HomeMy WebLinkAboutminutes.council.19770713 Present at the study session were Councilmembers Behrendt, Wishart, Parry, Johnston, Van
Ness, and Hershey, Mayor Standley and R. O. Anderson.
Study Session Mayor Standley outlined the background of the Institute and their dealings with the City
with the of Aspen. Mayor Standley stated the City does feel strongly that the Institute is an
Aspen essential part of the community and has been for thirty years. The Institute is one of
Institute the reasons Aspen enjoyed a re-birth and sets Aspen aside from other ski resorts. Mayor
Standley said the Council feels that in years past perhaps there have been misunderstand-
ings and a lack of communication in dealings with the Institute. Mayor Standley said he
hoped that the City and Anderson are interested in developing an open dialogue. The City
is interested in making a long range commitment to the Institute to insure its viability
as the Institute is a critical element to Aspen.
Mr. Anderson said the Institute has been here for 28 seasons and has seen a great deal of
change in the town. The Institute has changed the operation extensively. Up until 15
years ago, the whole program consisted of five two-week seminars with no more ~han 30
people attending. The Meadows at that time was more than adequate for the needs of the
Institute. Anderson pointed out that the Meadows was built solely because there was no
other facility in town to handle this. Anderson said the complex was adequate, but the
Institute was never particularly happy trying to operate it. The Institute people are not
hotel people and are incompetent at running establishments of that type.
Anderson stated that 10 years ago the Institute made up their minds to do everythin~ to
find a buyer that would operate the kind of establishment they felt they needed. Ten
years ago it was difficult to obtain a real estate loan. Then there was the recession in
the 1970's. Last year was the first year the Institute had a climate where people were
interested. Anyone who comes in here is going to have to spend a considerable amount of
money; much more than the Institute is interested in putting it. Anderson said that a
year-round facility that would meet the needs of the Institute could not be done for less
than $10,000,000. Anderson stated that the Institute desperately needs these facilities
if they are going to remain in Aspen. The Instifute outgrew their facilities 7 years
ago. The Institute has been unable to do anything because of zoning. Anderson stated
they have reached the point where the Institute would be well advised, if they know they
cannot build in the future, to look for facilities to re-located.
Anderson said the Institute has put a great deal of time and effort into the property
and the community. Leaving is not particularly an attractive route for the Institute.
The Institute would like very much to stay here and would like to develop a very unique
property. Anderson stated the last thing they wanted to see is a development that is not
aesthetically sounds. The Institute's standards of maintenance are very high.
Anderson said there are three separate pieces of land; (1) the 20 acres across the river
which is really in the County and is not invclved in the dispute with the City, (2) 27
acres which is properly academic land where the buildings are.~ There is adequate room
for expansion. Anderson said they have never seen the Institute becoming a large
organization. One characteristic of the Institute is its size; there have been conscient-
ious efforts to keep it that way. The Institute is more than adequate for"the needs.
(3) 50-60 acres associated with the Meadows Corporation.
Anderson said one of the reasons the Institute ~s particularly unhappy about their situa-
tion with the City is that in 1967-8 the Institute entered into an agreement with the
City and voluntarily downzoned the area very extensively. At that time the Institute
agreed to let the City have access across their land for utilities. Anderson said he
believed the Institute had a working relationship with the City at that time. Anderson
pointed out that the zoning they have now is no zoning because they can't do anything.
Anderson said a year ago the Institute recognzied they were not going to get anywhere on
the project. Anderson stated the Institute would like very much to go ahead with a pro-
gram of development. Anderson stated if the Institute did leave because they felt they
had not alternative, it would not be a good thing for the City.
Anderson said he did not know where the Institute was on this project; they have been
turned down on two proposals and have spent several hundred thousand dollars on planning.
The Institute cannot hang in limbo indefinitely without reducing the program here to
practically nothing. Anderson said he assumed the City did not particularly to reach an
agreement with the Institute. If the Institute is going to do something, t~me ~s of the
essence to the Institute. The Institute is continuing to explore the alternatives.
On the other hand, the Institute recognizes that the City is going to prevail on what
they want. The Institute will have to live within whatever the City decides the g~ound
rules are, if they can live with them. The Institute is not working on any new zoning
because they have no idea of what way to move.
Anderson stated he is particularly disturbed to see that the Physics group is caught in
the same net and have been unable to proceed with the library which they badly need.
Anderson said if there is good will, that at least the Physics groupd could get started
on something they really need. Anderson said the next move is up to the City.
