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HomeMy WebLinkAboutminutes.council.20061127 Re2ular Meetin2 Aspen City Council November 27. 2006 CITIZEN PARTICIPATION ..............................................................................................2 COUNCILMEMBER COMMENTS .................................................................................. 2 CONSENT CALENDAR ................................................................................................... 3 . Resolution #92,2006 - Timberline Electric and Control Agreement ....................3 . Resolution #94, 2006 - Public Safety Records Management IGA......................... 3 . Resolution #95,2006 - Reviewing Entity State Income Tax Credit...................... 3 . Appointment to Animal Shelter Board - Gary Sherman........................................ 3 . Minutes - November 13, 2006................................................................................ 3 RESOLUTION #93, 2006 - Farmer's Market Agreement RenewaL............................... 3 FIRST READING OF ORDINANCES.............................................................................. 4 . Ordinance #47, 2006 - Supplemental Appropriations............................................ 4 . Ordinance #48,2006 - 2007 Fees...........................................................................4 . Ordinance #46, 2006 - Civic Master Plan Adoption.............................................. 4 RESOLUTION #96, SERIES OF 2006 - 2007 Budget ..................................................... 5 RESOLUTION #97, SERIES OF 2006 - 2007 Mill Levy................................................. 7 ORDINANCE #42, SERIES OF 2006 - Hotel Jerome PUD Amendment ........................ 7 ORDINANCE #41, SERIES OF 2006 - 625 East Main, Stage III .................................. 14 1 Relwlar Meetinl!: Aspen City Council November 27, 2006 Mayor Klanderud called the meeting to order at 5:00 p.m. with Councilmembers Torre, Richards, Johnson and DeVilbiss present. CITIZEN PARTICIPATION I. John Rigney, Aspen Skiing Com~any, told Council they are withdrawing their agenda item regarding the December 2S' special event. Rigney said the Ski Company had a concert on the upper gondola plaza this weekend and are very happy with the venue. This area has little impact on other businesses. Council noted they had attended the concert last weekend and felt it was very successful. 2. Bill Dinsmoor requested Council reschedule the discussion about the Isis MOD rather than have it at a late hour. Dinsmoor said Council should hire an outside, independent third party to vet the agreement. Dinsmoor said more information should be available to the public. Mayor Klanderud said meetings with Council, staff and outside parties have been going on for several months. Mayor Klanderud said she does not see the necessity for a third party evaluation. Dinsmoor said a partial observer should vet a $10 million deal. Mayor Klanderud stated she has confidence in work done by the finance director, city manager and city attorney. Councilwoman Richards stated she feels comfortable moving forward with this agreement. The city is a partner in complex negotiations, which has resulted in an agreement good for the community. This is an attempt to save movie theatres for the community. Councilman Johnson agreed. Dinsmoor said he would like to know how much profit there is in this contract. Steve Barwick, city manager, stated this is a straight pass through agreement. Councilman DeVilbiss stated he, too, is comfortable moving forward with this agreement. The risk to the taxpayer is small. Tim Semrau said there are a lot of questions in the Isis agreement that should be made public. Semrau said this should not be discussed at midnight. This is a government subsidy of a retail operation. 3. Toni Kronberg requested the library plaza be decorated for the holidays. Ms. Kronberg said there is inadequate senior housing. Ms. Kronberg said during the Entrance to Aspen meetings, CDOT stated the discussion about the preferred alternatives will be open for public comment for the next 3 months. Ms. Kronberg said there will be a citizens group, Citizens for New Directions, and she will be circulating a petition for support for a 4-mountain gondola. 4. Emzy Veazy said Aspen should market themselves and special events more thoroughly in order to be competitive with other resorts. COUNCILMEMBER COMMENTS I. Mayor Klanderud congratulated the Aspen Skiing Company for bringing the W orId Cup to Aspen and for putting on a successful event. The Ski Company may bring 2 Re2ular Meetin2 Aspen City Council November 27. 2006 another World Cup to Aspen in December. Mayor Klanderud said the race was fantastic, the concert was fantastic, and the fireworks were fantastic. CONSENT CALENDAR Councilman Johnson requested Resolution #93,2006, Farmer's Market Agreement, be pulled. Councilwoman Richards moved to approve the consent calendar as amended; seconded by Councilman DeVilbiss. The consent calendar is: . Resolution #92, 2006 - Timberline Electric and Control Agreement . Resolution #94, 2006 - Public Safety Records Management IGA . Resolution #95,2006 - Reviewing Entity State Income Tax Credit . Appointment to Animal Shelter Board - Gary Sherman . Minutes - November 13, 2006 All in favor, motion carried. RESOLUTION #93. 2006 - Farmer's Market Agreement Renewal Councilman Johnson said in the past there were some problems with local organic farmers being able to get in the market and asked if this has this been addressed. Councilman Johnson said he would like to assure that organic producers are allowed to come into the market. Shae Singer, CCLC, said Sustainable Settings was allowed in the market; the issue was they were using the term "better than organic". Bill Dinsmoor, CCLC, said the farmers allow people into the market, assuming there is space. The market only has a certain amount of space and for new vendors, someone has to leave or to accept a smaller space. Dinsmoor said another threshold is if a produce vendor is growing produce not already available at the market, if they have enough produce for the 18-week market. John Starr, CCLC, said they would be willing to give more space to farmers if they can find qualified vendors. The process is a potential farm participant goes to the farmer group, who makes a determination. There is an appeal to CCLC for someone who feels aggrieved. Councilman DeVilbiss moved to approve Resolution #93, Series of2006; seconded by Councilman Johnson. Councilman Torre complimented the CCLC; the market last summer was fantastic. Mayor Klanderud agreed there is a fine line in the competitive area and the CCLC did a great job on that. All in favor, motion carried. 3 Re2ular Meetin2 Aspen City Council November 27. 