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HomeMy WebLinkAboutpitkin.planning.273512106001 (2019)Description: Case No: P019-19Parcel ID:2735-12-1-06-001 Application Date:2/27/19 Project Address: 1# Copies: Property Owner:EAGLE RIDGE LLC 715 WILLOUGHBY WAY, ASPEN, CO 81611 Address: EATONTOWN, NJ 07724 23 CHRISTOPHER WAY Owner Phone: Owner's REP: REILLY THIMONS Address: 300 S SPRING ST, 202 ASPEN, CO 81611 REP's Phone: (970) 925-2855 3Allocated Hours: 3.6% Over Hours: Planner: REP's Email:reilly@bendonadams.com Eagle Ridge LLC Removal of Affordable Dwelling Unit (ADU) Deed Restriction Referrals:COUNTY ATTORNEY REFERRAL ALL OTHER REFERRALS Housing noneOther Referrals: Comments Due Date:04/19/2019 Meetings: 06/12/2019 1st Meeting: 2nd Meeting: 3rd Meeting: Meeting Date: Review Body: Public Hearing? Notice Date: bocc no 12/18/2019 bocc no BOCC Reso #038-2019 #656817 BOCC Reso #105-2019 #662772 Meeting Notes: Approvals: BOCC Resolution #: BOCC Ordinance #: 038-2019;105-2019 P&Z Determination #: HO Determination #: Admin Determination #: Other Information: VR Approval Date: VR Expires Date: Plat Recorded Date: Plat (Bk, PG):need?? Remarks:no vesting Application Type:Other RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, AMENDING RESOLUTION 38-2019 APPROVING THE EAGLE RIDGE, LLC REQUEST TO ACCEPT A THREE-BEDROOM HUNTER CREEK UNIT DEED RESTRICTED TO CATEGORY 3, AND RELIEVE THE APPLICANT FROM THE REQUIREMENT TO PAY THE $148,595.50 FEE -IN -LIEU Resolution No. !K-2019 RECITALS 1. Eagle Ridge, LLC ("Applicant") has applied to the Board of County Commissioners of Pitkin County, Colorado ("BOCC") to amend Resolution 38-2019 to approval to accept a three- bedroom Hunter Creek unit deed restricted to Category 3, and relieve the Applicant from the requirement to pay the $148,595.50 cash -in -lieu fee. The Applicant's lot is zoned R-30 and contains 1.36 acres. 3. Said lot is located at 715 Willoughby Way, and more specifically described as Lot 1, Cheek Subdivision. 4. The BOCC approved Resolution 38-2019, Reception No. 656817, eliminating the affordable dwelling unit, approving a buy -down unit off-site, deed restricting the purchased unit to Category 3, and requiring a $148,595.50 fee -in -lieu. 5. The Applicant has purchased a three-bedroom unit off-site and intends to deed restrict that unit to Category 3. The Applicant requests that the $148,595.50 fee -in -lieu is waived because the newly purchased unit is larger than the original two-bedroom Category 1 unit on Lot 1 of the Cheek Subdivision. The cash -in -lieu equivalent for a Category 3 three-bedroom unit exceeds what is required for a Category 3 two-bedroom unit; more full time equivalent employees (FTEs) are housed. 6. The APCHA Staff has reviewed the amendment recommends that this is a decision to be made by the BOCC considering that the County will lose a Category 1 two-bedroom unit; however, the APCHA program will gain a Category 3 three-bedroom unit. 7. The BOCC heard this application at their regular meeting on December 18, 2019, at which time evidence and testimony was presented with respect to the application. 8. The BOCC finds that it is appropriate to eliminate the $148,595.50 fee -in -lieu because the difference in the cash -in -lieu rate between a two-bedroom unit and three-bedroom unit offsets the shift from a Category 1 deed restricted dwelling unit to a Category 3 deed restriction. 9. The BOCC further finds that the applicant's commitment to purchase a free market unit and deed restrict that unit to a Category 3 deed restriction is consistent with the policies of APCHA. 