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HomeMy WebLinkAboutminutes.council.19910513Regular Meeting Aspen City Council May 13, 1991 PROCLAMATION - National Preservation Week 1 PROCLAMATION - Public Works Week 1 PROCLAMATION - National Transit Appreciation Day 1 PROCLAMATION - Stuart and Isabel Mace 1 CITIZEN COMMENTS 1 COUNCILMEMBERS COMMENTS 2 CONSENT CALENDAR 3 SPECIAL EVENT PERMIT - Jazz Aspen Festival 4 LIQUOR LICENSE RENEWAL - O'Leary's 4 REQUEST TO MODIFY CHANGED LIQUOR LICENSE PREMISES - Laur- etta's 4 ORDINANCE #13, SERIES OF 1991 - Land Use Code Amendments ORDINANCE #14, SERIES OF 1991 - Aspen Meadows Final SPA 4 ORDINANCE #9, SERIES OF 1991 - Code Amendment Section 7-602 13 ORDINANCE #11, SERIES OF 1991 - Historic Designations 13 HOUSING AUTHORITY 1990 SUPPLEMENTAL BUDGET RESOLUTION 14 ORDINANCE #15, SERIES OF 1991 - Lily Reid Housing GMQS Exemption and Vested Right 14 ORDINANCE ##16, SERIES OF 1991 - Code Amendment, Lost and Confiscated Property 16 RESOLUTION #19, SERIES OF 1991 - Mall Leases 17 18 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Pendleton, Tuite, Peters and Gassman present. PROCLAMATION - National Preservation Week Mayor Stirling and Council declared the week of May 12 to 18 National Historic Preservation week. Roxanne Eflin, planning office, outlined the events that will occur during the week. PROCLAMATION - Public Works Week Mayor Stirling and Council proclaimed May 19 to 25 public works week to honor employees who clean and fix the streets, sweep snow, take care of electricity and deliver water. There will be tours of the Ruedi and Maroon Creek hydropower facilities as well as a tour of the city's water plant. Bob Gish, public works director, thanked Council for their continued support. PROCLAMATION - National Transit Appreciation Day Mayor Stirling and Council proclaimed May 15 as National Transit Appreciation Day and presented the proclamation to Dan Blankenship of RFTA. Blankenship told Council the bus service will be free throughout the valley on May 15th. PROCLAMATION - Stuart and Isabel Mace Mayor Stirling and Council presented a proclamation to Stuart and Isabel Mace to their invaluable service and immeasurable contribu- tion to the town of Ashcroft, the Castle Creek Valley and the community of Aspen. CITIZEN COMMENTS 1. Charles Hopton told Council he is a member of the citizen's advisory committee with the forest service working on the draft EIS for the Conundrum/Marble project. Hopton said there has been an absence of anyone from the city. The city should be aware of the ramifications on the city' s water supply if this mine should go in . In the draft EIS, a lot of concerns are stressed about the water quality and quantity. Hopton presented Council with letters and a draft EIS. Mayor Stirling moved to direct the city manager to evaluate the information and come back no later than June 10 to give Council some idea of recommendations; seconded by Councilman Peters. Carol O'Dowd, city manager, said the planning staff is preparing comments on this issue. All in favor, motion carried. Rectular Meeting Aspen City Council _ ___ _ May 13 , 1991 2. Michael Hutton requested Council issue a proclamation as May is national bicycle month and have May 31st "Bike to Work" day and encourage all citizens to ride their bicycles to work. Mayor Stirling moved to pass a proclamation declaring May 31 "Bike to Work" day; seconded by Councilman Peters. All in favor, motion carried. 3. Eloise Ilgen said she is hoping that Aspen will have a proclamation to make Buena Vista Aspen's sister correctional facility. Ms. Ilgen told Council there is a meeting scheduled in Aspen for May 17 with the department of corrections. Ms. Ilgen said representatives from law enforcement and local clergy will be attending this meeting. 4. Phoebe Ryerson said the EPA thing on the Smuggler has been a nightmare to a lot of people. Ms. Ryerson said all of Aspen mountain is an ex-mining area and will be vulnerable to EPA investigations. The county and city should say enough is enough. Ms. Ryerson told Council there was another accident and she hopes there will be no further delays in helping highway 82 become 4- lanes. COUNCILMEMBERS COMMENTS 1. Councilman Tuite told Council the County Commissioners have set aside time, May 21 at 3 p.m., to meet with current and new Council to discuss the EPA, what is being done and why. 2. Councilwoman Pendleton said she would like to pursue looking at locations around town with the idea of buying areas for parks and to have a presentation for budget time. Councilwoman Pendleton said more parks are needed. Councilman Peters agreed there are not enough passive and active parks. Carol O'Dowd, city manager, reminded Council the Neighborhood Advisory Committee has already done some work, which could connect with this. Council asked for follow up on this for a work session in June. 3. Mayor Stirling noted the city received an answer from Limon in response to the city's suggestion of sharing some tangible items Limon is struggling to pull together their downtown area. Mayor Stirling suggested donating two trees in the spirit of friendship and cooperation. Mayor Stirling moved out of the contingency fund for 1991 to allocate $1800 to give two street trees and grates to the town of Limon; seconded by Councilman Gassman. All in favor, motion carried. 2 Regular Meeting Aspen City Council May 13, 1991 4. Mayor Stirling said he met with the Mayor of Snowmass Village. The 2 groups should schedule a work session to talk about transit issues related to corridors between Snowmass and Aspen. Councilman Peters said this would be a more appropriately discussed with the County Commissioners . Councilman Tuite said the Commissioners have met with Snowmass Village and have discussed the transportation corridors. Councilman Tuite said there is an invitation to the city of Aspen to participate in these discussions. Mayor Stirling suggested June 17th as the initial meeting 5. Mayor Stirling said the next school sites meeting is June 11. The planning director has been charged to look at all issues related to the red brick site in the way the yellow brick site has been analyzed. The yellow brick building has been designated as the early learning center. 6. Mayor Stirling announced that June 21 there will be an energy session. Tom Baker, assistant city manager, said this meeting will be to begin a conservation effort. Representatives from lodge, commercial and residential groups have been invited and will be making presentations on efficiency. Baker said the first effort will be to increase efficiency within buildings. 7. Mayor Stirling said the Ritz continued hearing on the proposed amendment of Section M of the PUD has been changed to May 21st at 5 p.m. 8. Carol O'Dowd, city manager, told Council item (g) on the consent calendar, Resolution Extending Recordation Deadline for Devore, can be deleted as it has been taken care of. 9. Mayor Stirling requested the Tagert Lot Split Plat Amendment be tabled to May 28th. 10. Carol O'Dowd, city manager, told Council the Neighborhood Advisory Committee is sponsoring a bicycle safety seminar in conjunction with the police department and RFTA May 2 3 at 4 p . m. at the parking plaza. CONSENT CALENDAR Councilman Peters moved to approve the consent calendar as amended; seconded by Councilman Tuite. The consent calendar is A. Minutes - April 22, 29, 1991 B. Council Meeting; May 28th C. Purchase Fire Hydrant and Repair Materials D. Resolution #17, 1991 - Solid Waste IGA E. Aspen Youth Center Request to Use City Property F. Roaring Fork Kennel Club Request to use City Property G. Golf Course Capital Improvements 3 Regular Meeting Aspen City Council May 13, 1991 H. Aspen Food & Wine Classic Approvals I. Section M PUD Amendment Aspen Mountain Lodge Continuance J. Child Care Task Force Appointees (These appointees are Shirley Ritter, Chalmers Morse, Tracy Duhe, Bill Mitchell, Chuck Frias, and Linda Karaus) All in favor, motion carried. SPECIAL EVENT PERMIT - Jazz Aspen Festival Councilman Peters moved to approve the vending agreement and the special event permit for Jazz Aspen Festival; seconded by Council- woman Pendleton. All in favor, motion carried. LIQUOR LICENSE RENEWAL - O'Leary's Councilman Peters moved to approve the liquor license renewal; seconded by Councilman Tuite. All in favor, motion carried. REQUEST TO MODIFY CHANGED LIQUOR LICENSE PREMISES - Lauretta's Councilman Peters moved to approve the change in liquor licensed premises for Lauretta's; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #13, SERIES OF 1991 - Land Use Code Amendments ORDINANCE #14, SERIES OF 1991 - Aspen Meadows Final SPA Amy Margerum, planning director, stated this is a public hearing for the Aspen Meadows SPA final development plan and second reading of Ordinances #13 and #14. Ms. Margerum entered into the record the certificates of mailing and public hearing notice as well as the minutes of April 29. Ms. Margerum submitted into the record more detailed information that was part of the HPC application submitted and since the last hearing. Ms. Margerum told Council the HPC did approve the residential portion of the Aspen Meadows SPA. HPC will take final action on the M.A.A. and academic proposals on May 22 at 5 p.m. Ms. Margerum recommended approval with the conditions outlined in Ordinance #13 and #14. All concerns raised by staff are either addressed in conditions of approval or are noted in staff reports of April 29 and May 13. Mayor Stirling said the first Meadows master plan was submitted in 1974. In 1979 the property was sold to Hans Cantrup and until 1983 there was fundamentally a stalemate and no contact between the Institute and the city. Mayor Stirling said he began discussions with the Institute in 1983. In 1985 John Roberts purchased Cantrup's property. Roberts submitted a plan, Aspen Mountain Lodge, which did not include the Meadows. This was approved in 1985. In 1986 a deed was approved by Council to the Aspen Institute which declared their ownership of 20 acres on the east 4 Regular Meeting Aspen City Council May 13, 1991 side. In that agreement, a joint master plan was required so the entire parcel had to be planned at once. In 1987, the Savanah group took over the properties. The consortium was formed in 1989. They made a development application to Council in 1989. Council moved through a master plan with the applicants and community. In August 1990 a new proposal was brought to Council, which lead to this SPA submission. Mayor Stirling said the 25 acres of riparian land will be purchased by the city and kept as open space, the lodge base will be expanded, new townhouses will be added, there will be deed restricted open space, four single family lots, underground parking, preservation of the Bauhaus architecture in certain instances, a proposed rehearsal facility, and a Seventh street access. Perry Harvey, representing Savanah and the consortium in the development of this plan, was given the oath. Harvey told Council this plan has received conceptual approval from Council, P & Z and HPC as well as final HPC approval for the residential component. The M.A.A. and Institute facilities are in the process of final approval before HPC. Harvey noted the format followed in this process has been to internalize this and to preserve the sanctity of the campus. The decision was to keep the development on the external parts of the campus and to preserve the open space in the center of the campus and the feeling of openness. The riparian area was zoned for 1 residence per 10 acres; the agreement is to make this 25 acres city-owned and deed restricted as park. The overall plan creates a series of lots; (1) Institute property of about 40 acres including lodges, restaurant, tennis courts, race track; (2) M.A.A. parcel of existing tent, new rehearsal facility, parking lots; (3) the physics institute to give them ownership of their buildings and to preserve their circle of serenity; (4) open space sold to the city; (5) the 8 existing trustee town houses, adding 3 trustee town houses. These will all be expanded from 1750 square feet to 2500 square feet; (6) 7 new town houses across from the old tennis courts, which will be 3-bedroom 2500 square feet; (7) four single family home site. The plan involves a new access road, an extension of Seventh Street paralleling the Meadows road to the east. The applicants have worked on a transportation plan, which has van service, re-routed bus service, bike rental program internal to the Institute and lodging facilities, bike storage to encourage people to use bike when attending concerts. The Meadows road will be retained by the city but will be cut down to a pedestrian/bike trail. The property will be ringed with trails, connected to the Rio Grande. There will be parking underground at the tennis courts for 96 cars. Harvey pointed out the residential town houses will have 1 parking space per bedroom, which will be earth bermed. The carports will 5 Regular Meeting Aspen City Council May 13, 1991 be put into the berms. Harvey said the concern with the single family houses was to not create a wall with the 4 houses. The sites have been turned so there is not rigid conformity. Initially these were to be 15,000 square foot lots. Council requested these be cut down to 12 , 000 square feet so 3 , 000 square feet on the north of the lots will preserve the open space of the track. Harvey said the rear year setback will be 15 feet rather than 10 feet and deed restricted so it remains as open space. The covenants state that 50 percent of the side yards have to remain in a natural state and not be vegetated. Harvey said the building envelope ranges from 6100 to 6400 square feet, which is a substantial decrease from what R-15 zone district allows. HPC has recommended that the envelopes be maintained and through homeowner covenants variations in roof lines and the opportunity to be spread out so these are not boxes. Harvey said they are asking for a variation to push the side yard to 0 lot line on one house on the east and on one house on the west . This allows visual site lines between the houses. Harvey showed the trustee houses with parking into the hillside. The current carport will be an entry garden. Harvey showed Council where the tennis town houses will be located. Harvey marked his drawings into the record as 1, 2, 3, and 4. Harry Teague was given the oath. Teague entered his slides from the April 29th meeting into the record as exhibit 5. Teague said the master plan includes 3 modifications to the M.A.A. facilities . One is changing the seating configuration inside the tent; another is a backstage addition; and the third is the rehearsal facility. Teague said the number of seats inside the tent will be increased to just over 2,000. The tent configuration will not be changed. The backstage addition is adding 1500 square feet, 30 by 50 feet which will include facilities for