Loading...
HomeMy WebLinkAboutagenda.council.special.20170130 CITY COUNCIL SPECIAL MEETING Monday, January 30 CITY COUNCIL CHAMBERS 5:00 PM I. Ordinance #31, Series of 2016 - AACP and LUC Coordination, Growth Management 1 MEMORANDUM TO: Mayor Skadron and City Council FROM: Jessica Garrow, Community Development Director Phillip Supino, Principal Long-Range Planner DATE: January 30, 2017 RE: AACP - Land Use Code Coordination Ordinances Public Hearing: Ordinance 31, Series 2016: 26.470 Growth Management BACKGROUND AND SUMMARY With Ordinances 29, 30 and 33 adopted on January 23 and Ordinance 32 adopted on January 24, Consideration of Ordinance 31 is the final component of the AACP-LUC process to be completed under the commercial development moratorium. (Council elected to delay consideration of Ordinance 34 to March, 2017.) The following memorandum summarizes the direction provided by Council on commercial mitigation and provides some discussion of the potential impacts. Should Council choose to adopt the draft ordinance as written, additional discussion of Ordinance 31 will not be necessary. If additional discussion or revisions are needed, Council may choose to schedule the final discussion for the February 13th meeting without requiring additional time be added to the moratorium KEY DECISION POINTS FROM JANUARY 25TH At the January 23 and 24, 2017 meetings, Council directed staff to return with a version of Ordinance 31 which includes the following: • Increase of the over-all mitigation rate from 60% to 65%, • Elimination of the credit for previously unmitigated commercial space, • Phased increase of the mitigation rate for previously unmitigated commercial space, • Language exempting lodge properties from the requirement to mitigate for previously unmitigated space. • Additional discussion of possible exemptions from mitigation for second tier space or by zone district to occur at a later date. With the above direction from Council, staff amended the draft ordinance to reflect each decision point. DISCUSSION The proposed ordinance increases the mitigation rate for commercial space from 60% to 65%. This increase is a reasonable one-year increase of the rate, which reflects Council’s policies related to ensuring the development mitigate for its impacts to the community and that the affordable housing program remain properly funded. As part of this discussion, Council and staff entertained the option of a larger increase in conjunction with a tiered rate structure for second tier spaces. However, the development scenarios analysis conducted at the end of 2016 demonstrated that the effect on affordable housing revenue, development financials and lack of certainty regarding the effectiveness of second tier spaces relative to the tier rate structure raised doubts as to its desirability. The flat 65% increase was P1 I. 2 supported by Council as a compromise that increased mitigation without the uncertainty of the tiered structure. Additionally, Council supported the elimination of the credit for previously unmitigated commercial space. (This is existing, conforming commercial space that was developed prior to the City’s adoption of affordable housing mitigation requirements and has not yet provided affordable housing mitigation.) The discussion on January 24 yielded consensus that a significant increase from the current 0% may “shock” the development community and have unintended and undesirable consequences. Thus, Council supported a phased approach to increase the rate for these spaces. Consultants Mark White and Alan Richman, along with staff, recommend that the phased implementation of this policy should designed to simultaneously prevent a strong incentive for new land use applications in the first year, and each annual increase should be moderate enough to prevent further incentives for a rush of applications at the end of each calendar year. In order to achieve this balance, staff and the consultants recommend the following schedule. Development Order applied for during calendar year - Mitigation required (percent of employees generated by the existing space that has previously not mitigated) 2017 15% 2018 18% 2109 21% 2020 24% 2021 27% 2022 30% 2023 33% 2024 36% 2025 39% 2026 42% 2027 45% 2028 48% 2029 51% 2030 54% 2031 57% 2032 60% 2033 63% 2034 65% Under the scenario above, new commercial space would still be subject to the mitigation system currently in place. The schedule above only applies to the new mitigation assessed on previously unmitigated commercial space. Based on preliminary analysis of the development scenarios previously discussed by Council, the proposed schedule may strike the appropriate balance between Council’s policy priorities to have development mitigate its impacts, provide affordable housing and favor remodel of existing buildings over redevelopment. In each of the scenarios, the 15% rate for previously unmitigated spaces P2 I. 3 introduced an added cost comparable to the pedestrian amenity and parking and mobility costs for the projects. (It is noteworthy that the actual new mitigation cost will depend on the amount of previously unmitigated space in a given building.) But in general, the new 15% cost achieves Council’s goal of increasing mitigation and prioritizing remodels without significantly altering project costs relative to other cost line items. Additionally, the 3% annual increase, designed to prevent overwhelming pressure year-on-year to redevelop prior to the next increase, supports Council’s policy priorities while not increasing project costs too quickly. In each scenario, the 3% increase did not introduce a greater annual cost than $100,000, which is significantly less than other mitigation costs such as parking and pedestrian amenity. While any cost savings is an incentive for development to submit for a land use permit before the annual rate increase takes effect, staff believes that 3% is moderate enough to prevent the “rush” feared by Council. Also added to the revised Ordinance 31 is language exempting lodge properties from the new mitigation requirements for previously unmitigated spaces (when demolition is not triggered by the development activity). This exemption aligns with Council’s policies related to the preservation of existing small lodges. The language addresses various scenarios where a lodge property converts to commercial or vis- versa, and would require mitigation at the rate for the use the project is converting to. Finally, because all commercial space is treated the same for mitigation purposes, all references to Second Tier have been removed from the code language. Prime space and Second Tier space are each proposed to have the 65% mitigation rate, and the same replacement requirements, as listed above. RECOMMENDED MOTION: “I move to approve Ordinance 31, Series 2016.” ATTACHMENTS: Exhibit A – Staff Findings Exhibit B – Ordinance Redlines P3 I. Ordinance 31, Series 2016 Growth Management Page 1 of 43 ORDINANCE No. 31 Series of 2016 AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING CODE AMENDMENTS TO LAND USE CODE CHAPTER 26.470 – GROWTH MANAGEMENT QUOTA SYSTEM. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to craft code amendments to coordinate the Aspen Area Community Plan (AACP) and the Land Use Code related to parking and mobility, the mix of commercial uses, commercial design, and mountain view planes; and, WHEREAS, the Community Development Department and a Consultant Team consisting of White & Smith, LLC; Alan Richman Planning Services; Nelson Nygaard; Rowland + Broughton; BendonAdams; and Karen Setterfield conducted existing conditions research and outreach with respect to commercial use mix, parking, mobility, commercial design, and mountain view planes; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted extensive Public Outreach with community members, the Planning & Zoning Commission, the Historic Preservation Commission, and City Council regarding the commercial district, commercial design, parking and view plane regulations; and, WHEREAS, from May through November, 2016, the City and the Consultant team conducted 20 public outreach events, an online public outreach and survey page with over 1,230 visits, eleven (11) focus group meetings with stakeholders and City officials, five (5) meetings with the Planning and Zoning Commission, four (4) meetings with the Historic Preservation Commission, and fourteen (14) public meetings with the City Council; WHEREAS, the Aspen City Council met in work sessions on February 29, 2016, April 12, 2016, April 18, 2016, April 26, 2016, May 10, 2016, June 21, 2016, July 18, 2016, August 9, 2016, August 28, 2016, September 13, 2016, September 19, 2016, September 27, 2016, October 10, 2016, and November 2, 2016 and provided general direction on code amendments; and WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on October 24, 2016, the City Council approved Resolution No. 147, Series of 2016, by a four to zero (4 – 0) vote, requesting code amendments to the Land Use Code to implement the Aspen Area Community Plan; and, WHEREAS, amending the Land Use Code so it better reflects the goals of the AACP is a City Council Top Ten Goal; and, WHEREAS, the Aspen Area Community Plan provides for the City to ensure development mitigates its reasonably related impacts while allowing some abatements when community benefits are received (Growth Management Policies VII.2 and VII.3); and P4 I. Ordinance 31, Series 2016 Growth Management Page 2 of 43 WHEREAS, the Aspen Area Community Plan (“Growth Management, The Commercial Sector,” page 20) documents that businesses providing basic necessities are at risk of being displaced by restaurants, retail spaces, and offices in high-profile locations with high rents, resulting in a continuing shift towards exclusivity; and WHEREAS, the Aspen Area Community Plan (“Growth Management, The Commercial Sector,” page 20) calls for a diverse commercial mix to strength the City’s character, with more aggressive measures to ensure the needs of the community are met; and WHEREAS, the Aspen Area Community Plan provides for regulatory tools, such as Growth Management, for the use of non-prime commercial space including basements, second floors and alleys (Growth Management Policy V.1.b); and WHEREAS, the Aspen Area Community Plan calls for the City to explore creating a program to encourage limited-use commercial spaces, which would be charged lower rents or rents based on a percentage of sales (Growth Management Policy V.1.d); and WHEREAS, the Aspen Area Community Plan provides for the City to incentivize the provision of on-site affordable housing. This could include prioritization in receiving a building permit, points in growth management, etc. (Growth Management Policy VII.2.d); and WHEREAS, the Aspen Area Community Plan states as a theme to “preserve and improve the elements of the Aspen Area that make it such an attractive place to live and a compelling place to visit (Themes of the 2012 AACP, page 7); and WHEREAS, the Aspen Area Community Plan states some of the central themes include: • “Maintain our community character and quality of life.” • “Reevaluate the impacts of development on community character and quality of life.” • “Manage the adverse impacts of development.” • “Provide for a critical mass of year-round residents” • “Create a sustainable community that enables people to live their lives here.” • “Explore zoning solutions that reaffirm our small town heritage.” (Themes of the 2012 AACP, page 7-8); and WHEREAS, the Aspen Area Community Plan states “We believe that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Aspen Area community” (Housing Vision); and WHEREAS, the Aspen Area Community Plan provides for affordable housing as the responsibility of the entire community, not just local government (Housing Philosophy); and WHEREAS, the Consultant Team conducted a study to identify the aggregate retail demand of local residents and determine whether there are adequate local-serving businesses to P5 I. Ordinance 31, Series 2016 Growth Management Page 3 of 43 meet that demand, and if there are types of business that are over-represented in the downtown, along with zoning tools to manage those imbalances (see Aspen Area Community Plan, Growth Management Policies V.1.a, V.1.c); and WHEREAS, the Consultant Team conducted a study that considered creating regulatory tools such as quotas, limited prohibitions, and zoning regulations to manage imbalances in the City’s commercial uses (see Aspen Area Community Plan, Growth Management Policy V.1.a); and WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code; and WHEREAS, the Aspen City Council finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310 and that the approval of the amendments is consistent with the goals and elements of the Aspen Area Community Plan; and WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health safety and welfare; and NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN COLORADO THAT: Section 1. Chapter 26.470shall be rescinded and readopted as follows: Chapter 26.470 GROWTH MANAGEMENT QUOTA SYSTEM (GMQS) Sections: Sec. 26.470.010 Purpose. Sec. 26.470.020 Terminology. Sec. 26.470.030 Applicability and Prohibitions. Sec. 26.470.040 Allotment Procedures. Sec. 26.470.050 Calculations. Sec. 26.470.060 Procedures for Review. Sec. 26.470.070 Exempt Development. Sec. 26.470.080 General Review Standards. Sec. 26.470.090 Administrative applications. Sec. 26.470.100 Planning and Zoning Commission applications. Sec. 26.470.110 City Council applications. Sec. 26.470.120 Yearly Growth Management accounting procedures. Sec. 26.470.130 Application contents. Sec. 26.470.140 Reconstruction limitations. Sec. 26.470.150 Amendment of a growth management development order. Sec. 26.470.160 Appeals. 26.470.010 Purpose P6 I. Ordinance 31, Series 2016 Growth Management Page 4 of 43 The purposes of this Chapter are to: (a) implement the goals and policies for the City and the Aspen Area Community Plan; (b) ensure that new growth occurs in an orderly and efficient manner in the City; (c) ensure sufficient public facilities are present to accommodate new growth and development; (d) ensure that new growth and development is designed and constructed to maintain the character and ambiance of the City; (e) ensure the presence of an adequate supply of affordable housing, businesses and events that serve the local, permanent community and the area's tourist base; (f) ensure that growth does not overextend the community's ability to provide support services, including employee housing, traffic control and parking; and (g) ensure that the resulting employees generated and impacts created by development and redevelopment are mitigated by said development and redevelopment. 26.470.020 Terminology. Growth Management Year. A year period, lasting from January 1 through December 31, which constitutes the time period that each year’s development allotments are available. Development categories. All development falls into one of four land use categories, which are outlined in Table 1. Table 1 establishes the development categories and units of allocation for each category for purposes of administering this Chapter. Sub-Categories 1.A – 1.B are all considered part of the Residential Uses category, and therefore conversion between these two sub-categories does not require change in use review. TABLE 1, Development Categories Category Description Allocation units 1. Residential Uses A. Residential – Free-Market Dwelling units intended exclusively for residential purposes, not subject to any residency requirements and not including hotels, or lodging. Units may be in the form of single-family, duplex, multi-family or part of a mixed-use structure. (See definitions of Residential use and Dwelling.) Dwelling units B. Residential – Affordable Housing Dwelling units intended to house only local working residents that are deed restricted according to the Aspen/Pitkin County Housing Authority Guidelines. Units may be in the form of single-family, duplex, multi-family, dormitory or part of a mixed-use structure. (See definition of Affordable housing.) Dwelling units 2. Commercial Buildings, or portions thereof, supporting office, retail, warehousing, manufacturing, commercial recreation, restaurant/bar or service oriented businesses, including retail and office uses but not including hotel or lodging uses. (See definition of Commercial use.) Net leasable square feet 3. Lodging Buildings, or portions thereof, used to house a Lodging pillows. P7 I. Ordinance 31, Series 2016 Growth Management Page 5 of 43 transient tourist population on a short-term basis, including lodges, hotels, motels, bed and breakfasts, and timeshare development. (See definition of Hotel.) (Each lodging bedroom shall be considered to be two pillows.) 4. Essential Public Facilities Facilities serving essential public purposes used by or for the benefit of the general public and serving the needs of the community. (See definition of Essential public facility.) Square feet Annual development allotment. Each growth management year's potential growth within the City, applied to each type of land use. This is a unit of measurement applied to each type of land use that, if granted, allows the specific development proposal to move forward in the review process. The number of development allotments for each land use is established in Table 2 below. See also Section 26.470.040, Allotment Procedure. Carry-forward allotment. The number of unused and unclaimed growth management allotments for each type of development that the City Council determines should be brought forward, or rolled-over, into the next growth management year. Procedures for carry-forward are established in Section 26.470.120, Yearly Growth Management accounting procedures. Full Time Equivalent (FTE). A unit of measurement standardizing the workloads of employees. In this Chapter, FTEs refer to the number of employees generated or housed by development. 26.470.030 Applicability and Prohibitions. This Chapter shall apply to all development in the City unless exempted in section 26.470.070, Exempt Development. A. Number of development applications. No more than one (1) application for growth management allotments on any one (1) parcel shall be considered concurrently. To submit a new application, any active growth management application for the same property must be vacated. B. Number of growth management allocations. No more than one (1) project shall be entitled to growth management allotments on any one (1) parcel concurrently. In order to entitle a different project on the same parcel, existing growth allotments must be vacated. (Also see Section 26.470.140, Amendment of a growth management development order.) C. No automatic "resubmission" of growth management applications. Applications shall only be eligible for growth allotments within the growth management session in which they are submitted and shall not automatically become eligible for allotments in future sessions or future years. Applications must be resubmitted in order to be eligible for allotments in the next session or next year, as applicable. Resubmission shall effect a new submission date. P8 I. Ordinance 31, Series 2016 Growth Management Page 6 of 43 D. Subdivision and other required land use reviews. Projects requiring additional land use reviews, including Conceptual Commercial Design Review, pursuant to Section 26.412, Commercial Design Standards, Conceptual Review by the Historic Preservation Commission, pursuant to Section 26.415, Historic Preservation, Project Review or Detailed Review, pursuant to Section 26.445, Planned Development, and Subdivision, pursuant to Section 26.480, Subdivision, may be reviewed concurrently with review for growth management, pursuant to Paragraph 26.304.060.B.1. E. No partial approvals. In order for a project to gain approval, sufficient allotments for every element of the project must be obtained. No partial approvals shall be granted. In circumstances where a proposal requires allotments be granted for various types of uses within the project, the reviewing body shall not grant approval unless allotments for every type of use are available. For example: If a proposal requires that allotments be granted for free-market residential units, affordable housing units and commercial space, and there are no remaining allotments for free-market residential for the year, the project shall be tabled until such time as allotments are available. In the above example, the project shall be tabled in total and not granted allotments for the affordable housing units or the commercial space. Similarly, a project requiring 10,000 sq. ft. of commercial allotments when only 5,000 sq. ft. of commercial allotments remain shall be tabled until such time as allotments are available. Also see multi-year allotments below. F. Multi-year growth allotments. Projects requiring development allotments in excess of the annual allotment may be granted a multi-year allotment, pursuant to Subsection 26.470.090.A, or may gain allotments over a multi-year period, provided that the allotment gained in any one (1) year shall not exceed the annual allotment. For example, a project requesting fifty thousand (50,000) square feet of commercial space may request either a one-time, multi-year allotment of fifty thousand (50,000) square feet or may request approval in the first year for twenty-five thousand (25,000) square feet and request approval for the remaining twenty-five thousand (25,000) square feet in a subsequent year. Gaining allotments in any year shall not guarantee that allotments will be granted in later years for the same project. Projects requiring a multi-year allotment shall not be granted a development order until all elements of the project have been granted allotments. If the design of a project changes prior to receiving the full allotment needed for a development order, the reviewing body shall determine if the changes are acceptable or if the change invalidates the previously granted allotment and requires a resubmission for allotments. Applications for each year's allotment need to be submitted, and there shall be no preferential status given to a project granted partial allotment. Projects that do not require allotments in excess of the annual allotment shall not be eligible to gain partial allotments. See No partial approvals above. P9 I. Ordinance 31, Series 2016 Growth Management Page 7 of 43 G. Non-assignability of growth allotments. Development allotments obtained pursuant to this Chapter shall not be assignable or transferable independent of the conveyance of the real property on which the development allotment has been approved. H. No reduction in mitigation requirements. Notwithstanding Section 26.470.090(4), Essential Public Facilities, an applicant may not request a reduction in the mitigation requirements of this Chapter. Properties requesting historic designation pursuant to Chapter 26.415, Historic Preservation, shall be exempt from this provision, provided, however, that any reduction is reviewed and approved by City Council. I. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, four (4) affordable housing units are required. 26.470.040 Allotment Procedures. A. General. Aspen area residents have determined that growth must be managed to ensure long-term negative consequences associated with development and its impacts are minimized. One of the broad themes of the 2012 Aspen Area Community Plan (AACP) is to “manage future development so that it contributes to the long-term viability of a sustainable, demographically diverse visitor-based economy and a vital year-round community.” To implement these goals, the community has established a two percent (2%) growth rate that can be accommodated without compromising community character. The AACP supports a "critical mass of year-round residents” to be housed while maintaining our community character and way of life. Therefore, the Growth Management Quota System does not limit the annual growth rate of affordable housing, while all other types of development shall be limited to not exceed a two-percent annual growth rate. In order to address continued community growth concerns, a growth limit of one- half percent (0.5%) has been implemented for new free-market residential development. B. Existing development. The following tables describe the existing (as of March 2007) amount of development in each sector used as a "baseline" in establishing annual allotments and development ceilings.1 Commercial Development Within the City (square feet)1 Commercial use "class" Leasable square feet for class Merchandising 365,486 Lodging2 19,950 Offices 113,207 1 Source: Pitkin County Assessor, March 7, 2005 2 Lodge unit square footage removed from total. Commercial space within lodge developments estimated through City records. P10 I. Ordinance 31, Series 2016 Growth Management Page 8 of 43 Commercial Development Within the City (square feet)1 Recreation 179,824 Special purpose 144,777 Warehouse/storage 149,814 Multi-use 208,331 Commercial Condos 483,549 Total commercial: 1,664,938 2% Annual growth rate for commercial development 33,300 Residential Development Within the City (units) Property type Residences in class Single-family 1,268 Duplex or triplex3 79 Multi-units 4-8 4 45 Multi-units 9+ 142 Condominiums 2,978 Duplex condos 366 Manufactured 29 Partial exempt 1 Total residences: 4,909 Nonexempt affordable housing units 5 1,132 Total free-market residences 3,777 0.5% Annual growth rate for free-market residential development: 18.9 units Lodging Development Within the City (Pillows) Total lodging pillows: 7,500 1.5% Annual growth rate 112.5 pillows 3 Single ownership duplex and triplex units. 2 units per property ownership estimated. 4 Single ownership apartment buildings. Residence count reflects actual number of units recorded with Assessor. 5 A total of 1,815 residences within the City are deed-restricted affordable housing. Of these units, several are considered tax-exempt and are not included in the Assessor's counts. These units are rental affordable housing owned by the City, APCHA or tax-exempt nonprofit organizations. Therefore, only the nonexempt units have been subtracted from the Assessor's total residences to determine the number of free-market residences. P11 I. Ordinance 31, Series 2016 Growth Management Page 9 of 43 Annual development allotments. The Growth Management Quota System establishes annual development allotments available for use by projects during each growth management year. The Community Development Director shall calculate the development allotments available for each type of land use as follows: Available development allotments = annual allotment + Carry-forward allotment from prior year The following annual allotments are hereby established: Table 2, Development Allotments Development Type Annual Allotment Residential — Free-Market 19 units Residential — Affordable Housing No annual limit Commercial 33,000 net leasable square feet Lodging 112 pillows Essential public facility No annual limit Note, the annual allotment may be reduced if multi-year allotments are granted by the City Council. Upon a denial of the project and the completion of any appeals, where it’s found the denial was appropriate, the project’s allotments shall not be considered granted and shall be returned to the available allotment pool for the remainder of the year. Allotments shall be considered vacated by a property owner upon written notification from the property owner. C. Allocation procedure. Following approval or approval with conditions, pursuant to the above procedures for review, the Community Development Director shall issue a development order pursuant to Section 26.304.070, Development orders. Those applicants having received allotments may proceed to apply for any further development approvals required by this Title or any other regulations of the City. D. Expiration of growth management allotments. Growth management allotments granted pursuant to this Chapter shall expire with the expiration of the development order, pursuant to the terms and limitations of Section 26.304.080, Development Orders. Expired allotments shall not be considered valid, and the applicant shall be required to re-apply for growth management approval. Expired allotments may be added to the next year's available allotments at the discretion of the City Council, pursuant to Subsection 26.470.030.E. 26.470.050. Calculations. P12 I. Ordinance 31, Series 2016 Growth Management Page 10 of 43 A. General. Whenever employee housing or fee-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. Unless otherwise exempted by this Chapter, the employee mitigation requirement shall be based upon the total employee generation of the proposed development. Except for the conversion between residential and lodge uses outlined in Section 26.470.140, Reconstruction limitations, credits are not given for changes between the land use categories outlined in Table 1. For instance, a change in use from commercial net leasable area to free-market residential units does not generate a credit. B. Employee generation rates. Table 3 establishes the employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the fall and winter of 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Table 3, Employee Generation Rates Zone District Employees Generated per 1,000 Square Feet of Net Leasable Space Commercial Core (CC) Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge (L) commercial space Lodge Preservation (LP) commercial space Lodge Overlay (LO) commercial space Ski Base (SKI) commercial space 4.7 Mixed-Use (MU) 3.6 Service Commercial Industrial (S/C/I) 3.9 Public1 5.1 Lodge Preservation (LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski Base (SKI) and other zone district lodge units .6 per lodging bedroom 1 For the Public Zone, the study evaluated only office-type public uses, and this number should not be considered typical for other non-office public facilities. Hence, each Essential Public Facility proposal shall be evaluated for actual employee generation. