 $13,106,226 $13,106,226 Soft Costs $6,993,065 $469,466 $469,466 $647,330 $647,330 $1,434,633 $1,434,633 $5,540,898 $5,540,898 $9,325,930 $9,325,930 Construction: Offsite Infrastructure $2,093,538 $140,546 $140,546 $193,793 $193,793 $429,491 $429,491 $1,658,798 $1,658,798 $2,791,936 $2,791,936 Construction: Onsite Infrastructure $3,301,154 $221,617 $221,617 $305,579 $305,579 $677,234 $677,234 $2,615,642 $2,615,642 $4,402,409 $4,402,409 Construction: Buildings/Landscape $29,503,361 $2,981,113 $2,981,113 $4,110,551 $4,110,551 $9,109,932 $9,109,932 $35,184,755 $35,184,755 $59,219,749 $59,219,749 Construction: Other/Mitigation $2,029,323 $136,235 $136,235 $187,849 $187,849 $416,317 $416,317 $1,607,917 $1,607,917 $2,706,299 $2,706,299 Total Development $44,406,036 $2,016,000 $3,948,975 $5,964,975 $2,600,000 $5,445,103 $8,045,103 $1,500,000 $12,067,607 $13,567,607 $12,742,165 $46,608,010 $59,350,174 $13,106,226 $78,446,323 $91,552,549 Average Existing Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Subsidy/FTE Subsidy/FTE Change % Change Category 1 Subsidy per FTE N/A $618,450 $5,346,525 $264,026 $844,480 $7,200,624 $265,620 $1,853,391 $11,714,216 $200,829 $5,889,396 $53,460,778 $276,999 $9,863,580 $81,688,970 $257,246 $252,944 $295,077 -$42,133 -14% Category 2 Subsidy per FTE $164,721 $1,320,153 $4,644,823 $229,374 $1,802,639 $6,242,464 $230,275 $3,956,278 $9,611,329 $164,777 $13,101,545 $46,248,630 $239,630 $21,942,509 $69,610,041 $219,208 $207,997 $246,881 -$38,884 -16% Category 3 Subsidy per FTE $138,118 $2,009,962 $3,955,013 $195,309 $2,744,559 $5,300,545 $195,529 $6,023,522 $7,544,085 $129,336 $18,990,941 $40,359,233 $209,115 $31,806,088 $59,746,461 $188,147 $175,926 $232,946 -$57,020 -24% Category 4 Subsidy per FTE $95,044 $3,330,115 $2,634,861 $130,117 $4,547,198 $3,497,906 $129,032 $9,979,800 $3,587,807 $61,509 $29,446,981 $29,903,193 $154,939 $49,317,898 $42,234,651 $133,001 $117,274 $144,393 -$27,119 -19% Assumptions: Annual Cost Escalation 1.03 Annual Revenue Escalation 1.02 Net Area / FAR 100% Net Area / FTE 400 This proposed model estimates future projects based on recent construction cost experience and using actual 2015 Pitkin County assessor land values for each parcel. Density projections are based on assumptions shown. Steps in the calculations are as follows: 1) Establish Land Area; 2) FAR per land area assumption at each property; 3) Net area is a function of FAR; 4) FTEs and Units based upon net area; 5) Land Cost based upon per acre average 2015 assessor land value; 6) Future development costs based on escalation of recent construction cost experience; 7) Sales revenues at each income level based on assumed escalation shown. P 8 I I . FEE In Lieu Model #2: Combination of Historical and Future Estimated Development Cost with Historical Land Cost 6/5/2015 Projects Burlingame Ph2A 802 West Main 517 Park Circle 488 Castle Creek Bgame2B Lumber Yard AVERAGE EXISTING CHANGE % Change Actual Projected Future Projected Future Projected Future Projected Future Projected Future Project Parameters: Year Occupied:2014.5 2017 2018 2019 2021 2025 Land acres:7.00 0.21 0.33 0.82 7.00 7.20 Land Sq Ft 304920 9000 14458 35895 304920 313632 FAR / Land Sq Ft 28%90%75%65%28%40.5% FAR:85600 8100 10844 23332 85790 127021 Net Area:86312 8100 10844 23332 84940 127021 FTE:195.75 20.3 27.1 58.3 193.0 317.6 Units:82 12 15 33 79 150 Bedrooms:172 12 15 33 170 263 Units/acre:11.7 56.0 46.7 40.4 11.3 20.9 FTE/Acre 28.0 98.0 81.7 70.8 27.6 44.1 Avg Category:2.94 TBD TBD TBD TBD TBD Gross Area:94631 8881 11889 25581 93670 139264 Vertical Const Only / Net Area $342 $368 $379 $390 $414 $466 Total Cost / Net Area $514 $943 $881 $749 $554 $761 Cost Historical $Historical $Future $Total Historical $Future $Total Historical $Future $Total Historical $Future $Total Historical $Future $Total Land $485,594 $3,690,000 $3,690,000 $4,105,000 $4,105,000 $5,400,000 $5,400,000 $477,507 $477,507 $18,250,000 $18,250,000 Soft Costs $6,993,065 $469,466 $469,466 $647,330 $647,330 $1,434,633 $1,434,633 $5,540,898 $5,540,898 $9,325,930 $9,325,930 Construction: Offsite Infrastructure $2,093,538 $140,546 $140,546 $193,793 $193,793 $429,491 $429,491 $1,658,798 $1,658,798 $2,791,936 $2,791,936 Construction: Onsite Infrastructure $3,301,154 $221,617 $221,617 $305,579 $305,579 $677,234 $677,234 $2,615,642 $2,615,642 $4,402,409 $4,402,409 Construction: Buildings/Landscape $29,503,361 $2,981,113 $2,981,113 $4,110,551 $4,110,551 $9,109,932 $9,109,932 $35,184,755 $35,184,755 $59,219,749 $59,219,749 Construction: Other/Mitigation $2,029,323 $136,235 $136,235 $187,849 $187,849 $416,317 $416,317 $1,607,917 $1,607,917 $2,706,299 $2,706,299 Total Development $44,406,036 $3,690,000 $3,948,975 $7,638,975 $4,105,000 $5,445,103 $9,550,103 $5,400,000 $12,067,607 $17,467,607 $477,507 $46,608,010 $47,085,516 $18,250,000 $78,446,323 $96,696,323 Average Existing Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Revenues Subsidy Subsidy/FTE Subsidy/FTE Subsidy/FTE Change % Change Category 1 Subsidy per FTE N/A $618,450 $7,020,525 $346,693 $844,480 $8,705,624 $321,137 $1,853,391 $15,614,216 $267,690 $5,889,396 $41,196,120 $213,451 $9,863,580 $86,832,743 $273,444 $284,483 $295,077 -$10,594 -4% Category 2 Subsidy per FTE $164,721 $1,320,153 $6,318,823 $312,041 $1,802,639 $7,747,464 $285,792 $3,956,278 $13,511,329 $231,639 $13,101,545 $33,983,972 $176,083 $21,942,509 $74,753,814 $235,406 $234,280 $246,881 -$12,601 -5% Category 3 Subsidy per FTE $138,118 $2,009,962 $5,629,013 $277,976 $2,744,559 $6,805,545 $251,046 $6,023,522 $11,444,085 $196,198 $18,990,941 $28,094,575 $145,568 $31,806,088 $64,890,234 $204,345 $202,208 $232,946 -$30,738 -13% Category 4 Subsidy per FTE $95,044 $3,330,115 $4,308,861 $212,783 $4,547,198 $5,002,906 $184,549 $9,979,800 $7,487,807 $128,371 $29,446,981 $17,638,535 $91,391 $49,317,898 $47,378,425 $149,199 $143,556 $144,393 -$837 -1% Assumptions: Annual Cost Escalation 1.03 Annual Revenue Escalation 1.02 Net Area / FAR 100% Net Area / FTE 400 This proposed model uses a combination of historical projects and future estimated projects. In each case, historical land costs are used. Density projections are based on assumptions shown. Steps in the calculations are as follows: 1) Establish Land Area; 2) FAR per land area assumption at each property; 3) Net area is a function of FAR; 4) FTEs and Units based upon net area; 5) Land Cost based upon historical actual; 6) Future development costs based on escalation of recent actual experience; 7) Sales revenues at each income level based on assumed escalation shown. P 9 I I . Page 1 of 9 MEMORANDUM TO: Mayor and City Council FROM: Jack Wheeler, Capital Asset Manager Jeff Pendarvis, Capital Asset Project Manager Thru: Scott Miller, Public Works Director DATE OF MEMO: June 18, 2015 MEETING DATE: June 23, 2015 RE: Civic Space Relocation Project (CSRP) – Conceptual Design Presentation REQUEST OF COUNCIL: Staff requests City Council select one of the options to move forward into schematic design and ongoing public process. PREVIOUS COUNCIL ACTION: In a worksession on November 17, 2014, staff presented the four leading location options for the CSRP project. These options were developed from direction and information received in three other Council work sessions and several public open houses that were done in 2014. Council gave direction in this work session to advertise the Architectural Design and Program Management/Owners Representative Request for Proposals for this important civic project. Council also agreed the first major milestone for the new team would be to return to Council with the two Council preferred options developed to conceptual level for a decision on the final location for the team to take to construction documents. The two selected options were Option One and Option Four described below which will be referred to as the Armory Option (Option One) and the Galena Plaza Option (Option Four) moving forward. In a regular Council meeting on March 9, 2015 Council approved the design contract for Charles Cunniffe Architects (CCA) to provide design services through Construction Documents and a Program Manager/ Owners Representation Contract for Rider Levett Bucknall (RLB) for the project. BACKGROUND: Finding a solution to the loss of downtown leases is a top priority for City Council and is articulated in one of its top ten goals. Goal 8 - Achieve direction from city council on a solution for the loss of downtown Police and municipal office spaces. Champion: Scott Miller Staff received direction From Council, as part of the Facility Master Plan Project, in November 2014 to issue Request for Proposals (RFP) for Architectural Design teams and Program Manager/ Owners Agent for the “Aspen Building P10 III. Page 2 of 9 Replacement Project”. The Aspen Building Replacement Projects Main Goal is to provide a comprehensive solution for the Police and Municipal Facility by mid- year 2018. The RFP will close on February 5, 2015 at which point the team will make a recommendation to select the design team and the PM/OA, these contracts will be on consent agenda late February 2015. The first milestone of that team will be to work closely with staff and the steering committee to develop and present, to Council in the first quarter 2015, two conceptual level plans for selection of the preferred option. Staff will check in with Council throughout the year to keep them informed of the progress of the project as well as review all decision points. Staff and the team will continue to do public