performers and some additional bathroom for concert goers. Teague told Council the exterior of the tent will be modified with some berms which will prevent noise from entering the tent and will also provide a better outdoor experience. Teague reminded Council during the master plan the rehearsal facility was shown in two places, its location to be resolved during the final development process. The planning office has recommended the facility be placed on the east side for several reasons; (1) it will be further from the Institute and Physic Institute; (2) it would have limited visual and physical imposition on the open space to the west of the tent which then extends into the race track open space; ( 3 ) it will provide better vehicular access and is closer to public parking. Teague said one issue that has come up is the encroachment on the outdoor seating with the rehearsal facility. Teague pointed out 6 Regular Meeting Aspen City Council May 13, 1991 that the outdoor seating has been reconfigured and will increase about 50 percent the manicured lawn area available for seating. Teague showed the available outdoor seating on a rendering of the area. Half of the eastern lawn seating will remain intact. All vegetation to the east of the tent will remain intact except one bush. The rehearsal facility is 11,000 square feet providing 500 seats. The facility will primarily be underground. Teague presented a drawing illustrating the relationship of the new facility to the tent and its relative height. The new facility will be more than 15 feet below the highest point of the tent. Teague showed various elevations of the tent, a plan of the facility including the public area with the roll up glass doors, the backstage facility and lower level. Teague presented his drawings as exhibit 6 for the record. Fred Smith was given the oath. Smith outlined the Aspen Insti- tute's properties; the parking garage, the administration building and restaurant facility, the existing 3 lodge buildings, the addition of 3 new buildings and the renovation of the Kresge building with an additional 50 lodge rooms for a total of 110 rooms. Smith pointed out the tennis facility which will be replaced with 6 new courts. The first court will be on grade with the Meadows road; the next two courts will be decked over 96 parking spaces. The grade at the southernmost end of the parking structure will be at the Aspen Meadows road. The entrance to the parking structure will be approximately where the pro shop currently is. There will also be storage for 60 bikes. At the highest point the parking structure will be 6 feet from natural grade. Smith noted the parking will be naturally ventilated and partially obscured from site by rock rubble walls, the new pro shop and restrooms. The second major building is the restaurant/administration building. Smith told Council the intention is to leave the building pretty much the way it is, close in the second story deck. No addition will be made to the footprint. The next predominant building is the health club which will be expanded by 1800 square feet, all on the back side. The front will have no exterior changes. Smith told Council the changes will be to provide an expanded health club. Last are the Institute's lodging facilities which were designed by Herbert Bayer in the Bauhaus architectural style. Smith said the goals for the Institute's properties are to preserve the landscap- ing and to enhance the open space areas. Smith said the parking under the tennis courts will allow the areas historically used for parking in front of the lodge unit to be opened up. The lodge units will be two stories as they are today. Smith said these buildings were conceptually approved by HPC and final review will be May 22nd. Smith entered his drawings into the record as exhibit 7 Regular Meeting __Aspen City Council May 13, 1991 7. Smith told Council about 14 trees will have to be removed. These will be replaced caliper for caliper with healthy trees in new locations and will keep the landscaped character of the institute. Harvey told Council the M.A.A. parking lot is being reconfigured and the number of spaces will be increased. The transit plan has separated pedestrian, bicycle, auto and bus traffic to minimize conflicts. Gideon Kaufman, representing the Aspen Institute, reminded Council the master plan designated two alternative sites for the rehearsal facility. The eastern site received recommendations of approval from the planning office, P & Z and Council. The selection of the eastern site was accomplished with a public hearing with comments from citizens preferring the eastern, western and no location. Kaufman requested Council confirm their earlier decision for the eastern location. Kaufman said the other issue is the need and safety of the Meadows road. Kaufman said the classification of the new Meadows road as a local street was determined by a qualified traffic engineer, Bob Feldsburg. The road was designed by engineers; the intersections meet all accepted safety requirements. The variations being sought from zoning standards are acceptable from a safety and design perspective. The variations are needed to maintain the rural character and nature of the roads and maintain the safe design. The city staff has concurred with the variations. The variations have only been sought where the applicants felt it was inappropri- ate to design a road that did not fit within the character of the neighborhood. A. J. Zabbia and Bob Feldsburg were given the oath. Zabbia told Council the road intersections have evolved as the criteria has changed, such as existing utilities, safety, city design standards, trees, topography and irrigation ditches. Zabbia presented a map of the roads outlining the fill areas and cut areas; a profile for the roads conforming to city standards; a configuration of old Meadows road. Feldsberg submitted a copy of his qualifications for the record. Feldsberg said his role has been to assist the transportation committee in developing a traffic mitigation plan; they were also involved in the conceptual master plan in selecting the access route to the property, recommending Seventh street be the primary access to the property. Feldsberg said another issue they became involved in is trip generation estimates related to the project. Based on these estimates is how Feldsberg has defined the classification of the road as a "local" road. Feldsberg told Council he looked at volumes and function of the road. Feldsberg said the trip generations out of the Meadows were estimated at 1100 vehicle trips per day using the city's trip generation without the 8 Regular Meeting Ashen Citv Council Mav 13, 1991 mitigation plan. The mitigation plan could be successful in reducing these trips by 25 to 30 percent. Meadows road is serving a function of providing local access to a specific activity area and individual lots, which says functionally this is a local road. Feldsberg said a finding of fact should be made by Council that this is a "local" road. Feldsberg opined the design of the road is acceptable and will operate safety. The alternative before Council dealing with Meadows road and the intersection represents the best combination of all objectives and variables that need to be taken into account. Feldsberg said Seventh street is the best connection up to the existing and new highway 82. Kaufman said the last issue is the sufficiency of the subdivision and SPA final plats. Kaufman said Aspen land use approvals are an evolutionary process. Kaufman said there has been input from staff, P & Z, HPC and Council as well as comments from citizens. As a result the plats change and are modified. The plat that ultimately gets recorded shows only similarity to the original plat. Kaufman noted the plat is only one part of the applicant's platting documents. Kaufman said the only things not available at this time are TV and electrical routing and working drawings for every complete segment of the road. The applicants have been focusing on the intersections; when these are finalized the working drawings for the whole road can be done. Kaufman told Council as items are finalized, they are added to the plats and drawings. Kaufman said what is important is that the reviewing bodies are aware of what they are approving and modifying. Kaufman said there have been countless meetings between the applicant, staff, public, HPC, P & Z and Council. Every element of the plan has been reviewed in detail. Kaufman said this process has met the spirit of the intent of the law and sufficient detailed information has been made available to all bodies and to the public to evaluate each and every element of the application. Kaufman said the scrutiny of this project has been unprecedented; the public, P & Z and Council are fully aware of all elements of the plan. Councilman Peters asked if Savanah owns this property outright, and are there any liens outstanding against the property. Harvey answered that Savanah owns the property outright. There is a lien by Savanah to one of the general partners; there is no outside lien. Councilman Peters asked if there is an agreement between the partners that the lien be released when the final plat is filed so the subdivision can be consummated. Harvey said there are written understandings by both partners that they will intend to proceed with the approval process and to transfer the lands free and clear of any liens. Councilman Peters asked if there is a way to make that agreement part of this record. Harvey said the final plat and SPA signatures on behalf of the partnership will satisfy that. Harvey said the transfer will be unencumbered. Councilman Peters asked if the long standing tradition of informal and free outdoor 9 Regular Meeting Aspen Citv Council Mav 13, 1991 seating for music festival activities at the tent continue. Robert Harth, M.A.A. director, said yes. Mayor Stirling opened the public hearing on Ordinance #13, Series of 1991, land use code amendments. Mayor Stirling pointed out this adds new zone districts to the Municipal Code. These new zones were inspired by the submittal of the Aspen Meadows. This also amends the growth management quota system for essential public facilities. John Doremus said he feels the race track area being zoned to Wildlife preservation is inappropriate as it is surrounded on 3 sides by fairly intense development. Doremus said open space would be a more appropriate zone. Doremus said if this is an important wildlife area and it is important to retain it in it's present state, how can the city consider a storm water retention facility on the race track. Caswall pointed out Ordinance #13 does not rezone any property; it creates various zoning district amendments and amendments to the land use code. Doremus said storm retention facilities are a use by special review and would be totally inappropriate for wildlife preservation zone. Tom Cardamone favors the new wildlife preservation zone. This would also be appropriate for Hallam Lake when it is annexed into the city. Cardamone pointed out the 25 acres of riparian land is extremely valuable to wildlife. Cardamone said the race track would be of secondary importance to wildlife; however, the race track should be preserved as much as possible. Harvey pointed out in open space and wildlife preservation, permitted uses do not indicate underground utility uses. Harvey asked if this is a blanket approved use in any zone district. Staff said yes. Harvey said the applicants have only proposed underground storm water retention facilities. The applicants have proposed the city be required to put their storm water detention underground. Harvey said this easement has now consumed the entire race track area. Harvey urged Council to remove surface storm water detention as a conditional use in the WP zone district. Chuck Roth, city engineer, told Council the 1973 urban runoff plan was adopted by Council and is part of the municipal code. Any subdivision is required to comply with this section. Roth told Council an easement has been identified in the race track area. This would be a storm runoff detention pond for the entire west end of Aspen, not just this project Roth said the clean water act is imminent. Ms. Margerum noted i?~'could be a great cost to the city if the city were absolutely limited to underground and not surface detention ponds. If this is a conditional use, it will have to undergo a public hearing process and the development will have to meet the intent of the zone district. Ms. Margerum said this 10 Regular Meeting Aspen City Council May 13, 1991 should be assurance for the future that this will not be a monolithic structure. Phoebe Ryerson asked if trails are permissi- ble in the WP zone. Mayor Stirling said they are possible. Caswall reminded Council this is an ordinance of general applica- tion and storm detention ponds may fit in other WP zones, not just the Meadows. Councilwoman Pendleton asked if this should also be a conditional use in the open space zone. Ms. Margerum said this is an appropriate addition. Councilman Peters asked if there are other zone district that allow this use. Caswall said Aspen has been developed to the point where there is no place left to develop storm water detention facilities which will be necessary to meet federal guidelines to maintain the quality of the rivers in the area. Gideon Kaufman requested a language change on the bottom of page 5, paragraph 3 to read, "such development from the GMQS and from some or all mitigation requirements". Caswall said this clarifies the intent. Charles Collins pointed out permitted uses states, "any uses approved within a final development plan" and any use is rather a broad conclusion. Uses are normally specific. Collins said if the permitted uses are going to be amended, they should be specific. Ms. Margerum said the intent is that the property would have an SPA overlay. The SPA overlay allows one to vary any uses as long they are approved by Council. Ms. Margerum said there are very limited properties in the city that have an SPA overlay on them. Ms. Margerum said the reason this is included is that on a piece of property where there is an SPA overlay, one is allowed to vary uses. If the underlying zoning is academic, staff wanted to make sure this was not construed as non-conforming with the underlying zone district. The purpose is to insure the uses are not perceived by a f financial institute as being non-conforming with the underlying zoning. Collins said this ordinance appears to be mixed in a custom-like manner for this particular application. Collins said this will have implications for all applications before the city. Ms. Margerum told Council staff is recommending the land use code be amended to allow the subdivision regulations be varied if there is an SPA overlay. This is to allow staff and applicants be a little more creative while still maintain the safety and public health needs, especially with respect to roads. Ms. Margerum said this would allow narrower roads and lower development needs and to do things that are not necessarily appropriate in a major subdivision, certain engineering design standards that would not be appropriate in an area where the city is trying to maintain the rural charac- ter. Ms. Margerum recommended the code be amended to allow the strict subdivision standards be gotten around when there is an SPA overlay. 