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. P13 I. Ordinance 31, Series 2016 Growth Management Page 11 of 43 For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. C. Employee generation review. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation, pursuant to Section 26.470.110D. In addition, any applicant who believes the employee generation rate is different than that outlined herein may request an employee generation review with the Planning and Zoning Commission during a duly noticed public hearing, pursuant to Section 26.304.060.E. In establishing employee generation, the Planning and Zoning Commission shall consider the following: 1. The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort. 2. Any unique employment characteristics of the operation. 3. The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. 4. A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. 5. Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. The requirements of any proposed follow-up analysis shall be outlined in a Development Agreement, pursuant to Chapter 26.490 6. For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. D. Employees housed. Whenever a project provides residential units on or off site the schedule in Table 4 shall be used to determine the number of employees housed by such units: Table 4, FTEs Housed Unit Type Employees Housed Studio 1.25 One-bedroom 1.75 Two-bedroom 2.25 Three-bedroom or larger 3.00, plus .5 per each additional bedroom Dormitory 1.00 employee per 150 square feet of net livable space P14 I. Ordinance 31, Series 2016 Growth Management Page 12 of 43 E. Employee housing fee-in-lieu payment. Whenever a project provides employee housing via a fee-in-lieu payment, in part or in total, the amount of the payment shall be based upon the following (fee-in-lieu is only allowed for Categories 1-4, Categories 5-7 is calculated only for use in the Housing Certificates Program): Fee-In-Lieu (per FTE): Category 1: $ 356,433 Category 2: $ 320,186 Category 3: $ 286,495 Category 4: $ 223,072 Category 5: $ 157,280 Category 6: $ 132,817 Category 7: $ 104,148 Payment shall be calculated on a full-time-equivalent employee (FTE) basis according to the Affordable Housing Category designation required by this Title. Unless otherwise stated in this Title or in a Development Order, Fee-in-Lieu payments shall be collected by the City of Aspen Building Department upon and as a condition of Building Permit issuance. The Fee-In-Lieu rates shall be updated every five years and adopted by city council ordinance. During intermediate years, The City may choose to update the fee-in-lieu schedule, by ordinance, based on the change in the engineering news record inflation index. The following methodology was used to determine the above fee-in-lieu schedule: The subsidy per FTE was calculated by subtracting unit sales revenue per FTE from the total development costs per FTE. Total development cost per FTE was determined by using an average of recent City of Aspen projects and foreseeable future City of Aspen projects for which land has already been acquired and program/density has been deliberated, where in each case actual land costs were used in the calculation. The Program/Density projections for future projects were based upon assumptions suitable for the respective neighborhood, public outreach, and program/density review by City Council. Development cost calculations included all “hard” and “soft” costs associated with development. F. Employee/square footage conversion. Whenever an affordable housing mitigation requirement is required to be converted between a number-of-employees requirement and a square-footage requirement, regardless of direction, the following conversion factor shall be used: 1 employee = 400 square feet of net livable area. G. Accessory dwelling units as mitigation units. Accessory dwelling units, approved pursuant to Chapter 26.520 and which are deed-restricted as "for sale" category housing and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority, shall be considered mitigation units and attributed to a project's affordable housing provision. ADUs which are not deed-restricted as category P15 I. Ordinance 31, Series 2016 Growth Management Page 13 of 43 units and are not transferred to qualified purchasers shall not be considered mitigation units and shall not be attributed to a project's affordable housing provision. 26.470.060. Procedures for Review. A development application for growth management shall be reviewed pursuant to the following procedures and standards and the Common Development Review Procedures set forth at Chapter 26.304. According to the type of allotments requested, the following steps are necessary. A development proposal may fall into multiple categories and therefore have multiple processes and standards to adhere to and meet. An application for growth management may be submitted to the Community Development Director on any date of the year. A. Administrative Applications. The Community Development Director shall approve, approve with conditions or deny the application, based on the applicable standards of review in Section 26.470.090, Administrative applications. B. Planning and Zoning Commission Applications. The Planning and Zoning Commission, during a duly noticed public hearing, shall review a recommendation from the Community Development Director and shall approve, approve with conditions, or deny the application, based on the standards of review in Section 26.470.100, Planning and Zoning Commission Applications, and Section 26.470.080, General Review Standards. This requires a one-step process as follows: Step One – Public Hearing before the Planning and Zoning Commission or Historic Preservation Commission. 1. Purpose: To determine if the application meets the standards for approval. 2. Process: The Planning and Zoning Commission or Historic Preservation Commission shall approve, approve with conditions, or deny an application after considering the recommendation of the Community Development Director and comments and testimony from the public at a duly noticed public hearing. The Historic Preservation Commission shall be the recommending body for historic landmarks, properties requesting landmark designation, and all properties located within a Historic District. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.100, Planning and Zoning Commission applications and Section 26.470.080, General Review Standards. 4. Form of decision: The Commission’s decision shall be by resolution. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3 and the provisions of Section 26.304.035 – Neighborhood Outreach as applicable. C. City Council Applications. City Council, during a duly noticed public hearing, shall review a recommendation from the Community Development Director, a recommendation from the Planning and Zoning Commission or Historic Preservation Commission, as applicable, and shall approve, approve with conditions, or deny the application, based on the standards of review in P16 I. Ordinance 31, Series 2016 Growth Management Page 14 of 43 Section 26.470.110, City Council Applications, and Section 26.470.080, General Review Standards. This requires a two-step process as follows: Step One – Public Hearing before the Planning and Zoning Commission or Historic Preservation Commission. 1. Purpose: To determine if the application meets the standards for approval. 2. Process: The Planning and Zoning Commission or Historic Preservation Commission shall forward a recommendation of approval, approval with conditions, or denial to City Council after considering the recommendation of the Community Development Director and comments and testimony from the public at a duly noticed public hearing. The Historic Preservation Commission shall be the recommending body for historic landmarks, properties requesting landmark designation, and all properties located within a Historic District. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.110, City Council applications and Section 26.470.080, General Review Standards. 4. Form of decision: The Commission’s recommendation shall be by resolution. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3 and the provisions of Section 26.304.035 – Neighborhood Outreach as applicable. Step Two – Public Hearing before City Council. 1. Purpose: To determine if the application meets the standards for approval 2. Process: The Community Development Director shall provide City Council with a recommendation to approve, approve with conditions, or deny the application, based on the standards of review. City Council shall approve, approve with conditions, or deny the application after considering the recommendation of the Community Development Director, the recommendation from the Planning and Zoning Commission or Historic Preservation Commission, and comments and testimony from the public at a duly noticed public hearing. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.110, City Council applications and Section 26.470.080, General Review Standards. 4. Form of decision: City Council decision shall be by ordinance. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3, the requirements of Section 26.304.035 – Neighborhood Outreach as applicable, and the requisite notice requirements for adoption of an ordinance by City Council. D. Combined Reviews. An application for growth management review may be combined with development applications for other associated land use reviews, pursuant to Section 26.304.060.B.1, Combined Reviews. P17 I. Ordinance 31, Series 2016 Growth Management Page 15 of 43 26.470.070 Exempt development. The following types of development shall be exempt from the provisions of this Chapter. Development exempt from growth management shall not be considered exempt from other chapters of the Land Use Code. Where applicable, exemptions are cumulative. A. Remodeling or redevelopment of existing single-family and duplex residential development. The remodeling or redevelopment of existing single-family and duplex residential properties shall be exempt from growth management provided that no additional Floor Area is added to the property. When an expansion of Floor Area occurs, see Section 26.470.060, subsections 1 and 2. Existing, prior to demolition, Floor Area shall be documented by the City Zoning Officer prior to demolition. B. Conversion of an existing single-family residence to a duplex residence or two (2) detached residences or vise-versa. The conversion of an existing single-family residence to a duplex residence or two (2) detached single-family residences, or vise-versa, which may include demolition shall be exempt from growth management provided that no additional Floor Area is added to the property. When an expansion of Floor Area occurs, see Section 26.470.060, subsections 1 and 2. Existing, prior to demolition, Floor Area shall be documented by the City Zoning Officer prior to demolition. C. Remodeling or expansion of existing multi-family residential development. The remodeling of existing multi-family residential dwellings shall be exempt from growth management provided that no additional Floor Area is added to the property and provided demolition of a unit or structure does not occur. When an expansion of Floor Area occurs, see Section 26.470.060, subsection 2. When demolition occurs, see Paragraph 26.470.070.6, Demolition or redevelopment of multi-family housing. (Also see definition of demolition, Section 26.104.100.) D. Remodeling or Relocation of historic structures. The remodeling (consistent with subsection F, below) or permanent or temporary relocation of a structure listed on the Aspen Inventory of Historic Landmark Sites and Structures, shall be exempt from growth management, provided that all necessary approvals are obtained, pursuant to Chapter 26.415, Historic Preservation. E. Transferable development rights. The establishment and extinguishment of transferable development right certificates shall be exempt from growth management, provided that such certificates comply with Chapter 26.535, Transferable Development Rights. F. Remodeling of existing commercial development. Remodeling of existing commercial buildings and portions thereof shall be exempt from the provisions of growth management, provided that demolition is not triggered, no additional net leasable square footage is created, and there is no change in use. If redevelopment involves an expansion of net leasable square footage, the replacement of existing net leasable square footage shall not require growth management allotments and shall be exempt from providing affordable housing mitigation only if that space previously mitigated. Existing, prior to demolition, net leasable square footage and lodge units P18 I. Ordinance 31, Series 2016 Growth Management Page 16 of 43 shall be documented by the City Zoning Officer prior to demolition. Also see definitions of demolition and net leasable commercial space, Section 26.104.100. G. Remodeling or replacement of existing lodge development. Remodeling or replacement of existing hotel/lodge buildings and portions thereof shall be exempt from the provisions of growth management, provided that demolition is not triggered, no additional net leasable square footage or lodge units are created, and there is no change in use. If redevelopment involves an expansion of lodge units, only the replacement of existing lodge units/keys shall be exempt. Existing, prior to demolition, net leasable square footage and lodge units shall be documented by the City Zoning Officer prior to demolition. Also see definition of demolition, Section 26.104.100. H. Special events. Special events permitted by the City shall be exempt from this Chapter. I. Accessory dwelling units and carriage houses. The development of accessory dwelling units (ADUs) and carriage houses shall be exempt from the provisions of this Chapter but subject to the provisions of Chapter 26.520, Accessory Dwelling Units and Carriage Houses. J. Retractable canopies and trellis structures. Trellis structures and retractable canopies appended to a commercial or lodging structure shall be exempt from growth management provided that: a) there is no expansion of floor area; and b) the canopy or trellis structure is not enclosed by walls, screens, windows or other enclosures. Awnings shall be exempt from this Chapter. K. Public infrastructure. The development of public infrastructure such as roads, bridges, waterways, utilities and associated poles, wires, conduits, drains, hydrants and similar items considered essential services shall be exempt from growth management. Essential public facilities shall not be exempt and shall be reviewed pursuant to Section 26.470.110.D, Essential public facilities. (Also see definition of essential services, Section 26.104.100) 26.470.080. General Review Standards. All Planning and Zoning Commission and City Council applications for growth management review shall comply with the following standards. A. Sufficient Allotments: Sufficient growth management allotments are available to accommodate the proposed development, pursuant to Subsection 26.470.040.B. Applications for multi-year development allotment, pursuant to Paragraph 26.470.110.A shall be required to meet this standard for the growth management years from which the allotments are requested. B. Development Conformance: The proposed development conforms to the requirements and limitations of this Title, of the zone district or a site specific development plan, any adopted regulatory master plan, as well as any previous approvals, including the Conceptual Historic Preservation Commission approval, the Conceptual Commercial Design Review approval and the Planned Development – Project Review approval, as applicable. P19 I. Ordinance 31, Series 2016 Growth Management Page 17 of 43 C. Public Infrastructure and Facilities. The proposed development shall upgrade public infrastructure and facilities necessary to serve the project. Improvements shall be at the sole costs of the developer. Public infrastructure includes, but is not limited to, water supply, sewage treatment, energy and communication utilities, drainage control, fire and police protection, solid waste disposal, parking and road and transit services. D. Affordable Housing Mitigation. 1. For commercial development, sixty-five percent (65%) of the employees generated by the additional commercial net leasable space, according to Section 26.470.050.B, Employee generation rates, shall be mitigated through the provision of affordable housing. 2. For lodge development, sixty-five percent (65%) of the employees generated by the additional lodge pillows, according to Section 26.470.050.B, Employee generation rates, shall be mitigated through the provision of affordable housing. 3. For the redevelopment of existing commercial net leasable space that did not previously mitigate (see Section 26.470.080.D.6), the mitigation requirements for affordable housing shall be phased at 15% beginning in 2017, and by 3% each year thereafter until 65% is reached, as follows: Development Order applied for during calendar year - Mitigation required (percent of employees generated by the existing space that has previously not mitigated) 2017 15% 2018 18% 2019 21% 2020 24% 2021 27% 2022 30% 2023 33% 2024 36% 2025 39% P20 I. Ordinance 31, Series 2016 Growth Management Page 18 of 43 2026 42% 2027 45% 2028 48% 2029 51% 2030 54% 2031 57% 2032 60% 2033 63% 2034 65% 4. Unless otherwise exempted in this chapter, when a change in use between development categories is proposed, the employee mitigation shall be based on the use the development is converting to. For instance, if a commercial space is being converted to lodge units, the mitigation shall be based on the requirements for lodge space, outlined in subsection 2, above. Conversely, if lodge units are being converted to commercial space, the mitigation shall be based on the requirements for commercial space, outlined in subsections 1 and 3, above. 5. For free-market residential development, affordable housing net livable area shall be provided in an amount equal to at least thirty percent (30%) of the additional free-market residential net livable area. 6. For essential public facility development, mitigation shall be determined based on Section 26.470.110.D. 7. For all affordable housing provided as mitigation pursuant to this chapter or for the creation of a Certificate of Affordable Housing Credit pursuant to Chapter 26.540: a. The proposed units comply with the Guidelines of the Aspen/Pitkin County Housing Authority, as amended. A recommendation from the Aspen/Pitkin County Housing Authority shall be required for this standard. b. Required affordable housing may be provided through a mix of methods outlined in this chapter, including newly built units, buy down units, certificates of affordable housing credit, or cash-in-lieu. A recommendation from the Aspen/Pitkin County Housing Authority shall be required for this P21 I. Ordinance 31, Series 2016 Growth Management Page 19 of 43 standard, and the approved forms of mitigation methods shall be based on this recommendation. c. Affordable housing that is in the form of newly built units or buy-down units shall be located on the same parcel as the proposed development or located off-site within the City limits. Units outside the City limits may be accepted as mitigation by the City Council, pursuant to Section 26.470.110.B. When off-site units within City limits are proposed, all requisite approvals shall be obtained prior to approval of the growth management application. d. Affordable housing mitigation in the form of a Certificate of Affordable Housing Credit, pursuant to Chapter 26.540, shall be extinguished pursuant to Section 26.540.120, Extinguishment and Re-Issuance of a Certificate, utilizing the calculations in Section 26.470.050.F, Employee/Square Footage Conversion. e. If the total mitigation requirement for a project is less than .25 FTEs, a cash- in-lieu payment may be made by right. If the total mitigation requirement for a project is .25 or more FTEs, a cash-in-lieu payment shall require City Council approval, pursuant to Section 26.470.110.C. f. Affordable housing units shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing, and be restricted to a Category 4 rate as defined in the Aspen/Pitkin County Housing Authority Guidelines, as amended. An applicant may choose to provide mitigation units at a lower category designation. g. Each unit provided shall be designed such that the finished floor level of fifty percent (50%) or more of the unit's net livable area is at or above natural or finished grade, whichever is higher. This dimensional requirement may be varied through Special Review, Pursuant to Chapter 26.430 8. Affordable housing units that are being provided absent a requirement ("voluntary units") may be deed-restricted at any level of affordability, including residential occupied (RO). 26.470.090 Administrative applications. The following types of development shall be approved, approved with conditions or denied by the Community Development Director, pursuant to Section 26.470.060, Procedures for Review, and the criteria described below. Except as noted, all administrative growth management approvals shall not be deducted from the annual development allotments. All approvals apply cumulatively. A. Single-family and duplex development on historic landmark properties. The development of one or multiple single-family residences or a duplex on a parcel of land P22 I. Ordinance 31, Series 2016 Growth Management Page 20 of 43 designated as an historic landmark and which contains an historic resource shall be approved by the Community Development Director. This review applies to the rehabilitation of existing structures, reconstruction after demolition of existing structures, an expansion of Floor Area, and to the development of new structures on historic landmark properties. No affordable housing mitigation shall be required, provided that all necessary approvals are obtained, pursuant to Chapter 26.415, Historic Preservation, and provided that the parcel contains an historic resource. Development of single-family or duplex structures on an historic landmark property that does not contain an historic resource (for example, a house on a lot which was subdivided from an historic landmark property) shall be subject to the provisions of Section 26.470.090.B, Single-Family and Duplex Residential Development or Expansion. B. Single-Family and Duplex Residential Development or Expansion. The following types of free-market residential development shall require the provision of affordable housing in one of the methods described below: 1. The development of a single-family, two detached residential units, or a duplex dwelling on a lot in one of the following conditions: a. A lot created by a lot split, pursuant to Subsection 26.480.060.A. b. A lot created by a historic lot split, pursuant to Subsection 26.480.060.B, when the subject lot does not itself contain a historic resource. c. A lot that was subdivided or was a legally described parcel prior to November 14, 1977, that complies with the provisions of Subsection 26.480.020, Subdivision: applicability, prohibitions, and lot merger. 2. The net increase of Floor Area of an existing single-family, two detached residential units on a single lot, or a duplex dwelling, regardless of when the lot was subdivided or legally described and regardless of whether demolition occurs. This type of development shall not require a growth management allocation and shall not be deducted from the respective annual development allotments. 3. Affordable housing mitigation requirements for the types of free-market residential development described above shall be as follows. The applicant shall have four options: a. Recording a resident-occupancy (RO), or lower, deed restriction on the single-family dwelling unit or one of the residences if a duplex or two detached residences are developed on the property. An existing deed restricted unit does not need to re-record a deed restriction. b. Providing a deed restricted one-bedroom or larger affordable housing unit within the Aspen Infill Area acceptable to the Aspen/Pitkin County Housing Authority (which may require certain improvements) in a size equal to or larger than 30% of the Floor Area increase to the Free-Market unit. The mitigation unit must be deed-restricted as a "for sale" Category 2 (or lower) housing unit and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority. P23 I. Ordinance 31, Series 2016 Growth Management Page 21 of 43 c. Providing a fee-in-lieu payment or extinguishing a Certificate of Affordable Housing Credit in a full-time-equivalent (FTE) amount based on the following schedule: Floor Area per dwelling unit Employment Generation Rate First 4,500 square feet (Floor Area) .16 employees per 1,000 square feet of Floor Area. Above 4,500 square feet (Floor Area) .36 employees per 1,000 square feet of Floor Area. Notes: - The calculation of the Employment Generation shall be assessed per dwelling unit. Duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as floor area of the primary dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the basis for determining the number of employees generated. No refunds shall be provided if Floor Area is reduced. - When demolition is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to development on a different lot. - The above generation rates are based on a study of employment generation of Aspen residences, from both initial construction and ongoing operation, performed by RRC Associates of Boulder, Colorado, dated March 4, 2015. Affordable housing mitigation must be provided at a Category 2 (or lower) rate. Certificates must be extinguished pursuant to the procedures of Chapter 26.540, Certificates of Affordable Housing Credit. Fee-in-lieu rates shall be those stated in Section 26.470.100 – Calculations; Employee Generation and Mitigation, in effect on the date of application acceptance. Providing a fee-in-lieu payment in excess of .10 FTE shall require City Council approval, pursuant to Section 26.470.110.C. Example 1: A new home of 3,400 square feet of Floor Area on a vacant lot created by a historic lot split. The applicant must provide affordable housing mitigation for .54 FTEs. 3,400 / 1,000 x .16 = .54 In this example the applicant may provide a Certificate of Affordable Housing Credit or request City Council accept a fee-in-lieu payment. Example 2: An existing home of 4,400 square feet of Floor Area is expanded by 250 square feet of Floor Area. The applicant must provide affordable housing mitigation for .07 FTEs, the difference in employee generation of the two house sizes. (4,500 / 1,000 x .16) + (150 / 1,000 x .36) – (4,400 / 1,000 x .16) = .07 In this example the applicant may provide a Certificate of Affordable Housing Credit or a fee-in-lieu payment. P24 I. Ordinance 31, Series 2016 Growth Management Page 22 of 43 d. For property owners qualified as a full-time local working resident, an affordable housing mitigation deferral agreement may be accepted by the City of Aspen and the Aspen/Pitkin County Housing Authority. This allows deferral of the mitigation requirement until such time as the property is no longer owned by a full-time local working resident. Staff of the City of Aspen Community Development Department and the Aspen/Pitkin County Housing Authority can assist with the procedures and limitations of this option. C. Multi-Family Residential Expansion. The following types of free-market residential development shall require the provision of affordable housing in one of the methods described below: 1. The net increase of Floor Area of an existing free-market multi-family unit or structure, regardless of when the lot was subdivided or legally described and provided demolition does not occur. (When demolition occurs, see Section 26.470.100.E, Demolition or redevelopment of multi-family housing.) This type of development shall not require a growth management allocation and shall not be deducted from the respective annual development allotments established pursuant to Section 26.470.040. 