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HomeMy WebLinkAboutminutes.council.20170109Regular Meeting Aspen City Council January 9, 2017 1 Aspen Public Facilities Authority Annual Meeting ...................................................................................... 2 CITIZEN COMMENTS ............................................................................................................................... 2 COUNCILMEMBERS COMMENTS .......................................................................................................... 2 CITY MANAGER COMMENTS ................................................................................................................ 3 CONSENT CALENDAR ............................................................................................................................. 3 Resolution #1, Series of 2017 – Designation of public meeting notice place ....................................... 4 Resolution #5, Series of 2017 – Cities Leading through Energy Analysis and Planning ..................... 4 Resolution #2, Series of 2017 – Purchase new fleet of golf carts ......................................................... 4 Resolution #7, Series of 2017 – Bicycle & Pedestrian Master Plan Phase II ....................................... 4 Resolution #3, Series of 2017 – City\County Contractor Licensing IGA ............................................. 4 Minutes – December 12, 2016 .............................................................................................................. 4 Board Appointments ............................................................................................................................. 4 Resolution #8 and #9, Series of 2017 – 2016 City Manager and City Attorney Salary Increases ........ 4 ORDINANCE #1, SERIES OF 2017 – 110 W. Main Street (Hotel Aspen) Planned Development Other Amendment and Vested Rights Extension .................................................................................................... 4 ORDINANCES #29-34, SERIES OF 2016 -AACP and Land Use Code Coordination ............................... 5 ORDINANCE #40, SERIES OF 2016 – Updated Building Code Adoption ................................................ 9 RESOLUTION #4, SERIES OF 2017 – 200 S. Aspen Street (Hotel Lenado), Revocation of a condominium plat and related documents .................................................................................................. 10 ORDINANCES #29-34, SERIES OF 2016 – AACP and Land Use Code Coordination ........................... 11 Regular Meeting Aspen City Council January 9, 2017 2 Aspen Public Facilities Authority Annual Meeting Member Skadron called to order the annual meeting of the Aspen Public Facility Authority with Members Myrin, Mullins, Frisch, Daily, Manning and Taylor present. Member Taylor told the Authority the debt service is current and the Authority will stay in place until the debt service is paid off. Member Mullins moved to approve the minutes from the last meeting; seconded by Member Daily. All in favor, motion carried. Member Skadron said the Isis has movies and we are on track to pay off the bonds in 15 years. Member Daily moved to adjourn; seconded by Member Frisch, all in favor, motion carried. At 5:12 p.m. Mayor Skadron called the regular meeting to order with Councilmembers Mullins, Daily, Myrin and Frisch present. CITIZEN COMMENTS 1. Bill Stirling told the Council John Bennet had a great idea in response to Councilmember Frisch to do more research, particularly outside council chambers. On January 19th from 9-4 at Aspen Institute we will hold an event, a community roundtable, a dialogue among interested people, whether or not there is a problem in the downtown core as to if it is dominated by formula retail. They invited owners of downtown properties, local retailers, other interested downtown members and resource people like Jim True and Jessica Garrow. They also invited people from some of the communities who have these ordinances in place. It is a conditional use not a ban that grandfathers in existing businesses. They are now surveying the downtown. They would like to invite two council members to the round table. He asked the city to provide funding for the event. Council agreed to provide $1,500 for the event. Brooke Peterson said Ajax holding has agreed to match any funding the city provided. Councilwoman Mullins agreed to $1,000 and Mayor Skadron concurred. 2. Paige Larkin 851 Ute Avenue, called the Aspen Alps four days ago about the 300 building project and said the owners were unaware it was changing the existing footprint. Jessica Garrow, community development, said the project has been reviewed and approved by Council for expansion. This is more of a conversation the Black Swan should have with the Alps. Jim True, city attorney, said we looked into this to a degree. They received written notice but we don’t know what conversations were had between them. At this point the decisions of the city have passed any opportunity for Council to weight in any further. The process has moved forward correctly from our standpoint. Her line of action is to talk with the alps. Ms. Larkin said it was upsetting to us because it is very different than what was shown. 3. Neil Segal spoke about the delivery of high speed broad band services. Ballot measure 2B passed with over 90 percent approval. His suggestion is to aggressively move forward. Aspen is an ideal candidate to move into the smart world. 