outreach at all phases of this project to keep the public informed. The preferred option will be taken to design development level drawing and be submitted into the Planning and Zoning approval process by September 2015, this will give us a clear direction, cost information and schedule for a solution to our Police and Municipal facilities by end of year 2015. The team is targeting mid 2018 for completion of a solution. Staff started the Facility Master Plan Process in early 2014. As part of the project our team inventoried all of the City facilities and carried out an overall space analysis. During this, the need for space in the downtown core became apparent. Prior to and during this effort several things happened that have made the downtown core need for office space more crucial than ever: • The City and County executed an agreement that the Police would move out of the County owned space at the Courthouse and County Community Development would move out of the City owned Armory sometime in 2018. Eventually, this building is going to be for exclusive court use. • The Aspen Pitkin County Housing Authority would move out of the County owned Courthouse Plaza Building. The County is preparing to renovate this building to accommodate their increasing space needs. • The Aspen Daily News Building (City Hall Annex) was sold and the new owner asked that the Building, Engineering, City Manager, and Canary initiative relocate by the end of 2015 to allow for redevelopment. • The team identified the inappropriate use of the basement of the Yellow Brick as City offices due to access and security concerns in a child care facility. This equals a loss of about 24,000 gross square feet (gsf) of the overall 50,000 gross square feet that the City presently operates out of in the downtown core. In early 2015 the team verified all programing for building design criteria and assessed space needs. After careful consideration with the staff, City Manager’s office and Human Resources, the team dialed back its space assumptions to be more appropriate for our unique Aspen market. This led us to a reduced standard, about 30% smaller than common P11 III. Page 3 of 9 office space planning standards used in the US. This “Verified Program” (attached) is the space plan we are using for design which includes 14,900 gsf for Police and 51,900 gsf for City office program. The team has challenged themselves through careful, efficient, design to reduce this by another 5%. During the fall of 2014 the team held several open houses and presented various options to the public and Council on how to use all of our currently held assets to come with a space needs solution. This process started with identification of a “kit of parts” then development of four option that programed all of our needs into solutions utilizing these assets. In this process we reached out to the staff, public, and Council to find out what the important values we needed to bring forward in solutions. We found the following: • Plan City Hall under one roof • Utilize all of our currently owned assets • Must be a sustainable solution, we should be leaders in this area • No tax increase • Far reaching • Police should have an appropriate facility • Police facility should be planned at 540 Main • City should own not lease facilities as there is a major cost advantage The program design team took all of the criteria and presented four options to Council in November 2014 and the request of council was to select two preferred options to form the basis of design moving forward. This meeting set the first milestone as conceptual level design on the two selected options along with more public outreach followed by a presentation to council for selection of the preferred solution to move into schematic level design. During the open houses the following core values featured as a common thread in both internal and external outreach: • A minimum of a LEED Gold certification; the City should be leaders in sustainable practices. • Humble yet exemplary solution is very important to the community • The Police facility should be at 540 Main St. and we should work collaboratively with Pitkin County to maximize efficiency with the development of their public safety building. • We should be innovative and creative to produce the best result in the smallest box. • We should be collaborative with the community • We should solve the problem with our currently held assets • We should own not lease • Most participants preferred Galena Plaza Option • Some people felt sentiment to the Armory Option and felt that it spoke to who we are. P12 III. Page 4 of 9 • There is momentum in the community to return the Armory to its historic configuration for community benefit. Below is an outline of the options: