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HomeMy WebLinkAboutagenda.council.worksession.20230814AGENDA CITY COUNCIL WORK SESSION August 14, 2023 4:00 PM, City Council Chambers 427 Rio Grande Place, Aspen I.Work Session I.A Lumberyard Affordable Housing: Project Delivery and Finances I.B Council Goal Work Plan: Community Building and Health Zoom Meeting Instructions Join from a PC, Mac, iPad, iPhone or Android device: Please click this URL to join: https://us06web.zoom.us/j/85475700164? pwd=VGRJbElpc0s0akJkVjlmTTVUQkhMQT09 Passcode: 81611 Or join by phone: Dial: US: +1 346 248 7799 Webinar ID: 854 7570 0164 Passcode: 81611 International numbers available: https://us06web.zoom.us/u/kgOAwpaGI Memo Council WS - 14AUG2023 - Lumberyard Project Delivery and Financing with Exhibits.pdf Community Building and Health_Worksession_Memo_8-1-23.docx Exhibit A - Goals Work Plan Community Building and Health.docx 1 1 Page 1 of 6 MEMORANDUM TO: Sara Ott, City Manager FROM: Chris Everson, Affordable Housing Development Project Manager THRU: Rob Schober, Capital Asset Director DATE OF MEMO: August 4, 2023 MEETING DATE: August 14, 2023 RE: Lumberyard Affordable Housing Development – Project Delivery and Funding REQUEST OF COUNCIL: Staff is providing information about project delivery models and funding for the Lumberyard affordable housing development. PREVIOUS COUNCIL ACTION: This topic was tabled during the July 24 work session. BACKGROUND: During the schematic design process, the Lumberyard project team considered project delivery models which might best suit the interests of the City of Aspen. A schematic design estimate was commissioned, and the project delivery model described below was presented to Council at the 100% schematic design work session on May 16, 2022. Since that time, staff have further developed the funding scenarios included below. DISCUSSION: There have been questions about the proposed Lumberyard implementation/ execution plan, and that approach is described below. Also included is a summary of funding alternatives which have been further developed by staff to align with resources potentially available during the implementation timeline. Lumberyard Implementation Plan Throughout the community engagement and City Council project design effort from 2019 through 2022, one major goal of the effort was to lock the design and program through the use of the City of Aspen planned development (PD) approval process to ensure that this large community project would be implemented consistent with the needs and expectations of the Aspen community. The implementation sequencing discussed during the schematic design process with Council is as follows: Phase 0 – Demolition & Recycling of Existing + Utilities & Infrastructure Construction 2024-2025, approximately $15 million Developer: City of Aspen Phase 1 – Building 1 and surrounding property 2026-2027*, approximately $126 million 104 deed restricted affordable rental units Developer: City of Aspen to seek private developer to design, build, finance, own and operate on a long term contract 2 Page 2 of 6 Phase 2 – Building 2 and surrounding property 2028-2029*, approximately $116 million 91 deed restricted affordable rental units Developer: City of Aspen to seek private developer to design, build, finance, own and operate on a long term contract Phase 3 – Building 3 and surrounding property 2030-2031, approximately $135 million 82 deed restricted affordable ownership condos, with option to rent for up to 10 years before sale Developer: TBD - City of Aspen may need to act as developer due to condominium sales, but decision is flexible pending economic and insurance conditions at the time Per the proposed plan, the City would act as developer only for the Phase 0 infrastructure part of the project. Vertical development of affordable housing phases 1, 2 and (possibly also) phase 3 would be executed via agreements between the City of Aspen and private developers in a manner similar to the public-private partnership (PPP) development methodology which was utilized by the City of Aspen to develop 45 units of affordable rental housing at 802 West Main Street, 517 Park Circle and 488 Castle Creek from 2017 through 2021. Per the proposed plan, the City of Aspen would solicit developers through a competitive bidding process to design, build, finance, own and operate the facilities on a long-term City of Aspen land lease. Within such agreements, the City of Aspen includes legal protections against failure of the developer to perform or maintain the financing and physical facilities, and developers are incentivized to build quality facilities since it is their responsibility to operate the facilities on a long term contract. The image below illustrates a spectrum of government and private involvement in implementation of PPPs. The Lumberyard project as described would land nearer the right of this spectrum, with more private developer involvement during implementation than government involvement. 3 Page 3 of 6 One key element to attracting private development partners is the removal of risk from the subject development project. Two important steps which remove risk for private developers are project “entitlements” (a.k.a. land use review and approval of the project by the local governing body) and the existence of infrastructure necessary to support the subject development. The process by which Aspen City Council would approve the project entitlements is currently underway, and the implementation approach described above for private developer involvement in the vertical phases of affordable housing development is anticipated to be preceded by the City of Aspen acting initially as developer only for implementation of the phase 0 demolition & recycling of existing and utilities & infrastructure construction. The project execution methodology described here has been discussed by the project team with staff from at least two experienced top 50 nationwide developers of affordable housing. Significant utility and infrastructure upgrades are needed to support the Lumberyard development, and the City of Aspen Capital Asset Department is uniquely positioned to act as an agent to ensure proper standards are met for installation to local utility and infrastructure standards for City of Aspen Electric, City of Aspen Water, City of Aspen Engineering (stormwater, sidewalks, roadways), Aspen Sanitation District (sewer) and additional regulatory authorities with jurisdiction. The City of Aspen has not in fact experienced failure as a developer of such public infrastructure for projects such as Aspen City Hall, Burlingame Ranch and other significant community assets requiring infrastructure upgrades. The Lumberyard project team (some members of which have extensive affordable housing development experience) have advised Council that putting in place an approved planned development (entitlements) and implementing the necessary infrastructure are key steps toward attracting private development partners for vertical development phases. 