4. Ward Hauenstein said he wants public assurances that council will allow the public to have a vote on the creation of dams on Castle and Maroon creek. He is also concerned about protecting smaller businesses in town against formula businesses. He would like to see council address this once the moratorium is played out. 5. Toni Kronberg asked council to pull resolution 1 from the consent calendar. She also asked council to pull the Bidwell building for call up. She told council there has not been any public outreach on the proposed new city hall. 6. Mick Ireland spoke on the Ordinance on affordable housing mitigation for unmitigated spaces. If you required affordable housing mitigation if would favor development over scrape and replace. Housing will be increasingly important. He is not clear why we need a 15 foot exemption for view planes. COUNCILMEMBERS COMMENTS Councilman Frisch wished everyone a happy new year. He is glad to be back. Regular Meeting Aspen City Council January 9, 2017 3 Councilwoman Mullins said she realized what an enormous amount of work staff, the consultants and council has done the past nine months. Thanks to everyone who has worked on it. Happy new year. Councilman Myrin said it has been amazing to work with Jessica on the moratorium. For 2017 he would like to work on how much development is on the horizon. The 5th Monday in January he would like to pencil in working on the moratorium if needed. Ward spoke to something about the dams, passed out a copy of the ordinance council passed in October, to continue investigation on alternatives. He asked for monthly updates from staff on the progress and to include an accounting of what we are spending. He also spoke about the decision made at P&Z and not subject to council review. He passed out a handout that council might want to work on after the moratorium. He said it is food tax refund time and asked if it might be increased. Mr. True replied it is up to Council and it has a budgetary impact. Mayor Skadron said Winterskol starts this week. He said one more final goodbye to Jim Considine who has been with the City for 40 years, Kathy Strickland in the Clerk’s office who has been here for 32 years and Randy Ready who has taken the city manager’s position in Frisco. Weather is different from climate change. We have experienced 23 more frost free days since 1980. We can expect to see more days like this. CITY MANAGER COMMENTS Steve Barwick – thanked everyone for their patience and understanding for the mess outside. CONSENT CALENDAR Resolution #1 meeting notice place Toni Kronberg said this resolution states full and timely notices must be made in a public place. She requested that the box where the notices are placed either be made larger or be moved to outside the back entrance to city hall. Resolution 2 – golf carts Councilman Myrin asked if it is the same number of carts as before. Steve Aiken, golf, replied yes. Councilman Myrin asked if they will be able to charge on the city’s grid. Mr. Aiken stated yes, but the big change is the GPS. Mayor Skadron said they will be meeting the expectations of the golfer. Resolution #7 – bike and pedestrian master plan Councilman Myrin asked them to summarize the contract. Justin Foreman, engineering, said after the work session they identify the need for more bike parking in the core going east/west, the top 5 sidewalk access areas, a need for a trail on 4th from Main to the music tent, a path on Hallam or Francis, and expanded bike striping in town. Councilman Myrin asked about the add on for the final public meeting. Is that an additional charge. Mr. Foreman replied it is not in the additional 52,000, if needed it will be extra. Councilman Myrin said he would like to see a sidewalk on the Monarch side of Wagner park. Councilwoman Mullins asked where do we stand on the signage. Mr. Foreman said it is in 2020 and 2021 budget. Councilwoman Mullins asked why so long before we can start working on it. Mr. Foreman said it is part of the new civic space. Councilwoman Mullins said it is an important element of improving the system. Board appointments Mayor Skadron thanked all the members of the public who interview for a position for one of the boards. He welcomed all the new members. We are seeing a number of candidates for each position but quality candidates. If you weren’t picked seats open often so stay engaged. Regular Meeting Aspen City Council January 9, 2017 4  Resolution #1, Series of 2017 – Designation of public meeting notice place  Resolution #5, Series of 2017 – Cities Leading through Energy Analysis and Planning  Resolution #2, Series of 2017 – Purchase new fleet of golf carts  Resolution #7, Series of 2017 – Bicycle & Pedestrian Master Plan Phase II  Resolution #3, Series of 2017 – City\County Contractor Licensing IGA  Minutes – December 12, 2016  Board Appointments  Resolution #8 and #9, Series of 2017 – 2016 City Manager and City Attorney Salary Increases Councilman Daily moved to adopt the Consent Calendar; seconded by Councilwoman Mullins. All in favor, motion carried ORDINANCE #1, SERIES OF 2017 – 110 W. Main Street (Hotel Aspen) Planned Development Other Amendment and Vested Rights Extension Councilwoman Mullins recused herself as she saw this at HPC and recused herself at the original Council hearings. Jennifer Phelan, community development, said this is a PD amendment and associated reviews. The property runs from Main Street to Bleeker and is located in the historic district. In 2014 it was approved to be redeveloped with 54 lodge rooms, three affordable housing units and three free market units. The PD amendment is to allow for an increase in height from 28 to 32 feet, expand the basement footprint and change the circulation within the lodge. The second request is for an extension of the vesting. The third request is for the establishment for affordable housing credit. Staff is recommending the ordinance be approved on first reading and the public hearing be set for February 27th. Patrick Rawley, representing the applicant, stated Councilman Myrin was a member of P&Z when this was heard there and would like a reconsideration of his involvement of