10. The BOCC further finds that the applicant's commitment to purchase a free market unit within Aspen's UGB and deed restrict that unit to a Category 3 deed restriction is consistent with the policies of Pitkin County. I IIIIII VIII VIII VIII VIII VIII VIII IIII II I III VIII VIII VIII IIII VIII IIII RECEPTION#: 662772, R: $0.00, D: $0.00 DOC CODE: RESOLUTION Pg 1 of 3, 02/14/2020 at 01:55:56 PM Janice K. Vos Caudill, Pitkin County, CO Resolution No. les -2019 Page 2 NOW, THEREFORE, BE IT RESOLVED by the BOCC that it does hereby grant the amendment to accept a three-bedroom Hunter Creek unit deed restricted to Category 3, and relieve the Applicant from the requirement to pay the $148,595.50 cash -in -lieu fee requirement of Resolution 38-2019 recorded as Reception No. 656817, subject to the following conditions, which shall run with the land and be binding on all successors in interest: 1. Within one year of the date of this approval, and prior to the release of the current affordable dwelling unit deed restriction, the Applicant shall complete both a. and b. and c. and be subject to d., as follows: Be under contract to purchase a buy -down unit approved by APCHA at the Category 3 rate as mitigation to eliminate the Category 1 affordable housing dwelling unit restriction. The buy -down unit must also meet the Marketability Standards (Appendix I) as stated in the Guidelines. APCHA Staff will work with the Applicant prior to purchase completion to provide guidance on necessary updates. b. The buy -down unit must be within the Aspen Urban Growth Boundary. c. The applicant shall maintain the existing unit configuration and convert the unit to a Caretaker's Dwelling Unit and file an updated deed restriction with APCHA upon accomplishing a and b. d. The Applicant may be granted an extension of six to twelve months by the Community Development Director to allow for the procurement and delivery of a suitable APCHA Staff approved unit, or to allow the existing tenant to complete their current lease in keeping with APCHA guidelines, or due to any unforeseen building permit or remediation issues. Such request will be submitted in writing and reviewed administratively by Community Development Staff. The unit must remain in compliance with the deed restriction. 2. The deed restriction shall run to the benefit of Pitkin County and include a preference for County employee occupancy. 3. Pitkin County shall have a purchase option for the unit, which option shall expire on January 15, 2020. 4. The Applicant shall adhere to all material representations made in public hearings and in the application. Resolution No. /Oh' -2019 Page 3 APPROVED AND ADOPTED on the 181 day of December 2019. to Jones to the BOCC APPROVED AS TO FORM: n El ounty Attorney Case #P019-19 PID #273512106001 BOARD OF COUNTY COMMISSIONERS OF PITKIN COU XTY, COLORADO B \ y f�r g Poschman, Chairman Date z APPROVED AS TO CONTENT: Cindy ouben, UU Com unity Development Director RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO,APPROVING THE EAGLE RIDGE,LLC REQUEST TO ELIMINATE THE AFFRODABLE DWELLING .S� UNIT DEED RESTRICTION Resolution No.W-2019 RECITALS 1. Eagle Ridge,LLC ("Applicant") has applied to the Board of County Commissioners of Pitkin County, Colorado("BOCC")to eliminate the affordable dwelling unit deed restriction that encumbers an existing attached unit,in exchange for a fee-in-lieu or buy-down of an existing off-site unit. 2. The Applicant's lot is zoned R-30 and contains 1.36 acres. 3. Said lot is located at 715 Willoughby Way,and is more specifically described as Lot 1, Cheek Subdivision. 4. The BOCC approved the Cheek Subdivision General Submission/PUD and Special Review Approval in 1981,Resolution No. 81-125,Reception No. 237842 and Subdivision Final Plat in 1982, pursuant to Resolution No. 82-72. Growth Management allotments for five new lots were created and four lots were required to provide"one low income,restricted unit. Two of the restricted units shall be two-bedroom units containing between 700-800 square feet each and the remaining two restricted units will be three-bedroom units of at least 1000 square feet each." They were to be constructed concurrent with the free market residence. Lot 4 was considered the fathering parcel and was not required to provide a low-income deed restricted unit. 5. The single family residence on Lot 1 was built in 1995. The affordable dwelling unit was built concurrent with the residence and a Deed Restriction was recorded against the property (Reception#376978—Exhibit 2 in the application). 