2006 Councilman DeVilbiss moved to continue Resolution #99, Series of2006, Isis Theatre Memorandum of Understanding to 5 p.m. November 28,2006; seconded by Councilman Torre. Mayor Klanderud stated she is not in favor of continuing Resolution #99 as this has been in negotiations for 3 months. Mayor Klanderud said the Isis could have been purchased, and converted to an entire retail operation by the new owners. Mayor Klanderud said the staff has put a tremendous amount of work into this agreement. Mayor Klanderud said she feels it would not serve the community well to open the negotiations up again. Councilman DeVilbiss noted these negotiations were not public. Councilman DeVilbiss said he sees no harm in continuing this Council meeting until tomorrow so that citizens can participate. Councilwoman Richards suggested if the Isis item has not been reached by 9 p.m., it would be continued. Councilwoman Richards said public discussion is what the request is. Councilman Johnson stated he is comfortable with the agreement. Councilmembers Richards, Torre and DeVilbiss in favor; Councilman Johnson and Mayor Klanderud opposed. Motion carried. FIRST READING OF ORDINANCES . Ordinance #47, 2006 - Supplemental Appropriations . Ordinance #48, 2006 - 2007 Fees . Ordinance #46, 2006 - Civic Master Plan Adoption Councilman DeVilbiss moved to read Ordinances #47, 48 and 46, Series of 2006; seconded by Councilman Torre. All in favor, motion carried. ORDINANCE NO. 47 (Series of 2006) AN ORDINANCE APPROPRIATING AN INCREASE IN THE ASSET MANAGEMENT PLAN FUND EXPENDITURES OF 1,310,948, AN INCREASE IN THE GENERAL FUND OF $1,830,844, AN INCREASE IN THE PARKS FUND OF $1,872,255, AN INCREASE IN THE WHEELER FUND OF $680,000, AN INCREASE IN THE LODGING TAX FUND OF $150,000, AN INCREASE IN THE HOUSING DEVELOPMENT FUND OF $56,500, A DECREASE IN THE EARLY CHILDHOOD EDUCATION INTIA TIVE FUND OF ($10,000), AN INCREASE IN THE WATER FUND OF $221,000, AND AN INCREASE IN THE ELECTRIC FUND OF $8,000. ORDINANCE NO. 48 Series of 2006 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, AMENDING THE MUNICIPAL CODE OF THE CITY OF ASPEN TO INCREASE CERTAIN MUNICIPAL FEES 4 Re2ular Meetin2 Aspen Citv Council November 27. 2006 ORDINANCE NO. 46 (SERIES OF 2006) AN ORDINANCE OF THE ASPEN CITY COUNCIL ADOPTING THE CIVIC MASTER PLAN, CITY OF ASPEN, PITKIN COUNTY, COLORADO. Councilman DeVilbiss moved to adopt Ordinances #47, 48 and 46, Series of2006, on first reading; seconded by Councilwoman Richards. Mayor Klanderud said the recommendation regarding the civic master plan is that this be regulatory and be adopted by an ordinance. Mayor Klanderud requested an explanation why this is regulatory and not a guiding document and how this ties into the Aspen Area Community plan and how that plan was passed. Mayor Klanderud noted the memorandum states this document will supersede the 1993 Rio Grande master plan and asked what parts of the 1993 plan may remain untouched. Councilman Johnson requested a copy of the Rio Grande master plan. Councilman Torre said he, too, has questions about the civic master plan being a regulatory document and the ramifications of adopting it by resolution versus by ordinance. Roll call vote; Councilmembers Torre, yes; Richards, yes; DeVilbiss, yes; Johnson, yes; Mayor Klanderud, yes. Motion carried. RESOLUTION #96. SERIES OF 2006 - 2007 Budget Paul Menter, finance director, said the recommended 2007 budget net interfund transfers are $71,110,000, which is a 35% reduction from the 2006 budget. Menter noted the budget is made up of operating, capital and debt. The operating budget will increase 6%, the capital will decrease 69% and the debt budget will increase 42% because a bond is being paid off early. The operating budget is all funds required to operate the city. The inflationary increases for the budget are 3.9%; one-time requests total $409,000 and ongoing new funding requests are $665,380. The operating budget consists ofthe General Fund at 51 % or $20,903,870; other funds are utilities, transportation & parking; parks; Wheeler; housing; childcare & yellow brick; golf and marketing. The capital budget is $19.9 million, which includes budget authority for housing for Burlingame of$5,474,120. The major projects include water treatment and hydropower facility, electric undergrouding, fleet replacement, ADA projects. The debt service budget includes paying off in advance the 2001A housing bonds, which were issued as part of the financing for Truscott. Menter pointed out the revenue forecasts for 2007 for the 2.2% sales tax and the 1 % lodging tax are a 6% growth. The county sales tax forecast is 5.3% and the property tax, excluding TABOR excess at 2.5%. The fee revenue should increase 4%. Menter said there has been revenue growth over the past 4 years and if2006 ends with a 6% growth, there will be a28% growth over the past 4 years. The RETT is projected to decrease 5 Re2ular Meetin2 Aspen City Council November 27. 2006 because of the volatility of the revenue source. Menter noted that in the TABOR funded capital projects, there is an interfund loan from the general fund to complete the ADD sidewalk improvements and the increased costs of the Jenny Adair project. Menter noted that the base budget requirements are to serve a growing population and a higher cost base. Menter pointed out the policy decisions Council made during the budget work session were to fund $50,000 for 3 years for the substance abuse initiative, to increase the health and human service funding by $58,000 annually, the recreation department subsidy will be $1,650,000, energy savings capital improvements, parking garage repair, open space acquisition reserve, Wheeler endowment, EOTC funding, Burlingame Ranch buy down category units, reallocation of .45% sales tax for housing & child care, and the golf course financial sustainability. Mayor Klanderud opened the public hearing. Toni Kronberg questioned how long and how much money it will take to get an outdoor pool and more mon.ey needs to be allocated to an outdoor pool. Ms. Kronberg asked how much the infrastructure at Burlingame costs. Menter said $9 million has been spent on Burlingame infrastructure, much of that on the roads. Ms. Kronberg said senior housing and housing for categories I, 2 and 3 is needed. Mayor Klanderud closed the public hearing. Councilwoman Richards said Council has discussed ways to stabilize the rent increases at the Aspen Country Inn for senior renters and she has suggested an endowment fund to address these increases. Menter said there has been no long-term solution. Councilman Torre brought up the $58,000 annual increase to health and human services and asked what that does to the general fund in future years. Menter said 10 years out it will dip the fund balance below the recommended 90-day reserve amount; it does not create a negative cash balance. Steve Barwick, city manager, said he will recommend a fee increase strategy to fund the increase to health and human services. Councilwoman Richards moved to adopt Resolution #96, Series of2006, the 2007 budget with the addition of $1 00,000 set aside for housing funds to support the senior rent subsidy at the Aspen Country Inn; seconded by Councilman Torre. Councilwoman Richards said this issue has come up for two years and she has asked to try and deal with this in a long-term method. Mayor Klanderud agreed there should be a long-term solution; there is a subsidy for 2007 and would rather not amend the budget at the last minute. Council agreed this deserves consideration and should be addressed early in 2007. Councilwoman Richards withdrew her motion. 