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HomeMy WebLinkAboutminutes.council.20030527Regular Meeting Aspen City Council May 27~ 2003 CITIZEN PARTICIPATION ................................................................................... 2 COUNCILMEMBER COMMENTS ........................................................................ 2 CONSENT CALENDAR ............................................................................................ 3 · Minutes - April 28. 2003 ........................................................................................ 3 · Resolution #44. 2003 - Asphalt Improvement Project 2003 .................................. 3 · Resolution #45, 2003 - Contract Paving Iselin Park .............................................. 3 · Resolution #46, 2003 - Sanitation District Contract for Burlingame Village utilities ............................................................................................................................. 3 REQUEST FOR FUNDS - Race for the Cure ....................................................... 3 RESOLUTION #48, 2003 - Contract to purchase AVLT land ................... 4 FIRST READING OF ORDINANCES ................................................................... 4 · Ordinance #28.2003 - 202 S. Garmisch Request to De-list from Historic Inventory ......................................................................................................................... 4 · Ordinance #29. 2003 - Dancing Bear PUD ............................................................ 4 · Ordinance #30, 2003 - Aspen Valley Hospital Annexation ................................... 4 RESOLUTION #33, SERIES OF 2003 - The Residences at the Little Nell.. 5 ORDINANCE #23, SERIES OF 2003 - Tipple Lodge .................................... 11 ORDINANCES #22 AND 21, SERIES OF 2003 - Little Ajax Annexauon and PUD ....................................................................................................................... 11 ORDINANCE #26, SERIES OF 2003 - Water Agreement Reeder/Johnson RESOLUTION #47, SERIES OF 2003 - Aspen Meadows Extension of Vested Rights ............................................................................................................ 13 ORDINANCE #25, SERIES OF 2003 - St. Regis PUD Amendment ...........14 ORDINANCE #27, SERIES OF 2003 - Usage Fees for ARC ........................ 17 ORDINANCE #14, SERIES OF 2003 - Supplemental Appropriations ........ 18 Regular Meetin~ Aspen City Council May 27, 2003 Mayor Klanderud called the meeting to order at 5:00 p.m. with Councilmembers Paulson, McCabe, Hershey and Semrau present. CITIZEN PARTICIPATION 1. Connie Harvey told Council a group of people are interested in planting trees in memory of Tom Peirce and would like a nice grove of trees. Ms. Harvey said there may be an appropriate location on city property. Councilman Hershey said if there is a place that was special to Peirce that might be an appropriate location. Mayor Klanderud said it is a great idea; the city does not have a memorial tree program. The parks department does have some locations they would be glad to plant trees. 2. Craig Ward asked Council to try and keep the trail on Shadow Mountain from being interrupted by any building. 3. Emzy Veazy III asked Council to establish a dialog with Burbank and the surrounding communities about the airport as soon as possible. Veazy also asked that Council adopt the U. S. flag code. COUNCILMEMBER COMMENTS 1. Mayor Klanderud noted she was very saddened to learn of Tom Peirce's death. Peirce was a supporter of the city of Aspen in the best sense of the word. Mayor Klanderud said the tree memorial is a wonderful idea. Councilmembers Panlson and McCabe agreed 2. Mayor Klanderud congratulated the parks department, the historic preservation officer and community volunteers who made the renovation of Ute Cemetery possible. Mayor Klanderud said there was a dedication this weekend and the community members present were pleased with the results. Councilman Paulson echoed these sentiments 3. Councilman McCabe said he will present a list of projects at the next Council meeting that he would like Council to continue to work on. 4. Councilman Hershey said he attended graduation of the Aspen High School Class of 2003. Mark Udall was the commencement speaker. Councilman Hershey congratulated the Class of 2003. 2 Regular Meeting Aspen City Council May 27, 2003 5. City Clerk Kathryn Koch requested Ordinance #26, Series of 2003, be continued to June 9th due to an error in publishing. 