11 Rectular Meeting __ Aspen Citv Council Mav 13. 1991 Ms. Margerum told Council the code amendment allows for discretion on Council's part to exempt an essential public facility from the growth management competition, which is already allowed in the code as well as from some or all of the mitigation requirements. This is done on a case by case basis. Kaufman pointed out the ability to vary uses presently exists under an SPA. The proposed change is the language in design standards of section 7-104(c)(4). Collins asked about the language on page 5, "existing non-profit entities may be exempt from GMQS" and questioned the wording as selective or prejudicial. Collins asked if the existing non-profits may be grandfathered. Ms. Margerum agreed with striking the word "existing". Connie Harvey said stating development for a non- profit entity can be exempt from GMQS and mitigation requirements could be dangerous. Ms. Harvey said there should be restrictions. People may create non-profit organizations to get around this. Mayor Stirling said this is a good warning; this is at the discretion of Council after a public hearing. Mayor Stirling closed the public hearing. Councilwoman Pendleton moved to adopt Ordinance #13, Series of 1991, as amended to delete the word "such" Section 5 paragraph 3 last sentence and replace with "some or all"; under Section 2 conditional uses, bringing across the same conditional uses as in the WP zone to the OS zone; deleting "existing" in non-profit entities; seconded by Councilman Tuite. Councilman Peters said he feels Section 1 should be deleted; The academic zone with an SPA overlay is very narrowly defined. This is redundant as the same effect is accomplished in the SPA overlay. Uses can be varied, which is an argument not to include Section 1 in the ordinance. Councilman Peters asked if the SPA should be abdicated, would the underlying zone survive. Councilman Peters said there is no need for this section, and there is in fact a danger in including it. Councilman Peters moved to delete Section 1 from Ordinance #13, Series of 1991; seconded by Mayor Stirling. Kaufman said lending institutions need redundancy. Kaufman said the Institute has talked to banks about this and they are uncomfor- table lending money where land is zoned SPA and uses are non- conforming. Ms. Margerum said it is up to Council not to allow uses that will not fit in. Ms. Margerum said trying to specify the uses may be more of a problem. The uses being proposed for the Meadows are very close to those already allowed in the academic zone district. Harvey told Council SPA is not something that is understood throughout the country. The issue is that if the uses are allowed in the underlying zone district, that' s a great comfort to a lending institution. Mayor Stirling said he is concerned 12 Reaular Meeting Aspen Cty Council May 13, 1991 about approving something that has difficulty getting financial support. Councilman Peters withdrew his motion to delete Section 1. Mayor Stirling moved to direct staff to take into consideration observations made about Section 1 and bring this back at the continued public hearing May 20. Councilman Peters said he would like the engineering department to investigate if there is a different way to allow and design a facility for storm water runoff. Councilman Peters said he feels Section 5 is very narrow and written too selectively. Mayor Stirling requested staff look at Section 5 in the same context as looking at Section 1. Mayor Stirling moved to continue the public hearing on Ordinance #13, Series of 1991, to May 20 with the staff directed to make comments on the observations made specifically on Sections 1 and 5; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #9, SERIES OF 1991 - Code Amendment Section 7-602 Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Councilman Peters moved to adopt Ordinance #9, Series of 1991, on second reading; seconded by Councilman Tuite. Roll call vote; Councilmembers Tuite, yes; Gassman, yes; Peters, yes; Pendleton, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #11, SERIES OF 1991 - Historic Designations Roxanne Eflin, planning office, told Council each of these 3 historic designations will have an accessory dwelling unit attached. Each of these meets 2 of the 6 standards for designa- tion. Each of them is requesting the $2,000 grant. Mayor Stirling opened the public hearing. There were no comments. Mayor Stirling closed the public hearing. Councilman Tuite moved to adopt Ordinance #11, Series of 1991, on second reading; seconded by Councilwoman Pendleton. Roll call vote; Councilmembers Pendleton, yes; Peters, yes; Tuite, yes; Gassman, yes; Mayor Stirling, yes. Motion carried. Councilman Gassman moved to approve the $2 , 000 grant to each of the 3 designated landmarks; seconded by Councilman Tuite. All in favor, motion carried. 13 Regular Meeting Aspen City Council May 13, 1991 HOUSING AUTHORITY 1990 SUPPLEMENTAL BUDGET RESOLUTION Mayor Stirling said it looks like there will not be the anticipated surplus and a subsidy is still required. Lynn Dunlop, county finance department, told Council at the very end of the process of closing the 1990 books for the housing authority, an allocation of administrative time was put back in operations so the subsidy will go up some. The city and county will reconcile the final changes. Councilman Gassman moved to approve the housing authority resolu- tion for supplemental appropriations; seconded by Councilman Tuite. All in favor, motion carried. Councilman Peters said the payment-in-lieu monies of $922,000 were paid back to the city and county. Councilman Peters said he would like to know the policy implications of this. Ms. Dunlop told Council in the city felt they would be more appropriate to handle its investments. Councilman Peters said the housing authority has expressed an interest in putting together a pool of money, payment- in-lieu money, to use as seed money for projects. Councilman Peters moved to direct staff to work with the housing director to develop some portion of the cash-in-lieu payments to be used for pool resources for housing authority development; seconded by Mayor Stirling. All in favor, motion carried. Councilman Tuite moved to table Ordinances 6, 7, 8, 10 and 12, Series of 1991 to May 28; seconded by Councilman Gassman. All in favor, motion carried. ORDINANCE #15, SERIES OF 1991 - Lily Reid Housing GMQS Exemption and Vested Right Councilman Gassman moved to read Ordinance #15, Series of 1991; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #15 (Series of 1991) AN ORDINANCE OF THE ASPEN CITY COUNCIL VESTING THE DEVELOPMENT RIGHTS AND GRANTING A GMQS EXEMPTION FOR AFFORDABLE HOUSING FOR THE LILY REID PARCEL LOTS A, B, AND C OF BLOCK 81, ASPEN TOWNSITE was read by the city clerk Leslie Lamont, planning office, told Council this application is for a GMQS exemption for affordable housing, vested rights, and a clarification from Council on Section 8-104, enlargement of a historic landmark. Ms. Lamont reminded Council the applicant intends to redevelop the 9,000 square foot parcel that was 14 Regular Meeting Aspen City Council May 13, 1991 historically designated by Council last July. The Lily Reid cottage will be preserved, the cleaners building will be demolished and a 3 story with full basement office and retail building will be reconstructed. Ms. Lamont told Council staff questions whether demolition and reconstruction of a non-historic building on a designated parcel should receive the benefits afforded landmark structures under Section 8-104 of the Code, which is exempt from various levels of mitigation. Ms. Lamont said the Code addresses expansion of an existing building's floor area. Section 8-104(a) talks about the demolition and reconstruction of commercial and office space. This requires mitigation of employee and parking. Ms. Lamont told Council the way the applicants have interpreted the code, their employee mitigation is 6.9 employees. In the code, this mitigation could be for approximately 15 employees. Councilman Peters said the argument to extend historic designation to the entire site was that it would streamline the review process; there just was not time to go through the growth management system, get allocations and build. Councilman Peters said the project has not yet been built and the approvals are not complete. From the point of facilitating the time line, it was necessary to histori- cally designate the entire site. Larry Brooks, applicant, told Council they have been working on this project for a long time. Brooks said during the process the applicants made it clear it required the entire parcel be histori- cally designated in order to tear down an existing building to accommodate the Lily Reid house and to build a building around the house. Gideon Kaufman, representing the applicant, told Council there are 2 sections in the Code. One is the historic section which gives the ability to exempt parking and housing requirements. The section staff is referring to deals merely with the tearing down of an existing building that is not historically designated. Kaufman said the argument before Council was the appropriateness of designating the entire parcel to receive the benefits of historic designation for the whole Council. Larry Yaw showed Council a model of the project. Yaw said a key element of this is moving the Lily Reid building to the corner of the site. Yaw showed where the employee housing will be located on the back of the site. There are 2 three-bedroom units of 965 square feet; each has private access, views to the south, storage and washer-dryers. Each unit has addition 100 square feet of storage in the basement. Councilwoman Pendleton agreed the intent in designating the entire parcel historic was to grant the requested exemptions. Council- 15 Regular Meeting Asnen Citv Council Mav 13, 1991 woman Pendleton said she supports this project. Councilwoman Pendleton said the two Code sections seem to contradict each other. Ms. Margerum agreed there are 2 contradictory sections in the Code and staff is asking Council for clarification in what they meant when they granted the landmark designation, if they also meant to grant exemption from mitigation and have them mitigate as if they are a landmark designation. Councilman Gassman said Council would not have designated this parcel if their intent was not to create an exemption. Councilman Peters said the people who will lose from this applica- tion are the people who need employee housing. Councilwoman Pendleton said this project has talked about trade offs, trying to keep businesses here as well as employees. Councilwoman Pendleton said the Council also has to give some. Mayor Stirling said his intention in designating the entire corners was that in the quid pro quos, the advantages outweigh the disadvantages. Councilwoman Pendleton moved to adopt Ordinance #15, Series of 1991, on first reading; seconded by Councilman Tuite. Yaw told Council they are requested to mitigate for 6.9 employees and are providing housing for 6 employees and cash in-lieu for the additional. The units and cash will be consistent with category 2. Roll call vote; Councilmembers Gassman, yes; Tuite, yes; Peters, no; Pendleton, yes; Mayor Stirling, yes. Motion carried. ORDINANCE #16, SERIES OF 1991 - Code Amendment, Lost and Confiscat- ed Property Mayor Stirling moved to read Ordinance #16, Series of 1991; seconded by Councilman Tuite. All in favor, motion carried. ORDINANCE #16 (Series of 1991) AN ORDINANCE AMENDING SECTION 13-87(C) "LOST AND CONFIS- CATED PROPERTY; PROCEDURES FOR DISPOSAL" OF THE MUNICIPAL CODE OF THE CITY OF ASPEN, COLORADO, FOR THE PURPOSES OF ALLOWING THE CITY MANAGER TO CLAIM AND CONVERT LOST AND CONFISCATED PROPERTY FOR PUBLIC USE PRIOR TO BEING OFFERED FOR SALE AT PUBLIC ACTION was read by the city clerk Councilman Gassman moved to adopt Ordinance #16, Series of 1991, on first reading; seconded by Councilman Peters. Tom Baker, assistant city manager, told Council to help create a more pedestrian oriented community, this amendment will allow the 16 Regular Meeting Aspen City Council May 13, 1991 city manager to claim lost or confiscated bicycles before they are auctioned and have them for city use. Roll call vote; Councilmembers Pendleton, yes; Tuite, yes; Gassman, yes; Peters, yes; Mayor Stirling, yes. Motion carried. Mayor Stirling moved to table Ordinance #17, Series of 1991, to May 28th; seconded by Councilman Gassman. All in favor, motion carried. RESOLUTION #19, SERIES OF 1991 - Mall Leases Councilman Gassman moved to approve Resolution #19, Series of 1991; seconded by Councilman Peters. All in favor, motion carried. Council left Chambers at 8:55 p.m. ~-~ ~` ~ ~~ Kathryn Sr:` Koch, City Cler 17 Continued Meeting Aspen City Council May 20, 1991 Mayor Stirling called the meeting to order at 5:00 with Councilmem- bers Tuite, Pendleton, Peters and Gassman present. Mayor Stirling explained that people who are going to give evidence will be sworn in. People making a generic statement on how they stand on an issue do not need to be sworn in; people bringing information that is pivotal or that may make Council change their mind should be sworn in. ORDINANCE #13, SERIES OF 1991 - Land Use Code Amendments Mayor Stirling opened the public hearing on Ordinance #13, Series of 1991. Mayor Stirling said section (1) Academic amendment proposes that any uses approved within a final development plan for a SPA are permitted uses in the academic zone. Council questioned whether this was redundant or necessary in this ordinance. Amy Margerum, planning director, told Council staff has discussed an alternative of making specific findings in Ordinance #14 to confirm because there is an SPA overlay, which allows uses to be varied, those uses would not be considered a non-conforming use. Gideon Kaufman, representing the applicant, said the suggestion is a good one as long as there is a finding in the record stating the intent of the amendment is the same as if the academic zone is being amended. Ms. Margerum said this would be included in the ordinance in the whereas clauses and could also be a condition in the ordinance. Councilman Peters agreed section 1 is redundant. The issue in section 1 suggests that the uses would be conforming notwithstand- ing the validity of the SPA; the uses would still be allowed. Councilman Peters questioned accommodating a lender for this amendment. Councilman Peters said he wants the uses to conform to the entire organic package, the reason to preserve the non-profit uses. Ms. Margerum said if it is the intent of Council to add this finding in Ordinance # 14 , staf f will come back with language at the next meeting. Kaufman pointed out all underlying zoning for the Hadid organizations permits the uses they need. It is only the academic zone, only the Institute and M.A.A. that have this problem. Councilman Peters said the zoning being considered for the Savanah portion of land the community would consider a sacrifice for the sake of redeeming the non-profits land. Councilman Peters said it is incumbent on Council to make sure that sacrifice is preserved. This land will never be part of the academic campus again. Council agreed to delete section 1 and to look at the language moved to Ordinance #14 at the next meeting. 