4 Page 4 of 6 This removal of risk, plus the ability to propose development fees and annual operation fees, will provide sufficient incentives to attract qualified private development partners – and given the scale of the project and Aspen's national renown, likely a top nationwide developer of affordable housing. City Council Approval Occurs at Multiple Milestones When putting in place project entitlements by approving a planned development through the land use review and approval process, Council approves an ordinance which makes it legal for the project to be developed upon meeting certain defined conditions of approval. This is sometimes called ‘project approval’ or ‘entitlements’. But this level of ‘project approval’ only makes the development legal. It does not approve funding nor contracts which would be needed to move forward with implementation of the project. Staff is simply unable to begin to implement the project without approval of funding and contracts by City Council. While Council's annual budget review process is City Council's ultimate check on the flow of funds for project implementation, approval of contracts is an additional important means for Council to maintain control over go or no-go decisions about project implementation. In addition to these formal checks and balances, staff also generally seeks work session approval from Council prior to major project steps. One example of this is the September 26, 2022 City Council work session where staff specifically requested direction from City Council to submit the Lumberyard development application which initiated the formal regulatory land use review and approval process which is currently underway. City 150 Housing Fund / Financial Planning The City of Aspen is nearing completion of the Burlingame Ranch affordable housing subdivision which has long utilized funding dedicated to affordable housing from the City’s 150 Housing Fund to fund its implementation. Unlike Burlingame, the City would not intend to be the developer for the entirety of the Lumberyard project, but the funding paradigm used would be similar. The City of Aspen has several options for funding the Lumberyard project. The phasing plan described above is very flexibly and can be varied in many ways. Staff has included six funding scenarios, each which require a different implementation timeline, and which would also allow Council to perform “other projects” with funds from the 150 Housing Fund while implementing the Lumberyard project. The following assumptions/caveats apply to the following six funding scenarios for Council review: General Assumptions: • 150 Fund Revenues Assumed to Grow at Uniform Rate • Six Scenarios Considered o Baseline, Optimistic & Pessimistic Assumptions o Each Without Debt & With Debt Options • City as Developer Only for Infrastructure Phase • City Acts as Lender to PPP Developer for Vertical Phases o Upside Potential with Partnership Arrangements • PPP Developer / Operator – Long Term Agreement o First mortgage to be serviced out of rental operating NOI 5 Page 5 of 6 • Development Costs – Based on 100% Schematic Design Estimate o Baseline, Optimistic & Pessimistic Escalations Applied • 150 Fund Operating Expenses: o 10% of Revenues • Placeholder Funding for “Other Projects”: o $20M in 2023 o +15% of fund revenues annually for 2024+ years • Debt Scenarios: General Obligation Bond, 30 Year, 4.25% o Estimated Annual Debt Service Payments: $4M o Potential for public vote in 2024 & 2026 Model Assumptions: • Baseline Model (without debt & with debt) o Fund Revenues, RETT: 5%, Sales Tax & STR Tax: 4% o Construction Escalation, 5% per Year • Optimistic Model (without debt & with debt) o Fund Revenues, RETT: 6%, Sales Tax & STR Tax: 5% o Construction Escalation, 4% per Year • Pessimistic Model (without debt & with debt) o Fund Revenues, RETT: 4%, Sales Tax & STR Tax: 3% o Construction Escalation, 6% per Year Due to annual cost escalation, the models which complete the project over a longer duration cost more than models where the duration uses less time. The models summarized below set aside more funding for “other projects” than was originally anticipated at the time of the 2022 100% Schematic Design estimate: Baseline model without debt Total gross cost with escalation: $514,222,422 Phase 1 complete 2029 Phase 2 complete 2035 Phase 3 complete 2042 18 year total implementation Baseline model with debt Total gross cost with escalation: $451,733,501 Phase 1 complete 2028 Phase 2 complete 2031 Phase 3 complete 2039 15 year total implementation Optimistic model without debt Total gross cost with escalation: $416,390,148 Phase 1 complete 2028 Phase 2 complete 2033 Phase 3 complete 2038 14 year total implementation Optimistic model with debt Total gross cost with escalation: $361,241,734 Phase 1 complete 2028 Phase 2 complete 2031 Phase 3 complete 2038 14 year total implementation (This model has been corrected since July 24) Pessimistic model without debt Total gross cost with escalation: $753,537,140 Phase 1 complete 2029 Phase 2 complete 2037 Phase 3 complete 2050 26 year total implementation Pessimistic model with debt Total gross cost with escalation: $519,319,551 Phase 1 complete 2028 Phase 2 complete 2031 Phase 3 complete 2041 19 year total implementation 6 Page 6 of 6 The placeholder funding for “other projects”, assumed