6. The APCHA Board reviewed the proposal at their regular Board meeting and recommend the approval to release the deed restriction by satisfying the Category 1 two-bedroom mitigation requirement by providing a buy-down approved by APCHA at the Category 3 rate with an additional fee of$148,595.50 to be paid to satisfy the Category 1 restriction.The buy-down unit must also meet the Marketability Standards(Appendix I)as stated in the Guidelines. 7. The BOCC heard this application at their regular meeting on June 12,2019,at which time evidence and testimony was presented with respect to the application. 8. The BOCC finds that it is appropriate to eliminate the affordable dwelling unit because the BOCC finds that to allow a buy-down of a unit off-site is an appropriate alternative to the on-site unit. 9. The BOCC finds that it is appropriate to require that an additional$148,595.50 fee-in-lieu be paid to satisfy the difference between a Category 1 and Category 3 deed restriction. 10. The BOCC further finds that the applicant's commitment to purchase a free market unit and deed restrict that unit to a Category 3 deed restriction and a cash-in-lieu payment is consistent with the policies of APCHA. SIIII VIIIVIII VIIIVIII VIII IIII III IIIIIIIIVIIIVIIIIIIIIII IIIIII RECEPTION#:666817,R: $0.00,D: $0.00 DOC CODE: RESOLUTION Pg 1 of 3,06/24/2019 at 09:07:34 nt Janice K.Vos Caudill,Pitkin County, CO Resolution No.V 3 2019 Page 2 NOW,THEREFORE,BE IT RESOLVED by the BOCC that it does hereby grant approval to eliminate the affordable dwelling unit deed restriction recorded as Reception No. 376978, subject to the following conditions,which shall run with the land and be binding on all successors in interest: 1. Within one year of the date of this approval, and prior to the release of the current affordable dwelling unit deed restriction,the Applicant shall complete both a. and b. and c. and be subject to e., as follows: a. Be under contract to purchase a buy-down unit approved by APCHA at the Category 3 rate as mitigation to eliminate the Category 1 affordable housing dwelling unit restriction. The buy-down unit must also meet the Marketability Standards (Appendix I) as stated in the Guidelines. APCHA Staff will work with the Applicant prior to purchase completion to provide guidance on necessary updates. b. The buy-down unit must be within the Aspen Urban Growth Boundary. c. Pay to the County an additional fee of$148,595.50 or the applicable fee based upon the Guidelines at the time of payment to satisfy the Category 1 deed restriction. d. The applicant shall maintain the existing unit configuration and convert the unit to a Caretaker's Dwelling Unit and file an updated deed restriction with APCHA upon accomplishing A,B, and C. e. The Applicant may be granted an extension of six to twelve months by the Community Development Director to allow for the procurement and delivery of a suitable APCHA Staff approved unit, or to allow for the existing tenant to complete their current lease in keeping with APCHA guidelines, or due to any unforeseen building permit or remediation issues. Such request will be submitted in writing and reviewed administratively by Community Development Staff. The unit must remain in compliance with the deed restriction. 2. The Applicant shall adhere to all material representations made in public hearings and in the application. Resolution No.O,74-2019 Page 3 APPROVED AND ADOPTED on the 12th day of June,2019. BOARD OF COUNTY COMMISSIONERS OF PITKIN CO Y,COLORADO By • ST: G g Poschman,Chairman n Date 6/2 L)// Jea :tte Jones ' Clef to the BOCC APPROVED AS TO FORM: APPROVED AS TO CONTENT: i-t--(1 110Cr\- - John Ely, Cin ouben, County Attorney Community Development Director Case#P019-19 PID#273512106001 MEMORANDUM TO: Board of County Commissioners Regular Meeting – December 18, 2019 THRU: Cindy Houben, Community Development Director