P13 III. Page 5 of 9 P14 III. Page 6 of 9 DISCUSSION: The common theme we have heard through the public outreach and internal process has been the solution needs to be forward thinking and far reaching. We believe the solutions that we have presented reach out 50 years and are flexible and have the ability to either expand or contract our facilities. There is total of 3000 gsf planned for growth through the year 2030. We are facing a loss of space for several of our busiest departments and our Police department, and it is clear that doing nothing is not an option. To try to lease space (if it is available) would cost more in lease costs and tenant improvements in 10 – 15 years than the cost to responsibly invest our dollars in owned facilities, utilizing all of our currently held real estate assets in the downtown core area. There a pros and cons outlined on the assessment criteria. Staff recognizes that the single biggest detriment to any plan that includes use of the Armory in a configuration for municipal offices would be the disruption of City operations and service for a period of one to three years as we moved the operations out of the building, leased temporary office space and remodeled the building and then moved everyone back in. Based on the availability of space this would likely be in 6 – 10 locations throughout town. Staff feels this is an unneeded burden on the community considering that we can accommodate a P15 III. Page 7 of 9 solution that meets more of the core values on our other currently held land assets with the added benefit of returning the Armory to its historic configuration. If the Galena Plaza option is selected, the team will bring the issue of restoring the Armory to its historic configuration for community benefit back to council in work sessions in July and August to determine what this process would be. This is a very important decision. The solution that staff has determined meets our needs in the best way, delivering the most core values, with the least risk, and the most efficiency’s for public benefit is the Galena Option. The assessment criteria below used for scoring does not weight the categories i.e. the two year construction impacts to the community are weighted the same as construction cost, yet it is a simple way for us to gauge the values presented by internal and community stakeholders. Based on this criteria as well as weighing what we heard in the process we have gone through to date, we feel the Galena option presents the best solution for the community. If council agrees, this option would be taken to the next phase of design which includes by year end 2015, as outlined in our schedule, three public open houses, four stakeholder meetings, and three more work session presentations to Council. We will also engage Design Workshops facilitation group out of their Austin office to help us run two community meetings in a meaningful way. FINANCIAL/BUDGET IMPACTS: P16 III. Page 8 of 9 Armory Option Galena Option Galena Alternate Construction $48.4 mil $45.8 mil $40.6 mil Risk Contingency $3.0 mil $0.5 mil $0.7 mil Owner Costs $5.9 mil $2.0 mil $3.7 mil TOTAL $57.3 mil $48.3 mil $45.0 mil RECOMMENDED ACTION: Staff recommends City Council approval of the Galena Plaza Option as the primary solution. Selection of this option includes returning the Armory to historic configuration for community benefit, with the notion that the process, P17 III. Page 9 of 9 cost and specifics of this need to be decided in the future. A work session in July is already scheduled for Council to hear from a community group advocating for reuse of the Armory. Staff would follow this up with a work session to discuss Council’s vision on this in August. We have time to develop this process as the city offices can remain in the Armory while the Galena option is designed and built. This recommendation includes the decision to have the Police facility at 540 Main to allow collaboration and efficiencies with the County public safety facility at the adjoining location. Once we set the additional programing in schematic design on the site, the Police facility will move to its own track for completion of design and construction. CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit I: Presentation slides Exhibit II: Verif ied Program Exhibit III: Criteria definitions P18 III. CITY OF ASPEN CIVIC SPACE RELOCATION PROJECT POLICE AND CITY OFFICES P 1 9 I I I . WORK SESSION TOPIC: PRESENT THE CONCEPTUAL LEVEL DESIGN OF THE ‘ARMORY’ AND ‘GALENA’ OPTIONS, AS PREVIOUSLY SELECTED BY CITY COUNCIL. GOAL: STAFF REQUESTS COUNCIL TO SELECT ONE OF THE OPTIONS TO MOVE FORWARD INTO SCHEMATIC DESIGN AND ONGOING PUBLIC PROCESS. P 2 0 I I I . PROBLEM STATEMENT/CURRENT NEEDS • CITY HAS IMMEDIATE NEED