this. Councilman Myrin recused himself as he saw this at P&Z. Councilman Frisch said on the vesting is there a specific reason on the timing or is longer the better. Ms. Phelan said she will go into more detail at second reading. Councilman Daily said for second reading he would like to know how the additional height is perceived from the street. It is not necessarily an issue. Mayor Skadron asked for a comment on need versus want. Mr. Rawley said when they got in to the constructability it was difficult to achieve industry standards for floor to ceiling height. On the vesting, there are complex engineering issues so the additional time would be appreciated. Councilman Frisch moved to read Ordinance #1, Series of 2017; seconded by Councilman Daily. All in favor, motion carried. ORDINANCE NO. 1 (SERIES OF 2017) AN ORDINANCE OF THE ASPEN CITY COUNCIL GRANTING PLANNED UNIT DEVELOPMENT – OTHER AMENDMENT, THE ESTABLISHMENT OF CERTIFICATES OF AFFORDABLE HOUSING CREDIT AND AN EXTENSION OF VESTED RIGHTS OF THE HOTEL ASPEN, LOCATED AT 110 WEST MAIN STREET, HOTEL ASPEN CONDOMINIUMS, CITY AND TOWNSITE OF ASPEN, PITKIN COUNTY, COLORADO. Regular Meeting Aspen City Council January 9, 2017 5 Councilman Frisch moved to adopt Ordinance #1, Series of 2017 on first reading; seconded by Councilman Daily. Roll call vote. Councilmembers Daily, yes; Frisch, yes; Mayor Skadron, yes. ORDINANCES #29-34, SERIES OF 2016 -AACP and Land Use Code Coordination Ms. Garrow highlighted several pieces of the AACP and major themes that they seek to guide future development so it contributes to the long term sustainability of a vibrant and diverse tourist economy and a long term community. The major theme is to guide future development not stop it. The council goal was established in 2014 and the moratorium was adopted in March of 2015. There is a very detailed public outreach summary available online. There was 10 months of outreach with 53 events. Much of the staff recommendations are based on the outreach. Ms. Garrow highlighted the major changes implemented through the ordinances including reducing building size allowances, focus on uses we want to encourage particularly in the free market residential area. Focus on mobility and reinforcing our historic small mountain town character. Additional requirements of development ensure it mitigate its impacts. The cumulative effect will be lower buildings, less mass and height. Scenarios Staff analyzed three properties with basic financial and design. They looked at the Butchers Block building in the CC zone. 517 E Hopkins Ave (the old Daily News) in the MU zone and the 100 E Main (old Aspen Orthopedics) in the NC zone. All have existing second tier space and previously unmitigated space. The goal is to look at net new code provisions and likely development patterns. 424 Spring Street, Butchers Block Sara Adams, consultant, said they took the path of least resistance. After looking at a remodel scenario with the setbacks, height and pedestrian amenity they would recommended no change. For the redevelopment option they would maintain the existing pedestrian amenity, provided full basement and a second floor. They would put an alley store on the back. Conclusions –the requirements incentivized a remodel. The second tier replacement yields two times the second tier mitigation and equals 15 percent less mitigation cost than the 60 percent rate. 517 E Hopkins Daily News For the remodel they would propose a minor addition at grade and cap the sunken court yard. They would put the pedestrian amenity in the basement. The upper floors would remain the same. For redevelopment they would utilize the full basement for the second tier space and a mid block walkway. It would be a one story building. Conclusions – redevelopment may decrease the net leasable to avoid mitigation. Increased cash in lieu and mobility improvements over current code. Pedestrian amenity is required despite no increase in net leasable (remodel or redevelopment). Redevelopment equals the loss of five affordable housing units and $1.75 million in mitigation costs. 100 E Main ST – Aspen Orthopedics For the remodel it would be a slight increase in space and pedestrian amenity would be triggered. Redevelopment would include basement, first floor and a small second floor and onsite parking. Conclusion – remodel is more likely than a full development to avoid mitigation for existing space. There is no incentive for additional second tier spaces offered by 80percent/40percent over the 60percent mitigation rate. Combined impact of pedestrian amenity and 42 percent second tier replacement limit development potential. High impact Regular Meeting Aspen City Council January 9, 2017 6 Mitigation for existing spaces and minimum second tier requirements. Moderate impact 25 percent pedestrian amenity trigger, elimination of parking deficit, 80percent/40percent mitigation rate. Low impact Elimination of housing credits and parking cash in lieu rate. Councilman Frisch said the for level of ideal mitigation or obtain buildings and uses we want. He is not sure we are going to get both. He wanted to tilt the field over remodel a little over scrape and replace. There is a conflict there and it has been for years and years. Staff recommendations Designed to find the development sweet spot that reflect the AACP. Use mix The goal is to eliminate new free market residential in the commercial core buildings, update the use list, ensure lodging functions as lodging, ensure commercial zones are available for primary commercial uses, and include the optional EBO for NC and SCI zones. Dimensional standards Reduce building heights to 28 feet, reduce floor area ratios to reflect the reduced building heights, allow 1:1 affordable housing FAR in CC and C1 zones, reduces free market unit size allowed by right to 1,500 square feet with the ability to go to 2,500 square feet with a TDR. Growth Management Maintain 60 percent mitigation rate. Do not require mitigation for previously unmitigated spaces and remove affordable housing credit creation from commercial zones. Parking & mobility Encourage improvements and mobility over private parking. Increase the cash in lieu amount to $38,000. Conduct a study in 2017. Commercial design Update the guidelines. Adopt minimum second tier space requirements. Increase pedestrian amenity requirement to 25 percent. Add pedestrian amenity designs (mid block walkways, arcades, interior courtyards, etc). View planes Adopt regulations that address fore, mid and background. Expand the Wagner park view plane. Mayor Skadron opened the public comment. 