FROM: Leslie Lamont, Senior Planner RE: Resolution Amending Resolution 38-2019 Approving the Eagle Ridge LLC Request to Eliminate Affordable Dwelling Unit Deed Restriction REQUEST: The Applicant requests to amend BOCC Resolution 38-2019, which approved the removal of a deed restriction from an affordable dwelling unit in exchange for a fee-in-lieu, buy-down of an existing unit off-site, and deed restricting the purchased unit to Category 3. The Applicant is requesting that the BOCC amend the approval to accept a three-bedroom Hunter Creek unit deed restricted to Category 3, and relieve the Applicant from the requirement to pay the $148,595.50 cash-in-lieu fee. APPLICANT: Eagle Ridge LLC REPRESENTATIVE: Chris Bendon LOCATION: 715 Willoughby Way; Lot 1, Cheek Subdivision. PID#273512106001 ZONING/LOT SIZE: The property is zoned R-30 and is 1.36 acres. BACKGROUND/EXISTING CONDITIONS: The Cheek Subdivision was granted General Submission/ PUD and Special Review Approval in 1981, Resolution No. 81-125, Reception No. 237842. The approval included five new lots: a single family home and a low-income deed restricted dwelling unit were approved for four of the lots and a single family home was approved for the fathering parcel. The BOCC approved the Cheek Final Plat Subdivision Resolution No. 82-72 Reception No. 242817, Book 429, Page 600 and the Final Plat Reception No. 245302, Book 14, page 8. In 1995, a single-family residence, with a two-bedroom, Category 1, deed restricted dwelling unit was built on Lot 1. A Deed Restriction was recorded against the property. In February of 2019, the Applicant requested to remove the deed restriction and mitigate with cash-in-lieu, a buy-down unit, or both. The APCHA Board considered the proposal at their regular Board meeting on May 15, 2019, and recommended approval to release the deed restriction, and require a buy-down unit, approved by APCHA, at the Category 3 rate with an additional fee of $148,595.50 to be paid to satisfy the Category 1 restriction. The buy-down unit was required to meet the Marketability Standards (Appendix I) as stated in the Guidelines. In June of 2019, the BOCC supported the proposal and the mitigation supported by APCHA, and approved Resolution 38-2019 in June of 2019. (Reception #656817 – Attachment A). PROPOSAL: The Applicant, working with APCHA, found and purchased a three-bedroom dwelling unit within the Aspen Urban Growth Boundary (Hunter Creek). (Apparently, the number of dwelling units available for a buy-down scheme, within Aspen’s UGB is very limited.) Because the unit is larger than the unit that was removed from the affordable housing inventory, mitigation based upon the number of FTEs housed and the cash-in-lieu rate is different then was considered when APCHA and the BOCC first considered this proposal. This chart, from the Application explains the difference: The above chart shows the genesis of the additional $148,495 due in the original approval. The table below changes the replacement unit to a three-bedroom. The Applicant is not attempting to recover the $37,090 in over-mitigation if this route is accepted. Therefore, the Applicant requests an amendment to Resolution 38-2019 requesting that the BOCC accept the three-bedroom Hunter Creek unit deed restricted to Category 3, and relieve the Applicant from the requirement to pay the $148,595.50 cash-in-lieu fee. In the alternative the Applicant offers two other solutions to an amendment:  The Applicant could provide the entire mitigation in the form of a $705,251 cash-in-lieu payment to the County. This money could assist these County efforts. In this case, the Hunter Creek unit would remain free-market and likely be sold by the applicant.  