FOR REPLACEMENT SPACE • NEED TO IMPROVE CUSTOMER SERVICES & PUBLIC INTERACTION IN ALL CITY BUILDINGS. • THE CITY NEEDS TO OPERATE OUT OF OWNED FACILITIES P 2 1 I I I . Police evidence Security conflictsYellowbrick offices Inadequate storageHousing access Police inadequate interview space Police evidence storage PREVIOUS SITE ASSESSEMENTS ASPEN CIVIC SPACE RELOCATION PROJECT P 2 2 I I I . EXISTING CONDITIONS ASPEN CIVIC SPACE RELOCATION PROJECT Today, the City of Aspen operates from 50,000 square feet of space. Lost lease area and unsuitable space totals 24,000 gross square feet. property owned property leased Yellow Brick (incompatible use with office space) Housing Department Annex City Hall Zupancis Police Police (Truscott) Police ACRA Rio Grande Wheeler Opera House E M a i n S t E Ho p k i n s A v e E Bl e e k e r S t E Ha l l a m S t W Fr a n c i s S t To T r u s c o t t N 1st St N Garmisch St N Aspen St N Monarch St N Mill St N Galena St Wagner Park Wagner Park 47,300 P 2 3 I I I . CORE SITE LOCATIONS P 2 4 I I I . SITE KEY MAP ASPEN CIVIC SPACE RELOCATION PROJECT 1inch=50feet´0408020 Feet 1inch=50feet´0408020 Feet Galena Site 540 E. Main Site Armory Site P 2 5 I I I . ARMORY OPTION P 2 6 I I I . ARMORY OPTION** Remodel and Expansion of City Hall Some City Services at 540 East Main StreetSome City Services at existing ACRA BuildingSome City Services at existing Rio Grande BuildingPolice at 540 East Main Street BUDGET CONSTRUCTION COST* = $48 mil.RISK & OWNER COST = $9 mil. REMODEL EXISTING BUILDING = 22,000 SFNEW ADDITION = 10,600 SF540 E. MAIN CITY OFFICES = 10,800 SFREUSE ACRA BLDG = 4,500 SFREUSE RIO GRANDE BLDG = 4,000 SFTOTAL = 51,900 SFPOLICE PROGRAM 540 E. MAIN = 14,900 SF *Costs subject to change based on progress of conceptual design. ** Square footage excludes ACRA replacement space, parking structures, & site. 1 inch =50 feet´0 40 8020 Feet 1 inch =50 feet´0 40 8020 Feet 540 E. Main Site Armory Site ACRA Rio G r a n d e Use/Reuse P 2 7 I I I . ARMORY OPTION - MASSING IMAGE FROM GALENA STREET ASPEN CIVIC SPACE RELOCATION PROJECT P 2 8 I I I . ARMORY OPTION - MASSING IMAGE FROM HOPKINS AVENUE ASPEN CIVIC SPACE RELOCATION PROJECT P 2 9 I I I . ARMORY OPTION - CITY HALL SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT Roof top terrace E Hopkins Avenue Renovated City Hall City Hall Addition Conner Park Alley Parking Entry Conner Lofts Church Lower Level S G a l e n a S t r e e t P 3 0 I I I . ARMORY OPTION - SITE/ MAIN LEVEL FLOOR PLAN ASPEN CIVIC SPACE RELOCATION PROJECTARMORY OPTION - SITE/MAIN LEVEL FLOOR PLAN ASPEN CIVIC SPACE RELOCATION PROJECTCONCEPTUAL DESIGNJUNE 2015 P 3 1 I I I . ARMORY OPTION - POLICE MASSING IMAGE MAIN STREET ASPEN CIVIC SPACE RELOCATION PROJECT CON C E P T 6 0 0 B U I L D I N G P 3 2 I I I . ARMORY OPTION - POLICE MASSING IMAGE FROM MAIN STREET ASPEN CIVIC SPACE RELOCATION PROJECT CONCEPT 600 P 3 3 I I I . ARMORY OPTION - CITY OFFICES MASSING IMAGE FROM RIO GRANDE STREET ASPEN CIVIC SPACE RELOCATION PROJECT COUNTY JAIL P 3 4 I I I . ARMORY OPTION - 540 MAIN STREET SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT New City Offices Courthouse Plaza Building Concept 600 Building Obermeyer O n - s t r e e t P a r k i n g M a i n S t r e e t New Police Station Underground parking access Courtyard Historic Structures (3) Pitkin County JailPitkin County Expansion Site P 3 5 I I I . ARMORY OPTION - POLICE & CITY OFFICES FLOOR PLANS ASPEN CIVIC SPACE RELOCATION PROJECT UPUP VEST. FRONT DESK I.T. REPORT ? INT. WORK AREA WC WC WCSTAIR 1 STAIR 2 INTERV.OVERNIGHTLOUNGE LINE OF OPENING ABOVE PATROL STOR. COPY CONF.SARG. HISTORIC HOUSE CITY OFFICES POLICE DEPT. HISTORIC SHED HISTORIC BARN CONFERENCE VEST.OP SM HQ SB H. DIR. REC. ASS. ADM. ADM. STOR. STAIR WC WC CAD INTERN & JAPLANS PM PM PM H. CONF. E ARMORY OPTION - SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT CONCEPTUAL DESIGN JUNE 2015 1" = 10'-0"1 ARCHITECTURAL SITE PLAN N O R T H P 3 6 I I I . ARMORY OPTION - ADDITIONAL CITY OFFICE FLOOR PLANS ASPEN CIVIC SPACE RELOCATION PROJECT STAIR WC WC BR LOCKER DP PPM POM LPO CS SIGN REPAIR VEST. SHOP SEC. STOR.WR CONF. BREAK RM COLL. B ELEV.VPE. ASSIST. DIR CONF. VP LOBBY ACRA PARKING DEPARTMENT CONF. SEC SMC DIR. ELEV. ADMIN. PC COLL A WC WC SPECIAL EVENTS ARMORY OPTION - ACRA/RIO GRANDE FLOOR PLANS ASPEN CIVIC SPACE RELOCATION PROJECT CONCEPTUAL DESIGN JUNE 2015 1/8" = 1'-0"2 MAIN LEVEL FLOOR PLAN NORTH 0 4 8 16 1/8" = 1'-0"1 UPPER LEVEL FLOOR PLAN EXISTING ACRA SPACE EXISTING RIO GRANDE BUILDING EXISTING ACRA BUILDING EXISTING RIO GRANDE BUILDING P 3 7 I I I . GALENA OPTION P 3 8 I I I . GALENA OPTION City services at Galena Site Police at 540 East Main Street Employee Housing at 540 Main Street Re-purpose City Hall (Armory Site) BUDGET CONSTRUCTION