in the above models to be $20 million in 2023 plus an additional 15% of fund revenues from 2024 through the end of the Lumberyard implementation, adds about a third of the project implementation duration to all scenarios shown. Lowering the funding set aside for “other projects”, potentially by half, could significantly decrease implementation durations, by 3-5 years in some cases and would lower costs increases due to escalation. Scenarios which utilize debt would also incur interest of $40-$50M in addition to the costs shown above. For illustration purposes, the interest is shown separately to better illustrate the effect of cost escalation over time among the scenarios described. The amount of interest incurred would depend upon how long the City chooses to leave the debt out. In all scenarios, there is fund balance available after completion of Phase 3 to pay off the remaining debt if preferred. Vested rights in a development approval ordinance allow developers a window of time wherein to submit applications for building permits, and although the longest allowable is 10 years in the City code, Aspen City Council holds the authority to extend vested rights upon request. This authority of Council to extend vested rights upon request plus the annual revenues which flow into the City's 150 Housing Development Fund provide an extremely resilient approach funding the Lumberyard affordable housing development. FINANCIAL/BUDGET IMPACTS: TBD RECOMMENDED ACTION: Information only: Staff is providing Council with information. CITY MANAGER COMMENTS: ATTACHMENTS: Exhibit A: Presentation Slides 7 Lumberyard Affordable Housing Project Delivery and Funding August 14, 2023 8 $1,287,397$1,467,215$1,611,531$2,365,471$4,245,839$3,411,042$4,378,216$3,912,586$3,863,620$4,237,021$6,292,125$9,479,215$11,076,748$9,755,656$5,733,377$5,881,378$6,370,311$5,233,329$6,592,914$5,671,597$8,387,972$10,020,525$6,293,074$9,938,124$8,896,761$8,440,265$17,589,652$21,091,202$17,109,813$12,800,000$12,800,000y = $430,878x + $726,408 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 Model Assumptions 2 of 9 ❖150 Fund Revenues Assumed to Grow at Uniform Rate ❖Six Scenarios Considered •Baseline, Optimistic & Pessimistic Assumptions •Each Without Debt & With Debt Options City of Aspen 150 Fund RETT Revenue Collections 1994 (actual)(projected) 2024 9 Model Assumptions 3 of 9 ❖City as Developer Only for Infrastructure Phase ❖City Acts as Lender to PPP Developer for Vertical Phases •Upside Potential with Partnership Arrangements ❖PPP Developer / Operator – Long Term Agreement •First Mortgage to be Serviced Out of Operating NOI ❖Development Costs – 100% Schematic Design Estimate •With Baseline, Optimistic & Pessimistic Escalations Applied 10 Model Assumptions 4 of 9 ❖Operating Expenses: •10% of Revenues Annually Forecast into 150 Fund ❖Placeholder Funding for “Other Projects”: •$20M in 2023 •+15% of Fund Revenues Annually for Years 2024+ ❖Debt Scenarios: General Obligation Bond, 30 Year, 4.25% •Estimated Annual Debt Service Payments: $4M •Potential for Public Vote in 2024 (Tax Extension) & 2026 (Debt Issuance, if Desired) 11 Baseline Models 5 of 6 Assumes Baseline Collection: •RETT: 5% Annual Growth •Sales Tax & STR Tax: 4% Annual Growth Assumes Baseline Construction Escalation: •5% Annual Increase Baseline: No Debt Pay as You Go # of Units Completed Gross Cost Completed Gross Cost Phase 0 2025 $14,247,758 2025 $14,247,758 Phase 1 104 2029 $131,817,736 2028 $125,540,701 Phase 2 91 2035 $147,872,535 2031 $121,655,100 Phase 3 82 2042 $220,284,393 2039 $190,289,941 Total 277 18 Years $514,222,422 15 Years $451,733,501 Baseline: With Debt $70M in 2027 Funding available for “Other Projects” from 2024 through project completion: • Baseline No Debt: $90 million • Baseline with Debt: $70 million 12 Optimistic Models 6 of 6 Assumes Baseline Collection: •RETT: 6% Annual Growth •Sales Tax & STR Tax: 5% Annual Growth Assumes Baseline Construction Escalation: •4% Annual Increase Optimistic: No Debt Pay as You Go # of Units Completed Gross Cost Completed Gross Cost Phase 0 2025 $14,002,309 2025 $14,247,758 Phase 1 104 2028 $120,826,087 2028 $104,826,087 Phase 2 91 2033 $123,056,705 2031 $100,382,841 Phase 3 82 2038 $158,505,047 2038 $141,785,047 Total 277 14 Years $416,390,148 14 Years $361,241,734 Optimistic: With Debt $70M in 2027 Funding available for “Other Projects” from 2024 through project completion: • Optimistic No Debt: $70 million • Optimistic with Debt: $70 million This model has been corrected since July 24 13 Pessimistic Models 7 of 6 Assumes Baseline Collection: •RETT: 4% Annual Growth •Sales Tax & STR Tax: 3% Annual Growth Assumes Baseline Construction Escalation: •6% Annual Increase Pessimistic: No Debt Pay as You Go # of Units Completed Gross Cost Completed Gross Cost Phase 0 2025 $14,495,557 2025 $14,247,758 Phase 1 104 2029 $138,215,478 2028 $125,540,701 Phase 2 91 2037 $184,408,730 2031 $122,813,720 Phase 3 82 2050 $416,417,376 2041 $256,717,371 Total 277 26 Years $753,537,140 19 Years $519,319,551 Pessimistic: With Debt $70M in 2027 Funding available for “Other Projects” from 2024 through project completion: • Pessimistic No Debt: $140 million • Pessimistic with Debt: $90 million 14 Summary of Models 8 of 9 Scenario Duration Gross Cost(2)Other Projects(1) Baseline No Debt 18 Years $514,222,422 $90 million Baseline With Debt(3)15 Years $451,733,501 $70 million Optimistic No Debt 14 Years $416,390,148 $70 million Optimistic With Debt(3)14 Years $361,241,734 $70 million Pessimistic No Debt 26 Years $753,537,140 $140 million Pessimistic With Debt(3)19 Years $519,319,551 $90 million Notes: (1)Amount set aside for “Other Projects” is from 2024 through completion of the project, in addition to $20 million in 2023. (2)Gross costs shown are implementation costs from 2024 going forward and do not include interest, revenues, other financing sources, nor prior land and design investments (3)Scenarios which utilize debt would also incur interest of $40-$50M, depending upon how long the City chooses to leave the debt out. The interest is shown separately to better illustrate the effect of cost escalation over time among the scenarios described. (4)The original 100% Schematic Design estimate of $395 million published in 2022 assumed the project would be implemented as expeditiously as possible, using all funds available, and would be completed in 8 years. 