1. Karim Souki, Ajax holdings, said their primary business is not to develop in Aspen but it is our home. Even with changes we would stop developing in Aspen. Under the new code it does not make sense to develop. Financial feasibility is second to us because this is our home. We have chosen to do a certain amount in Aspen because we want to see Aspen thrive but this goes too far. This makes no sense. This will stop our development activities. We will still contribute to the community and live here. If that is what the community wants, great. 2. Jim Smith complimented council and staff on all the work. He is concerned about a last minute change in the C1 code for maximum allowed unit size. Before the moratorium it was a 2,000 square foot limit. Now it is 1,500. Downsizing will impact a large number of units and make a Regular Meeting Aspen City Council January 9, 2017 7 number of non-conforming units. It will only effect the little guys. The justification for this change is unclear. Council may consider keeping the C1 size as it has been by right at 2,000. 3. Gideon Kaufman & Chris Casper, Wheeler Square Condominiums, said they have been in their spaces 35 and 25 years. The Wheeler view plane is a laudable goal. It is appropriate to review it after 40 years. What are we trying to protect. He requests that their building be permitted at a reasonable single story. The design guidelines were passed at 13 feet for a reasonable height. The building next door was recently approved at that height. The intent of Wheeler view plane was protecting mountain views looking from the Wheeler. It is a win win situation. Place language in code that existing split level buildings can have ceiling heights of 13 feet. It is a community goal and complies with the AACP. Mr. Kaufman showed image of the view plane. Ms. Garrow said Council wanted to allow single story buildings. What can you achieve and it is 15 feet. There are some allowances for mechanical and accessibility. Not sure it specifically addresses Gideon’s concerns. Mr. Supino said because his lot slopes there would be some additional height allowed because of the way you directed us to measure height. Ms. Garrow said the thing that is important is the 15 is what would be allowed and not triggering Ref 1. Mr. Kaufman said we are not asking for anything that we feel is not unreasonable. From a practical point of view, for a foot or two it is not viable. 4. Ward Hauenstein said the 25 percent public amenity seems counter to what is second tier. It drives up rents in the core. There is less space you can get income from. It is making it more difficult for a commercial entity to break even. The 25 percent is a nice goal but it puts a lot of burden. One of the goals of the chain store is to drive rental down but the 25 percent drives it back up. It seems counter to local businesses being able to survive in the core. 5. Karim Souki said everything on the list is always stick and no carrot. Councilman Frisch asked do you really realize what you are getting by implementing by all of these rules. Is what you are putting in place going to get you what you want. I believe you are trying to deliver what the community wants. Councilman Myrin asked how do the other communities ensure they get back what they are trying to achieve. Mr. Souki said I’m not an expert but I’ve haven’t seen it in Aspen. Councilman Frisch replied jobs and tax revenue. 6. Linsey Smith said 950 square feet are the size of the units in the concept 600 building. They just want to go back to the 2,000 square foot size. 7. Sara Broughton said she is a proponent of the second tier space. She is concerned when she sees residential taken out of so many zone districts, namely NC, SCI and MU. They purchased the mesa building and under the new code they will not be able to make their residence above the shop. There are a tremendous amount of applications that go through com dev that council does not see. We need to test drive some of these concepts. There are some very drastic impacts to this. 8. Torre said he does not think two weeks from now will be appropriate to answer all the questions that have come up tonight. One size does not fit all. He encouraged council to look at ways to take more time with this. Mayor Skadron closed the public comment. Ms. Garrow reviewed the key decision points including: Mitigation rate at current 60% or 40%/80% Credit for existing commercial space 100% second tier replacement Set pedestrian amenity trigger at demolition Increase parking cash in lieu to $38,000 Eliminate parking deficit loophole Free market unit size limitation amendments Allow for transfer of affordable housing requirement between properties within a zone Regular Meeting Aspen City Council January 9, 2017 8 Councilman Myrin suggested the 80/40 mitigation rate but not on the ground floor. He said the first floor should be at 80. Ms. Garrow said it is a way to incentivize second tier spaces. It is not providing an incentive, sometime there will be more mitigation some time less. Councilman Myrin suggested 80 at the ground floor and 