COST* = $46 mil.RISK & OWNER COSTS = $2.5 mil. GALENA PROGRAM** = 51,900 SFNEW PLAZA BUILDING NEW RIO GRANDE BUILDING POLICE PROGRAM = 14,900 SF POTENTIAL EMPLOYEE HOUSING 12 UNITS *Costs subject to change based on progress of conceptual design. **Square footage excludes ACRA replacement space, parking structures, & site. 1 inch =50 feet´0 40 8020 Feet 1 inch =50 feet´0 40 8020 Feet 540 E. Main Site Armory Site Galena Site P 3 9 I I I . GALENA OPTION - VIEW FROM MAIN STREET ASPEN CIVIC SPACE RELOCATION PROJECT P 4 0 I I I . GALENA OPTION - VIEW INSIDE GALENA PLAZA ASPEN CIVIC SPACE RELOCATION PROJECT P 4 1 I I I . GALENA OPTION - VIEW FROM RIO GRANDE PARK ASPEN CIVIC SPACE RELOCATION PROJECT P 4 2 I I I . GALENA OPTION - AIRIEL VIEW ASPEN CIVIC SPACE RELOCATION PROJECT P 4 3 I I I . GALENA CIVIC CAMPUS - SITE MAP ASPEN CIVIC SPACE RELOCATION PROJECT Rio G r a n d e P l Rio Grande Park New Rio Grande Office New Police Station H o u s i n g Historic Structures New City Office Galena Plaza Under Construction Main St N o r t h M i l l S t r e e t N o r t h G a l e n a S t P 4 4 I I I . GALENA OPTION - SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT New City Office Plaza Existing Parking Parking Pitkin County JailPitkin County Library and Expansion Galena Plaza Under Construction Rio Grande Park Parking Garage Entrance Elevator Rio G r a n d e P l N o r t h M i l l S t r e e t Mill Street Buildings Short-term Parking New Rio Grande Office P 4 5 I I I . GALENA OPTION - SECOND LEVEL FLOOR PLAN ASPEN CIVIC SPACE RELOCATION PROJECT P 4 6 I I I . GALENA OPTION - POLICE MASSING FROM MAIN STREET ASPEN CIVIC SPACE RELOCATION PROJECT COURTHOUSE PLAZA BLDG CONCEPT 600 P 4 7 I I I . GALENA OPTION - EMPLOYEE HOUSING MASSING FROM RIO GRANDE PLACE ASPEN CIVIC SPACE RELOCATION PROJECT COUNTY JAIL P 4 8 I I I . GALENA OPTION - POLICE AND EMPLOYEE HOUSING SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT New Employee Housing Pitkin County Jail Courthouse Plaza Building Concept 600 Building Obermeyer O n - s t r e e t P a r k i n g M a i n S t r e e t New Police Station Underground parking access Historic Structures (3) Courtyard Pitkin County Expansion Site P 4 9 I I I . GALENA OPTION - POLICE AND EMPLOYEE HOUSING FLOOR PLAN ASPEN CIVIC SPACE RELOCATION PROJECT UPUP VEST. FRONT DESK I.T. REPORT ? INT. WORK AREA WC WC WCSTAIR 1 STAIR 2 INTERV.OVERNIGHTLOUNGE LINE OF OPENING ABOVE PATROL STOR. COPY CONF.SARG. HISTORIC HOUSE HOUSING POLICE DEPT. HISTORIC SHED HISTORIC BARN GALENA OPTION - SITE PLAN ASPEN CIVIC SPACE RELOCATION PROJECT CONCEPTUAL DESIGN JUNE 2015 1" = 10'-0"1 ARCHITECTURAL SITE PLAN N O R T H P 5 0 I I I . GALENA/ARMORY OPTION P 5 1 I I I . GALENA/ ARMORY OPTION - ALTERNATE Remodel City Hall (Armory Site) Police at 540 East Main Street Employee Housing at 540 Main Street City services at Galena Site (smaller) BUDGET CONSTRUCTION COST* = $40 mil.RISK & OWNER COST = $4.4 MIL. ARMORY REUSE PROGRAM** = 17,100 SF GALENA PROGRAM (REDUCED) = 23,600 SFREMODEL ACRA/RIO GRANDE BLDG’S = 11,200 SFTOTAL = 51,900 SF POLICE PROGRAM = 14,900 SF POTENTIAL EMPLOYEE HOUSING 12 UNITS *Costs subject to change based on progress of conceptual design. **Square footage excludes ACRA replacement space, parking structures, & site. 1 inch =50 feet´0 40 8020 Feet 1 inch =50 feet´0 40 8020 Feet 540 E. Main Site Armory Site Galena Site P 5 2 I I I . RIO G R A N D E P L A C E GALENA/ ARMORY OPTION - GALENA PLAZA PLAN ASPEN CIVIC SPACE RELOCATION PROJECT LIBRARY RIO GRANDE PLAZA COURTHOUSE NEW GALENA BUILDING RIO G R A N D E P L A C E REMODEL EXISTING RIO GRANDE BUILDING P 5 3 I I I . SCHEDULE OVERVIEW ASPEN CIVIC SPACE RELOCATION PROJECT February 2016 March 2015 STAKEHOLDER MEETING 1 April 2 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015 December 2015 March 2016 April 2016 June 2016 July 2016 August 2016 September 2016 October 2016 November 2016 December 2016 2017 COUNCIL 7 May 16 Worksession COUNCIL 1April 6 Worksession COUNCIL 2 June 23 Worksession COUNCIL 3 August 11 Worksession PUBLIC OPEN HOUSE 3 September 30 PUBLIC OPEN HOUSE 4 December 1 COUNCIL 5 December 8 Worksession PUBLIC OPEN HOUSE 2 August 3 PUBLIC OPEN HOUSE 1 April 2 STAKEHOLDER MEETING 3 November 20 STAKEHOLDER MEETING 2 September 25 STAKEHOLDER MEETING 4 January 26 STAKEHOLDER MEETING 5 May 2 COUNCIL 4October 5 Worksession COUNCIL 6 March 22 Worksession COUNCIL 8 September 15 Worksession COUNCIL 9 December 15 Worksession SUBMIT PERMIT DRAWINGS CONST. N O V E M B E R 2 0 1 5 C R I T I C A L S C H E D U L E M I L E S T O N E T O D A Y M A Y 2 0 1 6 N O V E M B E R 2 0 1 6 SUBMIT LAND USE APPLICATION 2016 PUBLIC OUTREACH PROCESS NEXT STEPS IN PUBLIC PROCESS CITY COUNCIL INVOLVEMENT PREPARATION OF LAND USE APPLICATION CONCEPT SCHEMATIC DESIGN