2. Affordable housing mitigation requirements for the type of free-market residential development described above shall be as follows. The applicant shall have four options: a. Recording a resident-occupancy (RO), or lower, deed restriction on the dwelling unit(s) being expanded. An existing deed restricted unit does not need to re-record a deed restriction. b. Providing a deed restricted one-bedroom or larger affordable housing unit within the Aspen Infill Area acceptable to the Aspen/Pitkin County Housing Authority (which may require certain improvements) in a size equal to or larger than 30% of the Floor Area increase to the Free-Market unit(s). The mitigation unit(s) must be deed- restricted as a "for sale" Category 2 (or lower) housing unit and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority. c. Providing a fee-in-lieu payment or extinguishing a Certificate of Affordable Housing Credit in a full-time-equivalent (FTE) amount based on the following schedule: Floor Area per dwelling unit Employment Generation Rate square feet of expansion (Floor Area) .18 employees per 1,000 square feet of Floor Area Notes: - The calculation of the Employment Generation shall be assessed per dwelling unit. Multiple dwelling units do not combine their floor area for one calculation. - When a unit adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the basis for determining the number of employees generated. No refunds shall be provided if Floor Area is reduced. - When demolition is proposed, please see Section 26.470.100.E – Demolition or Redevelopment of Multi-Family Housing. Projects P25 I. Ordinance 31, Series 2016 Growth Management Page 23 of 43 - The above generation rates are based on a study of employment generation of Aspen residences, from both initial construction and ongoing operation, performed by RRC Associates of Boulder, Colorado, dated March 4, 2015. Affordable housing mitigation must be provided at a Category 2 (or lower) rate. Certificates must be extinguished pursuant to the procedures of Chapter 26.540, Certificates of Affordable Housing Credit. Fee-in-lieu rates shall be those stated in Section 26.470.050 – Calculations; Employee Generation and Mitigation, in effect on the date of application acceptance. Providing a fee-in-lieu payment in excess of .10 FTE shall require City Council approval, pursuant to Section 26.470.110.C. Example 1: A multi-family unit of 1,400 square feet of Floor Area is expanded by 400 square feet of Floor Area. The applicant must provide affordable housing mitigation for .09 FTEs. 500 / 1,000 x .18 = .09 In this example the applicant may provide a Certificate of Affordable Housing Credit or a fee-in-lieu payment. Example 2: A multi-family unit of 1,400 square feet of Floor Area is expanded by 2,600 square feet of Floor Area. The applicant must provide affordable housing mitigation for .47 FTEs, the difference in employee generation of the two unit sizes. 2,600 / 1,000 x .18 = .47 In this example the applicant may provide a Certificate of Affordable Housing Credit or request City Council accept a fee-in-lieu payment. d. For property owners qualified as a full-time local working resident, an affordable housing mitigation deferral agreement may be accepted by the City of Aspen and the Aspen/Pitkin County Housing Authority. This allows deferral of the mitigation requirement until such time as the property is no longer owned by a full-time local working resident. Staff of the City of Aspen Community Development Department and the Aspen/Pitkin County Housing Authority can assist with the procedures and limitations of this option. D. Change in use of historic landmark sites and structures. The change of use between the development categories identified in Section 26.470.020, of a property, structure or portion of a structure designated as an historic landmark shall be approved, approved with conditions or denied by the Community Development Director if no more than one (1) free-market residence is created. No employee mitigation shall be required. If more than one (1) free-market residence is created, the additional units shall be reviewed pursuant to Paragraph 26.470.070.G. The change in amount of development and number of units shall not be added or deducted from the respective annual development allotments. E. Minor enlargement of an historic landmark for commercial, lodge or mixed-use development. The enlargement of a property, structure or portion of a structure designated as an historic landmark for commercial, lodge or mixed-use development shall P26 I. Ordinance 31, Series 2016 Growth Management Page 24 of 43 be approved, approved with conditions or denied by the Community Development Director based on the following criteria. The additional development of uses identified in Section 26.470.020 shall not be deducted from the respective annual development allotments. 1. If the development increases either floor area or net leasable space/lodge units, but not both, then no employee mitigation shall be required. 2. If the development increases both floor area and net leasable space/lodge units, up to four (4) employees generated by the additional commercial/lodge shall not require the provision of affordable housing mitigation. This shall be cumulative. An expansion generating more than four (4) employees shall not qualify for this administrative approval and shall be reviewed pursuant to Paragraph 26.470.100.A. 3. No more than one (1) free-market residence is created. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 29, Series of 2016. F. Minor expansion of a commercial, lodge or mixed-use development. The minor enlargement of a property, structure or portion of a structure for commercial, lodge or mixed-use development when demolition is not triggered shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria. The additional development of uses identified in Section 26.470.020 shall not be deducted from the respective annual development allotments. 1. The expansion involves no more than five-hundred (500) square feet of net leasable space, no more than two-hundred-fifty (250) square feet of Floor Area, and no more than three (3) additional hotel/lodge units. No employee mitigation shall be required. 2. The expansion involves no residential units. 3. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 22, Series of 2013. 4. When demolition is triggered, the application shall be reviewed pursuant to Section 25.470.100(F), Expansion or new commercial development. G. Sale of locally-made products in common areas of commercial buildings. Commercial use of common areas within commercial and mixed-use buildings which contain commercial use (a.k.a. “non-unit spaces,” “arcades,” “hallways,” “lobbies,” or “malls”) shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria. 1. Products shall be limited to arts, crafts, or produce designed, manufactured, created, grown, or assembled in the Roaring Fork Valley, defined as the watershed of the Roaring Fork River plus the municipal limits of the City of Glenwood Springs. Exempt from these product and geographic limitations are items sold by a hardware store adjacent to the common area and items incidental to arts, crafts, and produce such as frames and pedestals. P27 I. Ordinance 31, Series 2016 Growth Management Page 25 of 43 2. The area can be used by an existing business within the building or by “stand-alone” businesses. Multiple spaces may be created. 3. These areas shall not be considered net leasable space for the purposes of calculating impact fees or redevelopment credits. No employee mitigation shall be required. Compliance with all zoning, building, and fire codes is mandatory. H. Outdoor food/beverage vending license. Outdoor food/beverage vending shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria: 1. Location. All outdoor food/beverage vending must be on private property and may be located in the Commercial Core (CC), Commercial (C1), Neighborhood Commercial (NC), or Commercial Lodge (CL) zone districts. Outdoor Food Vending may occur on public property that is subject to an approved mall lease. Additional location criteria: a. The operation shall be in a consistent location as is practically reasonable and not intended to move on a daily basis throughout the duration of the permit. b. Normal operation, including line queues, shall not inhibit the movement of pedestrian or vehicular traffic along the public right-of-way. c. The operation shall not interfere with required emergency egress or pose a threat to public health, safety and welfare. A minimum of six (6) foot ingress/egress shall be maintained for building entrances and exits. 2. Size. The area of outdoor food/beverage vending activities shall not exceed fifty (50) square feet per operation. The area of activity shall be defined as a counter area, equipment needed for the food vending activities (e.g. cooler with drinks, snow cone machine, popcorn machine, etc.), and the space needed by employees to work the food vending activity. 3. Signage. Signage for outdoor food/beverage vending carts shall be exempt from those requirements found within Land Use Code Section 26.510, Signs, but not excluding Prohibited Signs. The total amount of signage shall be the lesser of fifty percent (50%) of the surface area of the front of the cart, or six (6) square feet. Sign(s) shall be painted on or affixed to the cart. Any logos, lettering, or signage on umbrellas or canopies counts towards this calculation. Food carts may have a sandwich board sign in accordance with the regulations found within Chapter 26.510. 4. Environmental Health Approval. Approval of a food service plan from the Environmental Health Department is required. The area of outdoor food vending activities shall include recycling bins and a waste disposal container that shall be emptied daily and stored inside at night and when the outdoor food vending activities are not in operation. Additionally, no outdoor, open-flame char-broiling shall be permitted pursuant to Municipal Code Section 13.08.100, Restaurant Grills. P28 I. Ordinance 31, Series 2016 Growth Management Page 26 of 43 5. Building and Fire Code Compliance. All outdoor food/beverage vending operations must comply with adopted building and fire codes. Applicants are encouraged to meet with the City’s Building Department to discuss the vending cart/stand. 6. Application Contents. An application for a food/beverage vending license shall include the standard information required in 26.304.030.B, plus the following: a. Copy of a lease or approval letter from the property owner. b. A description of the operation including days/hours of operation, types of food and beverage to be offered, a picture or drawing of the vending cart/stand, and proposed signage. c. The property survey requirement shall be waived if the applicant can demonstrate how the operation will be contained on private property. 7. License Duration. Outdoor food/beverage vending licenses shall be valid for a one (1) year period beginning on the same the date that the Notice of Approval is signed by the Community Development Director. This one (1) year period may not be separated into non-consecutive periods. 8. License Renewal. Outdoor food/beverage vending licenses may be renewed. Upon renewal the Community Development Director shall consider the returning vendor’s past performance. This shall include, but shall not be limited to, input from the Environmental Health Department, Chief of Police, special event staff, and feedback from adjacent businesses. Unresolved complaints may result in denial of a renewal request. 9. Business License. The vending operator must obtain a business license. 10. Affordable Housing and Impact Fees Waived. The Community Development Director shall waive affordable housing mitigation fees and impact fees associated with outdoor food/beverage vending activities. 11. Maintenance and public safety. Outdoor food/beverage vending activities shall not diminish the general public health, safety or welfare and shall abide by applicable City regulations, including but not limited to building codes, health safety codes, fire codes, liquor laws, sign and lighting codes, and sales tax license regulations. 12. Abandonment. The City of Aspen may remove an abandoned food/beverage vending operation, or components thereof, in order protect public health, safety, and welfare. Costs of such remediation shall be the sole burden of the property owner. 13. Temporary Cessation. The Community Development Director may require a temporary cancelation of operations to accommodate special events, holidays, or similar large public gatherings. Such action will be taken if it is determined that the food/beverage cart will create a public safety issue or create an excessive burden on the event activities. P29 I. Ordinance 31, Series 2016 Growth Management Page 27 of 43 14. License Revocation. The Community Development Director may deny renewal or revoke the license and cause removal of the food/beverage vending operation if the vendor fails to operate consistent with these criteria. An outdoor food/beverage vending license shall not constitute nor be interpreted by any property owner, developer, vendor, or court as a site specific development plan entitled to vesting under Article 68 of Title 24 of the Colorado Revised Statutes or Chapter 26.308 of this Title. Licenses granted in this subsection are subject to revocation by the City Manager or Community Development Director without requiring prior notice. I. Temporary uses and structures. The development of a temporary use or structure shall be exempt from growth management, subject to the provisions of Chapter 26.450, Temporary and Seasonal Uses. Temporary external airlocks shall only be exempt from the provisions of this Chapter if compliant with applicable sections of Commercial Design Review – Chapter 26.412, and approved pursuant to Chapter 26.450 Temporary and Seasonal Uses. Tents, external airlocks, and similar temporary or seasonal enclosures located on commercial properties and supporting commercial use shall only be exempt from the provisions of this Chapter, including affordable housing mitigation requirements, if compliant with applicable sections of Commercial Design Review – Chapter 26.412, if erected for 14 days or less in a 12-month period, and approved pursuant to Chapter 26.450 – Temporary and Seasonal Uses. Erection of these enclosures for longer than 14 days in a 12-month period shall require compliance with Commercial Design Review – Chapter 26.412, and compliance with the provisions of this Chapter including affordable housing mitigation. Affordable housing mitigation shall be required only for the days in excess of 14 in a 12-month period. Cash-in-lieu may be paid by- right. The mitigation calculation shall include the expected lifespan of a building, which is currently 30 years. For instance, a 500 sq. ft. tent proposed to be up for 21 days shall only require mitigation for seven (7) days. The calculation would be as follows: Methodology: • 500 sq. ft. / 1000 sq. ft. = .5 sq. ft. • .5 sq. ft. x 4.7 FTEs = 2.35 FTEs generated • 2.35 FTEs x 60% mitigation rate = 1.41 FTEs to be mitigated if structures are in use 100% of year • 1.41 FTEs / 365 days per year = .003863 daily rate • .003863 x 7 days = .027041 FTEs • .027041 x $223,072 cash-in-lieu rate = $6,032.09 • $6,032.09/ 30 years = $201.07 due for mitigation of the structure for a period of 7 days 26.470.100 Planning and Zoning Commission applications. The following types of development shall be approved, approved with conditions or denied by the Planning and Zoning Commission, pursuant to Section 26.470.060, Procedures for review, and the criteria for each type of development described below. Except as noted, all growth P30 I. Ordinance 31, Series 2016 Growth Management Page 28 of 43 management applications shall comply with the general requirements of Section 26.470.080. Except as noted, the following types of growth management approvals shall be deducted from the annual development allotments. Approvals apply cumulatively. A. Enlargement of an historic landmark for commercial, lodge or mixed-use development. The enlargement of an historic landmark building for commercial, lodge or mixed-use development shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. Up to four (4) employees generated by the additional commercial/lodge development shall not require the provision of affordable housing. Thirty percent (30%) of the employee generation above four (4) and up to eight (8) employees shall be mitigated through the provision of affordable housing, affordable housing credits, or cash in lieu thereof. Sixty percent (60%) of the employee generation above eight (8) employees shall be mitigated through the provision of affordable housing, affordable housing credits, or cash in lieu thereof. For example: A project generating 15 employees shall require employee mitigation for a total of 5.4 employees, as follows: First 4 employees = 0 employee mitigation Second 4 employees mitigated at 30% = 1.2 employees Remaining 7 employees mitigated at 60% = 4.2 employees Affordable housing shall be approved pursuant to Section 26.470.080.D, Affordable Housing Mitigation. 2. Up to one (1) free-market residence may be created pursuant to Paragraph 26.470.090.E, Minor enlargement of an historic landmark for commercial, lodge or mixed-use development. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 29, Series of 2015. Additional free- market units (beyond one [1]) shall be reviewed pursuant to Paragraph 26.470.100.C, New free-market residential units within a multi-family or mixed-use project. B. Change in use. A change in use of an existing property, structure or portions of an existing structure between the development categories identified in Section 26.470.020 (irrespective of direction), for which a certificate of occupancy has been issued and which is intended to be reused, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080. No more than one (1) free-market residential unit may be created through the change-in-use. C. Expansion of free-market residential units within a multi-family or mixed-use project. The net livable area expansion of existing free-market residential units within a mixed-use project shall be approved, approved with conditions or denied by the Planning and Zoning P31 I. Ordinance 31, Series 2016 Growth Management Page 29 of 43 Commission based on the general requirements outlined in Section 26.470.080. The remodeling or expansion of existing multi-family residential dwellings shall be exempt from growth management as long as no demolition occurs, pursuant to Section 26.470.070.C. Expansion of existing free-market residential units shall not require a development allotment D. Affordable housing. The development of affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080. a. The proposed units shall be deed-restricted as "for sale" units and transferred to qualified purchasers according to the Aspen/Pitkin County Housing Authority Guidelines. The owner may be entitled to select the first purchasers, subject to the aforementioned qualifications, with approval from the Aspen/Pitkin County Housing Authority. The deed restriction shall authorize the Aspen/Pitkin County Housing Authority or the City to own the unit and rent it to qualified renters as defined in the Affordable Housing Guidelines established by the Aspen/Pitkin County Housing Authority, as amended. The proposed units may be rental units, including but not limited to rental units owned by an employer or nonprofit organization, if a legal instrument in a form acceptable to the City Attorney ensures permanent affordability of the units. The City encourages affordable housing units required for lodge development to be rental units associated with the lodge operation and contributing to the long-term viability of the lodge. Units owned by the Aspen/Pitkin County Housing Authority, the City of Aspen, Pitkin County or other similar governmental or quasi-municipal agency shall not be subject to this mandatory "for sale" provision. E. Demolition or redevelopment of multi-family housing. The City's neighborhoods have traditionally been comprised of a mix of housing types, including those affordable by its working residents. However, because of Aspen's attractiveness as a resort environment and because of the physical constraints of the upper Roaring Fork Valley, there is constant pressure for the redevelopment of dwellings currently providing resident housing for tourist and second-home use. Such redevelopment results in the displacement of individuals and families who are an integral part of the Aspen work force. Given the extremely high cost of and demand for market- rate housing, resident housing opportunities for displaced working residents, which are now minimal, will continue to decrease. Preservation of the housing inventory and provision of dispersed housing opportunities in Aspen have been long-standing planning goals of the community. Achievement of these goals will serve to promote a socially and economically balanced community, limit the number of individuals who face a long and sometimes dangerous commute on State Highway 82, reduce the air pollution effects of commuting and prevent exclusion of working residents from the City's neighborhoods. The Aspen Area Community Plan established a goal that affordable housing for working residents be provided by both the public and private sectors. The City and the Aspen/Pitkin P32 I. Ordinance 31, Series 2016 Growth Management Page 30 of 43 County Housing Authority have provided affordable housing both within and adjacent to the City limits. The private sector has also provided affordable housing. Nevertheless, as a result of the replacement of resident housing with second homes and tourist accommodations and the steady increase in the size of the workforce required to assure the continued viability of Aspen area businesses and the City's tourist-based economy, the City has found it necessary, in concert with other regulations, to adopt limitations on the combining, demolition or conversion of existing multi-family housing in order to minimize the displacement of working residents, to ensure that the private sector maintains its role in the provision of resident housing and to prevent a housing shortfall from occurring. The combining, demolition, conversion or redevelopment of multi-family housing shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on compliance with the following requirements (see definition of demolition.): 1. Requirements for combining, demolishing, converting or redeveloping free-market multi- family housing units: Only one (1) of the following two (2) options is required to be met when combining, demolishing, converting or redeveloping a free-market multi-family residential property. To ensure the continued vitality of the community and a critical mass of local working residents, no net loss of density (total number of units) between the existing development and proposed development shall be allowed. a. One-hundred-percent replacement. In the event of the demolition of free-market multi-family housing, the applicant shall have the option to construct replacement housing consisting of no less than one hundred percent (100%) of the number of units, bedrooms and net livable area demolished. The replacement units shall be deed-restricted as resident occupied affordable housing, pursuant to the Guidelines of the Aspen/Pitkin County Housing Authority. An applicant may choose to provide mitigation units at a lower category designation. Each replacement unit shall be approved pursuant to Subsection D, Affordable housing, of this Section. When this one-hundred-percent standard is accomplished, the remaining development on the site may be free-market residential development with no additional affordable housing mitigation required as long as there is no increase in the number of free- market residential units on the parcel. Free-market units in excess of the total number originally on the parcel shall be reviewed pursuant to Section 26.470.110, subsection J or K, Residential Development – sixty or seventy percent affordable. b. Fifty-percent replacement. In the event of the demolition of free-market multi-family housing and replacement of less than one hundred percent (100%) of the number of previous units, bedrooms or net livable area as described above, the applicant shall be required to construct affordable housing consisting of no less than fifty percent (50%) of the number of units, bedrooms and the net livable area demolished. The replacement units shall be deed-restricted as Category 4 housing, pursuant to the guidelines of the Aspen/Pitkin County Housing Authority. An applicant may choose to provide mitigation units at a lower category designation. Each replacement unit shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing. P33 I. Ordinance 31, Series 2016 Growth Management Page 31 of 43 When this fifty-percent standard is accomplished, the remaining development on the site may be free-market residential development as long as additional affordable housing mitigation is provided pursuant to Section 26.470.080 – General Requirements, and there is no increase in the number of free-market residential units on the parcel. Free-market units in excess of the total number originally on the parcel shall be reviewed pursuant to Section 26.470.100, subsection J or K, Residential Development – sixty or seventy percent affordable. c. One-hundred percent affordable housing replacement. When one-hundred-percent of the free-market multi-family housing units are demolished and are solely replaced with deed-restricted affordable housing units on a site that are not required for mitigation purposes, including any net additional dwelling units, pursuant to Section 26.470.110.D, Affordable Housing; all of the units in the redevelopment are eligible for a Certificate of Affordable Housing Credit, pursuant to Section 26.540 Certificate of Affordable Housing Credit. Any remaining unused free market residential development rights shall be vacated. 2. Requirements for demolishing affordable multi-family housing units: In the event a project proposes to demolish or replace existing deed-restricted affordable housing units, the redevelopment may increase or decrease the number of units, bedrooms or net livable area such that there is no decrease in the total number of employees housed by the existing units. The overall number of replacement units, unit sizes, bedrooms and category of the units shall be reviewed by the Aspen/Pitkin County Housing Authority and a recommendation forwarded to the Planning and Zoning Commission. 3. Fractional unit requirement. When the affordable housing replacement requirement of this Section involves a fraction of a unit, fee-in-lieu may be provided only upon the review and approval of the City Council, to meet the fractional requirement only, pursuant to Paragraph 26.470.110.C, Provision of required affordable housing via a fee- in-lieu payment. 4. Location requirement. Multi-family replacement units, both free-market and affordable, shall be developed on the same site on which demolition has occurred, unless the owner shall demonstrate and the Planning and Zoning Commission determines that replacement of the units on site would be in conflict with the parcel's zoning or would be an inappropriate solution due to the site's physical constraints. When either of the above circumstances result, the owner shall replace the maximum number of units on site which the Planning and Zoning Commission determines that the site can accommodate and may replace the remaining units off site, at a location determined acceptable to the Planning and Zoning Commission, or may replace the units by extinguishing the requisite number of affordable housing credits, pursuant to Sec. 26.540, Certificates of Affordable Housing Credit. A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. P34 I. Ordinance 31, Series 2016 Growth Management Page 32 of 43 When calculating the number of credits that must be extinguished, the most restrictive replacement measure shall apply. So, for example, for an applicant proposing to replace one 1,000 square foot three-bedroom unit at the 50% rate using credits, the following calculations shall be used: • 50% of 1,000 square feet = 500 square feet to be replaced. At the Code mandated rate of 1 FTE per 400 square feet of net livable area, this requires 1.25 credits to be extinguished; or • A three-bedroom unit = 3.0 FTE’s. 50% of 3.0 FTE’s = 1.50 credits to be extinguished. Therefore, the applicant must extinguish 1.50 credits to replace a three-bedroom unit at the 50% rate. The credits to be extinguished would be Category 4 credits. 5. Timing requirement. Any replacement units required to be deed-restricted as affordable housing shall be issued a certificate of occupancy, according to the Building Department, and be available for occupancy at the same time as, or prior to, any redeveloped free- market units, regardless of whether the replacement units are built on site or off site. 6. Redevelopment agreement. The applicant and the City shall enter into a redevelopment agreement that specifies the manner in which the applicant shall adhere to the approvals granted pursuant to this Section and penalties for noncompliance. The agreement shall be recorded before an application for a demolition permit may be accepted by the City. 7. Growth management allotments. The existing number of free-market residential units, prior to demolition, may be replaced exempt from growth management, provided that the units conform to the provisions of this Section. The redevelopment credits shall not be transferable separate from the property unless permitted as described above in Subparagraph 4, Location requirement. 