The Applicant could sell the Hunter Creek unit directly to the County for housing its staff. The unit could be provided with or without a deed restriction, at the direction of the County. The Applicant’s specific request is found in the revised application, Attachment B. REFERRAL COMMENTS from the APCHA staff are incorporated with the staff comments below and are attached for reference (Attachment C). It is policy with APCHA that land use items that will be reviewed by the BOCC will not be considered by the APCHA Board given the membership of the Board now includes elected officials. APCAH staff believes that this is a decision to be made by the BOCC. The County would lose a Category 1 two-bedroom unit; however, the APCHA program would gain a Category 3 three-bedroom unit. STAFF COMMENTS: The Applicant received approval in June of 2019 to remove the deed restriction, and mitigate the elimination of the Category deed restriction with a cash-in-lieu payment and the buy-down of an Approval FTEs Housed Category Cash-in- Lieu Rate Mitigation Provided Existing Unit Two- Bedroom 2.25 1 $313,445 $705,251 Replacement Unit Two- Bedroom 2.25 3 $247,447 $556,756 Difference $148,495 Proposal FTEs Housed Category Cash-in- Lieu Rate Mitigation Provided Existing Unit Two- Bedroom 2.25 1 $313,445 $705,251 Replacement Unit Three- Bedroom 3.0 3 $247,447 $742,341 Difference ($37,090) existing unit off-site. The approval stated that the buy-down was to be deed restricted to Category 3. The applicant intends to convert the original deed-restricted unit in the Cheek Subdivision into a caretaker dwelling unit. Staff finds that replacing the Category 1 deed restricted unit with a three-bedroom Category 3 deed restricted unit continues to provide affordable housing and is consistent with APCHA guidelines. The new unit is within the Aspen UGB and the County supports concentrating deed restricted affordable housing in the UGB. RECOMMENDATION: Staff recommends that the BOCC approve the request by Eagle Ridge, LLC to amend Resolution 38-2019 by adopting Resolution __-2019 approving the elimination of the $148,595.50 cash-in-lieu fee and accepting a Category 3, three-bedroom dwelling unit, subject to conditions. Attachments A. Resolution 38-2019 B. Application C. APCHA Comments ATTACHMENT A Strengthening Community Through Workforce Housing 715 Willoughby Way Page 1 LAND USE REFERRAL MEMORANDUM TO: Leslie Lamont, Senior Planner FROM: Cindy Christensen, Deputy Director DATE: December 5, 2019 RE: 715 Willoughby Way, Amendment to BOCC Resolution No. 38-2019 ______________________________________________________________________________ ISSUE: The applicant is requesting an amendment to the approval stated in Resolution 38-2019 to eliminate the additional cash-in-lieu payment. BACKGROUND: The APCHA Board reviewed the application at their regular meeting held May 15, 2019 and had recommended to the BOCC approval to release the deed restriction by satisfying the Category 1 two-bedroom mitigation requirement by providing a buy-down approved by APCHA at the Category 3 rate with an additional fee of $148,595.50 to be paid to satisfy the Category 1 restriction. Under the revised IGA, the APCHA Board no longer reviews land use cases; therefore, referrals are reviewed and provided by APCHA staff. The applicant received approval by the BOCC to release the deed restriction for a Category 1 two- bedroom unit by providing an identical off-site unit. The applicant found a three-bedroom unit that was acceptable to APCHA staff at Hunter Creek that will be deed restricted at Category 3. APCHA Guidelines do not allow for any buydowns lower than Category 3. There is also a limited supply of existing free-market units that would be acceptable to APCHA in a buy-down situation. The County Code had adopted their own impact fees for housing mitigation. Below is a table that shows what the cash-in-lieu fees would have been in 2019 if the same methodology had been used –3% or the Consumer Price Index, whichever is less. ATTACHMENT C 715 Willoughby Way Page 2 2015 2016 2017 2018 2019 Increase 0.10%1.50%2.30%2.20% CATEGORY 1 295,077$ 295,372$ 299,803$ 306,698$ 313,445$ CATEGORY 2 246,881$ 247,128$ 250,835$ 256,604$ 262,249$ CATEGORY 3 232,946$ 233,179$ 236,677$ 242,120$ 247,447$ CATEGORY 4 144,393$ 144,537$ 146,705$ 