Anderson told Council that this spring the Institute conveyed all their remaining land in
the City to the Aspen Company, which is a wholly owned subsidiary. Anderson noted that
75 per cent of the business at the Meadows has been drop-in commercial trade. The
conveyance was within the definitions of the City's zoning. Anderson said the Institute
would like now to reconvey 27 acres back to the Institute that the buildings are on.
Right now the Aspen Company owns all the land.
Bill Kane said the entire parcel was zoned in April 1975 as SPA; as such, there are no
development entitlements by right. It is unique in that the Institute could not do
anything without submission of a master plan. This type of zoning is unique as it require
rather extension planning process before a building permit could be obtained for anything.
The Institute says they have been zoned in a~unique way.
Study Session ~ ~'2 ~15 ---
Kane stated that the City says that while the Institute is very desirable, it is located
in a residential area. The needs for a master plan is a function of this location. Kane
said assurances should be built into the planning process. Whatever accommodations are
built, they should be consistent with the residential setting and should be of support
and logical use to the Institute and should be consistent with the historical character
of the Institute in the City. The planning cffice wants assurances that there will be
adequate protection for the neighborhood.
Kane reminded Council that planning attempts have broken down because the proposals that
have been made have not been acceptable for one reason or another. Kane told Council the
most recent proposal was started in the fall of 1975 and was for 356 rooms at the Meadows
The debate was that 356 rooms posed a threat. In the absence of guarantees that the
would be only supportive for Institute functions, a request was made for a phasing
)sal starting with 200 rooms. That was unacceptable to the Institute. Kane said he
felt that there has not been adequate guarantees that the rooms would not affect the
residents adversely.
Kane said the planning office has recommended zoning the property "academic"; any rooms
constructed there would be the kind of development that would be exclusively supportive
of conference activities. Anderson said that those kind of restrictions would make the
project impossible to finance. Anderson pointed out that one of the real problems is
that if the Institute is going to stay here, the City must recognize that it is not easy
to attract money they need for housing.
Councilman Behrendt asked specifically what it was the Institute wants. Anderson stated
they were running out of time. Anderson said the Institute needs to know that eventually
they can go up into the vicinity of 200 units. Anderson stated that anything short of
that would be misleading if they are going to.go towards making an international conferen~
center. The plan that was submitted two years ago is really what the Institute needs.
The plan hasn?.t changed; it is about 200 units, some for families. Anderson said if the
Institute had a decision that this is a resonable use for the area, the buildings could
be located in away that the intrusion would be minimal.
Councilwoman Johnston asked.what Anderson intended by a year-round international conferen
Anderson said that historically the Meadows has had 75 per cent occupancy by people that
are no~ connected with the Institute. If it was run as a year-round conference center,
the percentage of people what stay at the Meadows identified with the programs would go
up. Councilwoman Johnston asked about the possibility of the Meadows being closed to
anyone but Institute participants- Anderson answered there was no way it could be done
or financed.
Mayor Standley asked if Anderson's thoughts had changed in terms of maintaining total
ownership of the property and having a management contract for the Meadows part. Anders¢
said the Institute was leaning very heavily towards an outright sale. The Institute does
not believe they should be owners of a major hotel business. Mayor Standley said he
had talke~ to ~ hotel manager who felt very strongly that the land is in fact the greates
endowment the Institute has and it would be a tragedy to separate the academic from the
Institute, even thought they are different entities. Mayor Standley said John coleman
would be interested in fund raising and management of the hotel. Mayor Standley said he
had also talked to people a5 the Scottsdale institute who indicated the same thing.
Mayor Standley pointed out there are two problems; the ability of the Insitutue to suppor
the academic with ~dequate housing both of quantity and quality, and the financial burden
that comes ~rom operating a hotel, which needs to be turned into a profit center. The
sale of the land requires a certain knowledge that density of certain levels will be
achievable. The City has been unwilling to do that withou~ a master plan. Perhaps
looking at re-evaluation of maintaining the land as opposed to subdividing the land might
allow the Institute and City to move ahead and get somebody in who is qualified and
interested to insure economic viability.
Anderson said they had leased the operation in the past. The attraction is that lessees
~re using the Institute's land and credit to finance their building. Anderson said he
did not think the Institute had any business going $18,000,000 in debt. Anderson said
the Institute did not want to be owners of the complex° Anderson said his own feeling
· s the Institut~e would be extremely reluc~an~ to ~o Lhat direction because of the
financial exposure'tO the Institute. Anderson pointed out that the Institute does not
have the people ~hat would be required in a project of t~lis s~ze. Anderson said the
City must be mindful there is a financing problem here. If there was conventional zonln,
the Insitute would have no problem trying to sell the ~roperty. The present zoning has
the Institute at an absolute standstill~
Councilman wishart pointed out that Anderson had mentioned the figure of 200 units. At
one master plan the Council agreed to a figure of 250 units. Anderson said that the
covenants the Council wanted placed on those units would make it impossible to finance.