15 Questions for Discussion 9 of 9 ❖What does the Council think of the City acting as developer and performing phase 0 (infrastructure) and getting project through entitlements? ❖What does the Council think about engaging a partner to act as the developer and operator of the project thereafter? ❖How does the Council feel about the amount of money to target as a set aside each year for other possible projects (this possibly gets into the duration to completion on this project) – currently, the models show 15% of annual revenues to be set aside. ❖Where does the Council lean on issuing debt to expedite the development of the project? Currently, the models assume $70M issuance? 16 Optional Slides Below 17 Alternate Models Scenario Duration Gross Cost(2)Other Projects(1) Alternate Baseline No Debt 15 Years $464,203,149 $36 million Alternate Baseline With Debt(3)13 Years $428,249,046 $30 million The alternate models shown above would set aside less funds for “Other Projects” and would attempt to minimize the Lumberyard implementation timeline. “What if” the Lumberyard implementation timeline is minimized? Notes: (1)Amount set aside for “Other Projects” is from 2024 through completion of the project, in addition to $20 million in 2023. (2)Gross costs shown are implementation costs from 2024 going forward and do not include interest, revenues, other financing sources, nor prior land and design investments (3)Scenarios which utilize debt would also incur interest of $40-$50M, depending upon how long the City chooses to leave the debt out. The interest is shown separately to better illustrate the effect of cost escalation over time among the scenarios described. (4)The original 100% Schematic Design estimate of $395 million published in 2022 assumed the project would be implemented as expeditiously as possible, using all funds available, and would be completed in 8 years. 18 Operating Proforma – Phases 1 and 2 ❖Operating Proforma – Base 2023 APCHA Rents •Phase 1 and Phase 2, each as stand alone 19 MEMORANDUM TO:Mayor Torre and Aspen City Council FROM:Tyler Christoff, Deputy Director of Public Works Alissa Farrell, Administrative Services Director Kim Ferber, Chief of Police Nancy Lesley, Director of Events Megan Monaghan, Kids First Co-Manager Nancy Nichols, Kids First Co-Manager Jenn Ooton, Senior Project Manager Lisa Rigsby Peterson, Wheeler Opera House Executive Director Sarah Roy, Red Brick Executive Director Jennifer Phelan, Development Manager Asset Management Phillip Supino, Director of Community Development Austin Weiss, Director of Parks and Recreation Desiree Whitehead, Director of Recreation THROUGH:Sara Ott, City Manager MEMO DATE:August 4, 2023 MEETING DATE:August 14, 2023 RE:Council Goal – Community Building and Health REQUEST OF COUNCIL: Staff is requesting City Council feedback on the new Community Building and Health workplan. SUMMARY AND BACKGROUND: City Council adopted its 2023 to 2025 Goals in June 2023, including the Community Building and Health Goal. This work plan details the milestones to be undertaken by staff to support City Council in reaching its articulated goal. Importantly, due to the scope and scale of the activities in this work plan, only some of these items can be completed within a two-year timeframe; many will take much longer. Much of the effort outlined in the attached work plan is both on-going initiatives that demonstrates action around our organizational values and programs that staff believe best meet Council’s goal. DISCUSSION: Staff would like City Council to consider whether the goal milestones have been interpreted correctly. 20 Page 2 of 2 ENVIRONMENTAL IMPACTS: The Aspen Sustainability Action Plan highlights the need for buildings to be sustainable and efficient. Sustainability and energy efficiency have been central considerations for the Burlingame Early Childhood Education Center and in thinking around the Armory redevelopment project. FINANCIAL/BUDGET IMPACTS: Each milestone in the Community Building and Health goal plan includes discussion of resources required, including financial resources. CITY MANAGER COMMENTS: EXHIBITS: A. Council Goal Work Plan – Community Building and Health 21 1 | P a g e Exhibit A – Council Goal Workplan Community Building and Health Community Building and Health: Strengthen the quality of life and well- being of residents, and promote commercial vitality of locally focused businesses.  This will be accomplished through: a.Exploring public-private and non-profit approaches to promote economic vitality Milestone: Project Scoping Work Session for P3 and NPO Project Description: In each iteration of the Aspen Area Community Plan since 1993, the community has identified economic vitality (alternatively referred to as economic sustainability in some planning documents) as a policy area of primary concern. Policy concerns related to the availability of basic goods and services, a diverse mix of uses and price points in the retail, service, and food and beverage sectors, and the perceived loss of “locally owned and locally serving business” have been common economic vitality themes in the community narrative. The guiding principal, dating back to the 1993 plan and carried forward in the 2000 and 2012 plans, is that, “The success of Aspen the Resort, depends on the success of Aspen the Community.” In the 2023 goal setting exercise, a majority of Council expressed a desire for policies promoting and expanding economic vitality be a staff focus area. In other communities of all sizes, public-private partnerships (PPP) and non-profit organizations (NPO) often play central roles in the promotion of economic vitality, expanding the capacity of the for-profit and governmental sectors. Staff has conceived of this goal element as a research project, followed by the development of policies and an action plan to support long-term work on economic vitality. First, staff requires Council define the issues of economic vitality, as they see it, provide direction of what issues in the economy Council is trying to solve for, and discuss how they see PPP and NPO fitting into those solutions. Timeline: Begin staff work in Q4 2023. Resource Needs: Planning staff will use existing resources to develop presentation and packet materials to support Council’s project scoping work session. Council Engagement: Work session in Q1 2024. 