6. Councihnan McCabe said he is the city's representative to Ruedi Water and Power Authority. Councilman McCabe encouraged citizens to attend a meeting at Basalt town hall May 29t~ at 7 p.m. to hear the results of the ecological study done on the Frying Pan and Roaring Fork rivers. Councilman McCabe said this study has to do with aquatic habitats, stream flow relationships, thermal regimes, aquatic insect diversity and abundance, trout populations and spawning habitats. Congressman Mark Udall has been invited to attend. Councilman McCabe noted that the sno~vpack for Ruedi is very good and the reservoir will be a 98,000-acre feet if there are no other calls on the water before July. 7. Mayor Klandemd announced RFTA is making a BRT presentation open to the public May 29th at noon at city hall. CONSENT CALENDAR · Minutes - April 28, 2003 · Resolution #44, 2003 - Asphalt Improvement Project 2003 · Resolution #45, 2003 - Contract Paving Iselin Park · Resolution #46, 2003 - sanitation District Contract for Burlingame Village utilities REQUEST FOR FUNDS - Race for the Cure Mayor Klandemd said she supports the Race for the Cure and what they fund for the community; however, it is not consistent with the city's policy to have non-profit organizations come to Council out of the funding cycle. Mayor Klanderud said she wanted Council to be aware they are doing this out of sync. Randy Ready, assistant city manager, told Council one reason this is out of funding cycle is that the Race for the Cure lost a major sponsor only very recently. Councilman Semrau noted this request will come bom the Council contingency fund, not the non-profit grant fund. City Manager Steve Barwick told Council there is $30,000 remaining in the contingency Regular Meeting Aspen Ci~. Council May 27, 2003 fund. Councilman Semrau said the request to come out of Council contingency gives CoUnCil move discretion. Councilman Semrau moved to appropriate $2,000 for the Race for the Cure on a one-time basis; seconded by Councilman Hershey. All in favor, motion carried. RESOLUTION #48i 2003. - Contrac~ to purchase AVLT land Councilman McCabe said he would like the document to reflect that the city has an established archery range on the open space at Cozy Point and any conservation easement granted on that open space should not preclude that archery range nor to preclude any m/nor rearrangements or upgrades to this archery range. Martha, AVLT, said they had no problem with this request. John Worcester, city attorney told Council he will add this to the conservation easement agreements. Councilman Semrau moved to approve ResolUtion/~48, Series of 2003; seconded by Councilman Paulson. All in favor, motion carried. FIRST READING OF ORDINANCES · Ordinance #28, 2003 - 202 S. Garmisch Request to De-list from Historic Inventory · Ordinance #29, 2003 - Dancing Bear PUD · Ordinance #30, 2003 - Aspen Valley Hospital Annexation Councilman Hershey moved to read Ordinances 28, 29 and 30, Series of 2003; seconded by Councilman McCabe. All in favor, motion carded. ORDINANCE NO. 28 (Series of 2003) AN ORDINANCE OF THE ASPEN CITY COUNCIL APPROVING THE REQUEST TO REMOVE 202 S. GARMISCH STREET, LOTS A AND B, BLOCK 68, CITY AND TOWNSITE OF ASPEN, COLORADO, FROM THE ASPEN INVENTORY OF HISTORIC LANDMARK SITES AND STRUCTURES 4 Regular Meeting Aspen City Council May 27, 2003 ORDINANCE N01 29 (SERIES OF 2003) AN ORDINANCE OF THE ASPEN CITY COUNCIL APPROVING THE DANCING BEAR LODGE pRESERVATiON MINOR PLANNED UNIT DEVELOPMENT APPLICATION INCLUDING SUBDIVISION, TIMESHARE, MOUNTAIN VIEW PLANE, REzoN~G TO L/TR WITH A LODGE PARESRVATION AND PUD OVERLAY, AND GROWTH MANAGEMENT QUOTA SYSTEM EXEMPTION (GMQs) FOR LODGE PRESERVATION AND AFFORDABLE HOUSING FOR THE PROPERTY LOCATED AT 41 i Si MONARCH STREET, LOTS P, Q, R, AND S, BLOCK 77, CITY AND TOWNSITE OF ASPEN, PiTKIN COUNTY, COLORADO. ORDINANCE NO. 30 (Series of 2003) AN ORDINANCE OF THE CITY CO~CiL OF THE ciTY OF ASPEN, COLORADO, APPROVING THE ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF ASPEN; COLORADOi TO BE ~O~ AND DESIGNATED AS THE "ASPEN VALLEY HOSPITAL DISTRCIT ANNEXATION." Councilman Paulson moved to adopt Ordinances 28, 29 and 30, Series of 2003, on first reading; seconded by Councilman Semrau. Roll call vote: Paulson, yes; McCabe, yes; Hershey, yes; Semrau, yes; Mayor Klan&md, yes. Motion carried. RESOLUTION #33, SERIES OF 2003 ' The Residences at the Little Nell Scott Woodford, community development department, suggested Council address 2 or 3 topics, like affordable housing outside the city limits, mass and height, and rezoning. Sunny Vann, representing the applicant, said for them the threshold issues are the proposed size of the project and the affordable housing solution, which are crucial for whether the project goes forward or not. Vann requested Council continue Ordinance #23, Tipple Lodge, which is the fall back project should this one not go forward. Councilman Semrau noted the underlying zoning allows 28 feet with up to 32 feet for special review. The applicant is proposing 47 to 52 feet. Bill Poss, Regular Meeting Aspen City Council May 27~ 2003, architect, said the uphill side averages 40 feet; the Galena side averages 44 feet, and an area in the center of the site measures at 53 feet. Vann reminded Council for the Grand Hyatt project, a 45-foot height limit from the sidewalk on the front of the building was established. This is the LTR zone, which has an increase of allowable height from 28 feet to 45 feet. The height of the Grand Hyatt measures in excess of 45 feet to all heights around the building. For the interior courtyard, the height as measured according