6 Re2ular Meetin2 Aspen City Council November 27. 2006 Councilman DeVilbiss moved to approve Resolution #96, Series of2006; seconded by Councilman Johnson. All in favor, motion carried. RESOLUTION #97, SERIES OF 2006 - 2007 Mill Levy Paul Menter, finance director, reminded Council the voters approved a 5-year extension ofthe excess property taxes. The mill levy is 5.41 and is projected to produce $4,582,860 in property tax revenue. The TABOR growth factor for new construction and for inflation will yield 6.034% TABOR factor and the property tax is allocated to general fund and for TABOR approved expenses. Mayor Klanderud opened the public hearing. Toni Kronberg asked if all 4 projects approved by the voters are on the expenditure sheets. Menter said they are. Mayor Klanderud closed the public hearing. Councilman DeVilbiss moved to approve Resolution #97, Series of2006, adopting the 2007 mill levy; seconded by Councilman Torre. All in favor, motion carried. Councilwoman Richards moved to continue Ordinance #45, Series of2007 to March 12, 2007 and Ordinance #44, Series of 2006, to December 11 '\ seconded by Councilman Torre. All in favor, motion carried. ORDINANCE #42, SERIES OF 2006 - Hotel Jerome PUD Amendment Ben Gagnon, community development department, told Council this is a PUD amendment request. A PUD is a request to exceed underlying zone district dimensional requirements. The existing PUD for the Jerome defines the height of the building, the number of employee underground parking spaces, the number of lodge rooms, and the amount of commercial square footage. This PUD amendment requests to change some of the conditions; to add 2544 square feet of additional commercial space for a spa; to remove the requirement which set aside 27 parking spaces in the basement for hotel employees; to approve 3 new suites on top of the annex building at Monarch and Bleeker for a total of 96 lodge units. Gagnon noted the addition of the new units on the west side of the annex building would be higher than currently allowed heights in this PUD and would be higher than what is allowed in the CC zone district. Gagnon said variance in dimensional requirements are generally in exchange for community benefits. The CC zone district allows 42' in height and 46' for areas setback at least 15' from the street. Gagnon said the addition on the west side of the annex would exceed 46' and would go up to 50' but is setback at least 15'. Gagnon said the applicant will need to show consistency with the AACP as one method of community benefit. 7 Re2ular Meetinl!: Aspen City Council November 27. 2006 Gagnon told Council the new owners ofthe Jerome are planning major interior renovations, which would not fall under Council's review; however, the applicants are making the argument that these renovations will be done under stewardship of a historic hotel. Gagnon agreed there is a benefit to a long-term stewardship philosophy. The owners propose a total remodel of the Cortina lodge, which is their employee housing. The Cortina is old and needs attention and the applicant is making a case that this renovation is part of the public benefit. The applicant will also request historic designation of the Cortina lodge. Gagnon told Council this application was before HPC March 8, 2006, and HPC voted 3 to 0 to approve a conceptual development plan, finding this proposal consistent with the historic design guidelines. HPC has to review any additions made to historic landmark buildings. The relevant guidelines for the rooftop addition were that the addition needs to be compatible in size and scale with the main building. HPC guidelines prefer the addition be lower or similar in height to the primary building; that the roof form or slope should be in character with the new building. HPC found this proposal met with design guidelines. P&Z held 3 separate reviews, growth management to determine the required housing mitigation for the addition commercial and lodge spaces. This new spaces show 10 employees will be generated by this addition and 2 employees will need to be housed. Gagnon said there is a lower rate of housing mitigation in expansion of a use in a historic land marked property. The first 4 employees are exempt from mitigation; the next 4 employees must be mitigated at 30% and the other 2 employees are to be mitigated at 60%, which is a total of2 employees. In August 2006, the housing board indicated these employees could be housed at the Cortina; however, HPC stated they did not want the exterior of the Cortina altered. P&Z approved a resolution allowing I employee to be housed at the Cortina and payment in lieu for the other employee. P&Z did a commercial design review. Gagnon stated the land use code requires any additional to a building in the commercial core, ifit reviewed by HPC or P&Z, must go through design review. The Hotel Jerome's proposal does not include any changes in the 5 categories of commercial design review, like building relationship to a primary street, pedestrian amenities, street level building elements, parking and utility. P&Z agreed that although the application required commercial design review, there were no changes to it. P&Z's final step was to recommend the PUD amendment to Council for approval. In October, P&Z voted 5 to 0 to approve all three reviews including the PUD amendment. Gagnon told Council the original application included a 4' square clear pop up on top of the new addition. Stafffelt that was too high and there were concerns because of the historic nature of the structure. The applicant removed that element from their proposal, which reduced the overall roof height to 50' rather than 54'. The original application proposed one 6,000 square foot suite. Staff felt that was out of character with the hotel and the applicant split this into 3 units, which adds 2 lodge keys and increased the liability for employee housing mitigation. Gagnon told Council it was staffs request the new owners apply for historic designation of the Cortina, which they have agreed to. 8 Re2ular Meetinl!: Aspen City Council November 27. 