40 everywhere else. Ms. Garrow said we will still see less mitigation for basement and second floor spaces since today the rate is at 60. Councilwoman Mullins said she would support the 60 percent. It is more consistent and predictable. If we can simplify a few of the things we are looking at we will be in better shape. Councilman Frisch said his interest is to encourage a rate with the highest chance of a basement or second story of getting used. If we want the basement to be in there it needs to be as low enough number for people to want to go in there. Councilman Myrin said he agrees with Adam. Mayor Skadron said he is desirous of an equation that results in locally serving businesses. Councilwoman Mullins said she thinks you are getting too prescriptive. Every case is different and you can’t regulate to every case. 60 percent pairs to what we are working on to promote the second tier spaces. Councilman Frisch said we have a live experiment going on in town with a developer building a bunch of one story buildings. I’m here to say I want a number to make it worth him to build a second story. Ms. Garrow said she is afraid that number will be in the low 20s. The tradeoff will be less affordable housing. Councilman Frisch said even if it is at zero are we going to get a price point that will work. Ms. Garrow said on the credit for existing commercial space the recommendations are not to require a credit. We could phase in a requirement or exempt second tier spaces. Another option would be to exempt by zone district. Councilman Myrin said he supports Micks comments from earlier. This softens exemptions for second tier and basement spaces. He would be comfortable potentially with a phase in and historic maintenance. Councilwoman Mullins said she is good with the staff recommendation. Eliminating this is a no growth policy. Councilman Frisch said how can we go back and ask for something that wasn’t asked for at the start and ask for it. He has non-legal, legal concerns. There are other ways to make sure we create the proper amount of mitigation dollars. With this on top of everything else we have too many ingredients and it’s not going to provide what we want. He does not think this gets us to the uses we want and the buildings we want. Councilman Daily said he is not comfortable requiring mitigation for previously unmitigated space. Mayor Skadron said he could find a way to explore this but he is in the minority. Second tier replacement requirement. Ms. Garrow said this is the minimum and maximum requirements. If a building had second tier commercial space 100 percent needed to be replaced. The suggestion is it would need to replace 30 percent or what is in the chart. For the Commercial Core it is a 20 percent minimum and a 75 percent maximum. For the Commercial it is the same. Set pedestrian amenity trigger at demolition. Ms. Garrow said if there is a change in the footprint of the building it would trigger a change in the pedestrian amenity. A window change or a small remodel should not trigger this. Mr. Supino stated demolition would allow the opportunity to create a meaningful space on the property. Councilman Frisch said he has been saying all along he wants to encourage remodel over scrape and replace. Increase parking cash in lieu rate to 38,000 dollars. Councilman Myrin said he thinks it is too low. Jeremy Nelson, consultant, said 38,000 is a more defensible number. Staff is committed to do a full nexus study. Councilman Myrin said it seems like we are doing it backwards. Regular Meeting Aspen City Council January 9, 2017 9 Eliminate parking deficit loophole. Ms. Garrow said staff recommends yes. Someone can maintain the deficit if they are providing shared public parking. Councilwoman Mullins said we know we are going to increase the parking cash in lieu rate. We should just go forward with both of these. Councilman Frisch said for him it’s making sure we are going to get the development we want. Free market unit size limitation amendments. Councilwoman Mullins said it is a small portion of the overall program. Keep it as is at 2,000 with the ability to increase to 2,500. Councilman Myrin said to keep it at 2,000. He is not sure why it needs to go to 2,500. Cap it at 2,000. Ms. Garrow said when the TDR program was created we needed places for them to land. The direction is to leave it as is. Allow for transfer of AH requirement between properties within a zone. Ms. Garrow said staff recommends not moving forward with this now. At 11:20 p.m. Councilman Frisch moved to continue the meeting until 4:00 p.m. January 10, 2017; seconded by Councilwoman Mullins. All in favor, motion carried. 1/10/2017 At 4:14 p.m. Mayor Skadron resumed the regular council meeting. ORDINANCE #40, SERIES OF 2016 – Updated Building Code Adoption Stephen Kanipe, building department, told the Council this is to update to the 2015 codes from the 2009 ones. It is for residential and commercial, mechanical, plumbing, fuel and materials. New is the solar energy code provisions. The language supports the goal of the code council that the language is enforceable. There is a commitment to sustainability, resilience and energy efficiency. It is the same progressive approach that is already included in our municipal code. There are proposed amendments to the residential code that allow smaller units and structures and creates minimum size for habitable rooms. It will allow for the safe and continued use of the hundreds of buildings in town. Since first reading we have hosted two coffee chats with contractors and lunch meetings with CORE. The intent is to focus efforts on existing new and commercial construction. Mr. Kanipe passed out a letter from CORE supporting the code and an effort to provide training and education. Mayor Skadron opened the public comment. There was none. Mayor Skadron closed