to the code is well above 45 feet. On the Residences, the height around the perimeter is lower. Councilman Semrau said the burden of proof is on the applicant why this height variance should be allowed. Vann said the reasons for the height variance request is unit count and floor area. Vann noted there are very few sites in the city on which new lodges could be built. Most of the land is zoned LTR with a 28 foot height limit and a 1:1 FAR. Vann said the height allowance for the Mountain Chalet was varied to 54 feet in order to make the remodel financially viable. Vann said timeshare is a financing mechanism to build new projects and to provide hot beds. Vann noted the original plan had more hotel space on the south end, up the hill. This was unacceptable to the neighbors and P&Z asked the bulk. be moved down the mountain. Vann said the applicants feel this is the right project in the right place; the dimensional requirements need to be varied and the issue is how much variation is appropriate. Vann said he feels this building will be an asset to the community. The visual impact will be relatively small; this is a narrow site going up Aspen mountain. Mayor Klanderad opened the public hearing. Phyllis Bronson told Council she lived on this site at the Tipple Inn for many year. Ms. Bronson said this is a beautifully designed project. This area needs revitalization. Ralph Melville, Mountain Chalet, said their addition is going up to 55 feet. Melville said this is what the city wants to see, growth in the downtown area, to help cut down on traffic and automobiles. Melville noted guests like to be close to the downtown. It is important to get high quality lodging in this area. Howard Ross, Mother Lode, said Aspen is way behind in development compared to other resorts. Aspen needs beds and needs more people in town. Ross said he is in favor of anything the city can do to get more beds in town. John McCormick said different situations warrant different demands on the 6 Regular Meeting Aspen Ci.ty Council May 27, 2003 developer weighed against different benefits for the city. This project is something that Aspen needs to make it more competitive with other ski resorts. McCormick said it is in the city's best interest to help the developer make this project happen and in the end the city benefits. David Stapleton said this proposed development fits in with the area. Stapleton said he feels the project is entirely positive and is a natural for the bottom of the ski mountain. Ruth Kruger, P&Z, said this area is appropriate for the size and density of the proposed project. This project went through P&Z; the applicants scaled it down in response to some P&Z concerns. Kruger said there has been a large decrease in the number of hotel rooms in Aspen and it is essential to support this type of project.' Lennie Oates reminded Council they need to examine the request for rezoning of the conservation parcel and the necessary modification to the master plan. Oates said the modification to the master plan should be done before the rezoning is considered. Oates said he has heard nothing to support the appropriateness of the zone change. Debbie Falender said this project is exciting, if it were smaller. The property is zoned LTR; the allowed FAR is 1:1. Ms. Falender said she could support 2:1; however, the applicant wants to go higher than that. Ms. Falender said this project could be great if it is scaled down and closer to the city's rules. The Council needs to be careful of setting a precedent. Ms. Falender said to scale the project down, she suggests taking off one unit on the top and putting it back farther into the mountain, and having a bigger setback at the porte cochere. These units are proposed to be 2500 to 3500 square feet and she feels these are large units. Joe Raczak, North of Nell, supports this project on a smaller scale. Raczak suggested taking off the entire top floor. Steve Falender said these are huge, expensive units. There is room to have a nice project of a smaller scale. This project will appeal to the very highest end market. Falender said Council needs to respect those others who live within the rules. Peter Green said he feels this is one of the most important decisions of City Council. This project will have a huge positive impact on Aspen. Toni Kronberg said overall this project has merits. Ms. Kronberg said this site is a perfect place for infill, but it should not be upfill. 