DEVELOPMENT CONSTRUCTION DOCUMENTS May 2016 CONST. P 5 4 I I I . BUDGET COSTS ASPEN CIVIC SPACE RELOCATION PROJECT P 5 5 I I I . ASSESSMENT CRITERIA P 5 6 I I I . P 5 7 I I I . P 5 8 I I I . P 5 9 I I I . OPTION ASSESSMENT CRITERIA ARMORY OPTION GALENA OPTION GALENA + ARMORY DO NOTHING Customer and Public Service Operational Efficiency Organizational Adjacencies Ease of Community Access (Armory) Opportunity for a New Community Benefit Environmental Sustainability Public and Employee Safety Opportunity for Housing Construction Costs Logistic and Moving Costs Long-term Lease Costs Reduction of Risk Construction Impact to Community TOTAL RATING SCORE 10 24 15 5 Development Rating According to Criteria (2 Points) Favorable (1 Point) Compromised (0 Points) Unfavorable P 6 0 I I I . RECOMMENDATION GALENA OPTION • FAR REACHING - 50 YEARS • SEAMLESS TRANSITION • COMMUNITY BENEFIT • BEST PUBLIC SERVICE • POLICE MOVE FORWARD WITH COUNTY ADJACENCIES P 6 1 I I I . SP A C E N E E D S S U M M A R Y Pr o g r a m m i n g S p a c e S t a n d a r d s ( P S S ) GR O U P Cu r r e n t Ac t u a l N S F Cu r r e n t N S F Sh o r t f a l l Ba s e d o n P S S Cu r r e n t G S F Sh o r t f a l l Ba s e d o n P S S Lo c a t i o n O c c u p . T o d a y -# = e x c e s s S F - # = e x c e s s S F Se a t s N S F G S F S e a t s N S F G S F S e a t s N S F G S F S e a t s N S F G S F DO W N T O W N PO L I C E D E P A R T M E N T Co u r t h o u s e 3, 9 4 3 6 , 2 0 0 8 , 0 4 6 1 0 , 4 6 0 3 9 1 1 , 9 8 9 1 4 , 3 8 7 4 0 1 2 , 0 7 0 1 4 , 4 8 4 4 2 1 2 , 2 3 3 1 4 , 6 8 0 4 4 1 2 , 3 9 6 1 4 , 8 7 5 CA P I T A L A S S E T M A N A G E M E N T Rio G r a n d e 1, 3 3 0 1 , 7 2 9 - 5 0 6 - 6 5 8 7 8 2 4 1 , 0 7 1 9 8 9 3 1 , 1 6 1 1 0 9 1 6 1 , 1 9 1 1 2 9 6 3 1 , 2 5 2 CI T Y C L E R K / M U N I C I P A L C O U R T S Cit y H a l l 2, 1 7 8 2 , 8 3 1 - 4 4 8 - 5 8 2 5 1 , 7 3 0 2 , 2 4 9 6 1 , 8 1 1 2 , 3 5 5 6 1 , 8 1 1 2 , 3 5 5 6 1 , 8 1 1 2 , 3 5 5 CI T Y M A N A G E R Cit y H a l l 1, 5 9 2 2 , 0 7 0 6 0 3 7 8 4 1 1 2 , 1 9 5 2 , 8 5 4 1 2 2 , 2 4 2 2 , 9 1 4 1 3 2 , 3 7 2 3 , 0 8 4 1 3 2 , 3 7 2 3 , 0 8 4 CO M M U N I T Y D E V E L O P M E N T Ci t y H a l l / A n n e x 4, 7 5 4 6 , 1 8 0 7 4 2 9 6 4 2 7 5 , 4 9 6 7 , 1 4 4 2 9 5 , 8 1 2 7 , 5 5 5 2 9 5 , 8 1 2 7 , 5 5 5 2 9 5 , 8 1 2 7 , 5 5 5 EN G I N E E R I N G An n e x 3, 0 5 5 3 , 9 7 2 1 5 8 2 0 6 2 0 3 , 2 1 3 4 , 1 7 7 2 1 3 , 3 4 4 4 , 3 4 7 2 3 3 , 4 8 3 4 , 5 2 8 2 3 3 , 4 8 3 4 , 5 2 8 EN V I R O N M E N T A L H E A L T H & S U S T A I N Cit y H a l l 73 5 9 5 6 6 4 0 8 3 1 1 0 1 , 3 7 5 1 , 7 8 7 1 1 1 , 4 2 1 1 , 8 4 7 1 2 1 , 5 5 2 2 , 0 1 7 1 2 1 , 5 5 2 2 , 0 1 7 Cit y FI N A N C E Cit y H a l l 2, 0 0 9 2 , 6 1 2 3 6 4 6 1 5 2 , 0 4 5 2 , 6 5 8 1 6 2 , 1 2 6 2 , 7 6 3 1 7 2 , 2 0 7 2 , 8 6 9 1 7 2 , 2 0 7 2 , 8 6 9 A dministrativ e Functions HO U S I N G - D O W N T O W N Le a s e d 1, 2 3 6 1 , 6 0 7 4 3 4 5 6 5 6 1 , 6 7 0 2 , 1 7 2 8 1 , 8 4 4 2 , 3 9 8 9 1 , 9 2 6 2 , 5 0 3 1 0 2 , 0 5 6 2 , 6 7 3 5 1 , 8 9 4 GSF HU M A N R E S O U R C E S Cit y H a l l 1, 2 1 6 1 , 5 8 1 3 8 8 5 0 4 7 1 , 6 0 4 2 , 0 8 5 8 1 , 6 8 5 2 , 1 9 0 8 1 , 6 8 5 2 , 1 9 0 8 1 , 6 8 5 2 , 1 9 0 IN F O R M A T I O N T E C H N O L O G Y Cit y H a l l 1, 0 0 4 1 , 3 0 5 - 1 6 3 - 2 1 2 5 8 4 1 1 , 0 9 3 5 8 4 1 1 , 0 9 3 6 9 2 2 1 , 1 9 9 6 9 2 2 1 , 1 9 9 LE G A L Cit y H a l l 49 7 6 4 6 8 3 1 0 8 3 5 8 0 7 5 4 3 7 5 4 9 8 0 3 7 5 4 9 8 0 4 8 8 5 1 , 1 5 0 PA R K I N G Zu p a n c i s 4, 0 0 0 5 , 2 0 0 - 1 , 8 5 4 - 2 , 4 1 0 1 0 2 , 1 4 6 2 , 7 9 0 1 1 2 , 1 9 2 2 , 8 5 0 1 2 2 , 2 3 9 2 , 9 1 0 1 2 2 , 2 3 9 2 , 9 1 0 SP E C I A L E V E N T S Ye l l o w B r i c k 2, 2 1 6 2 , 8 8 1 - 8 6 5 - 1 , 1 2 4 5 1 , 3 5 1 1 , 7 5 7 6 1 , 4 3 3 1 , 8 6 2 6 1 , 4 3 3 1 , 8 6 2 6 1 , 4 3 3 1 , 8 6 2 TR A N S P O R T A T I O N Ye l l o w B r i c k 1, 1 6 4 1 , 5 1 3 - 1 2 0 - 1 5 6 5 1 , 0 4 4 1 , 3 5 7 6 1 , 1 2 5 1 , 4 6 3 6 1 , 1 2 5 1 , 4 6 3 7 1 , 2 1 8 1 , 5 8 3 BL D G C O M M O N (Ci t y H a l l & R i o G r a n d e & A n n e x ) 4, 6 3 6 6 , 0 2 7 6 , 6 4 7 8 , 6 4 0 1 1 , 2 8 3 1 4 , 6 6 7 1 1 , 2 8 3 1 4 , 6 6 7 1 1 , 2 8 3 1 4 , 6 6 7 1 1 , 2 8 3 1 4 , 6 6 7 TO T A L S E A T C O U N T 17 5 1 9 1 2 0 2 2 0 9 TO T A L S F 3 5 , 5 6 5 4 7 , 3 0 9 1 3 , 8 2 0 1 7 , 9 6 6 4 9 , 3 8 5 6 3 , 0 0 1 5 0 , 8 7 5 6 4 , 9 3 1 5 1 , 7 5 2 6 6 , 0 5 4 5 2 , 3 1 5 6 6 , 7 7 0 SF / P P 2 7 0 3 6 0 3 4 0 3 2 7 3 1 9 GS F i s c a l c u l a t e d a s t h e N S F s u b t o t a l x 1 . 3 0 ; i e . 