Anderson said they wanted 200 units with la~itutde ~n s~ze. Councilman wishart asked if
they would be willing to phase the project. Anderson said they were not pushing to do
all at once; they would need about half to break the logjam. Councilman wishart agreed
that Lhe Institute is essential to the community'and the City would like to have them
here. Mayor Standley said the idea of having the units thrown into a 5ourist pool posed
some problems to the Council because of the impacts on the neighborhood. If the units
were for people attending functions at the Institute, it would mitigate the impacts of
those units. Mayor Standley said the participation and accommodation ratio at the
Institute should be increased. That is where having a high quality conference operator
with a good background could do a lot to close that gap. Anderson said the Institute is
asking for another chalet right now. The next level of support facility is going to be
very expensive.
Councilman Hershey asked about the library for the Physics Institute. It was his under-
standing that the city had asked for a new lease with the Institute. Councilman Hershey
said that if there is some kind of plan and the City agrees that 200 units is the overall
project, it would be easy to reach an agreement in termS of what the Institute plans to
do. Councilman Hershey pointed out that the rights of the people in the west end have
to be protected.
July 13, ~977
Anderson said when the Physics Institute, set up their own shop they were given a lease
saying they had exclusive use in perpetuity to their.buildings. The buildings are on
Institute land. Kane reminded Council that the request was initially for construction of
a library without having to go through full SPA on the Institute land. Kane said the
planning office drew the conclusion that the best way was to identify the land as a
separate SPA, then proceed with the library. Involved in that was a subdivision activity
The City Attorney advised Council that this would set a precedent; it would erode the
procedure. The City asked for a waiver to say that the separate SPA designation for the
library would not be held as an argument in any litagation in the future. Anderson said
if a separate SPA is granted for that piece of property, it would be granted for the
academic land. The City is willing to give a separate SPA to someone on Institute land
but not the Institute. Councilman Hershey stated that if there could be any movement,
it might be useful to act as a catalyst. This is an opportunity to get this project off
the ground,
Anderson said there is a problem in the fact that the land is now held by the Meadows
Corporation and is part of a piece requested to be reconveyed back to the Institute. Mrs
Paepcke asked how the Meadows Corporation got a h01d of academic land that belonged to
the Institute. Anderson said they conveyed all the land belonging to the Institute and
kept the option to reacquire the academic area. Mrs. Paepcke said she had talked to John
Coleman,.[who runs a first class hotel operation in Chicago, and he would be willing to
talk to the Institute.
Anderson stated he did not really know what the~next move is. If the reconveyance to
the Institute is approved;~.the Institute will give a waivem on the Physics library.
Anderson stated they would not cite it as part of the~ evidence if this does ends up in
litigation. Don McKinley, representing the Institute, said the waiver sounded reasonable
and a good first s~ep.
Kane told Council there is a request for the City to consider under i~s authority to
grant subdivision exemptions, the possibility foz resale or buy back to the Institute the
27 acres of academic land. Kane's stated he felt this is a subtle mechanism to allow
the Institute outright sale of the other 50 or 60 acres. The optioninq back of the 27
acres is a subdivision activity and would have to be proces~dbythe P & Z.
Mayor Stand~ey.asked what the basis WoUld be for having the Meadows lot z0~ed academic.
Kane said they would like to create a zoning district that would allow accommodations and
a conference facility but would narrowly define how these could be operated and specify
ratios. Mayor Standley asked if the City and Institute agree on 200 units and a year-
round conference facility as a pre-requisite, how long would the approval process be and
what are the stumbling blocks. Kane answered that the process would take at least three
months and the stumbling blocks are definition of units, analysis of traf~fic impacts,
looking at new access, a general statement about architecture scale and location, circula-
tion controls, straight tourism versus support conference facility.
Anderson said to get things moving a waiver about the Physic~ Instittue library and a
reconveyance of la. nd were needed. The reconveyance does not change the SPA. The Physics
people~want to go ahead with the library and they badly need it. There is no impact on
the area by doing this. Anderson pointed out that the 50-60 acres of, Meadows land is
what the discussion and controversy is about. McKinley said the Institute has filed an
application for approval of the option to purchase, back the 27 acres so that the Institute
owns the academic parcel; the zoning does not change. The Institute can give a reasonable
waiver for approving the exemption of subdivision for the Physic~ Institute that the
Institute will not challenge the SP~zoning. There will be two parcels, one owned by the
Institute and the other owned by its wholly owned subsidiary, all zoned SPA. Then ~he
Institute and its subsidieary can ~sit down with the City and work out the support facilitie :.