7 Regular Meeting Aspen City Council May 27, 2003 Brooke Peterson read a letter from Karl Larson, unit 2E North of Nell, in support for this project. Mayor Klandemd entered into the record letters from Phyllis Bronson in favor, Bill Tomcich strongly urging support, Eugene Shapiro in favor of providing employee housing within 1 mile of town, opposed to expensive units. Mayor Klanderud closed the public hearing. Councilman Paulson asked how much of the hotel space will be public. Vann said the public at large does not have access to the swimming pool; however they do have access to all the common areas, like lobby, bar, restaurants, public restrooms. Councilman Paulson said the public area is undersized for a project of this size. Vann said there is 8200 square feet net restaurant and bar space. There is also 2,000 square feet of retail space along Durant. Councilman Paulson said he is concerned about the amount. of vegetation that will be pulled out for the construction. Varm told Council in their initial discussions with the parks department, they have said they will Salvage anything that can be picked up and replanted. They do have a tree removal plan and mitigation. Councilman Paulson said he would like to see the project scaled back one level and moved back from the North of Nell. Councilman Paulson said he would also like to see if the applicants can save the major trees. Councilman Paulson said he would like this outside seating, restaurant area made bigger and made compatible with the gondola plaza so it can be used as one big space. Councilman Paulson said this will make a great location for concerts. Councilman Semrau said he thinks this will be a great addition to the community and is the right spot for a serious development. Councilman Semrau said he is concerned about the Dean street canyon effect and the north elevation. Councilman Semrau stated he would like to see the building modulated a little more and bring the height down some. Councilman Semrau noted the restaurant/bar plaza will be a great addition to the community. Mayor Klanderud said she thinks the original designs are more interesting and there is a different feeling about the mass. This design is more a block mass, more compact. Mayor Klanderud stated she has reservations about the height of this building. Mayor Klanderud said the visual experience with a more broken up faqade makes a lot of difference. Poss said this design tries to step the mass up the hill as well as break up the building. Poss noted the Regular Meeting Aspen Ci.ty Council May 27, 2003 Little Nell is 45 feet; North of Nell at 40 feet; Grand Hyatt 45 feet; St. Regis 65 feet. The architects are trying to fit this building in to the neighborhood, have everything work for the developer and get interest and vitality. Councilman McCabe agreed he liked the previous design and liked the bulk being on the south end of the site. Councilman McCabe said he feels this area is appropriate for taller buildings and Council has approved height variances for buildings in this area. Councilman McCabe said he does not like the amount of off-site affordable housing. Vann told Council the code requires the applicant mitigate for employees to run the hotel, employees in the retail spaces and offset some units located in the Tipple lodge. Vann noted under the city's code, an applicant is required to house 60% of the employees and in this case about 53 employees. This number has not been adjusted for the smaller project. The replacement housing requirement is l I bedrooms and 4,000 square feet, and the majority of this replacement housing will be met on site. Vann said it is very difficult to find a site in this community that will house that number of employees and at the recommended category 2. Vann said the cash-in-lieu figure is about $10 million. Vann said the applicants have a contract for land at the Airport Business Center. Vann told Council they will talk to Obermeyer about buying down some of their units; however, that will not come close to the total of units that need to be provided. Vann said the housing board and P&Z felt the AABC was an appropriate location for this housing. Vann said this is a threshold issue. Councilman Semrau said he would like to see the work done on multiple solutions, like buying down free market condominiums. Peterson told Council he and 3 realtors have worked for months trying to find solutions for affordable housing. Vann noted many condominium associations are precluding units being deed restricted for affordable housing. Councilman Semrau requested the applicants flush out a combination of alternatives for affordable housing, like buy downs at Obermeyer, and in existing condominiums. Councilman Semrau stated if this affordable housing mitigation is allowed at the ABC, no one will build affordable housing in town. Councilman Semrau said he would not approve the applicant using any units at Burlingame. Mayor Klanderud and Councilman Paulson agreed. Regular Meeting Aspen ,City Council May 27, 2003 Mayor Klanderud stated the concept is fantastic and this is the location for it. Mayor Klanderud said if the project were smaller, there might be room for affordable units on site. Mayor Klanderud said her first preference for affordable housing is on site; second within city limits; third within the urban growth boundary if nothing else is possible. The problem with cash- in-lieu is that the solution then becomes the city's problem. Vann said the applicants will look at a blended approach; however, the Airport Business Center has been the only practical solution to date. Peterson stated the applicants believe building affordable housing at the ABC is creative for a solution that cannot be met within the city limits. Mayor