2006 Sunny Vann, representing the applicant, introduced the owner Christy Everest, Steve Bartolin of the Broadmoor hotel, Bill Poss architect, Ted Gallian design team, and Tony DiLucia, general manager of the Hotel Jerome. Vann said the operator plans to operate the Hotel Jerome as a historic lodge. Vann reviewed prior approvals ofthe Jerome to see if there were conditions that might affect the renovation plans. Vann said his conclusion was that a PUD amendment was required and this would establish a new base line of approvals for the hotel. Vann said the owners purchased the hotel with a long term view and do not plan to condominiumize or sell fractional units. The owners were also looking at how to improve the hotel's position in the market of high-end hotels. The hotel currently lacks larger suites. Vann reminded Council the lodge infill ordinance allows a free market component of a lodge as an inducement for renovation or expansion. Before the Jerome application was submitted, the city reduced the residential quota available in the downtown core and then adopted a development moratorium. The Jerome was a pipeline project but could not apply for a residential quota. Rather than start over, the application was reviewed to include a large lodge suite, as there is no annual limit on the number oflodge units. The community development department indicated concern over the size of one suite and the height of that suite. The applicant lowered the height and made this 3 separate lodge units. The other changes were to reconfigure the basement to include a small spa and to eliminate a condition that a portion of the on site parking be reserved for hotel employees. Vann told Council there are currently no parking requirements for employees in the CC zone. The Jerome is housing employees at the Cortina. The city's historic preservation office stated the Cortina is one of the last motor courts with historic character and requested the applicants retain it and restore it. Christy Everest, chair and CEO ofthe Oklahoma Publishing Company, told Council her family's company was started 104 years ago and they are still in business. The company purchased the Broadmoor in the 1980's. Ms. Everest said she and her family feel they are stewards of the Broadmoor and now the Jerome and are mindful of generations to come. Ms. Everest told Council the Hotel Jerome property is exactly what they were looking for as another historic iconic property. They are proud to be the owners of the Hotel Jerome and to be part of Aspen. Steve Bartolin, president of the Broadmoor, told Council their company loves historic properties and they are unique. Bartolin told Council he read everything he could find on the Hotel Jerome and then developed a plan. The originator of the Jerome felt every great community should have a great hotel. Bartolin said they want to operate a great hotel. Tag Gallian said he has tried to understand the Jerome and any renovations have to be unique to the Jerome and appropriate to Aspen. Gallian said they would like to make the Jerome work in the current business environment. Gallian noted there are operational 9 Re2ular Meetine Aspen City Council November 27. 2006 challenges in the current Jerome. Tony DiLucia, general manager of the Jerome, told Council he has been at the Jerome for 19 years and he and the staff are happy to have new owners who are committed to the Jerome. A lot of thought and time has gone into these plans and they are to give the Jerome back their competitive edge. DiLucia told Council some of the infrastructure needs serious attention. Gallian said in order to fix these operational problems, a lot more of the hotel was torn apart. Bill Poss, architect, told Council he and his engineers went through the Jerome and identified everything that was needed to bring the hotel up to today's economic and efficiency standards. Poss showed a board of historic pictures of the Jerome. Poss told Council all the windows in the Jerome need to be replaced. Poss noted some of the proposed changes are new outdoor dining courtyard and finish up the small courtyard on Mill street. Councilman Torre asked if these changes fall under the PUD process or could they be done without Council approval. Chris Bendon, community development department, said those could be done without Council approval; however, there are landscape standards in the PUD agreement. Laura Kirk, DHM, showed Council renderings of the proposed garden/courtyard improvements. Ms. Kirk said the applicants have worked with the parks department in keeping the largest spruce tree on site; the other trees will be replaced. There will be an integrated water system with a water wall and a water channel through the courtyard toward Main street. The space on Mill street will be finished to create a green oasis. Poss showed floor plans of the basement level and where the 2500 square feet of spa will be located. There will be 47 parking spaces and the offices will be reconfigured. Poss showed the main level floor plan, which is basically the same. The rooms will be gutted and new electric, plumbing plus and refurbished. The second floor will stay the same; a 700 square foot fitness center will be added by enclosing the colonnade overlooking the courtyard. Poss told Council the 4'h level is the only section where any expansion is possible. Poss said the Jerome staff said family-type suites are needed on this property so 3 suites are proposed on the northwest corner of the annex. Poss presented a photograph of the existing building and a computer model showing where the penthouse would be located. There is a computer model from Bleeker and Mill and from Monarch and Bleeker. Poss said the addition is 15' from the Bleeker and from the Monarch streets. The expansion is 10'5" above the existing parapet with a 9' ceiling. Poss presented pictures of the building when the trees are not in leaf. Poss showed a roof plan indicating that there is 1% of the overall roof that is 54' above grade; 2% of the roof is 50 to 52' above grade and 86% ofthe structure is 48 to 50' above grade, which is 2' above code. The approved height of the PUD is 54' at the corner of Mill and Bleeker and 54' where the annex joins the building. Gallian reiterated the owners would like to make the Jerome unique, one of a kind and competitive into the future. Mayor Klanderud asked about the mechanical appurtenances on the annex. Gallian said the new appurtenances will be fewer in number and lower. DiLucia said the 10 Rel!:ular Meetin2 Aspen City Council November 27. 