McKinley stated the Institute needs something from the City, some evidence that the City
wants to do something on the Institute,s behalf. If the Institute and the City are going
to move forward, they have! to do it together. Anderson said he was willing to give the
letter of waiver in good faith.
Mayor Standley asked what the caveat to the City is in granting the subdivision exemption.
Kane answered his problem was the land would end up with two seprate parcels and two
separate corporation ownerships. The Institute could sell the Meadows land outright.
Mayor Standley encouraged the Institute to get the application for subdivision exemption
reactivated so that it will get to the Council level. Kane has identified certain problems
and perhaps there are ways of resolving these. Mayor Standley said he belived the
Institute will be frustrated at the P & Z level, but they have to go through~the process
so that Council can make a judgement on the issue. That is the process that should be
adhered to.
McKinley said the Ins~itUte will waive any ~laim that the Institute or it s subsidiary
would make with regard to SPA by reason of permitting the Physics people to go ahead with
the Library. The Institute would ~ike to have a prompt decision with the P & Z so that
the matter of the exemption can get to Council. McKinley<said they would present this
to P & Z promptly. Anderson said that the chalet they would like ~o build has been on
the plans for over 20 years. They would like to break grounds for this soon. Mayor
Standl'ey said if Chalet D shows up on the 1965 approved master plan on file with they City,
they could go ahead and build it. Kane said something approved in 1966 would not apply
now.
Councilman van Ness said he would like to see a master plan completed and asked how close
the last one was. Kane anSwered it was a proposal for 356 rooms; P & Z asked for 200
rooms in the first phase. These 200 rooms would be subject to a limitation on the use and
placing them under control. Councilman Behrendt said assuming this is a first class
conference facility, it would be used as such; there would not be a need to place restrictJ ~ns
on those units. Councilman Hershey agreed.
Regular Meeti.ng ~o~ ...... = __
Councilman Wishart said the City and the Institute are much closer to common ground. The
City and the Institute needs to talk about what'they both can live with out there. Mayor
Standley said that if the Institute has a lease for a reasonable length of time f0r some-
body to use the academic facilities during the time of the year when the Institute is not
using it and in the lease they have a right of first use on the rooms in the Meadows area,
basically the problems of the Council will be mitigated. Anderson said in order to assur(
that, the Meadows has to be of a size to bring in that much activity. It has be to in a
better configuration. Anderson said if the Meadows gets 200 rooms over a reasonable
period of time that meets their needs, they can resolve a plan that will be the best
possible resolution.
Mayor Standley said he fett the Institute could move on a general plan. Elements have
been identified that are workable to both parties. Anderson stated they are not going to
separate the two properties in the foreseeable future. The two properties go together.
~der~on said he would hang on until they could work something out. Mayor Standley said
he would draft a letter to circulate through the Council summarizing the City's position
as a result of this meeting and send it to Anderson. Anderson said he would submit a
letter of waiver.
The meeting adjourned at 6:10 p.m.
Kathryn ~. Hauter, City Clerk '
Special Meeting Aspen City Council July 13, 1977
Mayor Standley called the special meeting to order at 3:35 p.m. with Councilmembers
Van Ness, Parry, Johnston and Hershey present.
Councilman Hershey moved to reconsider the settlement of the minibus suit; seconded by
Councilman Parry. All in favor, motion carried.
Minibus
Litigation Councilman Hershey moved that the City accept the settlement with Minibus for $85,000
(to be split with the county), that Minibus take the buses away at their own expense,
and that Minibus indemnify the City against any further suits; seconded by Councilwoman
Johnston. All in favor, with the exception of Mayor Standley. Motion carried.
Councilman Hershey moved to adjourn the special meeting at 3:40 p.m.; seconded by Council-
man Van Ness. All in favor, motion carried.
Kathryn ~. , City Clerk
Regular Meeting Aspen City Council July 25, 1977
Mayor Standley called the Council meeting to order at 5:10 p.m. with Councilmembers
Hershey, Johnston, Parry, Van Ness, City Manager Mahoney and City Attorney Nuttall
present.
SPECIAL EVENT PERMITS - Aspen Rugby Club
Aspen RugbY Councilman Parry moved to put this item on the agenda; seconded by Councilman Hershey.
Club-
All in favor, motion carried.
Special Event
permit