Klanderud stated a revitalized base of Aspen Mountain is important; however, she questioned if this project will get "hot beds" with $1 million timeshares. Will these units be available to the market. Vann said their analysis indicates a demand for units of this size and at that cost. Vann told Council the Little Nell hotel has a constant demand for larger units, which they cannot fill. These units are not like free market condominium units, which would sit empty unless the owner is there. Councilman Semrau said he found the original proposal more interesting. Vann pointed out although the original proposal had less impact on the North of Nell, the impact on the larger community was greater; it was more visible from more locations. P&Z directed the applicant to move the mass down the hill. Councilman McCabe stated he is not willing to have all the housing mitigation units go out of town; what portion does Council want to see in town. Councilman Panlson said he would like 70% of the affordable housing in town, Mayor Klanderud agreed her priority would be for the housing to be located in town. Councilman Semrau said he would like to see it in the city limits and the remainder cash-in-lieu. Councilman McCabe agreed the location is in the right place; the mass and scale are close to what Council could approve. Mayor Klanderud said she would like to know what is lost if the top floor is removed. Councilman Semrau said he would like to see the height lowered, Councilman Paulson moved to continue Resolution #33, Series of 2003, to June 9; seconded by Councilman Semrau. All in favor, motion carried. 10 Regular Meeting Aspen City Council May 27, 2003 ORDINANCE #23~ SERIES OF 2003 - Tipple Lodge Councilman McCabe moved to continue Ordinance #23, Series of 2003, to June 23; seconded by Councilman Semrau. All in favor, motion carried. ORDINANCES #22 AND 21, SERIES OF 2003 - Little Ajax Annexation and PUD John Worcester, city attorney, told Council these two ordinances should be considered together. Annexation is a legislative act, solely up to Council. Worcester said Council would not want to annex unless they are satisfied with the development proposal, which is the PUD ordinance. Joyce Allgaier, community development department, told Council after public meetings and discussions with the community, the applicants have considered some alternatives. One alternative is to continue with the plan on the table. Joe Wells, planner for the applicants, reminded Council the original application is an AH rezoning for 4 free market and 11 affordable units. The applicants are Charlie Kaplan and Peter Gluck & Associates. Wells said the applicants have wanted to do an affordable project for years and acquired this site in 1999 for that type of project. Wells stated this project is in compliance with the city's regulations. Wells said the applicants are concerned about the opposition expressed about this project and would like to discuss alternatives with Council. Charlie Kaplan said they believe affordable housing is an important issue in Aspen and they have been committed to find a place for an affordable housing project. Kaplan said it is important to have affordable housing in town for ease of transportation and to preserve the vitality of Aspen. Kaplan stated this site would be good for affordable housing. It ~s difficult to find real estate in Aspen for affordable housing due to the land costs. Kaplan reiterated the two buildings on the flat are affordable housing; the building on the slope is the free market. This building is relatively low and located on the toe of the hill. Kaplan said some of the concerns brought up by the community are the trail and the sense of open space above a certain point on the hill. Wells noted the applicants are not withdrawing this application at this point. Kaplan told Council any alternatives that are pursued will have to make the applicants whole financially. Kaplan said they have been working on this 11 Regular Meeting Aspen City Council May 27~ 2003 project for at least 2.5 years and if they do pursue an alternative, he hopes the city will help with expeditious review. Kaplan outlined the first alternative; preserve the trail higher to meet the alignment with two bars of affordable housing below the trail. In this alternative the affordable housing is almost the same as what Council has considere& One of the two affordable housing buildings could be larger the previously considered. This is a difficult alternative financially because there is no free market housing. Councilman Semrau said the applicants for the Residences at the Little Nell are looking for an affordable housing site. Councilman Semrau suggested the two applicants combine forces, keep the open space below the trail, and maximize the number of affordable units. Kaplan said another alternative would be to build 2 free market units on the street, keep the trail and the open space. Kaplan noted this is the easiest plan and would not need financial help. This alternative does not have any affordable housing. A third alternative is to mix free market