8. Exemptions. The Community Development Director shall exempt from the procedures and requirements of this Section the following types of development involving Multi- Family Housing Units. An exemption from these replacement requirements shall not exempt a development from compliance with any other provisions of this Title: a. The replacement of Multi-Family Housing Units after non-willful demolition such as a flood, fire, or other natural catastrophe, civil commotion, or similar event not purposefully caused by the land owner. The Community Development Director may require documentation be provided by the landowner to confirm the damage to the building was in-fact non-willful. To be exempted, the replacement development shall be an exact replacement of the previous number of units, bedrooms, and square footage and in the same configuration. The Community Development Director may approve exceptions to this exact replacement requirement to accommodate changes necessary to meet P35 I. Ordinance 31, Series 2016 Growth Management Page 33 of 43 current building codes; improve accessibility; to conform to zoning, design standards, or other regulatory requirements of the City; or, to provide other architectural or site planning improvements that have no substantial effect on the use or program of the development. (Also see Chapter 26.312 – Nonconformities.) Substantive changes to the development shall not be exempted from this Section and shall be reviewed as a willful change pursuant to the procedures and requirements of this Section. b. The demolition of Multi-Family Housing Units by order of a public agency including, but not limited to, the City of Aspen for reasons of preserving the life, health, safety, or general welfare of the public. c. The demolition, combining, conversion, replacement, or redevelopment of Multi- Family Housing Units which have been used exclusively as tourist accommodations or by non-working residents. The Community Development Director may require occupancy records, leases, affidavits, or other documentation to the satisfaction of the Director to demonstrate that the unit(s) has never housed a working resident. All other requirements of this Title shall still apply including zoning, growth management, and building codes.) d. The demolition, combining, conversion, replacement, or redevelopment of Multi- Family Housing Units which were illegally created (also known as “Bandit Units”). Any improvements associated with Bandit Units shall be required to conform to current requirements of this Title including zoning, growth management, and building codes. Replaced or redeveloped Bandit Units shall be deed restricted as Resident Occupied affordable housing, pursuant to the Guidelines of the Aspen/Pitkin County Housing Authority e. Any development action involving demising walls or floors/ceilings necessary for the normal upkeep, maintenance, or remodeling of adjacent Multi-Family Housing Units. f. A change order to an issued and active building permit that proposes to exceed the limitations of remodeling/demolition to rebuild portions of a structure which, in the opinion of the Community Development Director, should be rebuilt for structural, safety, accessibility, or significant energy efficiency reasons first realized during construction, which were not known and could not have been reasonably predicted prior to construction, and which cause no or minimal changes to the exterior dimensions and character of the building. F. Expansion or new commercial development. The expansion of an existing commercial building or commercial portion of a mixed-use building or the development of a new commercial building or commercial portion of a mixed-use building shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on general requirements outlined in Section 26.470.080. P36 I. Ordinance 31, Series 2016 Growth Management Page 34 of 43 G. New free-market residential units within a multi-family or mixed-use project. The development of new free-market residential units within a multi-family or mixed-use project shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080 above. H. Expansion or new lodge development. The expansion of an existing lodge or the development of a new lodge shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. If the project contains a minimum of one (1) lodge unit per five hundred (500) square feet of lot area, the following affordable housing mitigation standards shall apply: a. Affordable housing net livable area equaling a percentage, as defined in the unit size table below, of the additional free-market residential net livable area shall be mitigated through the provision of affordable housing. b. A percentage, as defined in the table below, of the employees generated by the additional lodge, timeshare lodge, exempt timeshare units and associated commercial development, according to Paragraph 26.470.100.A.1, Employee generation, shall be mitigated through the provision of affordable housing. Average Net Livable Area of Lodge Units Being Added to the Parcel Affordable Housing Net Livable Area Required (Percentage of Free- Market Net Livable Area) Percentage of Employee Generation Requiring the Provision of Mitigation 600 square feet or greater 30% 80% 500 square feet 30% 60% 400 square feet 20% 40% 300 square feet or smaller 10% 30% When the average unit size falls between the square-footage categories, the required affordable housing shall be determined by interpolating the above schedule. For example, a lodge project with an average unit size of four hundred fifty (450) square feet shall be required to provide mitigation for thirty percent (50%) of the employees generated. c. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing. 2. If the project contains less than one (1) lodge unit per five hundred (500) square feet of lot area, the following affordable housing mitigation standards shall apply: P37 I. Ordinance 31, Series 2016 Growth Management Page 35 of 43 a. Affordable housing net livable area equaling thirty percent (30%) of the additional free-market residential net livable area shall be mitigated through the provision of affordable housing. b. Eighty percent (60%) of the employees generated by the additional lodge, timeshare lodge, exempt timeshare units and associated commercial development, according to Paragraph 26.470.050.B, Employee generation, shall be mitigated through the provision of affordable housing. I. Residential development – sixty percent (60%) affordable. The development of a residential project or an addition of units to an existing residential project, in which a minimum of sixty percent (60%) of the additional units and thirty percent (30%) of the additional floor area is affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. A minimum of sixty percent (60%) of the total additional units and thirty percent (30%) of the project's additional floor area shall be affordable housing. Multi-site projects are permitted. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing, and shall average Category 4 rates as defined in the Aspen/Pitkin County Housing Authority Guidelines, as amended. An applicant may choose to provide mitigation units at a lower category designation. 2. If the project consists of only one (1) free-market residence, then a minimum of one (1) affordable residence representing a minimum of thirty percent (30%) of the project's total floor area and deed-restricted as a Category 4 "for sale" unit, according to the provisions of the Aspen/Pitkin County Affordable Housing Guidelines, shall qualify. J. Residential development – seventy percent (70%) affordable. The development of a residential project or an addition to an existing residential project, in which seventy percent (70%) of the project's additional units and seventy percent (70%) of the project's additional bedrooms are affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. Seventy percent (70%) of the total additional units and total additional bedrooms shall be affordable housing. At least forty percent (40%) of the units shall average Category 4 rates as defined in the Aspen/Pitkin County Housing Authority Guidelines. The remaining thirty-percent affordable housing unit requirement may be provided as Resident Occupied (RO) units as defined in the Aspen/Pitkin County Housing Authority Guidelines. Multi-site projects are permitted. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.070.4, Affordable P38 I. Ordinance 31, Series 2016 Growth Management Page 36 of 43 housing. An applicant may choose to provide mitigation units at a lower category designation. 2. If the project consists of one (1) free-market residence, then the provision of one (1) RO residence and one (1) category residence shall be considered meeting the seventy- percent unit standard. If the project consists of two (2) free-market residences, then the provision of two (2) RO residences and two (2) category residences shall qualify. 26.470.110. City Council applications. The following types of development shall be approved, approved with conditions or denied by the City Council, pursuant to Section 26.470.060, Procedures for review, and the criteria for each type of development described below. Except as noted, all growth management applications shall comply with the general requirements of Section 26.470.080. Except as noted, all City Council growth management approvals shall be deducted from the respective annual development allotments. A. Multi-year development allotment. The City Council, upon a recommendation from the Planning and Zoning Commission, shall approve, approve with conditions or deny a multi- year development allotment request based on the following criteria: 1. A project is required to meet at least five (5) of the following criteria. a. The proposal exceeds the minimum affordable housing required for a standard project. b. The proposed project represents an excellent historic preservation accomplishment. A recommendation from the Historic Preservation Commission shall be considered for this standard. c. The proposal furthers affordable housing goals by providing units established as priority through the current Aspen/Pitkin County Housing Authority Guidelines and provides a desirable mix of affordable unit types, economic levels and lifestyles (e.g., singles, seniors, families, etc.). A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. d. The proposal minimizes impacts on public infrastructure by incorporating innovative, energy-saving techniques. Recommendations from relevant departments shall be considered for this standard. For example, if an applicant proposed an innovative design related to the stormsewer system, a recommendation from the Engineering Department shall be considered. e. The proposal minimizes construction impacts beyond minimum requirements both during and after construction. A recommendation from the Engineering and Building Departments shall be considered for this standard. f. The proposal maximizes potential public transit usage and minimizes reliance on the automobile by exceeding the requirements in Section 26.515, Off-Street Parking and P39 I. Ordinance 31, Series 2016 Growth Management Page 37 of 43 Mobility. A recommendation from the Transportation and Engineering Departments shall be considered for this standard. g. The proposal exceeds minimum requirements of the Efficient Building Code or for LEED certification, as applicable. A recommendation from the Building Department shall be considered for this standard. h. The proposal represents a desirable site plan and an architectural design solution. i. The proposal promotes opportunities for local businesses through the provision of Alley stores or second-tier commercial space. 2. The project complies with all other provisions of the Land Use Code and has obtained all necessary approvals from the Historic Preservation Commission, the Planning and Zoning Commission and the City Council, as applicable. 3. The Community Development Director shall be directed to reduce the applicable annual development allotments, as provided in Section 26.470.120, in subsequent years as determined appropriate by the City Council. B. Provision of required affordable housing units outside City limits. The provision of affordable housing, as required by this chapter, with units to be located outside the City boundary, upon a recommendation from the Planning and Zoning Commission, shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The off-site housing is within the Aspen Urban Growth Boundary. 2. The proposal furthers affordable housing goals by providing units established as priority through the current Aspen/Pitkin County Housing Authority Guidelines and provides a desirable mix of affordable unit types, economic levels and lifestyles (e.g., singles, seniors and families). A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. 3. The applicant has received all necessary approvals from the governing body with jurisdiction of the off-site parcel. City Council may accept any percentage of a project's total affordable housing mitigation to be provided through units outside the City's jurisdictional limits, including all or none. C. Provision of required affordable housing via a fee-in-lieu payment. The provision of affordable housing in excess of 0.10 Full-Time Equivalents (FTEs) via a fee-in-lieu payment, upon a recommendation from the Planning and Zoning Commission shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The provision of affordable housing on site (on the same site as the project requiring such affordable housing) is impractical given the physical or legal parameters of the development or site or would be inconsistent with the character of the neighborhood in which the project is being developed. P40 I. Ordinance 31, Series 2016 Growth Management Page 38 of 43 2. The applicant has made a reasonable good-faith effort in pursuit of providing the required affordable housing off site through construction of new dwelling units, the deed restriction of existing dwelling units to affordable housing status, or through the purchase of affordable housing certificates. 3. The applicant has made a reasonable good-faith effort in pursuit of providing the required affordable housing through the purchase and extinguishment of Certificates of Affordable Housing Credit. 4. The proposal furthers affordable housing goals, and the fee-in-lieu payment will result in the near-term production of affordable housing units. The City Council may accept any percentage of a project's total affordable housing mitigation to be provided through a fee-in-lieu payment, including all or none. D. Essential public facilities. The development of an essential public facility, upon a recommendation from the Planning and Zoning Commission, shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The Community Development Director has determined the primary use and/or structure to be an essential public facility (see definition). Accessory uses may also be part of an essential public facility project. 2. The Planning and Zoning Commission shall determine the number of employees generated by the essential public facility pursuant to Section 26.470.050.C, Employee generation review. 3. Upon a recommendation from the Community Development Director and the Planning and Zoning Commission, the City Council may assess, waive or partially waive affordable housing mitigation requirements as is deemed appropriate and warranted for the purpose of promoting civic uses and in consideration of broader community goals. E. Preservation of significant open space parcels. On a project-specific basis and upon a recommendation from the Planning and Zoning Commission, the City Council shall approve, approve with conditions or deny development of one (1) or more residences in exchange for the permanent preservation of one (1) or more parcels considered significant for the preservation of open space. The preservation parcel may lie outside the City jurisdiction. The exempted residential units shall be deducted from the respective annual development allotment established pursuant to Section 26.470.040.B. The exempted residential units shall provide affordable housing mitigation, pursuant to the requirements of Section 26.470.100.E. This exemption shall only apply to the specific residences approved through this provision. Other residences within a project not specifically exempted through this provision shall require growth management approvals pursuant to this Chapter. The criteria for determining P41 I. Ordinance 31, Series 2016 Growth Management Page 39 of 43 the significance of a preservation parcel and the associated development rights to be granted may include: 1. The strategic nature of the preservation parcel to facilitate park, trails or open space objectives of the City. This shall include a recommendation from the City of Aspen Open Space Acquisition Board. 2. Identification of the preservation parcel as desirable for preservation in any adopted master plans of the City or following a recommendation from the Parks and Open Space Department. 3. Proximity and/or visibility of the preservation parcel to the City. 4. The development rights of the preservation parcel, including the allowed uses and intensities and impacts associated with those uses if developed to the maximum. 5. The proposed location of the parcel being granted growth management approvals and the compatibility of the resulting uses and intensities of development with the surrounding neighborhood, including the impacts from the specified method of providing affordable housing mitigation. The new residences shall be restricted to the underlying zoning restrictions of the property on which they lie unless additional restrictions are necessary in order to meet this criterion. 6. The preservation parcel shall be encumbered with a legal instrument, acceptable to the City Attorney, which sterilizes the parcel from further development in perpetuity. 26.470.120. Yearly Growth management accounting procedures. A. General. The Community Development Director shall maintain an ongoing account of available, requested and approved growth management allocations for all land uses identified in Table 1 of Section 26.470.020. Allotments shall be considered allocated upon issuance of a development order for the project. Unless specifically not deducted from the annual development allotment, all units of growth shall be included in the accounting. Approved affordable housing units shall be counted regardless of the unit being provided as mitigation or otherwise. B. Yearly Allotment Carry-Forward Procedures. At the conclusion of each growth management year, the Community Development Director shall prepare a summary of growth allocations. The City Council, at its first regular meeting of the growth management year, shall review the prior year's growth summary, consider a recommendation from the Community Development Director, and shall, via adoption of a resolution, establish the number of unused and unclaimed allotments to be carried forward and added to the annual allotment. A public hearing is not required and this action may be completed as part of City Council’s consent calendar. The City Council may carry forward any portion of the previous year's unused allotment, including all or none. The City Council shall consider the following criteria in determining the allotments to be carried forward: P42 I. Ordinance 31, Series 2016 Growth Management Page 40 of 43 1. The community's growth rate over the preceding five-year period. 2. The ability of the community to absorb the growth that could result from a proposed development utilizing accumulated allotments, including issues of scale, infrastructure capacity, construction impacts and community character. 3. The expected impact from approved developments that have obtained allotments, but that have not yet been built. There is no limit, other than that implemented by the City Council, on the amount of potential growth that may be carried forward to the next year. Any allotments awarded to a project which does not proceed and which are considered void shall constitute unused allotments and may be considered for allotment roll-over by the City Council for the year from which they were assigned. If a project decides not to proceed with the development after Council’s decision on roll-over allotments for that year, then those allotments shall be considered expired and no longer available. Allotments shall be considered vacated by a property owner upon written notification from the property owner or upon expiration of the development right pursuant to Section 26.470.040.D, Expiration of growth management allotments. 26.470.130. Application contents. Applications for growth management shall include the following: A. The general application information required in Common development review procedures, Chapter 26.304. B. A site-improvement survey meeting the requirements of Title 29, Engineering Design Standards. C. A description of the project and the number and type of the requested growth management allotments. D. A detailed description and site plan of the proposed development, including proposed land uses, densities, natural features, traffic and pedestrian circulation, off-street parking, open space areas, infrastructure improvements, site drainage and any associated off-site improvements. E. A description of the proposed affordable housing and how it provides adequate mitigation for the project and conforms to the Aspen/Pitkin County Housing Authority Guidelines. F. A statement specifying the public facilities that will be needed to accommodate the proposed development, proposed infrastructure improvements and the specific assurances that will be made to ensure that the public facilities will be available to accommodate the proposed development. G. A written response to each of the review criteria for the particular review requested. P43 I. Ordinance 31, Series 2016 Growth Management Page 41 of 43 H. Copies of required approvals from the Planning and Zoning Commission, Historic Preservation Commission and the City Council, as necessary. 26.470.140. Reconstruction limitations. A. An applicant may propose to demolish and then delay the reconstruction of existing development for a period not to exceed one (1) year. To comply with this limitation and maintain the reconstruction credit, an applicant must submit a complete building permit application for reconstruction on or before the one-year anniversary of the issuance date of the demolition permit. The City Council may extend this deadline upon demonstration of good cause. This time limitation shall not apply to the reconstruction of single-family and duplex development. B. Applicants shall verify existing conditions prior to demolition with the City Zoning Officer in order to document reconstruction rights. An applicant's failure to accurately document existing conditions prior to demolition and verify reconstruction rights with the City Zoning Officer may result in a loss of some or all of the reconstruction rights. C. Reconstructed buildings shall comply with applicable requirements of the Land Use Code, including but not limited to Chapter 26.312, Nonconformities, and Chapter 26.710, Zone Districts. D. Reconstruction rights shall be limited to reconstruction on the same parcel or on an adjacent parcel under the same ownership. E. Residential redevelopment credits may be converted to lodge redevelopment credits by right. The conversion rate shall be three (3) lodge units per each one (1) residential unit. This is a one- way conversion, and lodge credits may not be converted to residential credits. 26.470.150. Amendment of a growth management development order. A. Insubstantial amendment. An insubstantial amendment to an approved growth management development order may be authorized by the Community Development Director if: 1. The change conforms to all other provisions of the Land Use Code and does not exceed approved variations to the residential design standards, require an amendment to the commercial design review approval or such variations or amendments have been approved. 2. The change does not alter the number, size, type or deed restriction of the proposed affordable housing units, or those changes have been accepted by the Aspen/Pitkin County Housing Authority. 3. The change is limited to technical or engineering considerations discovered prior to or during actual development that could not reasonably be anticipated during the review process or any other minor change that the Community Development Director finds has no substantial effect on the conditions and representations made during the original project review. P44 I. Ordinance 31, Series 2016 Growth Management Page 42 of 43 B. Substantial amendment. All other amendments to an approved growth management development order shall be reviewed pursuant to the terms and procedures of this Chapter. Allotments granted shall remain valid and applied to the amended application, provided that the amendment application is submitted prior to the expiration of vested rights. Amendment applications requiring additional allotments or allotments for different uses shall obtain those allotments pursuant to the procedures of this Chapter. Any new allotments shall be deducted from the growth management year in which the amendment is submitted. 26.470.160. Appeals. A. Appeal of adverse determination by Community Development Director. An appeal made by an applicant aggrieved by a determination made by the Community Development Director on an application for administrative review shall be to the Planning and Zoning Commission. The appeal procedures set forth at Chapter 26.316 shall apply. The Planning and Zoning Commission may reverse, affirm or modify the decision or determination of the Community Development Director based upon the application submitted to the Community Development Director and the record established by the Director's review. The decision of the Planning and Zoning Commission shall constitute the final administrative action on the matter. B. Appeal of adverse determination by Planning and Zoning Commission. An appeal made by an applicant aggrieved by a determination made by the Planning and Zoning Commission on an application for Planning and Zoning Commission review shall be to the City Council. The appeal procedures set forth at Chapter 26.316 shall apply. The City Council may reverse, affirm or modify the decision or determination of the Planning and Zoning Commission based upon the application submitted to the Planning and Zoning Commission and the record established by the Commission's review. The decision of the City Council shall constitute the final administrative action on the matter. C. Insufficient development allotments. Any property owner within the City who is prevented from developing a property because that year's development allotments have been entirely allocated may appeal to the City Council for development approval. An application requesting allotments must first be denied due to lack of necessary allotments. The appeal procedures set forth at Chapter 26.316 shall apply. The City Council may take any such action determined necessary, including but not limited to making a one-time increase of the annual development allotment sufficient to accommodate the application. Section 2: Any scrivener’s errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 3: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 4: Severability. P45 I. Ordinance 31, Series 2016 Growth Management Page 43 of 43 If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5: Effective Date. In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty (30) days following final passage. Section 6: A public hearing on this ordinance shall be held on the 5th day of December, 2016, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ, AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the14th day of November, 2016. Attest: _____________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved this _____th day of _____, 2016. Attest: _____________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor Approved as to form: _____________________________ James R. True, City Attorney P46 I. 1.30.17 Exhibit A – Staff Findings Page 1 of 3 Exhibit A: Staff Findings 26.310.040. Amendments to the Land Use Code standards of review – Initiation In reviewing a request to pursue an amendment to the text of this Title, per Section 26.310.020(B)(2), Step Two – Public Hearing before City Council, the City Council shall consider: A. Whether there exists a community interest to pursue the amendment. Staff Findings: Staff believes there is a community interest in amending the Land Use Code (LUC) to ensure it is coordinated with the policies of the Aspen Area Community Plan. The proposed amendments will: • provide for increased clarity in development processes, • improved development outcomes for residents and property owners, • preserve and strengthen Aspen’s architectural heritage and community character, • ensure a balanced commercial use mix and sustainable economy, • advance environmental sustainability and transportation policies, and • limit or mitigate for the negative impacts of development. Each of the proposed ordinances meets the criteria of 26.310.020(B)(2), has been developed in close consultation with technical stakeholders and City Council, and was reviewed by staff. The following descriptions demonstrate the community interest for the remaining ordinance, GMQS. Ordinance 31, Series 2016 – Growth Management Section 26.470, Growth Management, provides growth parameters for commercial, lodging and residential uses throughout Aspen. The proposed amendments to those standards ensure coordination between the City’s existing policies and the wide range of amendments proposed under the AACP-LUC coordination process. It is essential that the Growth Management section be accurately amended so that the LUC may continue to function properly in facilitating development activities within the City. The public has been closely consulted throughout the amendment development process, and the proposals reflect the vision of the Council and community, and are aligned with the policies of the AACP. Staff has been consulted as to the details of each of the proposed code amendments. Staff finds this requirement to have been met for all of the proposed ordinances. B. Whether the objectives of the proposed amendments further an adopted policy, community goal, or objective of the City including, but not limited to, those stated in the Aspen Area Community Plan. Staff Findings: Council adopted a Top Ten Goal of, “reconciling the Land Use Code with the Aspen Area Community Plan to ensure the LUC delivers that the AACP promises.” The