22 2 | P a g e Milestone: Public Private Partnerships and Nonprofit Organization Research Project Description: Staff proposes researching approaches in several comparable communities to PPP/NPO to build economic vitality and sustainability. The report will include information about PPP/NPO roles and responsibilities, structures, governance, and relationship to local government. That report will be presented to Council to inform policy making and the development of an action plan. Timeline: Develop scope of work and begin research project in Q1 2024. Report back to Council and conduct policy work sessions in summer 2024. Resource Needs: The City has historically not engaged in “economic development” work, as it is traditionally done in other communities.While the Planning staff are educated in the relationship between public policy, economics, and the built environment, there are not existing staff resources or expertise that specialize in economic development. Consultant support from firms specializing in PPP/NPO and economic development will be needed to support this project. Staff estimates such services will likely cost between $75,000 and $150,000 depending on Council’s final scope of work. Council Engagement: Work sessions summer 2024. Milestone: P3 and NPO Policy Development Project Description: Support Council exploration of policies and programs to aid in the development of PPP/NPO partner organizations. Develop policies to define the City’s role in supporting PPP/NPO economic vitality work. Identify existing potential non- governmental partners and conduct a gap analysis to identify areas of economic interest where no existing organizations exist. Timeline: Q3-4 2024. Resource Needs:Ongoing consultant support will be required to produce work product, develop public and Council-facing materials, and support policy making. Council Engagement: Work sessions in Q3-4 2024. 23 3 | P a g e b.Developing policies and regulations to ensure the timely completion of development projects and limit the impact of commercial vacancies on vitality, character, and revenue Milestone: Project Incentives Policy Research Project Description: In previous work sessions and the goal setting meeting, Council expressed a desire to create incentives and disincentives to ensure the timely completion of construction projects. Several delayed and mothballed commercial construction projects in recent years have impacted the economic, aesthetic, and social vibrancy of Aspen’s commercial zones. It is possible that such policies and regulations may be included in several sections of the Municipal Code, including Titles 8, 21, 26, and 29. First, Council input on problem statements, goals, and desired future conditions will be needed to inform the beginning of the process. Next, staff proposes consultant support to conduct research into policies implemented in other communities to address these issues. Timeline: Begin staff work in Q4 2023. Resource Needs: Contributions from the ComDev, Engineering, and Utilities staff may all be needed to support the scoping work session and future work. Consultant support will likely cost between $25,000 and $75,000, depending on Council’s desired scope of work. Council Engagement: Scoping work session with Council in Q4 2023. Milestone:Project Incentives Policy Development Project Description: Second, staff proposes that research be reported back to Council, along with staff and expert assessment of their applicability and effectiveness in Aspen’s development environment. That research and analysis can be used by Council in work session to develop policies and regulations. Timeline: Conduct research and analysis, and assemble report in Q1-2 2024. Resource Needs: ComDev, Engineering, and Utilities staff time, plus ongoing consultant services. Council Engagement: Work session Q2 2024 to review findings and direct staff on desired policy or code work. 24 4 | P a g e c.Designing and promoting opportunities for creating human connections among locals including the Armory renovation   Milestone: Armory redevelopment Project Description: Staff and City Council have discussed options for the Armory space for over a year. Staff discussed the remodel and reuse of the Armory in light of the community feedback and included several remodel options that looked at maintaining or changing the existing square footage of the building (currently +/- 19,000 sq. ft. on four levels) and the footprint/levels of the building. 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. During the May work session, high-level cost estimates were provided for each option. City Council preferred a ‘Somewhere in the Middle’ approach, estimated to be in the range of $18 - $23 million, more than the $7.5 million budget allocation for the life of the project. The next step was to move forward with developing funding options and explore the potential for outside funding sources. Council recognized interim space needs of ACRA and city staff, as well as the need to plan, design and entitle the project. With the interim needs, a five-year timeline to start construction was proposed (2026). Council did indicate to staff that they preferred a shorter timeline to start construction associated with the remodel. Based upon project constraints and the necessary steps required to execute a large remodel of a public facility in the downtown core, staff had anticipated a five-year timeline to plan, design and fund the remodel of the Armory, with construction to begin in 2026. The timeframe will allow for the programming, design, entitlement, permitting and funding of the project to be developed as well as any temporary landing space for city departments affected by the remodel of both the Main Street cabin and the Old Powerhouse. 