and affordable on the lower portion of the site. Kaplan said the applicants are not enthused about the third alternative. Councilman Semrau stated the goal is not to have free market units creeping up Shadow Mountain. Mayor Klanderud said alternative #1 is a win/win - preserving the open space, building affordable housing. Mayor Klanderud supports this alternative. Councilman Paulson asked about a pre-annexation agreement so that this it not sold and becomes a different project. Worcester told Council they do not have to annex this until they are satisfied with the project. Mayor Klanderud opened the public hearing. Michael Behrendt, Friends of Shadow Mountain, told Council this neighborhood has already absorbed two affordable housing projects and is not in favor of something that is proportionately too heavy. This project is within 10 feet of the street rather than 25 feet. Georgeanne Waggaman presented drawings of the Elks and said in drawings it is difficult to tell the mass ora building. Ms. Waggaman suggested Council looks at proposed projects in relationship to buildings already built. Jack Johnson, P&Z member, said he would like the Friends of Shadow Mountain to be more open to listening to the alternatives presented by this applicant. Johnson noted many applicants do not even want to build the minimum of affordable 12 Regular Meeting Aspen Ci~. Council May 27~ 2003 housing. This applicant is coming forward with affordable housing. Toni Kronberg said she is excited to see the alternatives. Kaplan told Council he spoke with Behrendt several times and showed the two alternatives of building on the flat part of the site. The Friends of Shadow Mountain expressed concern about the trail and the open space above the trail. Mayor Klanderud applauded the applicant for listening to community concerns and for being willing to pursue a project in response to those concerns. Mayor Klanderud closed the public comment. Councilman Hershey moved to continue Ordinances #22 and 21, Series of 2003, to July 14; seconded by Councilman McCabel Ali in favor, motion carried. ORDINANCE #26, SERIES OF 2003 - Water Agreement Reeder/Johnson Councilman Hershey moved to continue Ordinance #26, Series of 2003, to June 9; seconded by Councilman Pauls°n. All in favor, motion carried. RESOLUTION #47, SERIES OF 2003 - Aspen Meadows Extension of Vested Rights John Worcester, city attorney, said this resolution requests extension of vested rights for property development originally approved in 1991. Worcester requested this be continued as the city and the Aspen Institute have had an on-going dispute as to whether the city has enough water to provide to the Institute. Worcester pointed out Section 12 of the original approving ordinance states the Institute will grant to the city all of its water rights in the Si Johnson ditch ~d the city will provide raw water to irrigate the Meadows property, The amount of water the city was to provide was "not to exceed the amount of water conveyed to the city by the developer". Worcester explained since these agreements, it was discovered Westchester Investment owns water rights in the Si Johnson ditch, There has been difficulty for the city agreeing to provide enough irrigation water to the Institute because there is not enough water in the Si Johnson ditch for everyone's needs. Westchester has agreed they do not need as much water as they have a right. Their development is done and they know how much 13 Regular Meeting Aspen Ci,ty Council May 27, 2003 water they need. Worcester said city's counsel informed the Institute's counsel that they have not been paying for their operation and maintenance of the ditch. The payment of this money would be enough to pay for the water the city needs to sell to the Institute. Amy Margerum, Aspen Institute, stated the two issues - extension of vested rights and the water are completely separate. Ms. Margerum noted the Aspen Meadows Ditch Company was formed after the land use approvals. The Ditch Company is not just the Meadows but is also the MAA, Physics Institute as well as 6 private property owners. Ms. Margerum said she cannot agree to pay for maintenance of the ditch as she has not discussed this with the other members of the Ditch Company. Ms. Margerum told Council the Institute has not been assessed this cost for the last 11 years. The Institute has a staff person who spends a lot of time on maintaining the ditch. Ms. Margerum said the Ditch Company is meeting tomorrow and she will bring up the cost of maintenance; however, the two issues are not connected. Ms. Margerum told Council only one small lodge building of the development has not been completed. Mayor Klanderud suggested city staff attend the Ditch Company meeting to see if this issue can be resolved. Mayor Klanderud opened the public hearing. There were no comments. Mayor Klanderud closed the public hearing. Councilman McCabe moved to approve Resolution #47, Series of 2003, with the proviso that this be worked out within 30 days and if it is not worked out, the Institute may re-apply to Council; seconded by Councilman