1 Continued Meeting Aspen City Council May 20, 1991 Section 2 addresses two new zones, open space and wildlife preservation. Ms. Margerum reminded Council they had asked that the conditional uses be included in the open space zone that were included in the wildlife preservation zone. These include fencing and downcast illumination lighting for walkways and trails. The drainage issue has been separated. Surface and underground drainage has not been added as a conditional use in the OS zone. Ms. Margerum said staff feels adding language to ordinance #14 would allow Council to address the issue of surface and underground drainage. The applicant is giving easements for this; however, the concern is that there be a public hearing at the city before putting in any drainage system in. Ms. Margerum noted staff was trying to get at the public hearing by having this as a conditional use. This can be taken out of the conditional use section and a condition added to the ordinance stating that the construction of any storm water drainage structure or facility shall be preceded by public notice and an opportunity for public comment at Council. Council agreed to the permitted uses change of downcast illumina- tion lighting for walkways and trails and fencing. Kaufman told Council the applicant started off with a specified portion of the race track designated as the place where the storm drainage would take place, which the applicants preferred to be underground. Then the whole rack track was designated as a retention pond. Kaufman said the language currently states that anywhere in an SPA it is appropriate. Kaufman said this is inappropriate as one element in this entire process was the retention of the character of the Meadows. Kaufman said a storm detention area of the recommended magnitude in the race track or anywhere on the campus is not appropriate. A. J. Zabbia was given the oath. Zabbia said there has been some misinformation on the urban water runoff plan and water quality act of 1987. Zabbia submitted a memorandum to the planning staff to clarify these misconceptions. The storm water act regulations require municipalities of over 100,000 to apply for storm water discharge permits. Small municipalities under 100,000 were exempt from this application until October 1991. Whether small municipal- ities will be required to proceed as large municipalities is unclear at this time. Procedure for small municipalities was not set by the act. Zabbia told Council the EPA will issue additional regulations to clarify this act. Zabbia said another misconception about the clean water act is that the act is a permitting and monitoring act only. It does not contain quantitative discharge standards for storm water runoff . The point of the act seems to be assessment of storm water and when identified during monitoring will be addressed on an individual basis. 2 Continued Meeting _ Aspen City Council May 20, 1991 Zabbia noted that the Urban Runoff Management plan by Wright McLaughlin was done in 1973. The plan was a series of proposals that maintained a wait and see attitude. Zabbia told Council if they approve the easements, the surface water facilities will completely change the character of the race track. Wildlife would be displaced and the habitat permanently changed by surface retention. Zabbia stated the placement of a retention pond in the race track is completely out of character with the aesthetics and overall scheme of the Meadows. Chuck Roth, city engineer, in a memorandum dated May 15, responded to a lot of Zabbia's points. Roth told Council he contacted the state division of water quality to clarify whether the city needs to obtain a permit. The state assured Roth the city of Aspen will be required to have a permit by October 1992. The city will be required to treat urban runoff to the maximum extent practicable. The city in the Municipal Code has adopted the 1973 plan. Roth said a variation will have to be given if an easement is not required. Roth told Council the water can be pumped somewhere else. Mayor Stirling asked if staff is satisfied with the applicant's proposal to deal with their own drainage. Roth said the applicants are asking the city bury theirs yet are not proposing to bury their own. Roth said from an engineering standpoint, he is satisfied with their storm runoff design. They have identified a 1 acre foot pond. Councilman Gassman said he feels the request is absurd. This is discussing whether the city wants to use the Meadows to solve "drainage problems" for the entire city. Councilman Gassman said the city has an obligation to treat storm drainage to the maximum extent practicable. Councilman Gassman suggested it is not practicable to use the Meadows to treat storm drainage. Councilman Gassman said this is not the intent of the plan. Councilman Gassman said drainage in this part of town has not changed in 100 years. What problem is the city trying to solve at the expense of the Meadows. Councilwoman Pendleton agreed she has had a hard time with the drainage issue. Roth said there has been some basement flooding in the west end in past years. Councilwoman Pendleton said she does not like the idea of a drainage pond in the race track. Jed Caswall, city attorney, said the city should not foreclose their options not knowing what the EPA will do. The water standards will continue to get more and more stringent. The point staff has tried to make is that the city is not filtering the water going into the rivers. The burden will be upon the city in the future to mitigate what is going into the rivers. Since 1973 this area of the city has been targeted to provide detention facilities. Councilman Tuite asked if this pond has been sized out. Roth answered it has been sized out at 5 acre feet, 5 acres by 1 foot 3 Continued Meeting _Aspen City Council May 20, 1991 deep or 1 acre by 5 feet deep. Councilman Tuite said he cannot envision using the Meadows for a runoff pond, especially what the city and neighborhood have been through the last couple of years. Councilwoman Pendleton asked if it is possible to locate this in the parking lot. Mayor Stirling said there would be too much disturbance in putting this 5 acre feet underground. Mayor Stirling moved that Council not consider this anywhere on the Meadows property; seconded by Councilman Gassman. Councilman Peters asked about creating an easement where the consortium proposed detention pond will be. Zabbia said the problem with this pond is that the runoff will have to be piped from Gillespie street through the race track to this pond. Herb Klein asked if there could be a half acre site that is 10 feet deep. Klein said this pond should not be in the race track. Klein said if there is an opportunity for the city to have a facility, it should be taken. This might be located in a depressed parking lot or under the parking lot. All in favor, with the exception of Councilman Peters. Motion carried. Ms. Margerum told Council the wildlife preservation zone would remain as is . The recommendation from P & Z specifically stated paved walkways, fencing and lighting to be conditional uses in that zone district because this district is meant to be much more natural. Ms. Margerum requested Council delete (c)(3) under conditional uses. Ms. Margerum reminded Council at the last meeting they asked for alternative which would broaden the discretion of Council of allowing exemptions for both mitigation and competition for non- profits. Ms. Margerum told Council staff intentionally left the language limiting so it would not apply to all non-profits in the city. The alternative for Council is to remove the academic zone district from the language. Mayor Stirling said the language is "development associated with non-profit entity qualifies as an essential public facility and may exempt such development from the GMQS and from some or all mitigation requirements ." Charles Collins said in section 4 there is a suggested change adding design standards in Section 7-1004(c) streets and related improvements. Collins said the variations listed in the SPA are now bringing in design standards from the subdivision chapter. Collins said it is an exclusionary rule to take design standards and move them into this amendment . Article 7 has 6 or 8 divisions . Collins said he does not feel it is appropriate to move review standards from one division to another. Collins quoted from the 4 Continued Meeting Aspen City Council May 20, 1991 code that text amendments are not intended to relieve particular hardships or special privileges to any person or entity. Collins said variations are more appropriately addressed through a variance from the Board of Adjustment. Ms. Margerum said staff feels this is a very appropriate code amendment which will allow staff, Council and the community to be more creative in designing certain large parcels of land similar to that which can be done by varying setbacks and minimum lot sizes. This allows one to design more of a rural setting and not have to have streets as wide with curb and gutter and lighting that are requirements found in the subdivision regulations. Mayor Stirling moved to direct the planning staff to bring Council a new draft of Ordinance #13 on May 28th including language that would be findings regarding Section 1 to be deleted, make changes in Section 2 and 3 and language changes in Section 5 for final action on May 28th; seconded by Councilman Peters. All in favor, motion carried. ORDINANCE #14, SERIES OF 1991 - Aspen Meadows Final SPA John Doremus said finding #6 which states the plan is consistent with the Aspen Meadows master plan is incorrect regarding the new entrance road, Seventh Street access into the Meadows. Currently there is a sharp left hand turn at the intersection with North street. In order to be safe 3 stop signs are required. Doremus contended the problem is that all trucks, cars and buses will have to stop and start. This unnecessary stop could be mitigated by a more gently curving turn, which the traffic planners looked at. Doremus said eliminating stop signs would be more consistent with the master plan. Gideon Kaufman said the master plan is general, not site specific. During all the hearings, the road was looked at changed and redesigned. Kaufman said if the road is made a more gentle slope there is more cut and fill and aesthetic considerations. Kaufman said this is the best design when all features are weighed together. Jim Markalunas said there should be restricted speed limits and even speed bumps in this area. Councilman Peters said in the findings it states the developer's final plan submission is complete to afford review and evaluation for approval. Councilman Peters said absence a survey of the riparian area, the plan is deficient. In finding #2, it states the plan is compatible and enhances the mix of development in the immediate vicinity of the Aspen Meadows. Councilman Peters said the new access road, the parking structure and the 4 lot subdivi- sion are incompatible and do not enhance the mix of uses. Councilman Peters said in finding #4, the Aspen Meadows is general 5 Continued Meeting Aspen City Council May 20, 1991 suitable for the requested development in terms of topography and the plan creatively employs land techniques to preserve view planes and avoid adverse impacts, the road creates an avoidable environ- mental impact for no discernable reason. Councilman Peters said in finding #7, the plan demonstrates good and sufficient cause to remove the SPA designation for that portion of the Aspen Meadows property to be conveyed to the city to adjust the current SPA boundary; the only argument for that action is to remove the city as a party in standing to the SPA. Councilman Peters said it would be in the city's best interest to be a party to the overall SPA application. Ms. Margerum told Council most of the conservation land is currently not in the SPA overlay. Ms. Margerum told Council staff posits if the final survey is submitted prior to signing if final plat, this meets all the requirements of the code. Councilman Peters asked who will review the survey for the area that the city is buying. Ms. Margerum said the engineering department reviews surveys based on benchmark and acreage. There could be a walk through with Council. Caswall said the city as purchaser has the right to go to the property and make sure they are getting what they thought. Bob Hughes, representing the applicant, noted the contract is subject to the city receiving the survey. The corners will be staked before June 10th. Ms. Margerum pointed out there is a condition added stating only the owners of Lots 1, 2 , and 3 , which are the non-profit lots, have to agree on a SPA application so that one non-profit could not apply for future development unless they had the agreement of the other non-profits. Perry Harvey, representing the applicant, pointed out when the SPA was drawn, the only part of the conserva- tion zone included was a sliver going down the hill by the boundary to an adjacent property owner. Councilman Gassman moved to accept Section 1, the general findings; seconded by Councilwoman Pendleton. Larry Lederer encouraged Council to make a decision on this and bring this process to a close. There has been a lot of effort put into this and it is time Council moved ahead. Bob Taylor said he support the 7 criteria; they meet the plan. Taylor urged Council to approve this. Charles Collins said he is concerned about #1 that the submission is complete and sufficient; in some areas it still needs a great deed of detail to be properly evaluated. Collins said in #4, the last sentence, preserve view planes and avoid adverse environmental impacts; generally the plan does a good job; however, the environmental impacts in the race track could have been addressed better. 