proposed amendments to the LUC will help to achieve Council’s goal and improve land use outcomes for the City and community based on the policies in the AACP. P47 I. 1.30.17 Exhibit A – Staff Findings Page 2 of 3 The proposed policies and code amendments are supported by the following AACP policies: I.4. Identify opportunities to reduce the “boom-bust” nature of the economy. (Managing Growth p. 24) VII.2. Ensure that new development and redevelopment mitigates all reasonable, directly-related impacts. (Managing Growth, p. 27) VIII.2 Create certainty in zoning and the land use process. (Managing Growth, p. 27) II.1. The housing inventory should bolster our socioeconomic diversity. (Housing, p. 41) IV.2. All affordable housing must be located within the urban growth boundary. (Housing, p. 42) IV.3. On-site housing mitigation is preferred. (Housing, p. 42) IV.5. The design of new affordable housing should optimize density while demonstrating compatibility with the massing, scale and character of the neighborhood. (Housing, p. 42) Housing Vision: “We believe that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Aspen Area community.” Pages 7-8 of the 2012 AACP identify the core themes, many of which are implemented by the proposed code changes, including: • Maintain our community character and quality of life. • Reevaluate the impacts of development on community character and quality of life. • Manage the adverse impacts of development. • Provide for a critical mass of year-round residents. • Create a sustainable community that enables people to live their lives here. • Explore zoning solutions that reaffirm our small town heritage. In addition to the AACP policies listed above, the proposed policies and code amendments reflect the direction received through the public outreach initiative undertaken as part of the AACP-LUC coordination process. Staff finds that the proposed amendments are aligned with Council’s Top Ten Goal and the policies of the AACP. C. Whether the objectives of the proposed amendment are compatible with the community character of the City and in harmony with the public interest and the purpose and intent of this Title. Staff Findings: The intent of the proposed code amendments is to ensure development in the City’s commercial areas reflects the policies of the AACP and enhances the City’s built environment, commercial vitality, community character, sustainability, and historic resources. The approach taken by Council and staff to the development of the proposed amendments was a holistic analysis of the various code sections that relate to the objectives of the AACP-LUC coordination process. That analysis revealed the relationships between the different code sections and their effect on the built environment, commercial vitality, community character sustainability and the City’s historic character. The proposed amendments are designed to support and enhance those assets and characteristics by ensuring that LUC delivers what the AACP promises. The policies and amendments were developed in close consultation with the Aspen community and stakeholders, P48 I. 1.30.17 Exhibit A – Staff Findings Page 3 of 3 and their input shaped the process and subsequent proposals. This is consistent with the intent of the City’s Land Use Code. Staff finds this criterion to be met. P49 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 1 of 43 ORDINANCE No. 31 Series of 2016 AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING CODE AMENDMENTS TO LAND USE CODE CHAPTER 26.470 – GROWTH MANAGEMENT QUOTAE SYSTEM. WHEREAS, in accordance with Sections 26.208 and 26.310 of the City of Aspen Land Use Code, the City Council of the City of Aspen directed the Community Development Department to craft code amendments to coordinate the Aspen Area Community Plan (AACP) and the Land Use Code related to parking and mobility, the mix of commercial uses, commercial design, and mountain view planes; and, WHEREAS, the Community Development Department and a Consultant Team consisting of White & Smith, LLC; Alan Richman Planning Services; Nelson Nygaard; Rowland + Broughton; BendonAdams; and Karen Setterfield conducted existing conditions research and outreach with respect to commercial use mix, parking, mobility, commercial design, and mountain view planes; and, WHEREAS, pursuant to Section 26.310.020(B)(1), the Community Development Department conducted extensive Public Outreach with community members, the Planning & Zoning Commission, the Historic Preservation Commission, and City Council regarding the commercial district, commercial design, parking and view plane regulations; and, WHEREAS, from May through November, 2016, the City and the Consultant team conducted 20 public outreach events, an online public outreach and survey page with over 1,230 visits, eleven (11) focus group meetings with stakeholders and City officials, five (5) meetings with the Planning and Zoning Commission, four (4) meetings with the Historic Preservation Commission, and fourteen (14) public meetings with the City Council; WHEREAS, the Aspen City Council met in work sessions on February 29, 2016, April 12, 2016, April 18, 2016, April 26, 2016, May 10, 2016, June 21, 2016, July 18, 2016, August 9, 2016, August 28, 2016, September 13, 2016, September 19, 2016, September 27, 2016, October 10, 2016, and November 2, 2016 and provided general direction on code amendments; and WHEREAS, pursuant to Section 26.310.020(B)(2), during a duly noticed public hearing on October 24, 2016, the City Council approved Resolution No. 147, Series of 2016, by a four to zero (4 – 0) vote, requesting code amendments to the Land Use Code to implement the Aspen Area Community Plan; and, WHEREAS, amending the Land Use Code so it better reflects the goals of the AACP is a City Council Top Ten Goal; and, WHEREAS, the Aspen Area Community Plan provides for the City to ensure development mitigates its reasonably related impacts while allowing some abatements when community benefits are received (Growth Management Policies VII.2 and VII.3); and P50 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 2 of 43 WHEREAS, the Aspen Area Community Plan (“Growth Management, The Commercial Sector,” page 20) documents that businesses providing basic necessities are at risk of being displaced by restaurants, retail spaces, and offices in high-profile locations with high rents, resulting in a continuing shift towards exclusivity; and WHEREAS, the Aspen Area Community Plan (“Growth Management, The Commercial Sector,” page 20) calls for a diverse commercial mix to strength the City’s character, with more aggressive measures to ensure the needs of the community are met; and WHEREAS, the Aspen Area Community Plan provides for regulatory tools, such as Growth Management, for the use of non-prime commercial space including basements, second floors and alleys (Growth Management Policy V.1.b); and WHEREAS, the Aspen Area Community Plan calls for the City to explore creating a program to encourage limited-use commercial spaces, which would be charged lower rents or rents based on a percentage of sales (Growth Management Policy V.1.d); and WHEREAS, the Aspen Area Community Plan provides for the City to incentivize the provision of on-site affordable housing. This could include prioritization in receiving a building permit, points in growth management, etc. (Growth Management Policy VII.2.d); and WHEREAS, the Aspen Area Community Plan states as a theme to “preserve and improve the elements of the Aspen Area that make it such an attractive place to live and a compelling place to visit (Themes of the 2012 AACP, page 7); and WHEREAS, the Aspen Area Community Plan states some of the central themes include: • “Maintain our community character and quality of life.” • “Reevaluate the impacts of development on community character and quality of life.” • “Manage the adverse impacts of development.” • “Provide for a critical mass of year-round residents” • “Create a sustainable community that enables people to live their lives here.” • “Explore zoning solutions that reaffirm our small town heritage.” (Themes of the 2012 AACP, page 7-8); and WHEREAS, the Aspen Area Community Plan states “We believe that a strong and diverse year-round community and a viable and healthy local workforce are fundamental cornerstones for the sustainability of the Aspen Area community” (Housing Vision); and WHEREAS, the Aspen Area Community Plan provides for affordable housing as the responsibility of the entire community, not just local government (Housing Philosophy); and WHEREAS, the Consultant Team conducted a study to identify the aggregate retail demand of local residents and determine whether there are adequate local-serving businesses to meet that P51 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 3 of 43 demand, and if there are types of business that are over-represented in the downtown, along with zoning tools to manage those imbalances (see Aspen Area Community Plan, Growth Management Policies V.1.a, V.1.c); and WHEREAS, the Consultant Team conducted a study that considered creating regulatory tools such as quotas, limited prohibitions, and zoning regulations to manage imbalances in the City’s commercial uses (see Aspen Area Community Plan, Growth Management Policy V.1.a); and WHEREAS, the Community Development Director has recommended approval of the proposed amendments to the City of Aspen Land Use Code; and WHEREAS, the Aspen City Council finds that the amendments meet or exceed all applicable standards pursuant to Chapter 26.310 and that the approval of the amendments is consistent with the goals and elements of the Aspen Area Community Plan; and WHEREAS, the Aspen City Council finds that this Ordinance furthers and is necessary for the promotion of public health safety and welfare; and NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ASPEN COLORADO THAT: Section 1. Chapter 26.470shall be rescinded and readopted as follows: Chapter 26.470 GROWTH MANAGEMENT QUOTA SYSTEM (GMQS) Sections: Sec. 26.470.010 Purpose. Sec. 26.470.020 Terminology. Sec. 26.470.030 Applicability and Prohibitions. Sec. 26.470.040 Allotment Procedures. Sec. 26.470.050 Calculations. Sec. 26.470.060 Procedures for Review. Sec. 26.470.070 Exempt Development. Sec. 26.470.080 General Review Standards. Sec. 26.470.090 Administrative applications. Sec. 26.470.100 Planning and Zoning Commission applications. Sec. 26.470.110 City Council applications. Sec. 26.470.120 Yearly Growth Management accounting procedures. Sec. 26.470.130 Application contents. Sec. 26.470.140 Reconstruction limitations. Sec. 26.470.150 Amendment of a growth management development order. Sec. 26.470.160 Appeals. 26.470.010 Purpose P52 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 4 of 43 The purposes of this Chapter are to: (a) implement the goals and policies for the City and the Aspen Area Community Plan; (b) ensure that new growth occurs in an orderly and efficient manner in the City; (c) ensure sufficient public facilities are present to accommodate new growth and development; (d) ensure that new growth and development is designed and constructed to maintain the character and ambiance of the City; (e) ensure the presence of an adequate supply of affordable housing, businesses and events that serve the local, permanent community and the area's tourist base; (f) ensure that growth does not overextend the community's ability to provide support services, including employee housing, traffic control and parking; and (g) ensure that the resulting employees generated and impacts created by development and redevelopment are mitigated by said development and redevelopment. 26.470.020 Terminology. Growth Management Year. A year period, lasting from January 1 through December 31, which constitutes the time period that each year’s development allotments are available. Development categories. All development falls into one of four land use categories, which are outlined in Table 1. Table 1 establishes the development categories and units of allocation for each category for purposes of administering this Chapter. Sub-Categories 1.A – 1.B are all considered part of the Residential Uses category, and therefore conversion between these two sub- categories does not require change in use review. TABLE 1, Development Categories Category Description Allocation units 1. Residential Uses A. Residential – Free-Market Dwelling units intended exclusively for residential purposes, not subject to any residency requirements and not including hotels, or lodging. Units may be in the form of single-family, duplex, multi-family or part of a mixed-use structure. (See definitions of Residential use and Dwelling.) Dwelling units B. Residential – Affordable Housing Dwelling units intended to house only local working residents that are deed restricted according to the Aspen/Pitkin County Housing Authority Guidelines. Units may be in the form of single-family, duplex, multi-family, dormitory or part of a mixed-use structure. (See definition of Affordable housing.) Dwelling units 2. Commercial Buildings, or portions thereof, supporting office, retail, warehousing, manufacturing, commercial recreation, restaurant/bar or service oriented businesses, including retail and office uses but not including hotel or lodging uses. (See definition of Commercial use.) Net leasable square feet P53 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 5 of 43 3. Lodging Buildings, or portions thereof, used to house a transient tourist population on a short-term basis, including lodges, hotels, motels, bed and breakfasts, and timeshare development. (See definition of Hotel.) Lodging pillows. (Each lodging bedroom shall be considered to be two pillows.) 4. Essential Public Facilities Facilities serving essential public purposes used by or for the benefit of the general public and serving the needs of the community. (See definition of Essential public facility.) Square feet Annual development allotment. Each growth management year's potential growth within the City, applied to each type of land use. This is a unit of measurement applied to each type of land use that, if granted, allows the specific development proposal to move forward in the review process. The number of development allotments for each land use is established in Table 2 below. See also Section 26.470.040, Allotment Procedure. Carry-forward allotment. The number of unused and unclaimed growth management allotments for each type of development that the City Council determines should be brought forward, or rolled-over, into the next growth management year. Procedures for carry-forward are established in Section 26.470.120, Yearly Growth Management accounting procedures. Full Time Equivalent (FTE). A unit of measurement standardizing the workloads of employees. In this Chapter, FTEs refer to the number of employees generated or housed by development. 26.470.030 Applicability and Prohibitions. This Chapter shall apply to all development in the City unless exempted in section 26.470.070, Exempt Development. A. Number of development applications. No more than one (1) application for growth management allotments on any one (1) parcel shall be considered concurrently. To submit a new application, any active growth management application for the same property must be vacated. B. Number of growth management allocations. No more than one (1) project shall be entitled to growth management allotments on any one (1) parcel concurrently. In order to entitle a different project on the same parcel, existing growth allotments must be vacated. (Also see Section 26.470.140, Amendment of a growth management development order.) C. No automatic "resubmission" of growth management applications. Applications shall only be eligible for growth allotments within the growth management session in which they are submitted and shall not automatically become eligible for allotments in future sessions or future years. Applications must be resubmitted in order to be eligible for allotments in the next session or next year, as applicable. Resubmission shall effect a new submission date. P54 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 6 of 43 D. Subdivision and other required land use reviews. Projects requiring additional land use reviews, including Conceptual Commercial Design Review, pursuant to Section 26.412, Commercial Design Standards, Conceptual Review by the Historic Preservation Commission, pursuant to Section 26.415, Historic Preservation, Project Review or Detailed Review, pursuant to Section 26.445, Planned Development, and Subdivision, pursuant to Section 26.480, Subdivision, may be reviewed concurrently with review for growth management, pursuant to Paragraph 26.304.060.B.1. E. No partial approvals. In order for a project to gain approval, sufficient allotments for every element of the project must be obtained. No partial approvals shall be granted. In circumstances where a proposal requires allotments be granted for various types of uses within the project, the reviewing body shall not grant approval unless allotments for every type of use are available. For example: If a proposal requires that allotments be granted for free-market residential units, affordable housing units and commercial space, and there are no remaining allotments for free-market residential for the year, the project shall be tabled until such time as allotments are available. In the above example, the project shall be tabled in total and not granted allotments for the affordable housing units or the commercial space. Similarly, a project requiring 10,000 sq. ft. of commercial allotments when only 5,000 sq. ft. of commercial allotments remain shall be tabled until such time as allotments are available. Also see multi-year allotments below. F. Multi-year growth allotments. Projects requiring development allotments in excess of the annual allotment may be granted a multi-year allotment, pursuant to Subsection 26.470.090.A, or may gain allotments over a multi-year period, provided that the allotment gained in any one (1) year shall not exceed the annual allotment. For example, a project requesting fifty thousand (50,000) square feet of commercial space may request either a one-time, multi-year allotment of fifty thousand (50,000) square feet or may request approval in the first year for twenty-five thousand (25,000) square feet and request approval for the remaining twenty-five thousand (25,000) square feet in a subsequent year. Gaining allotments in any year shall not guarantee that allotments will be granted in later years for the same project. Projects requiring a multi-year allotment shall not be granted a development order until all elements of the project have been granted allotments. If the design of a project changes prior to receiving the full allotment needed for a development order, the reviewing body shall determine if the changes are acceptable or if the change invalidates the previously granted allotment and requires a resubmission for allotments. Applications for each year's allotment need to be submitted, and there shall be no preferential status given to a project granted partial allotment. Projects that do not require allotments in excess of the annual allotment shall not be eligible to gain partial allotments. See No partial approvals above. P55 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 7 of 43 G. Non-assignability of growth allotments. Development allotments obtained pursuant to this Chapter shall not be assignable or transferable independent of the conveyance of the real property on which the development allotment has been approved. H. No reduction in mitigation requirements. Notwithstanding Section 26.470.090(4), Essential Public Facilities, an applicant may not request a reduction in the mitigation requirements of this Chapter. Properties requesting historic designation pursuant to Chapter 26.415, Historic Preservation, shall be exempt from this provision, provided, however, that any reduction is reviewed and approved by City Council. I. No combination of multiple affordable housing requirements allowed. Whenever multiple affordable housing mitigation requirements are required, each housing requirement shall be met. For example: A mixed-use project may require two (2) affordable housing units to mitigate an increase in commercial employee generation and two (2) affordable housing units to mitigate free-market residential development. In this case, four (4) affordable housing units are required. 26.470.040 Allotment Procedures. A. General. Aspen area residents have determined that growth must be managed to ensure long- term negative consequences associated with development and its impacts are minimized. One of the broad themes of the 2012 Aspen Area Community Plan (AACP) is to “manage future development so that it contributes to the long-term viability of a sustainable, demographically diverse visitor-based economy and a vital year-round community.” To implement these goals, the community has established a two percent (2%) growth rate that can be accommodated without compromising community character. The AACP supports a "critical mass of year -round residents” to be housed while maintaining our community character and way of life. Therefore, the Growth Management Quota System does not limit the annual growth rate of affordable housing, while all other types of development shall be limited to not exceed a two-percent annual growth rate. In order to address continued community growth concerns, a growth limit of one-half percent (0.5%) has been implemented for new free-market residential development. B. Existing development. The following tables describe the existing (as of March 2007) amount of development in each sector used as a "baseline" in establishing annual allotments and development ceilings.1 Commercial Development Within the City (square feet)1 Commercial use "class" Leasable square feet for class Merchandising 365,486 Lodging2 19,950 Offices 113,207 1 Source: Pitkin County Assessor, March 7, 2005 2 Lodge unit square footage removed from total. Commercial space within lodge developments estimated through City records. P56 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 8 of 43 Commercial Development Within the City (square feet)1 Recreation 179,824 Special purpose 144,777 Warehouse/storage 149,814 Multi-use 208,331 Commercial Condos 483,549 Total commercial: 1,664,938 2% Annual growth rate for commercial development 33,300 Residential Development Within the City (units) Property type Residences in class Single-family 1,268 Duplex or triplex 3 79 Multi-units 4-8 4 45 Multi-units 9+ 142 Condominiums 2,978 Duplex condos 366 Manufactured 29 Partial exempt 1 Total residences: 4,909 Nonexempt affordable housing units 5 1,132 Total free-market residences 3,777 0.5% Annual growth rate for free-market residential development: 18.9 units Lodging Development Within the City (Pillows) Total lodging pillows: 7,500 1.5% Annual growth rate 112.5 pillows 3 Single ownership duplex and triplex units. 2 units per property ownership estimated. 4 Single ownership apartment buildings. Residence count reflects actual number of units recorded with Assessor. 5 A total of 1,815 residences within the City are deed-restricted affordable housing. Of these units, several are considered tax-exempt and are not included in the Assessor's counts. These units are rental affordable housing owned by the City, APCHA or tax-exempt nonprofit organizations. Therefore, only the nonexempt units have been subtracted from the Assessor's total residences to determine the number of free-market residences. P57 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 9 of 43 Annual development allotments. The Growth Management Quota System establishes annual development allotments available for use by projects during each growth management year. The Community Development Director shall calculate the development allotments available for each type of land use as follows: Available development allotments = annual allotment + Carry-forward allotment from prior year The following annual allotments are hereby established: Table 2, Development Allotments Development Type Annual Allotment Residential — Free-Market 19 units Residential — Affordable Housing No annual limit Commercial 33,000 net leasable square feet Lodging 112 pillows Essential public facility No annual limit Note, the annual allotment may be reduced if multi-year allotments are granted by the City Council. Upon a denial of the project and the completion of any appeals, where it’s found the denial was appropriate, the project’s allotments shall not be considered granted and shall be returned to the available allotment pool for the remainder of the year. Allotments shall be considered vacated by a property owner upon written notification from the property owner. C. Allocation procedure. Following approval or approval with conditions, pursuant to the above procedures for review, the Community Development Director shall issue a development order pursuant to Section 26.304.070, Development orders. Those applicants having received allotments may proceed to apply for any further development approvals required by this Title or any other regulations of the City. D. Expiration of growth management allotments. Growth management allotments granted pursuant to this Chapter shall expire with the expiration of the development order, pursuant to the terms and limitations of Section 26.304.080, Development Orders. Expired allotments shall not be considered valid, and the applicant shall be required to re-apply for growth management approval. Expired allotments may be added to the next year's available allotments at the discretion of the City Council, pursuant to Subsection 26.470.030.E. 26.470.050. Calculations. P58 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 10 of 43 A. General. Whenever employee housing or fee-in-lieu is required to mitigate for employees generated by a development, there shall be an analysis and credit for employee generation of the existing project, prior to redevelopment, and an employee generation analysis of the proposed development. The employee mitigation requirement shall be based upon the incremental employee generation difference between the existing development and the proposed development. Unless otherwise exempted by this Chapter, the employee mitigation requirement shall be based upon the total employee generation of the proposed development. Except for the conversion between residential and lodge uses outlined in Section 26.470.140, Reconstruction limitations, credits are not given for changes between the land use categories outlined in Table 1. For instance, a change in use from commercial net leasable area to free-market residential units does not generate a credit. B. Employee generation rates. Table 3 establishes the employee generation rates are the result of the Employee Generation Study, an analysis sponsored by the City during the fall and winter of 2012 considering the actual employment requirements of over one hundred (100) Aspen businesses. This study is available at the Community Development Department. Employee generation is quantified as full-time equivalents (FTEs) per one thousand (1,000) square feet of net leasable space or per lodge bedroom. Table 3, Employee Generation Rates Zone District Employees Generated per 1,000 Square Feet of Net Leasable Space Commercial Core (CC) Commercial (C-1) Neighborhood Commercial (NC) Commercial Lodge (CL) commercial space Lodge (L) commercial space Lodge Preservation (LP) commercial space Lodge Overlay (LO) commercial space Ski Base (SKI) commercial space 4.7 Mixed-Use (MU) 3.6 Service Commercial Industrial (S/C/I) 3.9 Public1 5.1 Lodge Preservation (LP) lodge units .3 per lodging bedroom Lodge (L), Commercial Lodge (CL), Ski Base (SKI) and other zone district lodge units .6 per lodging bedroom 1 For the Public Zone, the study evaluated only office-type public uses, and this number should not be considered typical for other non-office public facilities. Hence, each Essential Public Facility proposal shall be evaluated for actual employee generation. Each use within a mixed-use building shall require a separate calculation to be added to the total for the project. For commercial net leasable space within basement or upper floors, the rates quoted above shall be reduced by twenty-five percent (25%) for the purpose of calculating total employee generation. This reduction shall not apply to lodge units. P59 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 11 of 43 For lodging projects with flexible unit configurations, also known as "lock-off units," each separate "key" or rentable division shall constitute a unit for the purposes of this Section. Timeshare units and exempt timeshare units are considered lodging projects for the purposes of determining employee generation. C. Employee generation review. All essential public facilities shall be reviewed by the Planning and Zoning Commission to determine employee generation, pursuant to Section 26.470.110D. In addition, any applicant who believes the employee generation rate is different than that outlined herein may request an employee generation review with the Planning and Zoning Commission during a duly noticed public hearing, pursuant to Section 26.304.060.E. In establishing employee generation, the Planning and Zoning Commission shall consider the following: 1. The expected employee generation of the use considering the employment generation pattern of the use or of a similar use within the City or a similar resort. 2. Any unique employment characteristics of the operation. 3. The extent to which employees of various uses within a mixed-use building or of a related off-site operation will overlap or serve multiple functions. 