25 5 | P a g e Timeline: Resource Needs: Staff will engage various design professionals to assess building space constraints, historic features, structural integrity, and constructability issues. Staff will also seek planning assistance to review and react to any zoning or historic preservation considerations. Funding for this project is still undetermined. As use and design decisions are finalized staff will return to council to determine funding strategies. Debt issuance may be required to meet Council/community goals on delivery of this project. Council Engagement: Council will be requested to participate in design charettes, financing decision making, final design and tenant considerations, and associated professional services contract approval to move this effort forward. Staff is planning for a Council work session in November intended to confirm the future programming and footprint of Armory Hall. 26 6 | P a g e Milestone: Providing opportunities for human connection through community- focused events Project Description: The Events Department is continuing its new focus on community events. Historically, the department focused on “participant” based events, or those where the participant signs up, pays to participate and results in an increase in visitor lodging. Community events are generally free and open to the public. This year, Events is adding the following community-focused events to the lineup to reach community members: Chill Out Wednesdays (free ice cream and campfire sing along songs on Sister Cities every Wednesday in July) Mac & Cheese. On September 9, the ever-popular Mac & Cheese Fest will return. It is free and open to the public and city staff is working to add other elements to the event, which will be held on Hopkins between Mill and Monarch The largest community-based event is July 4th. The department also produces the City Council-hosted Community Picnic and the free hot chocolate and s’mores on New Year’s Eve with kids' activities and entertainment. Part of the Owl Creek Chase Nordic event is a non-competitive, non-timed, free component of the event. Last year, the Events Department started the “Kick off to Winter” - hosted at the Wheeler - with Pete McBride as the featured speaker. Timeline: New community-focused events have been happening in July and will happen in September. The Kickoff to Winter event is still being scheduled for this winter. Resource Needs: Existing resources Council Engagement: Invitation to attend and participate in events 27 7 | P a g e Milestone: Creating human connections among locals through strategic partnerships Project Description: The City of Aspen's Communications Department is spearheading an initiative to form strategic partnerships with entities across public, non-profit, and private sectors. This project is built on the recognition that collaborating with external organizations can amplify our impact, enhance service delivery, and result in more effective utilization of resources. Moving forward, the Communications Department will take the lead in shaping a new strategy for strategic partnerships, guiding the city's approach and helping to identify synergies. Here is how we plan to undertake this task: -Conducting a Thorough Assessment: To identify potential partners in the public, non-profit, and private sectors, a comprehensive and methodical assessment will be carried out. This evaluation will be designed to identify those entities whose values, mission, and areas of expertise align with our own. This alignment is critical, as it ensures that the partnerships, we forge are both beneficial and effective, enhancing our capacity to serve the community. -Establishing a City-Wide Partnership Model: Following the assessment, a clear and comprehensive city-wide partnership model will be established. This framework will serve as the blueprint for future collaborations, ensuring that they are integrated smoothly and effectively. The model will be designed to streamline the processes of identifying, assessing, and collaborating with potential partners. -Fostering Synergies: As we identify potential partners and build our partnership model, a critical part of our role will be to actively search for synergies. These may exist in shared goals, overlapping areas of expertise, or joint projects that could be mutually beneficial. The Communications Department will work to facilitate these synergies, bringing different entities together in a cohesive and productive manner. Timeline:Develop scope of work and begin research project in Q4 2023 Resource Needs:Existing resources Council Engagement:Council will be updated in Q2 of 2024. 28 8 | P a g e Milestone: Providing opportunities for human connection through the arts. Milestone: Providing opportunities for human connection through the arts. Project Description: Red Brick Center for the Arts believes the arts are a powerful tool as they not only provide opportunity for human expression, creativity, and learning, they also create avenues to connect with others and have meaningful experiences. And as the department’s mission states that through the exchange of ideas and shared experiences a community can thrive, Red Brick Arts serves this work through a range of programming and offerings including: Centralized nonprofit office spaces and artist’s studios in a supportive and collaborative environment Youth art classes and camps at an affordable rate in a safe and welcoming environment Scholarship program to assure cost is not a barrier for participation Adult art classes for beginners to experts at various price points Gallery exhibitions and programming for local and regional artists that encourage professional growth and facilitate relationship building between artists Community events promoting the arts and inviting all in a welcoming and inclusive environment Dance studio and conference room for rent at an affordable rate Spotlight on youth and family programming happening this year: Responsive to the needs of local families, Red Brick Arts will host after school youth art classes on early release Wednesdays. Building on the success of a new initiative, Red Brick Arts will continue to host family art nights. Red Brick Arts will continue to work with partners such as the Buddy Program, Aspen Center for Environmental Studies, and Aspen Family Connection to collaborate on efforts that support each other’s mission through program development. As the Red Brick is an active hub with many diverse uses and programming, messy vitality and collaboration is at its core. The Red Brick will continue in its work to develop arts programming and events that are responsive to the community and serve the need for human connection. Timeline:Community focus arts programming is on-going. Resource Needs:Existing resources. Council Engagement:Invitation to attend and participate in classes and events. 