Hershey. All in favor, motion carried. Councilman Hershey moved to suspend the rules and extend the meeting to 10:30 p.m.; seconded by Councilman Paulson. All in favor, motion carried. ORDINANCE #25, SERIES OF 2003 - St. Regis PUD Amendment City Manager Steve Barwick told Council the financial analysis for loss of sales tax has not been complete. Council should go over all other aspects of this land use application and address the financial analysis at the next Council meeting. Scott Woodford, community development department, went over the requested changes. The applicants could like to reconfigure 14 Regular Meeting Aspen Ci.ty Council May 27, 2003 the lower level, eliminate office space and construct a 15,000 square foot spa. The large 9,000 square foot ballroom will have accordion walls to make it more usable. This will help make up for the loss of smaller meeting rooms. The applicants propose to convert 98 hotel rooms into 24 timeshare units and 1 full condominium in building B, which is one of the wings of the hotel. The timeshare units will range from 1600 to 2100 square feet, 2 and 3 bedrooms. The offices will be relocated to this building, in place of the existing spa. Woodford told Council the applicants propose to complete the 20 hotel rooms facing Durant avenue. This building is built but is just a shell. Woodford told Council there will be at least the same number of bedrooms as there are now. Woodford said this application went to the housing board. The applicants determined there will be a net loss of employees; the housing board feels this may not be correct. The applicant will do an audit after one full fiscal year and measure the number of employees; if there is an increase in employees, the St. Regis will be required to mitigate for those employees. Gideon Kaufman, representing the applicant, told Council businesses that have survived have had to change and to evolve to keep up with changing conditions. The St. Regis has had to deal with competition in other resorts and other hotels. Kaufman said the St. Regis has not been able to accomplish one of its goals, to get people here in the shoulder season, and hopes to address that with this amendment. Kaufman stated the St. Regis will remain the largest hotel in Aspen; the ballroom will be preserved as an amenity for Aspen. The meeting space to accommodate all of the current conferences will be preserved; there will be more flexibility for that meeting space. An added spa should generate new business and should promote more off season business. Kaufrnan said they are not proposing any physical growth, no change in zoning, no change in height, no change in FAR, no change in footprint and no trees will be cut down. Kaufman said this proposal is an attempt to respond to changing business conditions and to what surveys from guests and conferences have discovered. Richard McLennan, general manager of the St. Regis, showed the size of spas at competing resort hotels, all much larger than the present 4800 square 15 .Regular Meetine Aspen City Council May 27, 2003 feet at the St. Regis. McLennan also illustrated that these competing resort hotels also have a component of fractional fee units. McLennan demonstrated the amount of businesses that have not returned to the St. Regis over the past several years due to lack of spa amenities. McLennan reiterated the St. Regis will still be able to accommodate every conference group that they have accommodated in the past. Matt Averil, senior vice president Starwood Vacation Ownership, outlined the advantages of fractional fee O~vnership, such as increased occupancy, increased party size, and increased spending habits. Averil showed the occupancy rates for hotels versus fractional fee ownership units over 3 years in Orlando, the fractional fee units have a 30 to 40% higher occupancy rates. Mayor Klanderud opened the public hearing. Toni Kronberg said she thinks this project should be approved; it is appealing to both winter and summer visitors. Dale Paas, Limelite Lodge, said he has been interested in economic sustainability and the viability of Aspen and the neighborhood around the Limelite. Paas said the city needs to adapt to changes. This project appears as if it will help revitalize the economy. Roger Haneman, P&Z member and manager of the St. Moritz, said it is a little too soon for this hotel to be obsolete, Haneman told Council last year was the best year ever for his hotel. Haneman noted if this spa gets more business, does the hotel need more rooms. This conference space can not be replaced. Jack Johnson, P&Z member, said this is a good proposal; however, there was a great deal of public comment for the original approval and it was sold as Aspen's conference center. Johnson said he is reluctant to see the city give up meeting space for a spa. Ruth Kruger, P&Z, said this plan is essential for Aspen to be competitive with other resorts. Ms. Kruger reiterated this is not requesting a change in height or mass; it is a business looking for a way to sell rooms. Mayor Klanderud closed the public hearing. Mayor Klanderud stated one of her sons works for the St. Regis. The city attorney does not feel this is a conflict nor does the Mayor. Mayor Klanderud said she is stating this for the record. 