6 Continued Meeting ___Aspen City Council May 20, 1991 All in favor, with the exception of Councilman Peters. Motion carried. Kim Johnson, planning office, told Council the applicant has requested several language changes; the deletion of "city approval and", page 5 section 2. This phrase is mentioned in several conditions. Ms. Johnson pointed out the city's sign off on the final plat is approval of it. The applicant wanted to make sure the city was not confusing the approval date of the ordinance with the date of the signature on the final plat. Councilman Gassman suggested "city approval of the final plat". Caswall said it was phrased this way because the city would also have to approve the time line not just the plat. Kaufman said this could be construed to mean Council approval; that the final plat would have to be submitted before Council approves this ordinance. Caswall said he means city staff rather than Council. Ms. Johnson said the proposed parking structure is to be built in the third phase, the applicant will commit to keeping on site 96 spaces at least. Fred Smith, representing the applicant, said the specific time frame will be contingent on the Aspen Institute's ability to raise money. Councilman Peters said he would like to remove construction of the parking structure as a condition of approval. Ms. Margerum said ince the applicants have committed to keeping the parking on the property adjacent to the Chalet buildings prior to building the parking structure, that is what staff was looking for. Ms. Margerum said the condition could be deleted, and this representa- tion could be added to the record. Staff was concerned the parking spaces would be lost during the three-year construction. Mayor Stirling suggested this condition be amended and brought back to the next meeting. Si Coleman said permitting this project to have a parking garage is a short sided view of transportation in the 90's and beyond when the car will be de-emphasized. Mayor Stirling moved to refer paragraph #2, Section 2 to the planning director for rewrite in relations to comments made by Fred Smith and bring back the 28th; seconded by Councilman Peters. All in favor, motion carried. Mayor Stirling said the next paragraphs address traffic and traffic mitigation plans. Kaufman said the applicants would like some standards in the sentence that reads, "the city will review the report and may require modifications to the developments traffic mitigation program including the addition of new mitigation measures". Kaufman said there could be an instance where RFTA is 7 Continued Meetinct Aspen City Council May 20, 1991 in trouble and the applicants have to provide a fleet of new buses. Ms. Margerum suggested, "including new reasonable mitigation". Herb Klein asked who makes the decision on this, whether its staff or P & Z . Ms . Margerum said it is P & Z after a hearing. She will clarify this. Mayor Stirling moved to accept paragraphs 3 , 4 and 5 with modi f ica- tions from staff; seconded by Councilman Peters. All in favor, motion carried. Mayor Stirling said paragraphs 6, 7, and 8 deal with fire access. Council had no problems with these paragraphs. Paragraph 9 deals with tree removal. There is a memo from the applicant. Fred Smith told Council the memo is to clarify trunks groups; there are 40 trunks being removed, 14 groupings. Smith said the applicants intend on replacing caliper inch for caliper inch. In some instances trees are being removed because they are old or diseased. These will also be replaced. Klein suggested a minimum size for replanting be specified. Smith said 1.5 inch Aspen tree would be a good size. Council agreed to add 1.5 inch. Paragraph 10 is trails including the race track easement and access to the riparian zone. Ms. Margerum said the intent of the condition regarding the race track is that there was not a link from Seventh street up to the race track. The applicants have committed to add that easement to the race track. There is not commitment for an easement around the race track. The applicants have indicated they would be willing to provide a pedestrian easement around the race track, not a trail. Mayor Stirling said he would like to see these specified in the condition. Kaufman said the applicant is willing to commit to an easement as long as the city agrees to hold the applicant harmless, indemnifies them, and that there is not access when it is dark. Caswall said it is unconstitutional for a municipality to agree to indemnify a private party. Caswall noted there is a state statute that private parties who dedicate their property for public trails are entitled to the same type of immunity the city has. Kaufman said the Institute has been sued in the past by people injured on their property. Kaufman said they are willing to have the public use their property but not to take on the exposure of someone injuring themselves and suing the Institute. Klein said if the applicant would give fee title for the easement to the city they would not have that exposure. Mayor Stirling said it is critical the public have access to this property. Ron Austin told Council in the county on an exposure issue, it was provided that the government would represent and defend the 8 Continued Meetin Aspen City Council May 20, 1991 landowner against any claims. Council requested this be addressed for their next meeting. Ms. Johnson told Council the master plan and final plan indicate a trail going between the new tennis townhomes and the restaurant across the steep slope heading towards picnic point. Ms. Johnson told Council staff did a site visit and discovered how rugged this slope is. Building a multi-use trail would be very expensive and very damaging to the slope. Ms. Johnson said there is an old road bed further towards picnic point which accesses at the end of the trustee houses. This road with improvements would suit the multi- trail purpose needs to access the city-owned riparian land. Ms. Johnson pointed out the applicant is planning on 2 new townhouses in this area. Ms. Johnson said the applicability of this trail warrants further exploration accessing the pedestrian roadway from the health club to the parking lot. Kaufman told Council this issue received a lot of discussion in the master plan. The reason this location was selected is that it took the pedestrians and bicyclist down into the riparian area before they went to the campus. Staff's trail takes the trail right through the heart of the campus. The sculpture garden is used extensively by the Institute. This will be located right next to a major pedestrian area. People backing out of the trustee houses would be backing into the trail. Ms. Johnson told Council staff was proposing to explore using the access road, not the parking lot area of the townhomes. Harvey noted when the new trustee houses are built, there will be a retaining wall. At the end of the trustee houses, it is an extremely sharp drop off. Harvey said there is less room at that end of the health club for a trail head. Charles Collins asked if there is a provision of a trail on the east end of the conservation area. Mayor Stirling said there will be a new trail to that area. Collins asked if there will be a trail head on the west side to park vehicles or for people to take off from. Mayor Stirling said there is no provision for a trail head. In the spirit of auto disincentive and public transportation, he does not want to invite cars into that site. Collins asked about staking out the conserva- tion zone. Mayor Stirling said this will be done the first week of June. Councilman Peters suggested the trail alignment be left to the planning office. Councilman Gassman requested the planning office relook at both alternatives. Councilman Gassman said the old road may have been the original road into Aspen from McClain flats and the most successful trails follow common sense alignments. Mayor Stirling moved to refer number 10 on the 2 specific aspects of access to the riparian zone and secondly the race track easement 9 Continued Meeting Aspen City Council May 20, 1991 and issues of liability and time of day use to Amy Margerum and Jed to work with the applicant and bring back to Council some proposed language which we hope will be acceptable to all parties a week from tomorrow night; seconded by Councilman Peters. All in favor, motion carried. Paragraphs 11, 12, and 13 are issues of water; water rights and conveyances, and water systems. Larry Ballenger, water department director, told Council the applicants will be expanding their existing water mains and services within the development. They are not creating their own water system. Mayor Stirling said paragraph 13 should be reworded so that it does not indicate this should be a new system but to pay for upgrades to meet the minimum standards . Ms. Johnson told Council the applicants are proposing new water improvements within their development. The next issue is whether the applicants deed over these improvements to the city or retain them. Zabbia said when a developer installs infrastructure, they design and install the water system. Zabbia said these will be up to city standards and will be deeded over to the city. Mayor Stirling requested the language be straightened out for the next meeting. Paragraph #12 is the issue of water rights. Kevin Patrick, water counsel for the applicant, told Council the applicant is owner of water rights in the Si Johnson ditch shared equally with the city's water rights in that ditch . The city may request that water due to new demand being placed on the system. Patrick pointed out in relation to the demand, the city is requesting a far greater quantity of water than the city would be entitled to under the code. Patrick said he has not gone through the quantification of what portion of the applicant' s water rights should be dedicated to the city and leased back. Patrick said an agreement with the applicant for them to do the irrigating may be an alternative. The purpose of a raw water lease back is to encourage the developer to irrigate with something other than treated water. Councilman Peters said the purpose of the city obtaining water rights is to enhance the city's water supply. Mayor Stirling moved to direct legal staff to reword #13 to properly clarify what we are talking about in terms of the role of the applicant as regards our municipal system and (2) to give us feedback in relation to the proposed language in #12; seconded by Councilman Gassman. All in favor, motion carried. Zabbia said paragraph #14 states "those developments shall not permit runoff to enter irrigation ditches or ponds". Zabbia said the irrigation ditches at the Meadows do function as drainage ditches during rain storms. Councilwoman Pendleton asked if this will have anything to do with the clean water act of 1992. Caswall 10 Continued Meeting Aspen City Council _ May 20, 1991 said it potentially could but he cannot be specific. Mayor Stirling said this language needs to be clarified and asked staff reword condition #14 for the next meeting. Mayor Stirling said condition #15 is residential units will comply with fireplace regulations. Condition #16 is a drainage mitigation plan for storm runoff during construction activities shall be submitted. The city expects to get this. Zabbia requested this say "runoff" rather than "storm runoff". Zabbia said his concern is about hitting ground water. Mayor Stirling said "any runoff" would be acceptable. Kaufman said he would like this clear this is for each component. Ms. Margerum said this change should be made throughout the conditions. Mayor Stirling condition #17 is the fugitive dust control, which is essential. Condition #18 states this plan has to be approved by the environmental health department. Council request paragraph #19 addressing the parking lot under the tennis courts be deleted as the required letter has been submitted to the city. Harvey said regarding condition #15, the trustee townhouses are not multi-family structures. They do not share common walls. Harvey said he is having an on-going discussions with staff on how to treat the fireplaces in the townhouses. There are currently 8 dirty burning fireplaces. Harvey is trying to determine if he can replace these with gas logs in each unit. Ms. Margerum said according to the environmental health department, the intent was for a multi-family type building. There is a question on this interpretation and the appeal should be made to the Clean Air Board. Condition #20 talks about the energy conservation. Fred Smith said the last sentence suggests energy efficiency measures be incorpo- rated to the maximum extent possible. Smith questioned who would make this determination. Smith suggested the applicants be required to do the same energy efficiency ideas outlined in the appropriate technology letter rather than leaving it open ended. Ms. Margerum said the existing language allows for that and suggested the chief building official be added as the person to make the determination. Mayor Stirling asked staff to rewrite the condition to include the May 3rd letter addressed to Fred Smith giving technology and definition. Mayor Stirling moved to have staff look at the letter and possibly rewrite condition #20 to reflect that or make a recommendation back to Council; seconded by Councilman Gassman. All in favor, motion carried. Robert Harth, M.A.A., told Council this may not address energy concerns with the rehearsal performance hall. The hall cannot 11 Continued Meeting Aspen City Council May 20, 1991 utilize some technologies which would cause humming or other noise. This has been addressed in a letter. Mayor Stirling said the next issue is that the developer shall pay the city an affordable housing mitigation fee for 16.69 low income employees prior to the issuance of a building permit. Harvey presented some language which would clarify the housing impact fee is tied to the 10 townhouse units. The single family residences are separate. They have accessory dwelling units. The proposed language is "The developer of the 10 new residential units to be located 7 on lot 6 and 3 on lot 5, shall pay to the city an affordable housing impact fee for 16.69 low incomes for each new residential unit in an amount to be calculated pursuant to those fee guidelines in effect at the time. Fee shall be paid prior to the issuance of a building permit". Council asked for a recommen- dation from staff on this proposed language at the May 28th meeting. Condition #22 is the issue of replacement or additional fox dens. Kaufman asked the condition be specific on who will work with ACES on this condition. Councilman Peters said the city can chose anyone they want to do this rather than specify it in the condi- tion. Council has no problem with condition #24, revegetation. Kaufman told Council they have some problems with condition #24. It is important to keep flexibility to allow someone in the future to be able to do an adjunct to add park-like facilities or manicured areas. Mayor Stirling said the notion is to keep the place with a wild feeling. Ms. Johnson said expanding Anderson park or coming up with a new park area would be an amendment to the SPA and could be reviewed in that way. Kaufman said to do something aesthetical- ly in open space areas, it seems inappropriate to have to go through the SPA amendment process. Mayor Stirling requested the applicant supply language to staff for Council to look at May 28th. Condition #25, the applicant requested a language change to the same as P & Z final approval which says unless the soil is not stable enough in which case fencing will be at a point mutually agreed on by the owner, the building and planning departments. Ms. Margerum said this will be added back in. Condition #26 is a financial assurance in amounts and forms acceptable to the developer and city, shall be provided by developer to insure the satisfactory installation and completion of the new Meadows road, etc. Mayor Stirling asked how "forms acceptable to developer and city" is to be determined. Councilman Peters moved to delete the financial assurances for the parking facilities. Motion DIES for lack of a second. 