29 9 | P a g e Milestone: Creating community connections for locals at the Wheeler Opera House Project Description: Our work is grounded in our vision: “At the Wheeler Opera House, we set the stage for connections that create memories for our audiences, artists, and greater Aspen community.” As the only City-owned facility which can accommodate large convenings of residents, the Wheeler’s historic 500-seat theatre is used to gather our community in an astonishing variety of ways: Affordable and dynamic performances by artists and comedians from across the globe Through affordable Wheeler rental rates, performances by beloved local arts organizations including Aspen Music Festival and School, Aspen Film, Jazz Aspen Snowmass, Aspen Community Theatre, Aspen Chorale Society, Aspen Fringe Festival, Shining Mountains Film Festival, Colorado Mountain College, Aspen Historical Society Artistic incubator for local artists, including DanceAspen, Inspire Aspen’s Aspen Rocks!, local skiing and boarding filmmakers “Town hall” for residents to meet and discuss important local issues with partner organizations such as Aspen Public Radio and the Aspen Institute on a myriad of topics including the Entrance to Aspen, Aspen Psychedelics Symposium, Women in Media, and many others Mountain Culture celebrations – Warren Miller, Teton Gravity, Fly Fishing Tour films, Ski Co meetings and award ceremonies Traditional annual student performances by local schools Community event partnerships including ACRA and the Food & Wine Classic, the City’s Special Events Department’s new “Welcome to Winter!” event Volunteer usher program utilizing over 125 volunteers throughout the year New focus in the upcoming year will be given to family programming and inclusion efforts, including: Student matinees for local elementary and middle schools Mainstage family programs introducing families to international artists Programming designed to welcome our Spanish-speaking community to the Wheeler Programming designed to welcome those with developmental disabilities to the Wheeler Timeline: The Wheeler is open and programs twelve months each year. New focus programming will begin in September and be featured throughout the regular fall – late spring Wheeler Presents season. Resource Needs: Existing resources provide the support our programs require Council Engagement: Attendance at performances and participation in community programs such as the “Welcome to Winter!” event encouraged and welcome. 30 10 | P a g e Milestone: Creation of community connections for locals through Recreation Project Description:At Aspen Recreation, our mission is to foster vibrant and inclusive community engagement through innovative programs, events and our multiple facilities. We are dedicated to empowering individuals of all ages and backgrounds to lead active, healthy, and fulfilling lives, while nurturing a strong sense of belonging and connection among our residents. Our Commitment: Community-Centric Approach: We strive to build strong connections with the Aspen community by actively seeking their input, understanding their diverse needs, and co-creating programs and facilities that cater to their interests and aspirations. Our ongoing programming caters to residents from birth through our aging adults. Throughout the year we also host many free community events such as: ▫Back to School 3 on 3 Basketball Tournament in partnership with the Aspen Elks Lodge. This event is to promote a healthy, active kick start to the school season. Youth that participate will receive a backpack and school supplies. ▫Truck or Treat: Is a Halloween event held at the Aspen Recreation Center for families to take their children trick or treating in a safe and fun environment. ▫Community Health Day is a partnership with local nonprofits within the valley to promote the importance of mental, physical and nutritional health. We open up the Aspen Recreation Center from 9am-2pm for workshops, classes, vendors and open play. Accessibility and Affordability: We are committed to ensuring that all members of our community have equal access to our programs and facilities, regardless of age, ability, or socioeconomic background. We have a scholarship program in place to help with the cost of programs or memberships. We also strive to create an affordable, secure and enjoyable setting in our after-school programs and day camps for local working families. Through these principles, Aspen Recreation aspires to be a leading force in creating a connected and thriving community that cherishes health, wellness, and the joy of shared experiences. Timeline: Recreation programming, events and facilities are ongoing throughout the year. Resource Needs:Existing resources Council Engagement: Invitation to attend and participate in events 31 11 | P a g e d.Partnering with local health and human service nonprofit organizations through the city grants program Milestone: Health and Human Services grants program Project Description: The City of Aspen currently maintains a grant program benefiting non-profit organizations providing health and human services (HHS) to the Aspen community. Additionally, the city is piloting a capacity building program for HHS organizations designed to provide new and effective methods of support to organizations providing critical community services. In this pilot program, capacity building consulting services are provided directly to HHS non-profit organizations through a competitive application process in a partnership between the city and Human Service Innovations, LLC. The pilot program allows for a cohort of up to four organizations, represented by their Executive Director and Board Chair, to go through coaching sessions, workshops, and peer learning groups resulting in robust, strategic and operational action plans, process improvements, and potential structural changes, with a focus on long-term sustainability and impact in the community. Timeline: The HHS capacity building pilot program is scheduled to run for six months, through December of 2023. Resource Needs: Staff anticipates a $75,000 request for this grant program Council Engagement:As part of the 2024 budget process, Council will be presented with an additional funding request related to continuation of the HHS capacity building grant program. 