4. A proposed restriction requiring full employee generation mitigation upon vacation of the type of business acceptable to the Planning and Zoning Commission. 5. Any proposed follow-up analyses of the project (e.g., an audit) to confirm actual employee generation. The requirements of any proposed follow-up analysis shall be outlined in a Development Agreement, pursuant to Chapter 26.490 6. For lodge projects only: An efficiency or reduction in the number of employees required for the lodging component of the project may, at the discretion of the Commission as a means of incentivizing a lodge project, be applied as a credit towards the mitigation requirement of the free-market residential component of the project. Any approved reduction shall require an audit to determine actual employee generation after two (2) complete years of operation of the lodge. D. Employees housed. Whenever a project provides residential units on or off site the schedule in Table 4 shall be used to determine the number of employees housed by such units: Table 4, FTEs Housed Unit Type Employees Housed Studio 1.25 One-bedroom 1.75 Two-bedroom 2.25 Three-bedroom or larger 3.00, plus .5 per each additional bedroom Dormitory 1.00 employee per 150 square feet of net livable space P60 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 12 of 43 E. Employee housing fee-in-lieu payment. Whenever a project provides employee housing via a fee-in-lieu payment, in part or in total, the amount of the payment shall be based upon the following (fee-in-lieu is only allowed for Categories 1-4, Categories 5-7 is calculated only for use in the Housing Certificates Program): Fee-In-Lieu (per FTE): Category 1: $ 356,433 Category 2: $ 320,186 Category 3: $ 286,495 Category 4: $ 223,072 Category 5: $ 157,280 Category 6: $ 132,817 Category 7: $ 104,148 Payment shall be calculated on a full-time-equivalent employee (FTE) basis according to the Affordable Housing Category designation required by this Title. Unless otherwise stated in this Title or in a Development Order, Fee-in-Lieu payments shall be collected by the City of Aspen Building Department upon and as a condition of Building Permit issuance. The Fee-In-Lieu rates shall be updated every five years and adopted by city council ordinance. During intermediate years, The City may choose to update the fee-in-lieu schedule, by ordinance, based on the change in the engineering news record inflation index. The following methodology was used to determine the above fee-in-lieu schedule: The subsidy per FTE was calculated by subtracting unit sales revenue per FTE from the total development costs per FTE. Total development cost per FTE was determined by using an average of recent City of Aspen projects and foreseeable future City of Aspen projects for which land has already been acquired and program/density has been deliberated, where in each case actual land costs were used in the calculation. The Program/Density projections for future projects were based upon assumptions suitable for the respective neighborhood, public outreach, and program/density review by City Council. Development cost calculations included all “hard” and “soft” costs associated with development. F. Employee/square footage conversion. Whenever an affordable housing mitigation requirement is required to be converted between a number-of-employees requirement and a square-footage requirement, regardless of direction, the following conversion factor shall be used: 1 employee = 400 square feet of net livable area. G. Accessory dwelling units as mitigation units. Accessory dwelling units, approved pursuant to Chapter 26.520 and which are deed-restricted as "for sale" category housing and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority, shall be considered mitigation units and attributed to a project's affordable housing provision. ADUs which are not deed-restricted as category units and are not transferred to qualified purchasers shall not be considered mitigation units and shall not be attributed to a project's affordable housing provision. P61 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 13 of 43 26.470.060. Procedures for Review. A development application for growth management shall be reviewed pursuant to the following procedures and standards and the Common Development Review Procedures set forth at Chapter 26.304. According to the type of allotments requested, the following steps are necessary. A development proposal may fall into multiple categories and therefore have multiple processes and standards to adhere to and meet. An application for growth management may be submitted to the Community Development Director on any date of the year. A. Administrative Applications. The Community Development Director shall approve, approve with conditions or deny the application, based on the applicable standards of review in Section 26.470.090, Administrative applications. B. Planning and Zoning Commission Applications. The Planning and Zoning Commission, during a duly noticed public hearing, shall review a recommendation from the Community Development Director and shall approve, approve with conditions, or deny the application, based on the standards of review in Section 26.470.100, Planning and Zoning Commission Applications, and Section 26.470.080, General Review Standards. This requires a one-step process as follows: Step One – Public Hearing before the Planning and Zoning Commission or Historic Preservation Commission. 1. Purpose: To determine if the application meets the standards for approval. 2. Process: The Planning and Zoning Commission or Historic Preservation Commission shall approve, approve with conditions, or deny an application after considering the recommendation of the Community Development Director and comments and testimony from the public at a duly noticed public hearing. The Historic Preservation Commission shall be the recommending body for historic landmarks, properties requesting landmark designation, and all properties located within a Historic District. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.100, Planning and Zoning Commission applications and Section 26.470.080, General Review Standards. 4. Form of decision: The Commission’s decision shall be by resolution. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3 and the provisions of Section 26.304.035 – Neighborhood Outreach as applicable. C. City Council Applications. City Council, during a duly noticed public hearing, shall review a recommendation from the Community Development Director, a recommendation from the Planning and Zoning Commission or Historic Preservation Commission, as applicable, and shall approve, approve with conditions, or deny the application, based on the standards of review in Section 26.470.110, City Council Applications, and Section 26.470.080, General Review Standards. This requires a two-step process as follows: Step One – Public Hearing before the Planning and Zoning Commission or Historic Preservation Commission. P62 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 14 of 43 1. Purpose: To determine if the application meets the standards for approval. 2. Process: The Planning and Zoning Commission or Historic Preservation Commission shall forward a recommendation of approval, approval with conditions, or denial to City Council after considering the recommendation of the Community Development Director and comments and testimony from the public at a duly noticed public hearing. The Historic Preservation Commission shall be the recommending body for historic landmarks, properties requesting landmark designation, and all properties located within a Historic District. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.110, City Council applications and Section 26.470.080, General Review Standards. 4. Form of decision: The Commission’s recommendation shall be by resolution. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3 and the provisions of Section 26.304.035 – Neighborhood Outreach as applicable. Step Two – Public Hearing before City Council. 1. Purpose: To determine if the application meets the standards for approval 2. Process: The Community Development Director shall provide City Council with a recommendation to approve, approve with conditions, or deny the application, based on the standards of review. City Council shall approve, approve with conditions, or deny the application after considering the recommendation of the Community Development Director, the recommendation from the Planning and Zoning Commission or Historic Preservation Commission, and comments and testimony from the public at a duly noticed public hearing. 3. Standards of review: The proposed development shall comply with the applicable review standards of Section 26.470.110, City Council applications and Section 26.470.080, General Review Standards. 4. Form of decision: City Council decision shall be by ordinance. 5. Notice requirements: Posting, Mailing and Publication pursuant to Subparagraph 26.304.060.E.3, the requirements of Section 26.304.035 – Neighborhood Outreach as applicable, and the requisite notice requirements for adoption of an ordinance by City Council. D. Combined Reviews. An application for growth management review may be combined with development applications for other associated land use reviews, pursuant to Section 26.304.060.B.1, Combined Reviews. Sec. 26.470.070 Exempt development. The following types of development shall be exempt from the provisions of this Chapter. Development exempt from growth management shall not be considered exempt from other chapters of the Land Use Code. Where applicable, exemptions are cumulative. P63 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 15 of 43 A. Remodeling or redevelopment of existing single-family and duplex residential development. The remodeling or redevelopment of existing single-family and duplex residential properties shall be exempt from growth management provided that no additional Floor Area is added to the property. When an expansion of Floor Area occurs, see Section 26.470.060, subsections 1 and 2. Existing, prior to demolition, Floor Area shall be documented by the City Zoning Officer prior to demolition. B. Conversion of an existing single-family residence to a duplex residence or two (2) detached residences or vise-versa. The conversion of an existing single-family residence to a duplex residence or two (2) detached single-family residences, or vise-versa, which may include demolition shall be exempt from growth management provided that no additional Floor Area is added to the property. When an expansion of Floor Area occurs, see Section 26.470.060, subsections 1 and 2. Existing, prior to demolition, Floor Area shall be documented by the City Zoning Officer prior to demolition. C. Remodeling or expansion of existing multi-family residential development. The remodeling of existing multi-family residential dwellings shall be exempt from growth management provided that no additional Floor Area is added to the property and provided demolition of a unit or structure does not occur. When an expansion of Floor Area occurs, see Section 26.470.060, subsection 2. When demolition occurs, see Paragraph 26.470.070.6, Demolition or redevelopment of multi-family housing. (Also see definition of demolition, Section 26.104.100.) D. Remodeling or Relocation of historic structures. The remodeling (consistent with subsection F, below) or permanent or temporary relocation of a structure listed on the Aspen Inventory of Historic Landmark Sites and Structures, shall be exempt from growth management, provided that all necessary approvals are obtained, pursuant to Chapter 26.415, Historic Preservation. E. Transferable development rights. The establishment and extinguishment of transferable development right certificates shall be exempt from growth management, provided that such certificates comply with Chapter 26.535, Transferable Development Rights. F. Remodeling or replacement of existing commercial or lodge development. Remodeling or replacement of existing commercial or hotel/lodge buildings and portions thereof shall be exempt from the provisions of growth management, provided that demolition is not triggered, no additional net leasable square footage or lodge units are is created, and there is no change in use. If redevelopment involves an expansion of net leasable square footage or lodge units, only the replacement of existing net leasable square footage development when no demolition has occurred shall not require growth management allotments and shall be exempt from providing affordable housing mitigation only if that space previously mitigated. Existing, prior to demolition, net leasable square footage and lodge units shall be documented by the City Zoning Officer prior to demolition. Also see definitions of demolition and net leasable commercial and office space, Section 26.104.100. P64 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 16 of 43 G. Remodeling or replacement of existing lodge development. Remodeling or replacement of existing hotel/lodge buildings and portions thereof shall be exempt from the provisions of growth management, provided that demolition is not triggered, no additional net leasable square footage or lodge units are created, and there is no change in use. If redevelopment involves an expansion of lodge units, only the replacement of existing lodge units/keys shall be exempt. Existing, prior to demolition, net leasable square footage and lodge units shall be documented by the City Zoning Officer prior to demolition. Also see definition of demolition, Section 26.104.100. F.H. Special events. Special events permitted by the City shall be exempt from this Chapter. G.I. Accessory dwelling units and carriage houses. The development of accessory dwelling units (ADUs) and carriage houses shall be exempt from the provisions of this Chapter but subject to the provisions of Chapter 26.520, Accessory Dwelling Units and Carriage Houses. H.J. Retractable canopies and trellis structures. Trellis structures and retractable canopies appended to a commercial or lodging structure shall be exempt from growth management provided that: a) there is no expansion of floor area; and b) the canopy or trellis structure is not enclosed by walls, screens, windows or other enclosures. Awnings shall be exempt from this Chapter. I.K. Public infrastructure. The development of public infrastructure such as roads, bridges, waterways, utilities and associated poles, wires, conduits, drains, hydrants and similar items considered essential services shall be exempt from growth management. Essential public facilities shall not be exempt and shall be reviewed pursuant to Section 26.470.110.D, Essential public facilities. (Also see definition of essential services, Section 26.104.100) 26.470.080. General Review Standards. All Planning and Zoning Commission and City Council applications for growth management review shall comply with the following standards. A. Sufficient Allotments: Sufficient growth management allotments are available to accommodate the proposed development, pursuant to Subsection 26.470.040.B. Applications for multi-year development allotment, pursuant to Paragraph 26.470.110.A shall be required to meet this standard for the growth management years from which the allotments are requested. B. Development Conformance: The proposed development conforms to the requirements and limitations of this Title, of the zone district or a site specific development plan, any adopted regulatory master plan, as well as any previous approvals, including the Conceptual Historic Preservation Commission approval, the Conceptual Commercial Design Review approval and the Planned Development – Project Review approval, as applicable. C. Public Infrastructure and Facilities. The proposed development shall upgrade public infrastructure and facilities necessary to serve the project. Improvements shall be at the sole costs of the developer. Public infrastructure includes, but is not limited to, water P65 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 17 of 43 supply, sewage treatment, energy and communication utilities, drainage control, fire and police protection, solid waste disposal, parking and road and transit services. D. Affordable Housing Mitigation. 1. For commercial development, sixty-five percent (650%) of the employees generated by the additional commercial net leasable space, according to Section 26.470.050.B, Employee generation rates, shall be mitigated through the provision of affordable housing. 2. For lodge development, sixty-five percent (650%) of the employees generated by the additional lodge pillows, according to Section 26.470.050.B, Employee generation rates, shall be mitigated through the provision of affordable housing. 2.3.For the redevelopment of existing commercial net leasable space that did not previously mitigate (see Section 26.470.080.D.6), the mitigation requirements for affordable housing shall be phased at 15% beginning in 2017, and by 3% each year thereafter until 65% is reached, as follows: Development Order applied for during calendar year - Mitigation required (percent of employees generated by the existing space that has previously not mitigated) 2017 15% 2018 18% 2019 21% 2020 24% 2021 27% 2022 30% 2023 33% 2024 36% 2025 39% 2026 42% 2027 45% P66 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 18 of 43 2028 48% 2029 51% 2030 54% 2031 57% 2032 60% 2033 63% 2034 65% 4. Unless otherwise exempted in this chapter, when a change in use between development categories is proposed, the employee mitigation shall be based on the use the development is converting to. For instance, if a commercial space is being converted to lodge units, the mitigation shall be based on the requirements for lodge space, outlined in subsection 2, above. Conversely, if lodge units are being converted to commercial space, the mitigation shall be based on the requirements for commercial space, outlined in subsections 1 and 3, above. 3.5.For free-market residential development, affordable housing net livable area shall be provided in an amount equal to at least thirty percent (30%) of the additional free-market residential net livable area. 4.6.For essential public facility development, mitigation shall be determined based on Section 26.470.110.D. 5.7.For all affordable housing provided as mitigation pursuant to this chapter or for the creation of a Certificate of Affordable Housing Credit pursuant to Chapter 26.540: a. The proposed units comply with the Guidelines of the Aspen/Pitkin County Housing Authority, as amended. A recommendation from the Aspen/Pitkin County Housing Authority shall be required for this standard. b. Required affordable housing may be provided through a mix of methods outlined in this chapter, including newly built units, buy down units, certificates of affordable housing credit, or cash-in-lieu. A recommendation from the Aspen/Pitkin County Housing Authority shall be required for this standard, and the approved forms of mitigation methods shall be based on this recommendation. P67 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 19 of 43 c. Affordable housing that is in the form of newly built units or buy-down units shall be located on the same parcel as the proposed development or located off- site within the City limits. Units outside the City limits may be accepted as mitigation by the City Council, pursuant to Section 26.470.110.B. When off- site units within City limits are proposed, all requisite approvals shall be obtained prior to approval of the growth management application. d. Affordable housing mitigation in the form of a Certificate of Affordable Housing Credit, pursuant to Chapter 26.540, shall be extinguished pursuant to Section 26.540.120, Extinguishment and Re-Issuance of a Certificate, utilizing the calculations in Section 26.470.050.F, Employee/Square Footage Conversion. e. If the total mitigation requirement for a project is less than .25 FTEs, a cash-in- lieu payment may be made by right. If the total mitigation requirement for a project is .25 or more FTEs, a cash-in-lieu payment shall require City Council approval, pursuant to Section 26.470.110.C. f. Affordable housing units shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing, and be restricted to a Category 4 rate as defined in the Aspen/Pitkin County Housing Authority Guidelines, as amended. An applicant may choose to provide mitigation units at a lower category designation. g. Each unit provided shall be designed such that the finished floor level of fifty percent (50%) or more of the unit's net livable area is at or above natural or finished grade, whichever is higher. This dimensional requirement may be varied through Special Review, Pursuant to Chapter 26.430 6.8.Affordable housing units that are being provided absent a requirement ("voluntary units") may be deed-restricted at any level of affordability, including residential occupied (RO). E. Second Tier Commercial Replacement. When demolition is triggered, or a change in use between use categories on a non-historic property is requested, the redevelopment shall be required to replace a minimum percentage of the existing second tier commercial space, pursuant to Section 26.412.080, Second Tier Commercial Space. (See Section 20.104.100, Definitions) Sec. 26.470.090 Administrative applications. The following types of development shall be approved, approved with conditions or denied by the Community Development Director, pursuant to Section 26.470.060, Procedures for Review, and the criteria described below. Except as noted, all administrative growth management approvals shall not be deducted from the annual development allotments. All approvals apply cumulatively. P68 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 20 of 43 A. Single-family and duplex development on historic landmark properties. The development of one or multiple single-family residences or a duplex on a parcel of land designated as an historic landmark and which contains an historic resource shall be approved by the Community Development Director. This review applies to the rehabilitation of existing structures, reconstruction after demolition of existing structures, an expansion of Floor Area, and to the development of new structures on historic landmark properties. No affordable housing mitigation shall be required, provided that all necessary approvals are obtained, pursuant to Chapter 26.415, Historic Preservation, and provided that the parcel contains an historic resource. Development of single-family or duplex structures on an historic landmark property that does not contain an historic resource (for example, a house on a lot which was subdivided from an historic landmark property) shall be subject to the provisions of Section 26.470.090.B, Single-Family and Duplex Residential Development or Expansion. B. Single-Family and Duplex Residential Development or Expansion. The following types of free-market residential development shall require the provision of affordable housing in one of the methods described below: 1. The development of a single-family, two detached residential units, or a duplex dwelling on a lot in one of the following conditions: a. A lot created by a lot split, pursuant to Subsection 26.480.060.A. b. A lot created by a historic lot split, pursuant to Subsection 26.480.060.B, when the subject lot does not itself contain a historic resource. c. A lot that was subdivided or was a legally described parcel prior to November 14, 1977, that complies with the provisions of Subsection 26.480.020, Subdivision: applicability, prohibitions, and lot merger. 2. The net increase of Floor Area of an existing single-family, two detached residential units on a single lot, or a duplex dwelling, regardless of when the lot was subdivided or legally described and regardless of whether demolition occurs. This type of development shall not require a growth management allocation and shall not be deducted from the respective annual development allotments. 3. Affordable housing mitigation requirements for the types of free-market residential development described above shall be as follows. The applicant shall have four options: a. Recording a resident-occupancy (RO), or lower, deed restriction on the single-family dwelling unit or one of the residences if a duplex or two detached residences are developed on the property. An existing deed restricted unit does not need to re-record a deed restriction. b. Providing a deed restricted one-bedroom or larger affordable housing unit within the Aspen Infill Area acceptable to the Aspen/Pitkin County Housing Authority (which may require certain improvements) in a size equal to or larger than 30% of the Floor Area increase to the Free-Market unit. The mitigation unit must be deed-restricted as a "for sale" Category 2 (or lower) housing unit and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority. P69 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 21 of 43 c. Providing a fee-in-lieu payment or extinguishing a Certificate of Affordable Housing Credit in a full-time-equivalent (FTE) amount based on the following schedule: Floor Area per dwelling unit Employment Generation Rate First 4,500 square feet (Floor Area) .16 employees per 1,000 square feet of Floor Area. Above 4,500 square feet (Floor Area) .36 employees per 1,000 square feet of Floor Area. Notes: - The calculation of the Employment Generation shall be assessed per dwelling unit. Duplex dwelling units do not combine their floor area for one calculation. - An Accessory Dwelling Unit or Carriage House, as defined by and meeting the requirements of this Title, shall be calculated as floor area of the primary dwelling. - When redevelopment of a property adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the basis for determining the number of employees generated. No refunds shall be provided if Floor Area is reduced. - When demolition is proposed, the redevelopment shall be credited the floor area from the demolished residential dwelling unit. Credit from a demolished dwelling unit cannot be allocated to development on a different lot. - The above generation rates are based on a study of employment generation of Aspen residences, from both initial construction and ongoing operation, performed by RRC Associates of Boulder, Colorado, dated March 4, 2015. Affordable housing mitigation must be provided at a Category 2 (or lower) rate. Certificates must be extinguished pursuant to the procedures of Chapter 26.540, Certificates of Affordable Housing Credit. Fee-in-lieu rates shall be those stated in Section 26.470.100 – Calculations; Employee Generation and Mitigation, in effect on the date of application acceptance. Providing a fee-in-lieu payment in excess of .10 FTE shall require City Council approval, pursuant to Section 26.470.110.C. Example 1: A new home of 3,400 square feet of Floor Area on a vacant lot created by a historic lot split. The applicant must provide affordable housing mitigation for .54 FTEs. 3,400 / 1,000 x .16 = .54 In this example the applicant may provide a Certificate of Affordable Housing Credit or request City Council accept a fee-in-lieu payment. Example 2: An existing home of 4,400 square feet of Floor Area is expanded by 250 square feet of Floor Area. The applicant must provide affordable housing mitigation for .07 FTEs, the difference in employee generation of the two house sizes. (4,500 / 1,000 x .16) + (150 / 1,000 x .36) – (4,400 / 1,000 x .16) = .07 P70 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 22 of 43 In this example the applicant may provide a Certificate of Affordable Housing Credit or a fee-in-lieu payment. d. For property owners qualified as a full-time local working resident, an affordable housing mitigation deferral agreement may be accepted by the City of Aspen and the Aspen/Pitkin County Housing Authority. This allows deferral of the mitigation requirement until such time as the property is no longer owned by a full-time local working resident. Staff of the City of Aspen Community Development Department and the Aspen/Pitkin County Housing Authority can assist with the procedures and limitations of this option. C. Multi-Family Residential Expansion. The following types of free-market residential development shall require the provision of affordable housing in one of the methods described below: 1. The net increase of Floor Area of an existing free-market multi-family unit or structure, regardless of when the lot was subdivided or legally described and provided demolition does not occur. (When demolition occurs, see Section 26.470.100.E, Demolition or redevelopment of multi-family housing.) This type of development shall not require a growth management allocation and shall not be deducted from the respective annual development allotments established pursuant to Section 26.470.040. 