12 Continued Meeting __Aspen City Council May 20, 1991 Councilman Gassman said this is not demanding that the parking facility be built but if it is, it should be bonded. Ms. Margerum said this is approving the parking facility and if it is not, staff would have to see a revised plan because this had implications for internal circulation, the design of the townhouses and Institute area. Kaufman said the applicant is not providing for or paying for any trails other than the old Meadows road. Mayor Stirling suggested deleting "public" in #26. Harvey said this project involves many different parcels and specific utilities. Harvey requested a sentence stating, "that portion of such assurances as is reasonably found by the public works director, in connection with the appropriate utility department, to be related to the work for which a permit is sought, must be in place prior to the issuance of that building permit". Harvey told Council the applicants are trying to develop a format when a permit is asked or that those assurances associated with that be guaranteed. Mayor Stirling suggested this be submitted to staff for review and Council will look at this next week. Mayor Stirling said #27 is the expansion of the restaurant administration facility. Council agreed to the condition. Ms. Margerum told Council she received a request this evening that may allow this condition to be deleted by the next Council meeting. Council agreed. Harvey said condition #28 is fine as far as dealing with an SPA amendment when one of the non-profits wishes to submit an amend- ment. It does not address what happens if one of the residential components wishes to submit an SPA amendment. Harvey requested a sentence stating, "Any SPA amendment proposed to be submitted by any residential owner or association thereof, shall require in additional to the consent of the association of owners of the component involved, the approval of the resident non-profits of the SPA". Council agreed with this in concept and requested staff review this for the next meeting. Mayor Stirling requested condition #29 be worked on this week simultaneously with condition #10. David McLaughlin said the concern is not the change in historic usage. McLaughlin said there should be some discretionary limits to use of the campus during the time when classes or events are going on. Councilman Peters said trust for reasonableness has to flow both ways. Councilman Peters pointed out one of the reasons for this process is to preserve the community feel for this property. Councilman Peters said the community is making sacrifices in order to preserve the Meadows. Councilman Peters said if the language preserves discretionary right to the Institute, he will object to it. McLaughlin pointed out the Institute and M.A.A. will also be making huge investments 13 Continued Meetina _ __ Aspen City Council May 20, 1991 in the property. McLaughlin said there are occasions when they will be concerned about people getting in the way of these invest- ments. Councilwoman Pendleton asked how the property would be closed up. Kaufman said this is private property in which the owners allow public access. If someone is interrupting seminars they can be told to get off the property. Kaufman said it is different when an easement is granted and the public feel they have a right to be there. Councilwoman Pendleton asked how the Institute will control people who feel they can walk anywhere on the property. King Woodward said the property has been used and also abused by the public, from training their dogs in the music tent to picnicking in Anderson park. Councilman Peters pointed out the public investment in this property is in the $3 million range. Kaufman said the public has access through the riparian area and through the race track. Kaufman noted there is a heart to this campus. What is important is not just the land but what goes on at this campus. The Institute currently determines when people are abusing the property. Kaufman said they do not want someone else making that decision. Councilman Peters said that authority is going to have to be shared because there are other interests being served. Mayor Stirling said the non-profit groups have to have a certain amount of discretion. Mayor Stirling said he is happy with the language. Robert Harth, M.A.A. said the language refers to health and safety and protecting the property. There are other issues about the activities the institutions present that need to be protected. Kaufman said protecting the serenity of the users is not addressed. Mayor Stirling moved to direct staff to work with a representative of the applicant to work on modification to this language and bring it back on the 28th; seconded by Councilman Gassman. All in favor, motion carried. Condition #30 is the location of the rehearsal facility for the M.A.A; the lodging units for the Institute; the tennis townhouses; the addition of trustee houses; and the parking structure. Mayor Stirling submitted to the public record 26 letters Council has received urging Council not approve the east site for the rehearsal facility. It is part of this plan to have the rehearsal facility on the east side of the music tent. Council accepts this location. Bob Starodoj said he earlier asked if this was a year round facility and was told no. He also asked if this was a rehearsal facility or a performing facility and was told it was a rehearsal facility. Starodoj said this is not what is in the plan. Starodoj 14 Continued Meetina Aspen City Council May 20, 1991 said the character of the area around the Meadows is neighborhood. If this is expanded to a year round facility, this is changing the character. Starodoj said this was represented as a rehearsal facility and this is what it should be. Robert Harth, M.A.A., referred to a letter dated October 31, 1989, which was the beginning of the master planning process. This letter specified requests for the Meadows; included was an 11,000 square foot building with a seating capacity of 500 seats to provide additional rehearsal space and enable the M.A.A. to relocate some concerts to this facility and allowing for rehearsal time in the tent. The letter also states the M.A.A. would not allow simultaneous concerts in the two facilities. Harth said the M.A.A. has filed a schedule with this city for this facility showing most of the events are rehearsals. The M.A.A. has not changed their position from the beginning. Starodoj questioned what year round means. Harth noted a letter dated January 29, 1991, which is part of the SPA final application. Paragraph 2 of that letter refers to off season usage. "It is difficult to contemplate all possible uses for this facility as well as to anticipate all requests from the community but our discussions and plans center around the following; (1) Interna- tional Design Conference will use this facility for their annual conference in June; (2) the facility will be available for use by the Center for Physics and the Aspen Institute for lectures and other events; (3) the facility will be used for selected festival and school events sponsored by the music festival; (4) requests by other non-profit organizations to use the facility will be evaluated on the basis of impact and scope; ( 5 ) the facility may be used for recording sessions. These session will be closed to members of the public; (6) the facility may be used for closed music teaching seminars, particularly as an extension of the music festival's music in the schools programs; and lastly, there will be no for-profit public use of the facility". Harth said there will not be regular usage in the winter; however, the M.A.A. does not want to be precluded from opportunities which would be beneficial to the entire community. George Vicenzi said the open ended part of this list is use by other non-profit organizations. There are many non-profit organizations who do a lot of fund raising in the valley. Vicenzi said Council had discussed limiting the number of times this could be used in the winter rather than leaving it open-ended. Harth said the M.A.A. does not want to open up this facility to the type of wear and tear that concerts would do. This will be a state of the art facility that is being built primarily for the music students. Harth said they want to be able to have recordings made in this facility. Harth reiterated the primary purpose of this 15 Continued Meeting Aspen City Council May 20, 1991 facility is for summer use, for professional development. There will be some concerts. Vicenzi said the residents can live with a few concerts; however, the way this is stated, there is no limitation. Jan Collins requested the neighbors be able to work with staff and come up with acceptable language. Ms. Collins said there is nothing in the language stating this will not be used by the Institute and Physics Center during the winter. Harth said it is unreasonable to ask an organization to be limited in its usage of a facility of this nature. Harth said this 500 seat facility is located between parking lots holding 240 cars and 90 cars. Harth said they are not anticipating the type of activity there is during the summer where there are concerts and rehearsals on a daily basis including 100 students and faculty to perform. Harth said it is not their intention to compete with the Wheeler during the winter. Si Coleman said Council should put a lot of weight on benefits to the community as a whole and not just concern itself with immediate neighborhood impacts. Coleman said the entire community will benefit greatly from having this type of facility available for non-profit use. Harry Teague reminded Council the hall will be completely sound proofed. Vicenzi asked if the parking lot will be plowed in the winter. Harth said when it needs to be utilized it will be plowed. It will not be plowed daily because it will not be used daily. Ron Austin was given the oath. Austin told Council he represents a group called "Friends of the Lawn" made up of neighbors and people throughout the community. Austin told Council he was told by the HPC that they had to consider the rehearsal facility on the east side and their only concerns were height; they could not direct themselves to a recommendation to Council that they preferred the west location. Austin said P & Z also stated it was not their decision to make and that they could not discuss east or west; it was a decision already made by Council. Austin said there has been no determination made by Council why the facility has to be placed on the east. Austin said the only reasons he has heard is service access, which would just as easily be accommodated to the west location. The other reason is concept of open space. Austin said the east site is just as much open space as the west site. Austin said throughout the entire process there have been no reasons given for locating the rehearsal facility on the east of the music tent. Austin said the M.A.A and the Institute were neutral and the Physics Center has not objected to the west site. Austin said there has been no sufficient evidence presented to Council to allow them to make a determination at this point as to an east or west location. Austin said the goal is to determine what is in the public's best interest, then site this facility. Austin requested Council consider the possibility of a western site 16 Continued Meeting Aspen City Council _ May 20, 1991 location and give this due consideration in their deliberations. Austin told Council the west location has a much less impact. Mayor Stirling moved to suspend the rules and continue the meeting to 9:45 p.m.; seconded by Councilwoman Pendleton. All in favor, with the exception of Councilman Gassman. Motion carried. Herb Klein was given the oath. Klein, representing Evelyn and Leonard Lauder, told Council his clients have been very active in the location of the rehearsal facility. Klein agreed with what Austin said; it was mysterious how the easterly site got selected without any kind of detailed analysis. Klein said it is a falsehood that the HPC and P & Z investigated and analyzed both sites and then selected the east site. Klein said Council expressed it's preference and the HPC and P & Z felt it was not their decision to make. The HPC did pass a resolution asking Council to consider a west site. Klein said his clients do feel a time pressure and do not want to stop the process . Klein suggested Council also consider the west site so there is some flexibility preserved in the plan so if the M.A.A. wants to come back, they do not have a rezoning problem. Austin supported this approach. Kaufman told Council the location was selected by P & Z and Council at conceptual hearings at which public comment was taken. There was a lot of public comment both at HPC and P & Z. P & Z voted on a location of a rehearsal hall, 4 in favor of the eastern location and 3 in favor of the western location. Harry Teague told Council both sites were flagged at the request of the HPC. Teague told Council both sites were considered. During the hearings at HPC and P & Z, the benefits of the eastern site emerged. Teague said the applicants felt they were given a clear direction, settled on the east site and designed the building around that site. Councilwoman Pendleton said she has walked the property, has listened to the views of HPC and P & Z, has listened to public comments. Councilwoman Pendleton said she went to the property when it was staked and could see Independence Pass from the east site. The building has been dropped down and moved north. Councilwoman Pendleton said the berming around the tent is supposed to help the acoustics inside the tent. Councilwoman Pendleton said the location of the rehearsal facility on the east does not diminish the views. Councilwoman Pendleton said she has not seen any evidence to have this facility on the western location. Councilman Peters said one of the things Council