32 12 | P a g e Milestone: Continuous improvement of the HSO and PACT program. Project Description:The Aspen Police Department Human Service Officer (HSO) and Pitkin Area Co-Responder Teams (PACT) jointly respond to calls where people may be experiencing mental health challenges and/or substance abuse programs. Staff are reviewing previous year’s outcomes, nationally recognized best practices, and setting up a steering committee to develop key recommendations about future enhancements to the co-responder program. Continual alignment with organizational values is critical. Timeline: Staff anticipates having key recommendations by the end of Q2 2024. Resource Needs: Staff will utilize in-house resources to evaluate the current program and develop key recommendations. Future requests for additional resources may be necessary. e.Adding physical capacity to increase available childcare spaces through projects such as the Burlingame Child Center Milestone:Undertake and complete the land use review process to gain entitlements for the Burlingame Early Childhood Education (ECE) center. Project Description: Based on Council direction received at the December 5, 2022 work session, a change order was approved by City Council on April 11th allowing for a modification of the design services scope for this project to solely gain land use entitlements for the early childhood education center. The scope of services has been modified to include only those items necessary for the land use review process and receive entitlements for the project. Timeline:It is anticipated that a land use application will be submitted to the Community Development department in August of Q3. Final entitlements are anticipated in Q2 of 2024. Resource Needs:No changes necessary as the scope and budget was amended to gain the land use entitlements portion of this project. Council Engagement:Council will be reviewing the land use application as part of the review process after the application is reviewed by the Planning and Zoning Commission. The City Council is the final decision maker on the land use review. 33 13 | P a g e f. Developing policies and/or regulations that incentivize and promote desirable uses in our community’s commercial spaces. Milestone: Define issues and desired outcomes in commercial sector and commercial zone districts. Project Description: This is a broad issue, encompassing several overlapping topics. In staff’s view, there are several unifying themes related to this subgoal. They include commercial core businesses and use mix in downtown buildings, temporary uses and structures to facilitate business activities on public and private property, related zoning and energy code regulations, e.g. lighting, signage, amplified sound, outdoor heaters and commercial design, and the relationship between the development review process and use mix. These topics have been central to the community dialogue about business and the commercial core for decades. As far back as the 1983 Plan, the Aspen Area Community Plan references “locally owned and locally serving businesses” and “economic sustainability and vitality” and “downtown character” as topics of community concern. As a result, there is an extensive body of work supporting this community dialogue upon which staff and the community can draw to inform work on this Council goal. Staff plans to bring the latest iteration of this community dialogue with a Council conversation to identify current issues, define issue statements, and describe desired outcomes. This will include assessment of the current commercial environment, identification of trends contributing to that environment, discussion of relationships to other Council goals and AACO policies, and examples from other communities about potential responses. Timeline: Beginning Q2 2023 Resource Needs: Existing staff resources Council Engagement: Work session Milestone: Support Council in policy making and regulatory amendments. Project Description: Following discussions to define issues and desired future conditions, staff will work with Council to develop policy and regulatory responses to support that direction. It is likely that to achieve Council’s goals, Municipal Code amendments will be required. Depending on the scope of those amendments, consultant services will be necessary, as these are complex topics with meaningful implications for community character, economic sustainability, and zoning and land use outcomes. The Land Use Code also requires that amendments be supported by robust community engagement. The scope and impact of desired LUC amendments will dictate the level of consultant support required. 34 14 | P a g e Additionally, ComDev staff time may be significantly constrained by work on other Council goals, internal initiatives, and the delivery of core services. Should Council desire a broad scope on this particular goal while ComDev staff is engaged in work on the Customer Service, Affordable Housing, Environmental, and Community Health goal elements also desired by Council, additional staff resources may be necessary. These are complex topics touching several areas of the Municipal Code and City services. They are also potentially economically and socially consequential. As such, technical expertise and staff attention are essential to success. Timeline: Follow up to work session in Q3 2024 Resource Needs:TBD depending on scope Council Engagement:additional work sessions and Council meetings depending on scope. 35