the public comment. Councilman Myrin said you mentioned the county adopted this but not the energy portion and asked why. Mr. Kanipe said they are looking for adjustments within the mitigation program. Denis Murray, building department, replied they have a different program than ours and have not finalized it. Councilman Myrin asked about the blower door tests and how you expect to get better windows and doors. Mr. Kanipe said they suggest U28 and CORE requires it for rebates. The blower door test came up with CORE and we agreed that the construction we see here is high quality and CORE stepped up and said anyone who wants one even though they are not required, we will provide. It is a choice of the owner and not a requirement. Councilman Frisch said Stephen is one of the leading people in our country when it comes to building codes. Is the one to two year lag appropriate. Mr. Kanipe said it is not how most operate and we have a reputation for that. We went through three years of hearings to address issues with the 2015 codes. They Regular Meeting Aspen City Council January 9, 2017 10 all came forward in the 2018 amendment process. The 2018 is going to be published. We had a six year resting period and wanted to include all those good ideas. Mayor Skadron said this keeps Aspen on the cutting edge nationally. Mr. Kanipe replied he thinks so. Councilwoman Mullins moved to adopt Ordinance #40, Series of 2016; seconded by Councilman Daily. Roll call vote. Councilmembers Frisch, yes; Myrin, yes; Daily, yes; Mullins, yes; Mayor Skadron, yes. Motion carried. RESOLUTION #4, SERIES OF 2017 – 200 S. Aspen Street (Hotel Lenado), Revocation of a condominium plat and related documents Jennifer Phelan, community development, said this will revoke the condominium declarations and condominium plat related to the Hotel Lenado. The request is to rescind the statement of exception from the full subdivision review process in 1983 and replace it with a new deed restriction. Peter Thomas and Ryan Walterscheid are representing the applicant. Exhibit D was misnamed – condominium plat from 1984. She stated she neglected to include the statement of exception, Exhibit E. circa 1953. In 1984 the redevelopment of the Edelweiss to the Hotel Lenado it was also condominimized through a subdivision exemption. It is a limited review process. It included certain operational characteristics that had to occur. Some were carried over into a declaration that was approved and recorded. The plat was recorded without restrictions. The hotel sold in 2014. There are approvals for a new hotel. With the new redevelopment the recorded plat is obsolete. The recorded declarations are somewhat obsolete. Typically, we can allow for administrative approval for revocation of these documents but we are party for these documents. The statement of exception was approved by Council. That is why it is before you tonight. The operational characteristics that were required in the 80s are pretty much the same. There were 8 requirements, the key was a more restrictive occupancy requirement. During the high season an owner could only stay for 14 days or less. There was a requirement for onsite management with specific hours. Also, the lodge was to be in a general reservation system. The services be of a comparable prior to the condominimization. What is being proposed is to rescind the statement of exception and replace the documents with a new deed restriction comparable to what it was approved under. Exhibit B is the new document with the new use restrictions. It requires 30 day stay maximum, onsite management with normal business hours, other tourist services with a food preparation area with food and beverage service, and use of stay aspen snowmass as the reservation system. With the updated restrictions, staff is recommended approval. Mr. Thomas stated we are looking at this as a housekeeping measure. The documents are as obsolete as the building now. This will bring the documentation up to date with today’s regulations. Councilman Daily said the restated covenants and conditions are very clear. It is not a complex matter. Councilman Myrin said it is pretty clear. Are we comfortable this will be nine units operating like a lodge or is it smoke and mirrors. Ms. Phelan replied the stick we have is we can request an audit showing the occupancy as a hotel. Everything in the approvals says it must operate as a hotel. Councilwoman Mullins said when we saw this previously there was some concern as the design and the units but that has no bearing on what you are asking for tonight. Councilman Frisch said it looks and smells and is to be built up like a lodge. It has been built up to look like a corporate retreat. This one is going in the direction the community would like to see. Anything we can do to encourage theses to become hot beds. I’m assuming the stay aspen snowmass is not a mandate. Ms. Phelan said it will have to go there but it can go other places too. Mayor Skadron repeated his comments when this came to council the first time. Horrible, no intent to operate this as a lodge. Projects like this one are why council is sitting in a second meeting with a Regular Meeting Aspen City Council January 9, 2017 11 moratorium in place. Can we ask for an operating agreement that this runs like a lodge. Andrea Bryan, assistant city attorney, said that is why the covenants are in place. Guests can stay no more than 14 days, it must be listed with stay aspen snowmass or other comparable websites. Mayor Skadron asked if we have a definition of a lodge. Ms. Phelan said a guest can stay for no more than 90 calendar days per days. Ms. Bryan said this resolution and restated covenants are consistent with the approval that was granted previously. Councilman Frisch said a few years ago a former mayor talked about this. We should buy the