attempted to do with the master plan was to make uses occur simultaneously and harmoniously on the property. Councilman Peters said there are good arguments for the eastern location; not included is the crush of time. Councilman Tuite said he has been to the site several 17 Continued Meeting Aspen City Council May 20, 1991 times. Councilman Tuite said he favors the eastern site since the building has been moved north. Councilman Gassman said agreed with the above Council comments. Councilman Gassman said the eastern side is a better location. If one stands on the east side of the tent what you are looking at is almost completely developed; Red Mountain, Pitkin Green, the city. The view is developed Aspen. If you stand on the west side of the tent, you can see the roof of one house; the rest is all the mountains. Councilman Gassman objected to the notion there are no planning or land use reasons to put the rehearsal facility on the east side. Councilman Gassman said there are real, common sense reasons to locate the facility on the east side. Councilman Gassman said with all the interest in this, if there were good reasons to put this on the west, they would have surfaced. Mayor Stirling said P & Z designated the east site at conceptual; the Council affirmed this. Mayor Stirling said Council felt it was important to designate a site in order to do the planning for this site. The east site has always extensively been used; the IDCA uses it, it is an entrance, it is used for special events. The structure will be sheltered from the parking areas; it cannot be seen from the intersection of Gillespie and Third in the summer. Mayor Stirling pointed out the west site flows naturally into the track, which is where the natural wildlife habitat it. Staring to infringe on that habitat would be imprudent. The west side also infringes upon the circle of serenity of the Physics Center as well as the Meadows property. Mayor Stirling moved the Council affirm there be a rehearsal/per- formance facility that will have some year round use and secondly that it be located on the east side as described in the applica- tion; seconded by Councilman Gassman. All in favor, motion carried. Mayor Stirling moved to continue the meeting to May 28th; seconded by Councilwoman Pendleton. All in favor, motion carried. Council left Chambers at 9:45 p.m. ~~~v ,~ ~l ~~' Kathryn Koch, City Clerk 18 Continued Meeting Aspen City Council May 21, 1991 Mayor Stirling called the meeting to order at 5:00 p.m. with Councilmembers Tuite, Gassman Peters and Pendleton present. ASPEN MOUNTAIN LODGE RE UEST PUD SECTION M AMENDMENT Mayor Stirling said at the first hearing April 17 testimony was presented and the applicants requested an extension of the date by which to obtain a certificate of occupancy for the Ritz. Council directed staff to work with an applicant on issues raised at that meeting. There was a site visit by Council with the applicant. Mayor Stirling said Council has to make a finding on whether the applicant has demonstrated by the preponderance of evidence that the reasons for delay of the construction on this project are beyond their control The applicants cited two reasons; (1) conflict in the Persian Gulf and (2) the recession, especially in the hotel industry. Council has to decide if the applicant has demonstrated and satisfied its burden of proof. Council then has to decide on what basis to proceed and what conditions may be appropriate for this extension. At the last meeting, some issues Council raised were what would it cost to finish the project, can the applicants finish the project, the level of activity of the site, what financial assurances there might be, when does it become economical for the applicant to walk away, evidence of Ritz' continued interest in the project, the status of the Bavarian Inn, and who is the Council dealing with. Mayor Stirling said there is litigation between the partners and this has caused some delay to the project. Council has to weigh to what extent this has been a contributing factor and whether or not this is within the applicant's control. Jed Caswall, city attorney, submitted 8 new items for the record. These are (1) Savanah's written specification of the extensions in a letter May 2, 1991; (2) Savanah's written response to the April 10 , 19 91, 1 etter issued by the City Attorney dated May 1, 19 91; ( 3 ) a letter from Steve Goldenberg dated April 30, 1991; (4) a letter from Jim Curtis dated April 2 3 , 1991; ( 5 ) Savanah' s written request for a continuance of the previous hearing set for May 16, 1991; (6) Savanah's letter amending its May 1, 1991 letter dated May 9, 1991; and ( 7 ) Notice posted in Council advising that the May 16th hearing had been continued to May 21, 1991; (8) letter dated May 20, 1991, from Krabacher, Hill and Edwards. Amy Margerum, planning director, said staff has been working with the applicant to identify alternatives and options regarding this requested extension. Ms. Margerum recommended Council grant a phased extension to the PUD with conditions which will allow the city to monitor the progress of the applicant in meeting those conditions in a timely manner. Diane Moore, planning office, told ~, Council alternative #1 would be to grant the extension request with 1 - Continued Meeting Aspen City Council May 21, 1991 no conditions. One implication of this alternative is that the conditions Savanah has already agreed to would not be required. These conditions relate to visual impacts of continued construction activity and delay of site improvements. Ms. Moore told Council staff has identified other conditions relating to the ice rink, Mill street, building permits and bonding that would be required. Ms. Moore pointed out the community has expressed its desire for the completion of the Ritz Carlton hotel; however, the long construction of the hotel has had adverse impacts on the city, and the city should require Savanah to remediate the problems that have gone unresolved. The second alternative would be to deny the requested extension. Denial would increase the chances that the hotel and associated development would not be completed. The impact to the community would be negative; the partially completed structure would remain for some time. The third alternative would be to grant the extension for certain items with conditions. Under this alterna- tive, the c/o for the Ritz, Ice Rink and park, the building permit for Ute City Place, and the c/o for Summit place would all be extended. The extension for the demolition permit of the Grand Aspen hotel would be denied. Staff is not recommending an extension to the demolition permit of the Grand Aspen hotel as Savanah has not supplied information to support this request. Ms. Moore pointed out that 18 reconstruction credits from previously demolished buildings are tied to the date of demolition of the Grand Aspen hotel. The fourth alternative would be to grant all extensions with conditions. These would be incorporated in the Section M amend- ment. These conditions would be those staff is recommending in alternative 5. Staff is recommending alternative 5, a 6 month extension with interim conditions. Upon completion of the interim conditions, an additional 6 month extension would be given to the construction schedule deadline. Extension for the demolition permit for the Grand Aspen hotel would be denied. Under this alternative at the end of 6 months from October 1, 1991, staff would review the progress on the conditions. If all the conditions are met, staff would recommend Council grant an additional 6 months. Ms. Moore told Council staff's recommended conditions associated with alternative #5 would be (1) Savanah shall improve the exterior fence adjacent to the Ritz construction site and the proposed ice rink park site. All construction material shall be removed from public view. This will be completed by August 1, 1991. 2 Continued Meeting Aspen Citv__Council May 21, 1991 (2) Construction entry to the Blue Spruce off Durant street shall be cleaned up and not utilized for construction activi- ties . This shall be completed by August 1 to the satisfaction of the public works director. (3) The Blue Spruce structure shall be cleared of construction materials and scaffolding from public view. This shall be completed by September 1, 1991. (4 ) A safe pedestrian path shall be placed on the east side of Mill street between the Ritz construction site and the Grand Aspen hotel. Temporary patch work shall be placed on Mill street between the construction site and the Grand Aspen hotel. This shall be completed by July 1, 1991. (5) The patch work on Dean street in front of the Grand Aspen shall be completed by July 1, 1991. (6) Bank stabilization work on both the south and west side of the project shall be initiated by August 1, 1991, to the satisfaction of the public works director. (7) Savanah shall apply for rezoning to park for the ice rink/park site by July 1, 1991. If Savanah does not apply, the city will initiate rezoning with all fees paid by the applicant. (8) Savanah shall submit a final development plan for the ice rink/park to the city by September 23, 1991. (9) Savanah shall submit all necessary information to the building department for a #1 building permit by July 1, 1991. (10) Savanah shall obtain a #1 building permit from the city by August 1, 1991, and necessary fees and taxes paid at that time. (11) Savanah shall properly secure and fence Summit place and remove the debris from the site. The west wall shall also be repaired and shall be complete by August 1, 1991. (12) The construction schedule submitted by Savanah shall be adhered to. (13) The posting of adequate financial assurances for demolition of the hotel site shall be made to the satisfaction of the city attorney prior to October 1, 1991. (14 ) All fees owed to the city for processing of any applica- tions shall be paid by October 1. 1991. 3 Continued Meeting Aspen_City Council May 21, 1991 Deputy City Clerk Jan Carney gave the oath to John Sarpa, Perry Harvey, Bob Hughes, Mark Hayutin, Aziz Al-Yahah, Mohamed Hadid, Ferd Belz, Joe Imbriani, and Omar Benjamin. Bob Hughes, attorney for the partnership, requested Council accept alternative 4, which is an extension of all components, with conditions. This is a one year extension from October 1st and includes the extension on the demolition of the Grand Aspen. Mohamed Hadid told Council there is still litigation between him and his partner, however, they are working on resolving this. Hadid said Savanah is the partner the Council needs to be talking to. Hadid said he supports the partner's position, which is alternative #4. Aziz said circumstances beyond the applicant's control have forced the slow down of construction and they need additional time to resolve issues related to construction deadlines and financing. Aziz said over the next 5 months they will be assessing further the cost consideration and other issues which have contributed to this slow down and will determine how to proceed for the best interests of the community and the partner- ship. The partnership and the city's staff have been working to come up with resolution that address the community' s concern on the status of the Ritz and to protect the partnership's interest as well. Aziz said with the extension request they can continue assessing the economic viability of the project and the best resolution for the city. John Sarpa, Savanah Ltd Partnership, said alternative #4 with some adjustments to some of the conditions is one the applicants can adhere to. Sarpa pointed out 12 months is the time period that has been reflected in their schedules. This is not a 6 month project. Sarpa said the applicants have no problem with a 6 month review during this 12 month extension. Mayor Stirling saying there are certain conditions that have to be completed during this period and tying it to a shorter time frame will allow the city to see the first 14 conditions are completed. Mayor Stirling said he likes tying an extension to performance. Councilwoman Pendleton also favored the six month extension. Sarpa said the project cannot be completed in 6 months and they are asking for 12 months. Sarpa said the applicants are still working on the details on specifical- ly when this will be completed. Mark Hayutin said the applicants are not arguing against the continued monitoring of performance by staff. Hayutin told Council the applicants are not done "pencilling". They do not know that the hotel will be built. They will continue doing things with the goal that if October 1 comes that the city is protected and is not worse off for having granted the extension. Hayutin stated it will take 12 months from that point to complete the project. Hayutin said he is concerned that the burden of proof continues to shift and would have to reshift the burden of proof under a new Council. 