HomeMy WebLinkAboutminutes.council.19740520 sTuDY SESSION ASPE'N CITY COUNCIL MAY 20, 1974
..REAL ESTATE.... TRANSFER TAX
Meeting commenced at 5:00 pm with Mayor Stacy Standley, Councilmembers Jack Walls, Jenifer
Pedersen, Pete DeGregorio, James Breasted, Michael Behrendt, City Attorney Stuller, and
City Manager Dr. Philip Mahoney present.
Manager Mahoney submitted to Council a report outlining the justification for the tax,
anticipated revenue over a ten year period, proposed ordinance and comparison to other
forms of taxation and revenue of the City.
Mr. Mahoney stated this form of taxation is legal and economically and politically justi-
fiable. Recommend the tax be ear-marked for Midland right-of-way acquisition and construc-
tion of a performing arts center.
Other sources of revenue not presently effective in Aspen were also outlined in the report;
i.e. amusement tax, use tax, permit parking.
Propose the buyer pay %% and sell ½% of the tax. County Clerk would be paid a % for col-
lection of the tax. Mr. Mahoney stated he did not feel this tax would be placing addition-
al burden on the employee in Aspen since employees are already forced to live down the
valley. Those who would be paying the tax are those with second homes in Aspen, Condomin-
ium owners, houses over $100,000 and feel those people have the ability to pay.
Mr. Larry Simmons stated projections outlined in the report are not firm; problems in es-
tablishing only City property transfers at the Courthouse, market is down and land use con-
siderations are uncertain at this time. Since 1968 there has been a 15.5% increase per
year. Anticipate 4 million in revenue over the next 10 years.
It was pointed out to split the tax between buyer and seller would cost more administra-
tively to collect.
Concern was raised relative to ear-marking of the funds and future use of the funds.
City Attorney Stuller reported this type of tax does not now exist in any Colorado City.
It was pointed out time slot sales, as recently proposed by Charles Vidal, would be covered
by this tax.
Copies of report available in City Clerk's office.
EMPLOYEE. HOUSING
Councilman Breasted stated he did not agree with the City operating and owning employee
housing. Rather Council investigate incentives to encourage housing and it be a community
effort.
Mayor Standley stated he would rather see investigation of purchase housing over rental
housing as it would tend to be more permanent.
Councilman Breastedlsuggested research on what type Of housing lending institutions are
loaning money on.
Councilman Walls pointed out you could not regulate pricing on sales of houses with the
turn over of ownerships. Mayor Standley pointed out restraints could be applied.
Discussed what the majority of work force in Aspen consists of and whether purchase housing
or rental housing might be desired. Question was raised as relates to permanent housing
generating growth.
Councilman Behrendt stated he would like to see the City look into employee housing for
City of Aspen employees first before taking on the problems of the entire community.
Suggestion was made that the City not increase the number of units but to obtain better
utilization of present units.
Mr. Yank Mojo, Assistan~ Planner, submitted outline to Council changing the definition of
a unit with a purpose of encouraging one bedroom and studio units over larger units. Pro-
posal will give the developer a choice in whioh type of unit to provide to make his project
feasible.
A realtor who was present at the meeting stated changing the ds~ities will not provide or
get the type of housing Council is desiring. This can only be done through restrictions in
the multi-zones. Mr. Mojo stated the Planning Office does not envision tourist accommoda-
tions in the multi-zones.
Concensus of the Council was the administration work on City of Aspen employee housing
problem first.
Meeting adjourned at 7:20 p.m.
~raine Gra~es, City Clerk