lodge take the hit and sell it to someone who could operate the lodge. How do we really ensure these things stay hot beds. I don’t care what type of people stay here I just want things to stay active. Ms. Phelan said we did include in one of the resolutions that the lodge should operate under the rules of the City of Aspen. We wrote it in there and the expectation is they follow the approvals. Councilman Myrin said the lesson that we need to follow up on. He will support it as written but we need to work on this. Councilwoman Mullins said she does not think we have a choice in approving this as written. It is not supporting the project. Councilman Myrin moved to adopt Resolution #4, Series of 2017; seconded by Councilman Frisch. All in favor, motion carried. ORDINANCES #29-34, SERIES OF 2016 – AACP and Land Use Code Coordination Commercial design Justin Barker, community development, said the main changes to ordinance 30 are the measurement of height and changes to measurement related to subgrade courtyards. They changed how we measure buildings with slope and added a piece related to decorative elements. They also changed the standards and guidelines document to ensure visibility of second floor pedestrian amenity space, eliminate the third floor option as pedestrian amenity space, reduce the minimum building frontage required from 70 to 50 for non-mall properties. Ordinance 33 – pedestrian amenity cash in lieu for properties on the mall is required. Chamfered corners - counted 13 properties that if redeveloped would have the option to utilize a chamfered corner. 24 properties where there is no chamfer. 16 have an existing chamfer. Councilman Frisch asked if it is not mandated sometimes do you think people will do it. Mr. Barker replied maybe. Ms. Garrow said we expect we will continue to see them. Councilwoman Mullins said on HPC a lot of times conceptual designs would come in and we would suggest it. It is a discussion point for most projects. I would stick with the way it is now. There is a downside to requiring it. Keep it as a guideline. Councilman Daily said he likes the guideline approach. It may lead to more esthetic decisions. Councilman Myrin said if it is a guideline the applicants will probably consider it. Mayor Skadron said it may not be appropriate for all areas and I don’t want to force anything that is not appropriate for all areas. Ms. Garrow said there are multiple places where pedestrian amenity could be placed. The code is silent on rooftop. It has been eliminated as an option. Councilman Myrin stated last night we saw the Daily News redo with a covered pedestrian amenity court yard. I thought it was strange. I’m not convinced it is appropriate in a basement level. Councilwoman Mullins replied if designed well the subgrade level could work as well. Councilman Myrin said he thinks it functions differently at below grade. Regular Meeting Aspen City Council January 9, 2017 12 Councilman Frisch said he wants to encourage being able to see this space but allowing creative design solutions is ok. If discourage is legally tough enough to not go down the rabbit hole I’m ok with it. I do think there are time when it can be effective when it cannot be easily seen. Councilman Myrin gave Ace hardware and the space outside the store as an example. Ms. Garrow said the suggestion is additional feedback from HPC and P&Z and limits on interior courtyard space. Councilwoman Mullins said she feels very strongly that amenity space should vary across town. She supports it as an option. Councilman Frisch said if the word discourage is powerful enough to turn down someone I’m fine with that. Mayor Skadron said he is talking about open spaces that activate places. Our intention is to create active places. Councilman Frisch said when we use eliminate we have to be really sure we never want to see it again. Residential uses Ms. Garrow said we started seeing applications that were creating two units combined into one unit. This is one of the reasons we began the moratorium. People commented that mixed use development increases vitality and diversity in appropriate zones. Free market housing in commercial zones should be deed restricted. Residential uses should be lower priority than commercial uses in commercial zones. They focused on the MU zone district. All form of residential housing is allowed. No new free market residential in the same building as commercial space or lodging space will be allowed. Councilman Myrin said on P&Z he thought all mitigation should be on site. He now feels strongly that we only have a limited amount of commercial space. We have a mix and it is what makes us great. He feels strongly about not having free market in this zone. Councilman Frisch said he is still a huge believer in the live work thought process. What I would love to see on historic Main Street is ground floor offices and where people live above them. I could also see it play out along the river. In the Denvers of the world people live in them full time. Here that doesn’t happen. We are trying to make it live work not own vacant model. I want to make sure we protect that and I’m supportive of this. We have 15 buildings coming with some kind of residential component. If RO will be allowed, we will still allow some people to live in town. Ms. Garrow said it is available with an RO or category unit but not a free market unit. The other option would be the EBO and an option there. Mayor Skadron said what is the compelling feature of RO. Ms. Garrow said it has the requirement that someone be a working resident. A developer can get more money from a RO unit than a category unit. It is important to proceed with caution. Ms. Garrow asked about adding EBO to mixed use. Councilman Myrin suggested sticking with SCI and NC and if it works there then add MU. It is too big a zone and too