2. Affordable housing mitigation requirements for the type of free-market residential development described above shall be as follows. The applicant shall have four options: a. Recording a resident-occupancy (RO), or lower, deed restriction on the dwelling unit(s) being expanded. An existing deed restricted unit does not need to re-record a deed restriction. b. Providing a deed restricted one-bedroom or larger affordable housing unit within the Aspen Infill Area acceptable to the Aspen/Pitkin County Housing Authority (which may require certain improvements) in a size equal to or larger than 30% of the Floor Area increase to the Free-Market unit(s). The mitigation unit(s) must be deed-restricted as a "for sale" Category 2 (or lower) housing unit and transferred to a qualified purchaser according to the provisions of the Aspen/Pitkin County Housing Authority. c. Providing a fee-in-lieu payment or extinguishing a Certificate of Affordable Housing Credit in a full-time-equivalent (FTE) amount based on the following schedule: Floor Area per dwelling unit Employment Generation Rate square feet of expansion (Floor Area) .18 employees per 1,000 square feet of Floor Area Notes: - The calculation of the Employment Generation shall be assessed per dwelling unit. Multiple dwelling units do not combine their floor area for one calculation. - When a unit adds floor area, the difference between the generation rates of the existing floor area and the proposed floor area shall be the basis for determining the number of employees generated. No refunds shall be provided if Floor Area is reduced. P71 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 23 of 43 - When demolition is proposed, please see Section 26.470.100.E – Demolition or Redevelopment of Multi-Family Housing. Projects - The above generation rates are based on a study of employment generation of Aspen residences, from both initial construction and ongoing operation, performed by RRC Associates of Boulder, Colorado, dated March 4, 2015. Affordable housing mitigation must be provided at a Category 2 (or lower) rate. Certificates must be extinguished pursuant to the procedures of Chapter 26.540, Certificates of Affordable Housing Credit. Fee-in-lieu rates shall be those stated in Section 26.470.050 – Calculations; Employee Generation and Mitigation, in effect on the date of application acceptance. Providing a fee-in-lieu payment in excess of .10 FTE shall require City Council approval, pursuant to Section 26.470.110.C. Example 1: A multi-family unit of 1,400 square feet of Floor Area is expanded by 400 square feet of Floor Area. The applicant must provide affordable housing mitigation for .09 FTEs. 500 / 1,000 x .18 = .09 In this example the applicant may provide a Certificate of Affordable Housing Credit or a fee-in-lieu payment. Example 2: A multi-family unit of 1,400 square feet of Floor Area is expanded by 2,600 square feet of Floor Area. The applicant must provide affordable housing mitigation for .47 FTEs, the difference in employee generation of the two unit sizes. 2,600 / 1,000 x .18 = .47 In this example the applicant may provide a Certificate of Affordable Housing Credit or request City Council accept a fee-in-lieu payment. d. For property owners qualified as a full-time local working resident, an affordable housing mitigation deferral agreement may be accepted by the City of Aspen and the Aspen/Pitkin County Housing Authority. This allows deferral of the mitigation requirement until such time as the property is no longer owned by a full-time local working resident. Staff of the City of Aspen Community Development Department and the Aspen/Pitkin County Housing Authority can assist with the procedures and limitations of this option. D. Change in use of historic landmark sites and structures. The change of use between the development categories identified in Section 26.470.020, of a property, structure or portion of a structure designated as an historic landmark shall be approved, approved with conditions or denied by the Community Development Director if no more than one (1) free-market residence is created. No employee mitigation shall be required. If more than one (1) free-market residence is created, the additional units shall be reviewed pursuant to Paragraph 26.470.070.G7. The change in amount of development and number of units shall not be added or deducted from the respective annual development allotments. E. Minor enlargement of an historic landmark for commercial, lodge or mixed-use development. The enlargement of a property, structure or portion of a structure designated P72 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 24 of 43 as an historic landmark for commercial, lodge or mixed-use development shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria. The additional development of uses identified in Section 26.470.020 shall not be deducted from the respective annual development allotments. 1. If the development increases either floor area or net leasable space/lodge units, but not both, then no employee mitigation shall be required. 2. If the development increases both floor area and net leasable space/lodge units, up to four (4) employees generated by the additional commercial/lodge shall not require the provision of affordable housing mitigation. This shall be cumulative. An expansion generating more than four (4) employees shall not qualify for this administrative approval and shall be reviewed pursuant to Paragraph 26.470.100.A. 3. No more than one (1) free-market residence is created. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 29, Series of 2016. F. Minor expansion of a commercial, lodge or mixed-use development. The minor enlargement of a property, structure or portion of a structure for commercial, lodge or mixed-use development when demolition is not triggered shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria. The additional development of uses identified in Section 26.470.020 shall not be deducted from the respective annual development allotments. 1. The expansion involves no more than five-hundred (500) square feet of net leasable space, no more than two-hundred-fifty (250) square feet of Floor Area, and no more than three (3) additional hotel/lodge units. No employee mitigation shall be required. 2. The expansion involves no residential units. 3. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 22, Series of 2013. 4. When demolition is triggered, the application shall be reviewed pursuant to Section 25.470.100(FG), Replacement ofExpansion or new commercial developmentspace following demolition. G. Second Tier Commercial Space. The expansion or conversion of an existing commercial or mixed-use building, or portion thereof, or the development of a new commercial or mixed-use building to accommodate a second-tier storefront shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria: 1. The commercial space shall not reduce the property's utility/trash/recycle service area requirement unless such reduction is approved pursuant to Chapter 12.10. 2. Affordable housing mitigation shall be provided pursuant to Section 26.470.050, General Review Standards, at a rate of 60% of the net leasable space. H.G. Sale of locally-made products in common areas of commercial buildings. Commercial use of common areas within commercial and mixed-use buildings which contain commercial use (a.k.a. “non-unit spaces,” “arcades,” “hallways,” “lobbies,” or P73 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 25 of 43 “malls”) shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria. 1. Products shall be limited to arts, crafts, or produce designed, manufactured, created, grown, or assembled in the Roaring Fork Valley, defined as the watershed of the Roaring Fork River plus the municipal limits of the City of Glenwood Springs. Exempt from these product and geographic limitations are items sold by a hardware store adjacent to the common area and items incidental to arts, crafts, and produce such as frames and pedestals. 2. The area can be used by an existing business within the building or by “stand-alone” businesses. Multiple spaces may be created. 3. These areas shall not be considered net leasable space for the purposes of calculating impact fees or redevelopment credits. No employee mitigation shall be required. Compliance with all zoning, building, and fire codes is mandatory. I.H. Outdoor food/beverage vending license. Outdoor food/beverage vending shall be approved, approved with conditions or denied by the Community Development Director based on the following criteria: 1. Location. All outdoor food/beverage vending must be on private property and may be located in the Commercial Core (CC), Commercial (C1), Neighborhood Commercial (NC), or Commercial Lodge (CL) zone districts. Outdoor Food Vending may occur on public property that is subject to an approved mall lease. Additional location criteria: a. The operation shall be in a consistent location as is practically reasonable and not intended to move on a daily basis throughout the duration of the permit. b. Normal operation, including line queues, shall not inhibit the movement of pedestrian or vehicular traffic along the public right-of-way. c. The operation shall not interfere with required emergency egress or pose a threat to public health, safety and welfare. A minimum of six (6) foot ingress/egress shall be maintained for building entrances and exits. 2. Size. The area of outdoor food/beverage vending activities shall not exceed fifty (50) square feet per operation. The area of activity shall be defined as a counter area, equipment needed for the food vending activities (e.g. cooler with drinks, snow cone machine, popcorn machine, etc.), and the space needed by employees to work the food vending activity. 3. Signage. Signage for outdoor food/beverage vending carts shall be exempt from those requirements found within Land Use Code Section 26.510, Signs, but not excluding Prohibited Signs. The total amount of signage shall be the lesser of fifty percent (50%) of the surface area of the front of the cart, or six (6) square feet. Sign(s) shall be painted on or affixed to the cart. Any logos, lettering, or signage on umbrellas or canopies counts towards this calculation. Food carts may have a sandwich board sign in accordance with the regulations found within Chapter 26.510. P74 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 26 of 43 4. Environmental Health Approval. Approval of a food service plan from the Environmental Health Department is required. The area of outdoor food vending activities shall include recycling bins and a waste disposal container that shall be emptied daily and stored inside at night and when the outdoor food vending activities are not in operation. Additionally, no outdoor, open-flame char-broiling shall be permitted pursuant to Municipal Code Section 13.08.100, Restaurant Grills. 5. Building and Fire Code Compliance. All outdoor food/beverage vending operations must comply with adopted building and fire codes. Applicants are encouraged to meet with the City’s Building Department to discuss the vending cart/stand. 6. Application Contents. An application for a food/beverage vending license shall include the standard information required in 26.304.030.B, plus the following: a. Copy of a lease or approval letter from the property owner. b. A description of the operation including days/hours of operation, types of food and beverage to be offered, a picture or drawing of the vending cart/stand, and proposed signage. c. The property survey requirement shall be waived if the applicant can demonstrate how the operation will be contained on private property. 7. License Duration. Outdoor food/beverage vending licenses shall be valid for a one (1) year period beginning on the same the date that the Notice of Approval is signed by the Community Development Director. This one (1) year period may not be separated into non-consecutive periods. 8. License Renewal. Outdoor food/beverage vending licenses may be renewed. Upon renewal the Community Development Director shall consider the returning vendor’s past performance. This shall include, but shall not be limited to, input from the Environmental Health Department, Chief of Police, special event staff, and feedback from adjacent businesses. Unresolved complaints may result in denial of a renewal request. 9. Business License. The vending operator must obtain a business license. 10. Affordable Housing and Impact Fees Waived. The Community Development Director shall waive affordable housing mitigation fees and impact fees associated with outdoor food/beverage vending activities. 11. Maintenance and public safety. Outdoor food/beverage vending activities shall not diminish the general public health, safety or welfare and shall abide by applicable City regulations, including but not limited to building codes, health safety codes, fire codes, liquor laws, sign and lighting codes, and sales tax license regulations. 12. Abandonment. The City of Aspen may remove an abandoned food/beverage vending operation, or components thereof, in order protect public health, safety, and welfare. Costs of such remediation shall be the sole burden of the property owner. P75 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 27 of 43 13. Temporary Cessation. The Community Development Director may require a temporary cancelation of operations to accommodate special events, holidays, or similar large public gatherings. Such action will be taken if it is determined that the food/beverage cart will create a public safety issue or create an excessive burden on the event activities. 14. License Revocation. The Community Development Director may deny renewal or revoke the license and cause removal of the food/beverage vending operation if the vendor fails to operate consistent with these criteria. An outdoor food/beverage vending license shall not constitute nor be interpreted by any property owner, developer, vendor, or court as a site specific development plan entitled to vesting under Article 68 of Title 24 of the Colorado Revised Statutes or Chapter 26.308 of this Title. Licenses granted in this subsection are subject to revocation by the City Manager or Community Development Director without requiring prior notice. J.I. Temporary uses and structures. The development of a temporary use or structure shall be exempt from growth management, subject to the provisions of Chapter 26.450, Temporary and Seasonal Uses. Temporary external airlocks shall only be exempt from the provisions of this Chapter if compliant with applicable sections of Commercial Design Review – Chapter 26.412, and approved pursuant to Chapter 26.450 Temporary and Seasonal Uses. Tents, external airlocks, and similar temporary or seasonal enclosures located on commercial properties and supporting commercial use shall only be exempt from the provisions of this Chapter, including affordable housing mitigation requirements, if compliant with applicable sections of Commercial Design Review – Chapter 26.412, if erected for 14 days or less in a 12-month period, and approved pursuant to Chapter 26.450 – Temporary and Seasonal Uses. Erection of these enclosures for longer than 14 days in a 12-month period shall require compliance with Commercial Design Review – Chapter 26.412, and compliance with the provisions of this Chapter including affordable housing mitigation. Affordable housing mitigation shall be required only for the days in excess of 14 in a 12-month period. Cash-in-lieu may be paid by-right. The mitigation calculation shall include the expected lifespan of a building, which is currently 30 years. For instance, a 500 sq. ft. tent proposed to be up for 21 days shall only require mitigation for seven (7) days. The calculation would be as follows: Methodology: • 500 sq. ft. / 1000 sq. ft. = .5 sq. ft. • .5 sq. ft. x 4.7 FTEs = 2.35 FTEs generated • 2.35 FTEs x 60% mitigation rate = 1.41 FTEs to be mitigated if structures are in use 100% of year • 1.41 FTEs / 365 days per year = .003863 daily rate • .003863 x 7 days = .027041 FTEs • .027041 x $223,072 cash-in-lieu rate = $6,032.09 P76 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 28 of 43 • $6,032.09/ 30 years = $201.07 due for mitigation of the structure for a period of 7 days 26.470.100 Planning and Zoning Commission applications. The following types of development shall be approved, approved with conditions or denied by the Planning and Zoning Commission, pursuant to Section 26.470.060, Procedures for review, and the criteria for each type of development described below. Except as noted, all growth management applications shall comply with the general requirements of Section 26.470.080. Except as noted, the following types of growth management approvals shall be deducted from the annual development allotments. Approvals apply cumulatively. A. Enlargement of an historic landmark for commercial, lodge or mixed-use development. The enlargement of an historic landmark building for commercial, lodge or mixed-use development shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. Up to four (4) employees generated by the additional commercial/lodge development shall not require the provision of affordable housing. Thirty percent (30%) of the employee generation above four (4) and up to eight (8) employees shall be mitigated through the provision of affordable housing, affordable housing credits, or cash in lieu thereof. Sixty percent (60%) of the employee generation above eight (8) employees shall be mitigated through the provision of affordable housing, affordable housing credits, or cash in lieu thereof. For example: A project generating 15 employees shall require employee mitigation for a total of 5.4 employees, as follows: First 4 employees = 0 employee mitigation Second 4 employees mitigated at 30% = 1.2 employees Remaining 7 employees mitigated at 60% = 4.2 employees Affordable housing shall be approved pursuant to Section 26.470.080.D, Affordable Housing Mitigation. 2. Up to one (1) free-market residence may be created pursuant to Paragraph 26.470.090.E, Minor enlargement of an historic landmark for commercial, lodge or mixed-use development. This shall be cumulative and shall include administrative GMQS approvals granted prior to the adoption of Ordinance No. 29, Series of 2015. Additional free-market units (beyond one [1]) shall be reviewed pursuant to Paragraph 26.470.100.C, New free- market residential units within a multi-family or mixed-use project. B. Change in use. A change in use of an existing property, structure or portions of an existing structure between the development categories identified in Section 26.470.020 (irrespective of P77 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 29 of 43 direction), for which a certificate of occupancy has been issued and which is intended to be reused, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080. No more than one (1) free- market residential unit may be created through the change-in-use. C. Expansion of free-market residential units within a multi-family or mixed-use project. The net livable area expansion of existing free-market residential units within a mixed-use project shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080. The remodeling or expansion of existing multi-family residential dwellings shall be exempt from growth management as long as no demolition occurs, pursuant to Section 26.470.070.C. Expansion of existing free-market residential units shall not require a development allotment D. Affordable housing. The development of affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080. a. The proposed units shall be deed-restricted as "for sale" units and transferred to qualified purchasers according to the Aspen/Pitkin County Housing Authority Guidelines. The owner may be entitled to select the first purchasers, subject to the aforementioned qualifications, with approval from the Aspen/Pitkin County Housing Authority. The deed restriction shall authorize the Aspen/Pitkin County Housing Authority or the City to own the unit and rent it to qualified renters as defined in the Affordable Housing Guidelines established by the Aspen/Pitkin County Housing Authority, as amended. The proposed units may be rental units, including but not limited to rental units owned by an employer or nonprofit organization, if a legal instrument in a form acceptable to the City Attorney ensures permanent affordability of the units. The City encourages affordable housing units required for lodge development to be rental units associated with the lodge operation and contributing to the long-term viability of the lodge. Units owned by the Aspen/Pitkin County Housing Authority, the City of Aspen, Pitkin County or other similar governmental or quasi-municipal agency shall not be subject to this mandatory "for sale" provision. E. Demolition or redevelopment of multi-family housing. The City's neighborhoods have traditionally been comprised of a mix of housing types, including those affordable by its working residents. However, because of Aspen's attractiveness as a resort environment and because of the physical constraints of the upper Roaring Fork Valley, there is constant pressure for the redevelopment of dwellings currently providing resident housing for tourist and second-home use. Such redevelopment results in the displacement of individuals and families who are an integral part of the Aspen work force. Given the extremely high cost of and demand for market-rate housing, resident housing opportunities for displaced working residents, which are now minimal, will continue to decrease. P78 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 30 of 43 Preservation of the housing inventory and provision of dispersed housing opportunities in Aspen have been long-standing planning goals of the community. Achievement of these goals will serve to promote a socially and economically balanced community, limit the number of individuals who face a long and sometimes dangerous commute on State Highway 82, reduce the air pollution effects of commuting and prevent exclusion of working residents from the City's neighborhoods. The Aspen Area Community Plan established a goal that affordable housing for working residents be provided by both the public and private sectors. The City and the Aspen/Pitkin County Housing Authority have provided affordable housing both within and adjacent to the City limits. The private sector has also provided affordable housing. Nevertheless, as a result of the replacement of resident housing with second homes and tourist accommodations and the steady increase in the size of the workforce required to assure the continued viability of Aspen area businesses and the City's tourist-based economy, the City has found it necessary, in concert with other regulations, to adopt limitations on the combining, demolition or conversion of existing multi-family housing in order to minimize the displacement of working residents, to ensure that the private sector maintains its role in the provision of resident housing and to prevent a housing shortfall from occurring. The combining, demolition, conversion or redevelopment of multi-family housing shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on compliance with the following requirements (see definition of demolition.): 1. Requirements for combining, demolishing, converting or redeveloping free-market multi- family housing units: Only one (1) of the following two (2) options is required to be met when combining, demolishing, converting or redeveloping a free-market multi-family residential property. To ensure the continued vitality of the community and a critical mass of local working residents, no net loss of density (total number of units) between the existing development and proposed development shall be allowed. a. One-hundred-percent replacement. In the event of the demolition of free-market multi- family housing, the applicant shall have the option to construct replacement housing consisting of no less than one hundred percent (100%) of the number of units, bedrooms and net livable area demolished. The replacement units shall be deed-restricted as resident occupied affordable housing, pursuant to the Guidelines of the Aspen/Pitkin County Housing Authority. An applicant may choose to provide mitigation units at a lower category designation. Each replacement unit shall be approved pursuant to Subsection D, Affordable housing, of this Section. When this one-hundred-percent standard is accomplished, the remaining development on the site may be free-market residential development with no additional affordable housing mitigation required as long as there is no increase in the number of free-market residential units on the parcel. Free-market units in excess of the total number originally on the parcel shall be reviewed pursuant to Section 26.470.110, subsection J or K, Residential Development – sixty or seventy percent affordable. b. Fifty-percent replacement. In the event of the demolition of free-market multi-family housing and replacement of less than one hundred percent (100%) of the number of P79 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 31 of 43 previous units, bedrooms or net livable area as described above, the applicant shall be required to construct affordable housing consisting of no less than fifty percent (50%) of the number of units, bedrooms and the net livable area demolished. The replacement units shall be deed-restricted as Category 4 housing, pursuant to the guidelines of the Aspen/Pitkin County Housing Authority. An applicant may choose to provide mitigation units at a lower category designation. Each replacement unit shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing. When this fifty-percent standard is accomplished, the remaining development on the site may be free-market residential development as long as additional affordable housing mitigation is provided pursuant to Section 26.470.080 – General Requirements, and there is no increase in the number of free-market residential units on the parcel. Free-market units in excess of the total number originally on the parcel shall be reviewed pursuant to Section 26.470.100, subsection J or K, Residential Development – sixty or seventy percent affordable. c. One-hundred percent affordable housing replacement. When one-hundred-percent of the free-market multi-family housing units are demolished and are solely replaced with deed-restricted affordable housing units on a site that are not required for mitigation purposes, including any net additional dwelling units, pursuant to Section 26.470.110.D, Affordable Housing; all of the units in the redevelopment are eligible for a Certificate of Affordable Housing Credit, pursuant to Section 26.540 Certificate of Affordable Housing Credit. Any remaining unused free market residential development rights shall be vacated. 2. Requirements for demolishing affordable multi-family housing units: In the event a project proposes to demolish or replace existing deed-restricted affordable housing units, the redevelopment may increase or decrease the number of units, bedrooms or net livable area such that there is no decrease in the total number of employees housed by the existing units. The overall number of replacement units, unit sizes, bedrooms and category of the units shall be reviewed by the Aspen/Pitkin County Housing Authority and a recommendation forwarded to the Planning and Zoning Commission. 3. Fractional unit requirement. When the affordable housing replacement requirement of this Section involves a fraction of a unit, fee-in-lieu may be provided only upon the review and approval of the City Council, to meet the fractional requirement only, pursuant to Paragraph 26.470.110.C, Provision of required affordable housing via a fee-in-lieu payment. 4. Location requirement. Multi-family replacement units, both free-market and affordable, shall be developed on the same site on which demolition has occurred, unless the owner shall demonstrate and the Planning and Zoning Commission determines that replacement of the units on site would be in conflict with the parcel's zoning or would be an inappropriate solution due to the site's physical constraints. P80 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 32 of 43 When either of the above circumstances result, the owner shall replace the maximum number of units on site which the Planning and Zoning Commission determines that the site can accommodate and may replace the remaining units off site, at a location determined acceptable to the Planning and Zoning Commission, or may replace the units by extinguishing the requisite number of affordable housing credits, pursuant to Sec. 26.540, Certificates of Affordable Housing Credit. A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. When calculating the number of credits that must be extinguished, the most restrictive replacement measure shall apply. So, for example, for an applicant proposing to replace one 1,000 square foot three-bedroom unit at the 50% rate using credits, the following calculations shall be used: • 50% of 1,000 square feet = 500 square feet to be replaced. At the Code mandated rate of 1 FTE per 400 square feet of net livable area, this requires 1.25 credits to be extinguished; or • A three-bedroom unit = 3.0 FTE’s. 50% of 3.0 FTE’s = 1.50 credits to be extinguished. Therefore, the applicant must extinguish 1.50 credits to replace a three-bedroom unit at the 50% rate. The credits to be extinguished would be Category 4 credits. 5. Timing requirement. Any replacement units required to be deed-restricted as affordable housing shall be issued a certificate of occupancy, according to the Building Department, and be available for occupancy at the same time as, or prior to, any redeveloped free-market units, regardless of whether the replacement units are built on site or off site. 6. Redevelopment agreement. The applicant and the City shall enter into a redevelopment agreement that specifies the manner in which the applicant shall adhere to the approvals granted pursuant to this Section and penalties for noncompliance. The agreement shall be recorded before an application for a demolition permit may be accepted by the City. 7. Growth management allotments. The existing number of free-market residential units, prior to demolition, may be replaced exempt from growth management, provided that the units conform to the provisions of this Section. The redevelopment credits shall not be transferable separate from the property unless permitted as described above in Subparagraph 4, Location requirement. 