3 0 % g ro s s i n g f a c t o r AC R A A CR A 2 ,06 8 2 ,68 8 7 8 0 1 ,01 4 1 4 2 ,84 8 3 ,70 2 1 4 2 ,84 8 3 ,70 2 1 4 2 ,84 8 3 ,702 14 2 ,848 3 ,702 NS F G S F N S F G S F N S F G S F N S F G S F Po l i c e S e m i - C o n d i t i o n e d a t P D f a c i l i t y 1, 4 6 6 1 , 6 8 6 1 , 4 6 6 1 , 6 8 6 1 , 4 6 6 1 , 6 8 6 1 , 4 6 6 1 , 6 8 6 AC R A S e m i C o n d i t i o n e d 20 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 2 0 0 Ca p i t a l A s s e t S e m i C o n d i t i o n e d 50 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 Cit y C l e r k S e m i C o n d i t i o n e d 25 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 Cit y M a n a g e r S e m i C o n d i t i o n e d 35 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 En g i n e e r i n g S e m i C o n d i t i o n e d 35 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 3 5 0 EH S S e m i C o n d i t i o n e d 25 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 2 5 0 Fi n a n c e S e m i C o n d i t i o n e d 50 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 Pa r k i n g S e m i C o n d i t i o n e d 1, 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 1 , 0 0 0 Sp e c i a l E v e n t s S e m i C o n d i t i o n e d 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 1 , 4 5 6 Tr a n s p o r t a t i o n S e m i C o n d i t i o n e d 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 5 0 0 T o t a l s 6, 8 2 2 7 , 0 4 2 6 , 8 2 2 7 , 0 4 2 6 , 8 2 2 7 , 0 4 2 6 , 8 2 2 7 , 0 4 2 As s u m i n g S e m i - C o n d i t i o n e d s p a c e s w i l l b e l o c a t e d i n e x i s t i n g b u i l d i n g s , t h e g r o s s i n g f a c t o r h a s b e e n r e m o v e d , a n d i s n o t a p p l i c ab l e . Se m i - C o n d i t i o n e d S p a c e s t o b e a c c o m m o d a t e d i n s t o r a g e , l i k e l y o f f - s i t e a t T r u s c o t t o r Y e l l o w B r i c k u n l e s s n o t e d o t h e r w i s e Ci t y o f A s p e n - C i v i c R e l o c a t i o n P r o j e c t - P r o g r a m V e r i f i e d Ac t u a l G S F Oc c u p . T o d a y Pr o g r a m V e r i f i c a t i o n C u r r e n t Ne e d P r o g r a m V e r i f i c a t i o n 2 0 2 0 P r o g r a m V e r i f i c a t i o n 2 0 2 5 P r o g r a m V e r i f i c a t i o n 2 0 3 0 Sp a c e t h a t n e e d s t o b e p r o v i d e d , e i t h e r o w n e d o r l e a s e d Ci t y o f A s p e n Civ i c R e p l a c e m e n t P r o j e c t - P r o g r a m V e r i f i e d 06 - 0 4 - 2 0 1 5 P62III. Customer service – Customer service is the ability to provide the most positive and efficient services to our  customers, and promotes the ability to interact with the community in the most straight forward way. Is the  option far reaching for seamless long term operations for the community?  Operation efficiency – The option allows employees adequate work spaces to carry out job tasks with  meaning and productivity. Is the option far reaching for seamless long term operations for the community?  Organizational adjacencies – The option provides space which promotes synergy with internal operations  and public service.  Ease of community access – The option provides a recognizable and accessible public space to interact with  the City of Aspen.  (Armory) Opportunity for a new community benefit – The Galena Option has the opportunity to re‐purpose  the Armory Building for some other community use. (This will be a separate project/ work session to  evaluate.)  Environmental sustainability – Environmental sustainability considers energy, air quality, water use, health,  and site accessibility.  Public and employee safety – The option promotes modern security measures related to front of house and  back of house functions, consolidated interaction with city infrastructure and services, ( i.e. traffic and  transportation) and building systems (electrical, HVAC, asbestos, plumbing) have the opportunity for  improvement.   Opportunity for housing – Depending on the options, 540 east Main has the opportunity for employee  housing (505 program funding). The options vary in their capacity for units.  Construction cost – Construction costs include built form and conceptual project costs.   Logistic and moving costs – All departments in the Armory will have to be relocated while the Armory is  being renovated, disrupting operations and public accessibility for 2‐3 years. In the Galena Option, ACRA and  the Rio Grande will be disrupted for 2‐3 years.    Armory Option Galena Option Galena Alternative Construction Only Costs 48 Million 46 Million 41 Million All Costs (moving/ logistics) 57 Million 48 Million 45 Million   Long‐term lease costs ‐ Long‐term leased spaces cost more than City owned spaces.   Reduction of risk – Unforeseen conditions in terms of building construction, leases, historic preservation and  the entitlement issues of Connor Park.  Construction impact to community – While all options have a construction impact to the community of 2‐3  years, additional impacts are incurred in the Armory Option with the disruption of public services.  P63 III.