risky to add right now. Councilwoman Mullins said there is no down side to add MU now. Mayor Skadron said it is worth exploring. Councilman Frisch said EBO is set up for the kooky use. It is sufficiently restrictive. It was put in place to try to honor some level of business that couldn’t go in there already. Councilman Daily said let’s give it a try. I don’t see much of a risk here. Councilwoman Mullins said these are all the perimeter areas. Councilman Myrin said this is about expanding residential into areas that we may not want it. Councilwoman Mullins said we should take a look at how the EBO could be expanded into all the perimeter areas of town. Mayor Skadron said he wants to see how we can allow some flexibility but I have great concerns over this. The appropriate thing at this time is to not include MU until we better understand this. Councilman Daily said he wants to make sure it is structured in a way we are not confronted with risks so he would like to hold off on the MU zone. Councilwoman Mullins said we should be coming up with creative solutions not reactive ones. Expanding this would be creative. It would be a mistake to react to what is bad. Regular Meeting Aspen City Council January 9, 2017 13 Crystal Logan, ACRA said she hopes Council extends the moratorium. It is so complex and would be in the best interest of the community to do to. Key decisions that were made last night. MS. Garrow said the affordable housing mitigation rate for new commercial space. There was interest in a tiered rate anywhere from 0 for basement to 100 for prime space. Eliminate the affordable housing credit for existing commercial spaces that didn’t previously mitigate. Council said no. Is Council interested in 100 percent second tier replacement for existing space. Council supports a cap at 50 percent. Revise pedestrian amenity trigger of 25 percent. Demolition trigger will be at 40 percent. Increase parking cash in lieu to 38,000 dollars. Yes, with 2017 study. Eliminate credit for existing parking deficit. Yes, except for share. Free market unit size limitation amendment. Maintain existing. Allow transfer of affordable housing requirement between properties within zone. After moratorium. Schedule going forward Parking and mobility is in good shape. Recommend ordinance 31 move off for another week to January 31. Option 1 Adopt all ordinances January 23 and 24. Option 2 January 23 and 24 adopt use mix, Dimension, Definitions, miscellaneous and Commercial Design, Ordinances 28, 29, 30, 33. January 30 adopt mitigation and parking Ordinances 31 and 32. Continue view planes to post moratorium, Ordinance 34. Mr. True said we would have to extend the moratorium by ordinance and it takes two readings. Option 3 is to continue some or all to April and discuss topics in March. Maria Morrow, ACRA said when she first heard the city was going to tackle second tier spaces she was fascinated. She is not convinced it achieves what you want it to. She urged council to consider it further. She is not clear we aren’t triggering land use problems for these small businesses that need to move quickly. Ms. Garrow said there are some things the code is changing and some it’s not. On the second tier space, we need to proceed with caution. Staff recommends option 2. Councilman Frisch said back in March we said focus on 28 foot height, make sure FAR makes sense, focus on public amenity space, second tier space and encourage remodel over scrape and replace. 90 percent of applicants walk in the remodel door and they are getting wagged around. We can have a strict land use code but it does not have to be strict. The chances of us ever being able to regulate affordable retail will never be but is an interesting discussion. In the meantime, it is ensuring we have the right size Regular Meeting Aspen City Council January 9, 2017 14 buildings, amenity space, affordable housing. There is only so many things we can do. I am very supportive of clearing off now what staff is recommending. I would rather extend for a month so we don’t have to do it again. I think there is value in knowing what we are getting and it won’t be a tremendous amount of affordable commercial. I do think we will have some success with the limitations we are putting on nook and cranny spaces. I’m good with option 2 and if we can do it without emergency all the better. Councilman Myrin said to add a meeting to the 5th Monday of the month and work on some of this rather than extending this and would come out of this as emergency. He would like to have the 30 days so the end user does not see anything different. He would like to have the conversation on second tier spaces. He thinks it is the weakest part of the ordinances. Councilwoman Mullins said she thinks we are in pretty good shape. She would go for Option 2. She also thinks the view plane ordinance is in good shape and thinks parking is close to done. Councilman Daily said option 2 works for him. Ms. Garrow suggests a two week extension. Mayor Skadron said we tried and we are trying. He gives credit to the courage of council to fight through this and staff. Let’s take the next step. Councilwoman Mullins moved to continue Ordinances 29 through 34 to January 23, 2017; seconded by Councilman Daily. All in favor, motion carried. Mr. True recommended Council go in to executive session pursuant to C.R.S. 24.6.402b conference with attorney to discuss Aspen Retail Management versus City of Aspen. Councilman Daily moved to go in to executive session; seconded by Councilwoman Mullins. All in favor, motion carried. At 8:30 p.m. Councilman Myrin moved to come out of executive session; seconded by Councilman Frisch. All in favor, motion carried. At 8:31p.m Councilman Myrin moved to adjourn the regular meeting; seconded by Councilman Daily. All in favor, motion carried. Linda Manning, City Clerk