8. Exemptions. The Community Development Director shall exempt from the procedures and requirements of this Section the following types of development involving Multi- Family Housing Units. An exemption from these replacement requirements shall not exempt a development from compliance with any other provisions of this Title: a. The replacement of Multi-Family Housing Units after non-willful demolition such as a flood, fire, or other natural catastrophe, civil commotion, or similar event not P81 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 33 of 43 purposefully caused by the land owner. The Community Development Director may require documentation be provided by the landowner to confirm the damage to the building was in-fact non-willful. To be exempted, the replacement development shall be an exact replacement of the previous number of units, bedrooms, and square footage and in the same configuration. The Community Development Director may approve exceptions to this exact replacement requirement to accommodate changes necessary to meet current building codes; improve accessibility; to conform to zoning, design standards, or other regulatory requirements of the City; or, to provide other architectural or site planning improvements that have no substantial effect on the use or program of the development. (Also see Chapter 26.312 – Nonconformities.) Substantive changes to the development shall not be exempted from this Section and shall be reviewed as a willful change pursuant to the procedures and requirements of this Section. b. The demolition of Multi-Family Housing Units by order of a public agency including, but not limited to, the City of Aspen for reasons of preserving the life, health, safety, or general welfare of the public. c. The demolition, combining, conversion, replacement, or redevelopment of Multi- Family Housing Units which have been used exclusively as tourist accommodations or by non-working residents. The Community Development Director may require occupancy records, leases, affidavits, or other documentation to the satisfaction of the Director to demonstrate that the unit(s) has never housed a working resident. All other requirements of this Title shall still apply including zoning, growth management, and building codes.) d. The demolition, combining, conversion, replacement, or redevelopment of Multi- Family Housing Units which were illegally created (also known as “Bandit Units”). Any improvements associated with Bandit Units shall be required to conform to current requirements of this Title including zoning, growth management, and building codes. Replaced or redeveloped Bandit Units shall be deed restricted as Resident Occupied affordable housing, pursuant to the Guidelines of the Aspen/Pitkin County Housing Authority e. Any development action involving demising walls or floors/ceilings necessary for the normal upkeep, maintenance, or remodeling of adjacent Multi-Family Housing Units. f. A change order to an issued and active building permit that proposes to exceed the limitations of remodeling/demolition to rebuild portions of a structure which, in the opinion of the Community Development Director, should be rebuilt for structural, safety, accessibility, or significant energy efficiency reasons first realized during construction, which were not known and could not have been reasonably predicted prior to construction, and which cause no or minimal changes to the exterior dimensions and character of the building. P82 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 34 of 43 F. Expansion or new commercial development. The expansion of an existing commercial building or commercial portion of a mixed-use building or the development of a new commercial building or commercial portion of a mixed-use building shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on general requirements outlined in Section 26.470.080. G. New free-market residential units within a multi-family or mixed-use project. The development of new free-market residential units within a multi-family or mixed-use project shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the general requirements outlined in Section 26.470.080 above. H. Expansion or new lodge development. The expansion of an existing lodge or the development of a new lodge shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. If the project contains a minimum of one (1) lodge unit per five hundred (500) square feet of lot area, the following affordable housing mitigation standards shall apply: a. Affordable housing net livable area equaling a percentage, as defined in the unit size table below, of the additional free-market residential net livable area shall be mitigated through the provision of affordable housing. b. A percentage, as defined in the table below, of the employees generated by the additional lodge, timeshare lodge, exempt timeshare units and associated commercial development, according to Paragraph 26.470.100.A.1, Employee generation, shall be mitigated through the provision of affordable housing. Average Net Livable Area of Lodge Units Being Added to the Parcel Affordable Housing Net Livable Area Required (Percentage of Free-Market Net Livable Area) Percentage of Employee Generation Requiring the Provision of Mitigation 600 square feet or greater 30% 80% 500 square feet 30% 60% 400 square feet 20% 40% 300 square feet or smaller 10% 30% When the average unit size falls between the square-footage categories, the required affordable housing shall be determined by interpolating the above schedule. For example, a lodge project with an average unit size of four hundred fifty (450) square feet shall be required to provide mitigation for thirty percent (50%) of the employees generated. P83 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 35 of 43 c. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing. 2. If the project contains less than one (1) lodge unit per five hundred (500) square feet of lot area, the following affordable housing mitigation standards shall apply: a. Affordable housing net livable area equaling thirty percent (30%) of the additional free-market residential net livable area shall be mitigated through the provision of affordable housing. b. Eighty percent (60%) of the employees generated by the additional lodge, timeshare lodge, exempt timeshare units and associated commercial development, according to Paragraph 26.470.050.B, Employee generation, shall be mitigated through the provision of affordable housing. I. Residential development – sixty percent (60%) affordable. The development of a residential project or an addition of units to an existing residential project, in which a minimum of sixty percent (60%) of the additional units and thirty percent (30%) of the additional floor area is affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. A minimum of sixty percent (60%) of the total additional units and thirty percent (30%) of the project's additional floor area shall be affordable housing. Multi-site projects are permitted. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.100.D, Affordable housing, and shall average Category 4 rates as defined in the Aspen/Pitkin County Housing Authority Guidelines, as amended. An applicant may choose to provide mitigation units at a lower category designation. 2. If the project consists of only one (1) free-market residence, then a minimum of one (1) affordable residence representing a minimum of thirty percent (30%) of the project's total floor area and deed-restricted as a Category 4 "for sale" unit, according to the provisions of the Aspen/Pitkin County Affordable Housing Guidelines, shall qualify. J. Residential development – seventy percent (70%) affordable. The development of a residential project or an addition to an existing residential project, in which seventy percent (70%) of the project's additional units and seventy percent (70%) of the project's additional bedrooms are affordable housing deed-restricted in accordance with the Aspen/Pitkin County Housing Authority Guidelines, shall be approved, approved with conditions or denied by the Planning and Zoning Commission based on the following criteria: 1. Seventy percent (70%) of the total additional units and total additional bedrooms shall be affordable housing. At least forty percent (40%) of the units shall average Category 4 rates as defined in the Aspen/Pitkin County Housing Authority Guidelines. The remaining thirty-percent affordable housing unit requirement may be provided as P84 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 36 of 43 Resident Occupied (RO) units as defined in the Aspen/Pitkin County Housing Authority Guidelines. Multi-site projects are permitted. Affordable housing units provided shall be approved pursuant to Paragraph 26.470.070.4, Affordable housing. An applicant may choose to provide mitigation units at a lower category designation. 2. If the project consists of one (1) free-market residence, then the provision of one (1) RO residence and one (1) category residence shall be considered meeting the seventy- percent unit standard. If the project consists of two (2) free-market residences, then the provision of two (2) RO residences and two (2) category residences shall qualify. Sec. 26.470.110. City Council applications. The following types of development shall be approved, approved with conditions or denied by the City Council, pursuant to Section 26.470.060, Procedures for review, and the criteria for each type of development described below. Except as noted, all growth management applications shall comply with the general requirements of Section 26.470.080. Except as noted, all City Council growth management approvals shall be deducted from the respective annual development allotments. A. Multi-year development allotment. The City Council, upon a recommendation from the Planning and Zoning Commission, shall approve, approve with conditions or deny a multi- year development allotment request based on the following criteria: 1. A project is required to meet at least five (5) of the following criteria. a. The proposal exceeds the minimum affordable housing required for a standard project. b. The proposed project represents an excellent historic preservation accomplishment. A recommendation from the Historic Preservation Commission shall be considered for this standard. c. The proposal furthers affordable housing goals by providing units established as priority through the current Aspen/Pitkin County Housing Authority Guidelines and provides a desirable mix of affordable unit types, economic levels and lifestyles (e.g., singles, seniors, families, etc.). A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. d. The proposal minimizes impacts on public infrastructure by incorporating innovative, energy-saving techniques. Recommendations from relevant departments shall be considered for this standard. For example, if an applicant proposed an innovative design related to the stormsewer system, a recommendation from the Engineering Department shall be considered. e. The proposal minimizes construction impacts beyond minimum requirements both during and after construction. A recommendation from the Engineering and Building Departments shall be considered for this standard. P85 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 37 of 43 f. The proposal maximizes potential public transit usage and minimizes reliance on the automobile by exceeding the requirements in Section 26.515, Off-Street Parking and Mobility. A recommendation from the Transportation and Engineering Departments shall be considered for this standard. g. The proposal exceeds minimum requirements of the Efficient Building Code or for LEED certification, as applicable. A recommendation from the Building Department shall be considered for this standard. h. The proposal represents a desirable site plan and an architectural design solution. i. The proposal promotes opportunities for local businesses through the provision of Alley stores or second-tier commercial space. 2. The project complies with all other provisions of the Land Use Code and has obtained all necessary approvals from the Historic Preservation Commission, the Planning and Zoning Commission and the City Council, as applicable. 3. The Community Development Director shall be directed to reduce the applicable annual development allotments, as provided in Section 26.470.120, in subsequent years as determined appropriate by the City Council. B. Provision of required affordable housing units outside City limits. The provision of affordable housing, as required by this chapter, with units to be located outside the City boundary, upon a recommendation from the Planning and Zoning Commission, shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The off-site housing is within the Aspen Urban Growth Boundary. 2. The proposal furthers affordable housing goals by providing units established as priority through the current Aspen/Pitkin County Housing Authority Guidelines and provides a desirable mix of affordable unit types, economic levels and lifestyles (e.g., singles, seniors and families). A recommendation from the Aspen/Pitkin County Housing Authority shall be considered for this standard. 3. The applicant has received all necessary approvals from the governing body with jurisdiction of the off-site parcel. City Council may accept any percentage of a project's total affordable housing mitigation to be provided through units outside the City's jurisdictional limits, including all or none. C. Provision of required affordable housing via a fee-in-lieu payment. The provision of affordable housing in excess of 0.10 Full-Time Equivalents (FTEs) via a fee-in-lieu payment, upon a recommendation from the Planning and Zoning Commission shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The provision of affordable housing on site (on the same site as the project requiring such affordable housing) is impractical given the physical or legal parameters of the P86 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 38 of 43 development or site or would be inconsistent with the character of the neighborhood in which the project is being developed. 2. The applicant has made a reasonable good-faith effort in pursuit of providing the required affordable housing off site through construction of new dwelling units, the deed restriction of existing dwelling units to affordable housing status, or through the purchase of affordable housing certificates. 3. The applicant has made a reasonable good-faith effort in pursuit of providing the required affordable housing through the purchase and extinguishment of Certificates of Affordable Housing Credit. 4. The proposal furthers affordable housing goals, and the fee-in-lieu payment will result in the near-term production of affordable housing units. The City Council may accept any percentage of a project's total affordable housing mitigation to be provided through a fee-in-lieu payment, including all or none. D. Essential public facilities. The development of an essential public facility, upon a recommendation from the Planning and Zoning Commission, shall be approved, approved with conditions or denied by the City Council based on the following criteria: 1. The Community Development Director has determined the primary use and/or structure to be an essential public facility (see definition). Accessory uses may also be part of an essential public facility project. 2. The Planning and Zoning Commission shall determine the number of employees generated by the essential public facility pursuant to Section 26.470.050.C, Employee generation review. 3. Upon a recommendation from the Community Development Director and the Planning and Zoning Commission, the City Council may assess, waive or partially waive affordable housing mitigation requirements as is deemed appropriate and warranted for the purpose of promoting civic uses and in consideration of broader community goals. E. Preservation of significant open space parcels. On a project-specific basis and upon a recommendation from the Planning and Zoning Commission, the City Council shall approve, approve with conditions or deny development of one (1) or more residences in exchange for the permanent preservation of one (1) or more parcels considered significant for the preservation of open space. The preservation parcel may lie outside the City jurisdiction. The exempted residential units shall be deducted from the respective annual development allotment established pursuant to Section 26.470.040.B. The exempted residential units shall provide affordable housing mitigation, pursuant to the requirements of Section 26.470.100.E. This exemption shall only apply to the specific residences approved through this provision. Other residences within a project not specifically exempted through this provision shall require growth management approvals pursuant to this Chapter. The criteria for determining the P87 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 39 of 43 significance of a preservation parcel and the associated development rights to be granted may include: 1. The strategic nature of the preservation parcel to facilitate park, trails or open space objectives of the City. This shall include a recommendation from the City of Aspen Open Space Acquisition Board. 2. Identification of the preservation parcel as desirable for preservation in any adopted master plans of the City or following a recommendation from the Parks and Open Space Department. 3. Proximity and/or visibility of the preservation parcel to the City. 4. The development rights of the preservation parcel, including the allowed uses and intensities and impacts associated with those uses if developed to the maximum. 5. The proposed location of the parcel being granted growth management approvals and the compatibility of the resulting uses and intensities of development with the surrounding neighborhood, including the impacts from the specified method of providing affordable housing mitigation. The new residences shall be restricted to the underlying zoning restrictions of the property on which they lie unless additional restrictions are necessary in order to meet this criterion. 6. The preservation parcel shall be encumbered with a legal instrument, acceptable to the City Attorney, which sterilizes the parcel from further development in perpetuity. 26.470.120. Yearly Growth management accounting procedures. A. General. The Community Development Director shall maintain an ongoing account of available, requested and approved growth management allocations for all land uses identified in Table 1 of Section 26.470.020. Allotments shall be considered allocated upon issuance of a development order for the project. Unless specifically not deducted from the annual development allotment, all units of growth shall be included in the accounting. Approved affordable housing units shall be counted regardless of the unit being provided as mitigation or otherwise. B. Yearly Allotment Carry-Forward Procedures. At the conclusion of each growth management year, the Community Development Director shall prepare a summary of growth allocations. The City Council, at its first regular meeting of the growth management year, shall review the prior year's growth summary, consider a recommendation from the Community Development Director, and shall, via adoption of a resolution, establish the number of unused and unclaimed allotments to be carried forward and added to the annual allotment. A public hearing is not required and this action may be completed as part of City Council’s consent calendar. The City Council may carry forward any portion of the previous year's unused allotment, including all or none. The City Council shall consider the following criteria in determining the allotments to be carried forward: 1. The community's growth rate over the preceding five-year period. P88 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 40 of 43 2. The ability of the community to absorb the growth that could result from a proposed development utilizing accumulated allotments, including issues of scale, infrastructure capacity, construction impacts and community character. 3. The expected impact from approved developments that have obtained allotments, but that have not yet been built. There is no limit, other than that implemented by the City Council, on the amount of potential growth that may be carried forward to the next year. Any allotments awarded to a project which does not proceed and which are considered void shall constitute unused allotments and may be considered for allotment roll-over by the City Council for the year from which they were assigned. If a project decides not to proceed with the development after Council’s decision on roll-over allotments for that year, then those allotments shall be considered expired and no longer available. Allotments shall be considered vacated by a property owner upon written notification from the property owner or upon expiration of the development right pursuant to Section 26.470.040.D, Expiration of growth management allotments. 26.470.130. Application contents. Applications for growth management shall include the following: A. The general application information required in Common development review procedures, Chapter 26.304. B. A site-improvement survey meeting the requirements of Title 29, Engineering Design Standards. C. A description of the project and the number and type of the requested growth management allotments. D. A detailed description and site plan of the proposed development, including proposed land uses, densities, natural features, traffic and pedestrian circulation, off-street parking, open space areas, infrastructure improvements, site drainage and any associated off-site improvements. E. A description of the proposed affordable housing and how it provides adequate mitigation for the project and conforms to the Aspen/Pitkin County Housing Authority Guidelines. F. A statement specifying the public facilities that will be needed to accommodate the proposed development, proposed infrastructure improvements and the specific assurances that will be made to ensure that the public facilities will be available to accommodate the proposed development. G. A written response to each of the review criteria for the particular review requested. H. Copies of required approvals from the Planning and Zoning Commission, Historic Preservation Commission and the City Council, as necessary. P89 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 41 of 43 26.470.140. Reconstruction limitations. A. An applicant may propose to demolish and then delay the reconstruction of existing development for a period not to exceed one (1) year. To comply with this limitation and maintain the reconstruction credit, an applicant must submit a complete building permit application for reconstruction on or before the one-year anniversary of the issuance date of the demolition permit. The City Council may extend this deadline upon demonstration of good cause. This time limitation shall not apply to the reconstruction of single-family and duplex development. B. Applicants shall verify existing conditions prior to demolition with the City Zoning Officer in order to document reconstruction rights. An applicant's failure to accurately document existing conditions prior to demolition and verify reconstruction rights with the City Zoning Officer may result in a loss of some or all of the reconstruction rights. C. Reconstructed buildings shall comply with applicable requirements of the Land Use Code, including but not limited to Chapter 26.312, Nonconformities, and Chapter 26.710, Zone Districts. D. Reconstruction rights shall be limited to reconstruction on the same parcel or on an adjacent parcel under the same ownership. E. Residential redevelopment credits may be converted to lodge redevelopment credits by right. The conversion rate shall be three (3) lodge units per each one (1) residential unit. This is a one- way conversion, and lodge credits may not be converted to residential credits. 26.470.150. Amendment of a growth management development order. A. Insubstantial amendment. An insubstantial amendment to an approved growth management development order may be authorized by the Community Development Director if: 1. The change conforms to all other provisions of the Land Use Code and does not exceed approved variations to the residential design standards, require an amendment to the commercial design review approval or such variations or amendments have been approved. 2. The change does not alter the number, size, type or deed restriction of the proposed affordable housing units, or those changes have been accepted by the Aspen/Pitkin County Housing Authority. 3. The change is limited to technical or engineering considerations discovered prior to or during actual development that could not reasonably be anticipated during the review process or any other minor change that the Community Development Director finds has no substantial effect on the conditions and representations made during the original project review. B. Substantial amendment. All other amendments to an approved growth management development order shall be reviewed pursuant to the terms and procedures of this Chapter. Allotments granted shall remain valid and applied to the amended application, provided that the amendment application is submitted prior to the expiration of vested rights. Amendment applications requiring additional allotments or allotments for different uses shall obtain those P90 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 42 of 43 allotments pursuant to the procedures of this Chapter. Any new allotments shall be deducted from the growth management year in which the amendment is submitted. 26.470.160. Appeals. A. Appeal of adverse determination by Community Development Director. An appeal made by an applicant aggrieved by a determination made by the Community Development Director on an application for administrative review shall be to the Planning and Zoning Commission. The appeal procedures set forth at Chapter 26.316 shall apply. The Planning and Zoning Commission may reverse, affirm or modify the decision or determination of the Community Development Director based upon the application submitted to the Community Development Director and the record established by the Director's review. The decision of the Planning and Zoning Commission shall constitute the final administrative action on the matter. B. Appeal of adverse determination by Planning and Zoning Commission. An appeal made by an applicant aggrieved by a determination made by the Planning and Zoning Commission on an application for Planning and Zoning Commission review shall be to the City Council. The appeal procedures set forth at Chapter 26.316 shall apply. The City Council may reverse, affirm or modify the decision or determination of the Planning and Zoning Commission based upon the application submitted to the Planning and Zoning Commission and the record established by the Commission's review. The decision of the City Council shall constitute the final administrative action on the matter. C. Insufficient development allotments. Any property owner within the City who is prevented from developing a property because that year's development allotments have been entirely allocated may appeal to the City Council for development approval. An application requesting allotments must first be denied due to lack of necessary allotments. The appeal procedures set forth at Chapter 26.316 shall apply. The City Council may take any such action determined necessary, including but not limited to making a one-time increase of the annual development allotment sufficient to accommodate the application. Section 2: Any scrivener’s errors contained in the code amendments herein, including but not limited to mislabeled subsections or titles, may be corrected administratively following adoption of the Ordinance. Section 3: Effect Upon Existing Litigation. This ordinance shall not affect any existing litigation and shall not operate as an abatement of any action or proceeding now pending under or by virtue of the ordinances repealed or amended as herein provided, and the same shall be conducted and concluded under such prior ordinances. Section 4: Severability. If any section, subsection, sentence, clause, phrase, or portion of this ordinance is for any reason held invalid or unconstitutional in a court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and shall not affect the validity of the remaining portions thereof. Section 5: Effective Date. P91 I. 12.5.16 Second Reading, Ordinance 31, Series 2016 Growth Management Page 43 of 43 In accordance with Section 4.9 of the City of Aspen Home Rule Charter, this ordinance shall become effective thirty (30) days following final passage. Section 6: A public hearing on this ordinance shall be held on the 5th day of December, 2016, at a meeting of the Aspen City Council commencing at 5:00 p.m. in the City Council Chambers, Aspen City Hall, Aspen, Colorado, a minimum of fifteen days prior to which hearing a public notice of the same shall be published in a newspaper of general circulation within the City of Aspen. INTRODUCED, READ, AND ORDERED PUBLISHED as provided by law, by the City Council of the City of Aspen on the14th day of November, 2016. Attest: _____________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor FINALLY, adopted, passed and approved this _____th day of _____, 2016. Attest: _____________________________ ____________________________ Linda Manning, City Clerk Steven Skadron, Mayor Approved as to form: _____________________________ James R. True, City Attorney P92 I.