2006 addition of 3 suites is a necessity for the Jerome to give the guests what they have been asking for. Gagnon stated the set aside of 27 parking space for employees is an outdated condition and could be eliminated. Gagnon noted this condition was established before there was a garage and substantial transit improvements as well as parking at the Cortina. Staff feels the increase in commercial square footage for a spa is appropriate for a hotel of this type. Staff also prefers 3 lodge suites rather than one large suite. Gagnon said the additional lodge rooms would contribute to Aspen as a resort. Gagnon said regarding the increase in height, context is important in evaluating this request especially on historic landmarks. Gagnon said HPC approved this request finding it compatible with the historic building and the rooflines of the buildings. Gagnon said the owners have a track record in investing in historic structures, like the Broadmoor, and respectful stewardship, which is a community benefit. Staff feels the Jerome is a signature building with a prominent location and reflects the identity of Aspen. Gagnon said remodeling the interior of the Cortina will improve the livability for employees, which is also a public benefit. Councilman Johnson asked ifthe Jerome has a transportation plan for their employees. DiLucia said all full time employees receive a bus pass; some parking at the Rio Grande garage is paid for. Councilman Johnson asked ifthere are national standards for interior preservation. Amy Guthrie, community development department, said the Department of the Interior establishes standards. Councilman Johnson asked if the applicants will follow those standards. Poss said they will have to review the standards in order to answer that. Gallian noted the annex would not fall under those standards and that is where the bulk of the work will be done. In the historic building, they will recreate the historic standards as much as possible. Councilman Johnson asked about future condominiumization of this building. Vann said condominiumization cannot be prohibited; however, ifit were to be condominiumized for sale, it would require a PUD amendment. Gagnon said 3 GMQS residential allotments would be needed for the proposed suites. Vann reminded Council when the expansion was proposed for John Gilmore, there was no onsite parking as part of the plan. Gilmore was going to pay for spaces in the city's parking garage. When Dick Butera amended the approval, on site parking was provided and the condition that some of the parking be used for employees has been as part of the approval. Vann noted that employees have not used parking for years. No other lodge approvals require on-site parking for employees. There is parking for employees at the Cortina. Mayor Klanderud opened the public hearing. Les Holst stated there is no public benefit by providing only two additional lodge rooms. The Cortina should be renovated regardless. The City has the power to designate the Cortina without an application from the owners. Holst said the community wants old Aspen character and that is what the Jerome is. This would be losing the premier lodge . . In a pnce range. 11 Re2ular Meetin2 Aspen Citv Council November 27, 2006 Tim Semrau showed Council photographs of story poles taken from his house to the north of the Jerome. Semrau said everyone loves the Jerome and it is great the applicants want to bring the hotel up to present standards. Semrau said he does not see the community benefit of the variance. Going up an extra 12' would only be allowed if there is a community benefit. Semrau said the Jerome being in the CC zone is an anomaly and the zone districts surrounding the Jerome are MU (mixed use) and R-6 with lower height limits. Semrau said approving this height variance would increase cold and darkness on the Monarch neighborhood. Semrau pointed out the 3 lodge units are 5' from the building edge. Semrau said the height variance is out of character with everything around the Jerome. Bob Starodoj noted there is a moratorium in place and Council granting variances during it is bothersome. Starodoj said every historic building in town will apply for variances. Starodoj said Council should not treat requests for variances in historic buildings lightly. Junee Kirk reminded Council that at the core value meeting 85 to 90% of the participants indicated they wanted to preserve character, historic quality and open space in town. Ms. Kirk said people like variation and this plan makes a big box. Ms. Kirk said Council should know what the interior requirements for buildings on the national register are before approving this or having recreated history. Ruth Kruger said the owners are buying a historic property and will take excellent care of it. The owners have a track record. Kruger said this request is minimal and will have small effect off the property. This is an old building that needs its infrastructure updated and it needs to be able to compete in the market. Carly Simmon reminded Council the north annex was built in the 1980' s and was oversized for the neighborhood then. Sally Golden stated she is opposed to additional height on the annex. The applicant should find another location in their building for the 6,000 square foot addition. Clare Golden said this request does not fit with the history and historic character of the Jerome. Bert Myrin noted staff supports this because of the public benefits and one of the benefits listed is respectful stewardship philosophy of the Jerome as a trade off of the additional height. Myrin noted maintenance of a historic property is required under the land use code. Myrin noted if Council approves this, it will encourage people to come in and ask for more than is allowed on their property. Walt Madden said this building can be condominiumized in the future. The 3 added units are not a community benefit but a benefit to the applicant. Toni Kronberg stated she is opposed to this project as it exceeds the height. Julie Puchkoff told Council she is a resident to the west and this added height would affect sunlight to her house.. Ms. Puchkoff said she would like to know ifthere are other options for expansion within the building. Councilwoman Richards moved to suspend the rules and extend the meeting to 10 p.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. 12 Re2ular Meetin2 Aspen City Council November 27, 2006 Bill Stirling applauds the effort to restore the Jerome. Stirling stated preservation of the scale is important to this town. Council will have to decide whether the community benefits being presented are worth the extra height. Mayor Klanderud closed the public hearing. Bartolin said one issue that has come up is the suggestion to take existing square footage and make the suites there. Bartolin said they cannot afford to lose 6,000 square feet or 12 to 14 lodge rooms to put in 3 large suites. Bartolin agreed the community benefit is a key issue. Bartolin said the other potential buyers for the Jerome planned a fractional ownership or a condominiumized hotel. Bartolin said the owners have stated they are not in the time share or fractional ownership business. Bartolin stated the owners want to be long term partners in the community and the request for 3 lodge suites will help support the hotel and fill other rooms. Councilman DeVilbiss moved to continue Resolution #98, Series of2006, Failed Motions and Tie Votes Sky Hotel to December 11; seconded by Councilwoman Richards. All in favor, motion carried. Vann reiterated the request for a PUD amendment is not just triggered by the increase in height but to modify the parameters of the original approval, which covered the unit count, the parking requirement, landscape plan. Vann said there is a 10' addition