16 Regular Meeting Aspen City Council May 27~ 2003 Kaufman said even with the change for the spa, the St. Regis will be able to accommodate every conference that has been held in the hotel to date. Another part of the request is to complete rooms that have not been built before. There is no request .t° change the exterior. Councilman Hershey said businesses ought to be free to make changes to keep up with the market. The resort is not the same as it was in the 60's or 70's or 80's. Councilman HersheY Said Aspen is competing with resorts, cruises, entertainment centers, not just ski resorts. Councilman Semrau asked if the original PUD or vote on this project precludes these changes. John Worcester, city attorney, told Council the referendum asked the voters to approve an ordinance approving the land use approvals. Any property owner is entitled to seek an amendment to their PUD. Councilman Paulson asked if the prices are too high, won't this stifle competition. Kaufman said the St. Regis feels they are losing business not because of prices but because of lack of amenities. Councilman McCabe said he would like to make it easy for the St. Regis to succeed. Councilman McCabe said figuring out the mitigation for employees is important as is the St. Regis agreeing to meet that obligation. Mayor Klanderud asked if the spa is only open to hotel guests. Kaufman said there was mixed feelings about this on P&Z. Mayor Klanderud asked if adopting this ordinance as is if that precludes opening the spa to the public. Kaufman said it would not preclude public usage as the spa is accessory to the hotel. Council agreed they were in favor of this PUD amendment and will continue the ordinance in order to have the financial analysiS presented to them. Councilman Hershey moved to continue Ordinance #25, Series of 2003, to June 9; seconded by Councilman Semrau. All in favor, motion carried. ORDINANCE #27, SERIES OF 2003 - Usage Fees for ARC Tim Anderson, recreation director, told Council these fees were overlooked when the 2003 fee ordinance was adopted. Some of these are rental for using the conference rooms. Mayor Klanderud opened the public hearing. 17 Regular Meeting Aspen Ci,ty Council May 27~ 2003 Toni Kronberg asked where the other fees, like public admission and pool rental rates, are contained. Anderson said he was only addressing fees that have not been adopted. Ms. Kronberg said there are not rates for seniors and teens. Council agreed they would like to see the entire set of fees for the Aspen Recreation Center. Councilman Hershey moved to continue Ordinance #27, Series of 2008, to June 9; seconded by Councilman McCabe. All in favor, motion carded. ORDINANCE #14~ SERIES OF 2003 2 Supplemental ApPropriations Kathleen Von Achen, budget director, told Council the supplemental requests increase expenditures by $16.8 million and an increase in revenues of $800,000. This is for all city funds. The general fund increase is $3.6 million and a $300,000 increase in revenues. The $16.8 million request is made up of several parts; one is $4.2 million carry forward funding of capital construction projects throughout the city. These are monies that were not spent in 2002 and are being reappropriated to 2003. Another is $2.9 million or operating carry forward. Council policy allows departments to keep 50% of unspent budget of the prior year. There is also a replacement schedule for IT equipment and Council policy allows 100% carry forward of unspent funds. There is an $8 million capital project in the housing fund for Burlingame Village infrastructure. The request is to move the money from 2004 to 2003 in order to proceed with the project, Ms. VonAchen noted there is a $1 million increase to the Aspen Recreation Center due to the delay of the project waiting for financing from SPARC as well as change orders approved throughout the year by Council. The rest of the ordinance is adjustments to bring the city's budget in accordance with governmental accounting standards. Mayor Klanderud opened the public hearing. Toni Kronberg said her goal is more pools and more recreation facilities. Ms. Kronberg said the facility does not have bleachers; there is only one set of backstroke flags. Councilman McCabe said when the spending on the ARC is settled, Council can figure out if there is any extra money for things like backstroke flags. 18 Regular Meeting Aspen City Council May 27, 2003 Mayor Klanderud closed the public hearing. Councilman Semrau moved to adopt Ordinance #14, Series of 2003, on second reading; seconded by Councilman Semrau. Roll call vote: Paulson, yes; McCabe, yes; Semrau, yes; Hershey, yes; Mayor Klanderud, yes. Motion carded. Councilman Semrau moved to continue Ordinance # 19, Series of 2003, to June 9; seconded by Councilman McCabe. All in favor, motion carried. Councilman McCabe moved ro adjourn at 10:30 p.m.; seconded by Councilman Semrau. All in favor, motion carried. City Clerk 19