4 Continued Meetinct .Aspen City Council May 21, 1991 Hayutin said the applicants are not arguing with what has been asked of them during the 6 months, the issue is the form of the extension. Hughes said the construction schedule they are submitting is the timeline; the city has rights under section M to bring the applicants in under non-compliance hearings. Hughes said the way alternative #5 is drafted, they would have to come in and have another hearing. Hughes told Council the applicants are still trying to attract outside investors for this project. The 6 month extension would leave some doubt in the project. Councilman Peters asked if Hayutin's client intend to complete the hotel. Hayutin said AEI's view is the economics of this hotel do not work in today's changed hotel economy. AEI is continuing to work on this but is not prepared to say they will continue to pour millions of dollars into the hotel. Hayutin said this is not to say they have any intention of building a smaller hotel or a lesser quality hotel. Hayutin told Council the applicants will continue to spend money over the next couple of months; however, at a slower pace than if they knew they were going to go forward and get done as rapidly as possible. Hayutin said their goal is to get the time so if they make the decision to go forward, they will have enough time to complete the hotel. Mayor Stirling asked if the project does not "pencil", is there the intention to come back to Council and ask for more rooms, greater mass, less affordable housing, no ice rink. Mayor Stirling said he does not understand how the applicants will make this pencil . Hadid told Council one way of making the project pencil is by different, less expensive financing. Hayutin said there may be cost savings in the project. Hayutin said the applicant's staff has not had the time to develop the numbers to feel confident the project will go. Hayutin said this decision will be made before October 1. The applicants have committed to spending additional money in the interim. Councilwoman Pendleton asked what the objection is to a review in 6 months. Hayutin answered the issue is a political and legal issue. The applicants will be facing a new Council. This will be a recommendation from staff and the applicants may have to prove their case all over again. Caswall suggested the Council could grant a 12 month extension now with the last 6 months being contingent upon conditions 1 through 14 being met. Sarpa reminded Council when they went through the amendment process, the Grand Aspen was discussed at length. Sarpa said the time frame for determining the permit for demolition was linked to a certificate of occupancy for the Ritz. The thought was no later than 3 years after the Ritz was occupied, the Grand Aspen was to come down. Sarpa said this time frame was driven by the city's 5 Continued Meeting _ Aspen City Council May 21, 1991 interest in having moderate range hotel rooms available. Sarpa said since the amendment was granted, there has not been an influx of moderate hotel rooms in the market. Sarpa said it is even more important to have those kind of beds available, and an additional one year makes sense for the demolition of the Grand Aspen. Ms. Margerum said staff has not received any evidence why this extension is necessary under the provisions of the section M amendment. Ms. Margerum pointed out these development proposals were approved in 1988 and are now being extended to 1998 and beyond. Ms. Margerum said reconstruction credits are only good for 5 years from the date a building is torn down. This request will extend out reconstruction credits for almost 12 years in some cases. Ms. Margerum pointed out of the reconstruction credits lapse, a developer can go through growth management and receive an allocation. The purpose for this is to pace the level of growth so that people do not store up credits and the town gets a lot of growth in one year. Also, times change; rules and mitigation requirements change. Ms. Margerum said another reason for the delay in demolition of the Grand Aspen was so the community would not have to go through constant construction. Ms. Margerum said this construction has gone on so long, this may not be valid any longer. Harvey said the applicants are requesting a one year extension on the demolition permit for the Grand Aspen. They are not revising the date by which they are obligated to obtain a building permit for the Grand Aspen, nor an extension of the date to get a certificate of occupancy. Harvey said the reconstruction of the units will occur under the same time line. Harvey pointed out originally there was 2 years between demolition and the beginning of reconstruction; there will now be 1 year. Ms. Margerum suggested taking the provision out of the PUD that ties the demolition date of the Grand Aspen to the extension of the recon- struction credits. Harvey said the reason that was in the PUD agreement was that the units had already been torn down and they had no life other than in the PUD. Sarpa said the applicants have no problem with condition #1. Councilwoman Pendleton said the applicants had discussed a gravel sidewalk in front of the construction of the ice rink. Harvey said they have looked at this and a gravel sidewalk would be difficult to maintain in the winter. The intent is still to move the fence back to improve the appearance. Ferd Belz, construction manager, said in condition #2 they would like the date changed from August 1 to September 1. The Blue Spruce date is September 1 and they would like to use the access. Caswall said to the extent there is no conflict with the city's street work, there would be no problem in changing that date. 6 Continued Meetinct Aspen_City Council May 21, 1991 Sarpa said conditions #3, 4 and 5 are fine. Joe Imbriani said condition #6 has more to do with safety than aesthetics and the applicants are anxious to comply with all safety requirements. Imbriana told Council they are willing to do this but would like more time to think about how it is to be done and would like to extend the deadline to September 1. Diane Moore said the date in the condition is to initiate it, not completion date. Staff feels they can work out the completion date with the applicant. Harvey said in conditions #7 and 8 the final development plan will contain a request for rezoning of the ice rink/park. Harvey asked if it is staff's intention to go through a separate hearing process for the rezoning separate from the site specific review. Ms. Margerum said the original plan was for the applicant to apply for rezoning in July; they are now asking for an extension to Septem- ber. Staff feels this rezoning should occur immediately. Mayor Stirling agreed with rezoning at the earliest date. Harvey said he would like to submit the rezoning request along with the final development plan by September 25. If Savanah does not apply, the city will initiate rezoning with all fees paid by the applicant. Council agreed to the July 1 date. The applicant requested the date in condition #9 be changed to August 1 instead of July 1. Ms. Margerum said this would push the building permit date back and that is something the applicants committed in their construction schedule. Belz said they cannot get all the information in by July 1. Gary Lyman, chief building official, told Council staff needs an adequate amount of time to review information to process the #1 building permit. Staff is trying to avoid the situation where the applicant comes in the last week of July with information expecting the permit by August 1. Sarpa told Council the applicant is still in discussion with staff about taxes in condition #10. Hughes said after the county use tax was passed, the applicants met with the county staff to discuss the implications of the use tax on this project. It was deemed that the Ritz was grandfathered by virtue of the provisions in the state enabling statutes, exempt projects for which there was a contract let. Hughes said "any applicable taxes paid" would take care of his objection. Hayutin said in #11 the language should state the applicant should have the alternative of either securing a bond or demolishing the project. Council agreed. Sarpa said condition #12 is fine. Condition #13, the issue of a demolition bond, the electors have indicated and there is still a strong feeling to have a high quality hotel facility. Consistent with that, if the applicants are not the ones to accomplish this, Council ought to be in the best position possible to complete that intent rather than having a levelled site. Sarpa suggested a 7 Continued Meeting _Aspen City Council May 21, 1991 "button up" or demolition bond. Sarpa said on the last condition if the applicants owe the city money, it will be paid. Councilwoman Pendleton asked what amount for a demolition bond. Ms. Margerum said staff has estimated this at $4,000,000. Hughes said the applicants want to give adequate financial assurances to give Council the comfort level they want. Hughes suggested a performance deed of trust on other income property. Councilman Tuite said his problem with "button up" is that ownership remains with the applicants. The community could wind up with a buttoned up building for years should the applicants decide no one has met their price. Hayutin said it should be at the option of the partnership whether the financial assurances are a letter of credit, certificate of deposit, cash surety bond, or performance deed of trust on the Barbee/Mine dumps. Hayutin said the appli- cants will probably not put up the collateral if they have not decided to go full ahead with the construction; they will not meet the condition for the extension under that circumstance. Mayor Stirling asked if on a deed of trust it would be a first position. Hayutin said yes. Hughes entered into the record a letter from Ritz Carlton confirm- ing continued commitment to the hotel. Also entered into the record declarations of people familiar with the issues alluding to the financial problems due to the Persian Gulf crisis and the recession in the hotel industry and escalating costs beyond the control of the applicant causing the need to reevaluate the project. Omar Benjamin, under oath, stated the information contained in the two declaration signed by him is correct. Aziz Al-Yahah, under oath, confirmed the accuracy of the statements contained in Charles Wallace's declaration concerning the refusal of banks which had previously affirmed letters of credit to refuse further confirmation and the softening of rial as a currency. Mayor Stirling opened the public hearing. Jim Curtis was given the oath. Curtis said in his April 23 letter he supported granting the extension with conditions. Curtis encouraged Council to proceed with a phased 6 month extension, which would ask the developer to proceed in good faith to fulfill his commitments and gives the community the ability to monitor the process and commitments. Curtis suggested Council add conditions concerning the affordable housing commitments for the Bavarian Inn and conditions concerning the appropriate employee housing capacity of the Copper Horse and Alpina Haus. These are not listed in the recommended conditions from staff but are very important. Curtis said it is important some financial assurance be given for this project, like a demolition bond. Curtis told Council he was engaged in 1983 and 1984 by the developer and worked with informa- tion that was submitted by the various property managers at that 8 Continued Meeting Aspen City Council _ May 21, 1991 time. Curtis said there may be some factual errors in that information. Steve Goldenberg was given the oath. Goldenberg suggested another condition for a deed restriction to guarantee that at no point in the future will this property be turned into condominiums or time sharing. Richard Roth was given the oath. Roth asked how staff ascertained it is the community's desire to see this hotel completed. Ms. Margerum answered they based this on the election in February 1990. Roth said the Bavarian Inn as employee housing should be addressed in these conditions. Roth noted that Savanah, in their advertising, told the community over $80 million would be spent on employee housing. Roth said Council should add there be performance bonds added so that housing will be built. Roth said the voters approved a hotel not time share units or condominiums. These should be explicitly spelled out in the agreement. Roth said unless these are spelled out Council should deny the extension as requested. David Guthrie was given the oath. Guthrie urged Council to grant the extension. Guthrie said he does not want to see the building torn down. Guthrie suggested a transfer of the property, like lot 1, not the Barbee/Mine Dumps. Charif Souki was given the oath. Souki agreed with not having a demolition bond but requiring a completion bond. Mayor Stirling closed the public hearing. Councilman Peters asked if Hayutin's client is unable to provide funds to complete the project. Hayutin said they are not saying AEI does not have funds to complete the project; there was a war going on and there was a delay with these funds. The intention to invest in Aspen was not as a play toy but as a long term investment which would ultimately have value. Hayutin said in the original PUD there were discussions about not allowing change of economic conditions to be a ground for requesting an extension. The final PUD deleted these concerns. Hayutin said preponderance of evidence does not mean this has to weigh 5 or 8 pounds . Hayutin said there have been disputes between the partners; these disputes arose in part because of the economics. Hayutin said it is clear to anyone familiar with the hotel industry the days of certain values for "trophy" hotels have come to a halt, at least temporarily. Hayutin said there has been a severe change of the legitimate expectations of Al-Yahaw. Hayutin said they are not proposing to walk away from investments of $60 million in the hotel as well as other millions of dollars invested in the community. Hayutin said there will be an economic decision made about the hotel. Mayor Stirling asked if AEI did an in depth financial analysis before becoming involved in this project. Hayutin told Council 9 Continued Meetinct Asnen Citv Council Mav 21, 1991 there was an economic analysis done, projects were received, some studies were done. Hayutin said he would not call it in depth. Councilman Peters moved that based on the evidence presented at these hearings that Savanah Ltd Partnership has not presented sufficient evidence to prove that the delays are through no fault of their own and that the extension be denied. Motion DIES for lack of a second. Councilwoman Pendleton moved to grant alternative #5 granting 6 month extension with the 14 conditions as amended at this meeting, and that in condition #13, would entertain other financial assurances other than a demolition bond, to be determined by staff and Council. Councilman Tuite said Council should make a motion first on findings that there have been circumstances beyond the applicant's control that would warrant an extension. Councilwoman Pendleton withdrew her motion. Hayutin said what the applicants have showed is that the project has been delayed by factors outside their influence. The fact that AEI had the financial wherewithal is not diapositive of that issue. The issue is whether or not there were changed economic conditions . The issue is whether there was a delay in the ability to move rials and convert them into dollars. The issue is whether economic conditions of the hotel changed. Councilwoman Pendleton moved the applicants have shown a preponder- ance of evidence that there exists a need to grant a section M amendment; seconded by Councilman Tuite. Councilman Gassman asked what if the economics in the hotel business continue poorly until October. Hayutin said at both the time when the war was happening and the economic changes, the applicants did not have a feel for how long this was going to last. Hayutin said it is not necessary for the recession to be over to make an economically viable decision. Councilman Tuite said a finding that the delays were beyond the control of the applicant does not mean the extension is granted; it means Council may grant the extension. Councilman Peters asked if the applicants will be back for another extension making the same argument about economic viability. Hughes said he hopes not. Hughes said he feel changed economic conditions can warrant a change in the construction schedule. All in favor, motion carried. Mayor Stirling moved to direct staff to prepare a resolution and/or ordinance around alternative #5 with amendments as discussed for a continued meeting May 29; seconded by Councilman Tuite. All in favor, motion carried. 10 Continued Meeting Aspen City Council May 21, 1991 Council continued the meeting to May 29 at 5 p.m. ,~ .1 . ~ ~; ~ ~ Kathryn S. och, City Clerk 11