to the building but the request is not for a 10' variance. The worst case is an 8' variance and it goes down as low at 2' as the lot slopes down. This does not exceed the height of the existing building. Vann said the architect did some sunshade studies, which show this does not significantly change the shadow on the adjacent properties. Poss submitted the sun studies showing on the shortest day of the year, this addition would add about 6' more of shadow. Vann reiterated the applicants propose to totally renovate the Cortina within the walls and to provide larger accommodations. These units will be rented as category 1 and will fill a niche for some of the employees of the hotel. Councilwoman Richards said for her the issue is height. Councilwoman Richards noted Council voted against height variance request for Lift One condominium and has made several requests for Lodge at Aspen Mountain to lower their buildings. Councilwoman Richards said she cannot support an addition on the roof. Councilwoman Richards said the minutes of the original HPC indicate a great deal of thought went into an addition on the historic resource. The existing design is elegant and the historic structure stands out. Councilwoman Richards said an addition across the back of the Jerome would take away from the historic design. Councilwoman Richards said she can support the fitness room, the spa in the basement, a resorted Cortina and would look at the courtyard redesign at a later date. Councilman Torre said he has concerns about the 27 employee parking spaces and if they are not currently used as such, is that not a violation of the PUD. Vann said they would 13 Re2ular Meetinl!: Aspen City Council November 27. 2006 have to sign the parking spaces as such. Councilman Torre asked ifthere is HPC review of the addition. Poss said there is. Councilman Torre asked how HPC reacted to the proposed design. Ms. Guthrie stated it is a basic concept of historic preservation that one should be able to distinguish between new and old construction. Ms. Guthrie noted each proposal is analyzed by HPC to see if it meets the historic design guidelint;s. Councilman Johnson stated the long-term viability of the Jerome is a public benefit as is the preservation of the Cortina. Councilman Johnson said he has issue with the application is the interior renovation of the Jerome. Councilman Johnson noted the citizens of Aspen think they own the Hotel Jerome. Councilman Johnson said he needs to know that the standards being followed will be to the greatest degree possible to put back what was there. Councilman Johnson suggested the applicants do an inventory of what is existing on the interior. Councilman Johnson said he has concerns about the courtyard and that the use continues as it is today, that it continues to welcome the community. The proposal looks as ifit has more hard surfaces than it does now. Councilman DeVilbiss said he opposes height variances and believes it was a mistake to approve the existing building at 54'. Councilman DeVilbiss agreed the Hotel Jerome is the town meeting place and the public does think they own it. Councilman DeVilbiss stated he cannot support this application. Mayor Klanderud said one of the most glorious things about the Hotel Jerome is the ballroom and she would hate to see it relocated to the basement. Mayor Klanderud stated she cannot support the height request. Mayor Klanderud said she supports the other pieces of the PUD amendment, like the fitness center and the garden area. Vann noted the Jerome will close after the winter season and in order to apply for a building permit, they will have to record an approved PUD plan. Vann said they will withdraw the request for 3 suites and process an amended application. Mayor Klanderud applauded the applicants' willingness to renovate the Jerome and to operate the hotel. Mayor Klanderud stated the quality of the Hotel Jerome as it represents the community and the community's history is a benefit to Aspen. Councilwoman Richards moved to continue Ordinance #42, Series of2006, to December 11; seconded by Councilman DeVilbiss. Councilwoman Richards said she would like more detail in the amendment about the preservation of the interior features and more detail about the garden, what trees will be eliminated All in favor, motion carried. Councilman Johnson moved to suspend the rules and extend the meeting to 11 p.m.; seconded by Councilwoman Richards. All in favor, motion carried. ORDINANCE #41. SERIES OF 2006 - 625 East Main, Stage III Jessica Garrow, community development department, told Council this application received growth management allotments for 5 free market units, 4 affordable housing 14 Rel!:ular Meetinl!: Aspen City Council November 27, 2006 units and 13,000 square feet of commercial space. P&Z also granted commercial design standards and recommended approval of the final subdivision. Ms. Garrow pointed out this is a subdivision on one parcel for one building being divided into separate units. Ms. Garrow said the infrastructure already exists on this lot. Ms. Garrow told Council this projects meets all the review criteria for a subdivision. The applicant proposes cash-in- lieu for school lands dedication. Any additional costs to extend utilities will be paid for by the applicant. Ms. Garrow noted staff finds this application is consistent with the character of the area, will not negatively impact future development in the area, and is consistent with the AACP. This is located in the C-l, mixed use area. The building is consistent with the dimensional requirements in the C-I zone district. There was a site visit in October and Council requested heights of the adjacent building. Ms. Garrow passed out an exhibit showing the buildings to the east and west and across the alley and the heights ofthose buildings. The current Stage 3 building is at 23' and it is proposed at 39' to 42', which is the maximum height in the C-l district. Ms. Garrow said a field measurement of the Hunter Square building showed it to be at 33' to 44'. The duplex to the west is 33'; Concept 600 is 38' high. Ms. Garrow reiterated stafffeels the height and dimensional requirements requested for this building are consistent with the adjacent land uses and that the subdivision does not adversely impact development in the area. Staff also finds the project consistent with the AACP. Four on-site affordable housing units for 7 full time employees are proposed. The building is within the urban growth boundary and is close to transit and the downtown core. The building also provides needed office space. Ms. Garrow said the ordinance, if approved, should be amended to include that the applicant will take into account the adjacent buildings during soil stabilization and that there is no adverse impacts on those property owners. Mitch Haas, representing the applicants, noted this building is in the C-I zone and outside of the Main street historic district. This is a 10,000 square foot lot with 3 on-site parking spaces for 7100 square feet of net leasable. The existing development has a deficit of 4 parking spaces, which it may keep under the land use code. Haas told Council this project is designed 100% consistent with the C-l zone. The design of a mixed use building has two commercial spaces on the ground floor, integrated office spaces, affordable housing units and free market units on the second floor and free market units with rooftop decks on the third floor. Subgrade parking plus storage is proposed. Haas said this building is designed lot line to lot line, as allowed in the C-l zone disSrict. Haas noted to the west in the back corner of the building, 3' have been eliminated from the building to facilitate a walkway for the Hunter Square building. Haas presented the floor plans to Council. The basement floor plan shows the subgrade parking area, which is accessed by an auto lift through the alley. 13 spaces are proposed with storage for the residential and commercial spaces. The first floor plan shows the building built right to the sidewalk, which both zoning and commercial design standards require. There will be two retail spaces of3300 square feet 15 Re2ular Meetin2 Aspen City Council November 27, 2006 each, divided by an internal lobby. The 3 head in parking spaces off the alley will be retained. The second floor is mixed use; 2 office spaces, 2 free market and 4 one-bedroom affordable housing units. The affordable housing units are lined up along Main street. Haas pointed out the buildings step back in the corner to provide visual relief. The 3'd floor has 4 free market units. The corners are cut out with decks with spiral staircases to the rooftop terraces. Haas said this is a green roof design with rain to water the green. Planters of 3 to 4' are proposed. There is mechanical equipment on the center of the roof. Charles Cunniffe, architect, showed a rendering and that the building appears to have a two-story fayade with a setback to the third floor. The roof has a step back on the corners with spiral staircases giving relief. The west of the building has a cutout to allow the walkway for the Hunter Square building. Haas presented a computer model ofthe building, 360 degrees and how the building appears as one passes by. Councilwoman Richards asked why there are no windows on the west side of the building for the affordable housing units. Haas said the code does not allow windows within 5' ofthe property line. Cunniffee said putting the building back and adding windows would make the affordable units smaller. The top of the mechanical is at 42'; the building is 39'. Haas told Council this project is consistent with the C-l zone district, which was written pursuant to the AACP. Haas said the use requirements and dimensional requirements of the C-I zone are clear. The C-l zone has zero setback requirements on the front, side and rear. Stepping back corners and entrances, providing store front windows, provides relief in the building. The uses are located as the zoning code calls for; commercial on the first floor, office spaces and affordable housing on the second floor and residential units on the third floor. The building's floor area meets the 3:1 FAR requirements and the commercial uses do not exceed 1.5: 1 FAR and the free market does not exceed 1: 1. The total above grade net leasable area exceeds the total above grade net livable area, which is a requirement. No free market unit exceeds the 2,000 square foot net livable limitation. The zoning code allows a 42' height limit and mechanical is allowed to exceed that by 5'. Haas stated this height is consistent with the surrounding heights. There are no view planes associated with this property. The prior height limit in the C-I zone was 40' and the majority ofthis building is at 39'. Haas told Council the land use code allows a project to maintain deficit parking; the existing building is deficit by 4 spaces. Haas noted the code requires one off street parking space for every 1,000 square feet of net leasable. This project has about 9,420 net leasable, which would require 9.5 parking spaces. The code does not require parking for the residential units. The total parking requirement would be 10 spaces. The project provides 16 parking spaces. Haas pointed out the affordable housing square footage exceeds the 30% requirement of the free market net livable areas. Haas said 100% of the affordable housing is above grade and is integrated with the other uses in the building. These units are within town, near transit and within walking distance to the commercial area. These units will be sold through lottery. 16 Re2ular Meetin2 Aspen City Council November 27. 2006 Councilman Torre moved to suspend the rules and extend the meeting to midnight; seconded by Councilman DeVilbiss. All in favor, with the exception of Councilmembers Torre and DeVilbiss. Motion carried Haas reiterated this project is consistent with the AACP and with zoning. Haas said Council is reviewing the subdivision, which is the division ofthis building into separate ownership interests. Haas noted most, if not all, the surrounding units are separately owned. Mayor Klanderud asked which parcel owns the existing walkway. Haas said the walkway is on their property and the open space is owned by Hunter Square building. Mayor Klanderud opened the public hearing. Les Holst asked if Council can find some incentives to give the applicant in order to get away from a box design to do something better for the community and for the mountain views. Holst suggested moving the density or paying for a free market unit to be able to chop the building up so the view plan survives. Jim Smith, Concept 600, stated he measured the Hunter Square building at 28' not 34'. Ms. Garrow said her height is an estimation done through standard field measurements. Smith stated this building is on the outer fringes of the C-l zone. The building is on every legal cubic inch of the building site and is massive. There are no setbacks or open space and no pedestrian amenities. This design is not appropriate in this neighborhood. This building eliminates the views of Aspen mountain. Smith said the owners of the Concept 600 accept the view will be compromised; however, they are concerned about views for the general public, too. Smith told Council they cooperated with the Obermeyer project and would accept their height of 35' and no roof gardens. Karen White, Concept 600, said the rooftop is going to turn into a garden top and a 4'h floor. Ms. White asked where the 36 employees are supposed to park and the enviromnental impact of these people getting to work. Many of these people will drive to town and will park near this building. Jackie Whitney, adjacent property owner to the east, told Council they have met with the applicant and have not yet come to agreement on the underpinning of their building. Ms. Whitney said they are concerned about the elimination of their views. Dick Copley, Concept 600, asked how high the elevator would go ifthe roof gardens were eliminated. Mayor Klanderud said it could still go to 47'. Paul Taddune, Hunter Square LLC to the west, noted he has submitted two letters in support of the project. Taddune said the reasons for support are that the project appears to comply with the zoning and the development has been sensitive to the concerns of the Hunter Square building. Jennifer Hall said she has problems with the elimination of views, with the bulk and with public access. Ms. Hall said the views from Main of the mountain will all but be eliminated. Ms. Hall said this is a large building from lot line to lot line; some additional relief in the design would be welcome. Ms. Hall said people use the access between this building and the Hunter Square building. This has now been blocked and there is no 17 Rel!:ular Meetin2 Aspen City Council November 27. 2006 longer a walkway used by the public. Ms. Hall said she feels there could be a better design for this location. Lindsay Smith, Concept 600, said she would like to see a responsible building in the location of 625 East Main. Ms. Smith told Council Concept 600 supported the Obermeyer building and the walkway between Main street to Obermeyer on Concept 600's property. Ms. Smith said Obermeyer asked the Concept 600 for design and landscaping input. Ms. Smith noted from street level, one will have no view of Aspen mountain; however on the backside of the 625 building, two free market units will have a view of Aspen mountain at the expense of general public. Ms. Smith suggested the commercial space could be lowered to lower the overall height. There will be a 3' parapet around the building with planter boxes. These deck are only for the enjoyment of the top floor free market owners. Bill Stirling, tenant in the Concept 600 building, pointed out the Concept 600 building is setback 25' from the property line, making it slightly less obtrusive. Stirling noted the proposed building will have a significant affect of everyone driving down Main street. Stirling said this is just too much mass and it could be broken up to make a better building in this neighborhood. Toni Kronberg said the AACP said rooflines are not supposed to be flat; the mountain is supposed to be viewed through varied rooflines. Ms. Kronberg said these items make this building not in compliance with the AACP. Ms. Kronberg said this building exemplifies what the moratorium is about. Ms. Garrow entered a letter from Phil Roth, and e-mail from Karen White and a letter from Jill Westerlin into the record. Mayor Klanderud closed the public hearing. Mayor Klanderud pointed out Obermeyer was approved through a COWOP process, which is why representatives of Concept 600 were asked to participate. This project is not going through a COWOP process. Councilwoman Richards said in meetings with the city's consultant on Main street, varied roof lines are one of the characteristics the city would like to retain. Councilwoman Richards noted another characteristic was extensive landscaping, which the buildings to either side of this proposed building have. Councilwoman Richards said coming to the street front is more appropriate in the downtown core. Councilwoman Richards stated she does not agree with allowing the pedestrian amenity to be paid for in lieu; keeping open space on this site is important. The walk through is also important. Councilwoman Richards said she is concerned that the rooftop garden is adding a 4'h floor to this project. These garden-type amenities should be built within the structure of the building. Councilwoman Richards said this project is too much mass for this site. The ability to see the mountain behind and through this building is important. Councilwoman Richards said this is a boxy structured building without a varied roofline. Councilwoman Richards said it would be better to have fewer affordable and free market units and less commercial space. Councilwoman Richards said she would like this tabled to see some modification to the design. 18 Re2ular Meetinl!: Aspen City Council November 27, 2006 Mayor Klanderud noted the recent code amendments increased the allowable height in this zone district 2' from 40' to 42'. There were no setbacks in the prior zoning code so a number of design issues could have been approved earlier. Mayor Klanderud said she, too, is concerned about no open space on this site at all. Mayor Klanderud said she would like to see the roof top gardens eliminated, which would lower the building to 39'. Councilman Johnson said staff and the applicant want Council to agree that subdivision is the act of separating into different ownership unit, which he does not agree with as in not to use the word subdivision as an equivalency for the development. Jody Edwards, representing the applicant, said the word changes in the code and in front of Council is limited to the word subdivision and dividing into multiple dwelling units. Edwards said subdivision is not about design, bulk and mass. This project was granted commercial design review at P&Z. Council is supposed to look at whether the multiple dwelling units issue has an effect on the neighborhood. Councilman Torre moved to suspend the rules and extend the meeting to 12:17 p.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. Councilman Johnson stated there is no protection of private view planes in the city. Councilman Johnson said the notion of infill is predicated on public/private partnership. Councilman Johnson said there is no partnership in this application, only the passing off of negative impacts created by the project, like parking, the increase of traffic, and the lack of sufficient number of employees, onto the public. Councilman Johnson said he feels this project could have better met the goals of the AACP. Councilman Johnson said this building is better suited in the CC zone rather than the C-I, which is supposed to be a transitional zone. Councilman Torre said this could be a better project with less impact of the massing and the scale. Councilman Torre noted this proposed project is an example of why Council is taking on the land use code amendments, whether it is the 3:1 FAR or the elimination of open space, this building is out of character with the block. Councilman Torre said he would like to see a design more compatible with the neighborhood. Mayor Klanderud noted there used to be retail in this neighborhood. This proposal may not increase traffic any more than a movie theatre. Mayor Klanderud said because ofthe location, these spaces might be more affordable retail or office space. Councilman Torre moved to continue Ordinance #41, Series of2006, to January 8, 2007; seconded by Councilman DeVilbiss. All in favor, motion carried. Councilwoman Richards moved to continue the meeting to November 28'h at 5 p.m.; seconded by Councilman DeVilbiss. All in favor, motion carried. Council left the meeting at 12:15 a.m. 19