150,080$ 153,381$ FEE IN LIEU - COUNTY CHANGES BASED ON 3% OR CPI, WHICHEVER IS LESS Based on the 2019 fees above and based on the charts provided in the application, their analysis shows that by replacing a Category 1 two-bedroom unit with a Category 3 3-bedroom unit, it created a surplus of $37,090 if a cash-in-lieu had been acceptable. The applicant has provided three options: • Grant the request to accept the three-bedroom, Category 3 unit without the additional cash- in-lieu payment of $148,595.50; • Provide a cash-in-lieu payment of $705,251 to the County mitigating for the Category 1 two-bedroom, losing a Category 3 three-bedroom addition into the APCHA inventory; or • Sell the unit directly to the County for its use. RECOMMENDATION: After conversations with the County Community Development Department, APCHA believes that this is a decision to be made by the BOCC based on the County losing a Category 1 two-bedroom unit; however, the APCHA program would be gaining a Category 3 three-bedroom unit. RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO, AMENDING RESOLUTION 38-2019 APPROVING THE EAGLE RIDGE, LLC REQUEST TO ACCEPT A THREE-BEDROOM HUNTER CREEK UNIT DEED RESTRICTED TO CATEGORY 3, AND RELIEVE THE APPLICANT FROM THE REQUIREMENT TO PAY THE $148,595.50 FEE-IN-LIEU Resolution No. ___-2019 RECITALS 1. Eagle Ridge, LLC ("Applicant") has applied to the Board of County Commissioners of Pitkin County, Colorado ("BOCC") to amend Resolution 38-2019 to approval to accept a three- bedroom Hunter Creek unit deed restricted to Category 3, and relieve the Applicant from the requirement to pay the $148,595.50 cash-in-lieu fee. 2. The Applicant's lot is zoned R-30 and contains 1.36 acres. 3. Said lot is located at 715 Willoughby Way, and more specifically described as Lot 1, Cheek Subdivision. 4. The BOCC approved Resolution 38-2019, Reception No. 656817, eliminating the affordable dwelling unit, approving a buy-down unit off-site, deed restricting the purchased unit to Category 3, and requiring a $148,595.50 fee-in-lieu. 5. The Applicant has purchased a three-bedroom unit off-site and intends to deed restrict that unit to Category 3. The Applicant requests that the $148,595.50 fee-in-lieu is waived because the newly purchased unit is larger than the original two-bedroom Category 1 unit on Lot 1 of the Cheek Subdivision. The cash-in-lieu equivalent for a Category 3 three-bedroom unit exceeds what is required for a Category 3 two-bedroom unit; more full time equivalent employees (FTEs) are housed. 6. The APCHA Staff has reviewed the amendment recommends that this is a decision to be made by the BOCC considering that the County will lose a Category 1 two-bedroom unit; however, the APCHA program will gain a Category 3 three-bedroom unit. 7. The BOCC heard this application at their regular meeting on December 18, 2019, at which time evidence and testimony was presented with respect to the application. 8. The BOCC finds that it is appropriate to eliminate the $148,595.50 fee-in-lieu because the difference in the cash-in-lieu rate between a two-bedroom unit and three-bedroom unit offsets the shift from a Category 1 deed restricted dwelling unit to a Category 3 deed restriction. 9. The BOCC further finds that the applicant’s commitment to purchase a free market unit and deed restrict that unit to a Category 3 deed restriction is consistent with the policies of APCHA. 10. The BOCC further finds that the applicant’s commitment to purchase a free market unit within Aspen’s UGB and deed restrict that unit to a Category 3 deed restriction is consistent with the policies of Pitkin County. NOW, THEREFORE, BE IT RESOLVED by the BOCC that it does hereby grant the amendment to accept a three-bedroom Hunter Creek unit deed restricted to Category 3, and relieve Resolution No. ___-2019 Page 2 the Applicant from the requirement to pay the $148,595.50 cash-in-lieu fee requirement of Resolution 38-2019 recorded as Reception No. 656817, subject to the following conditions, which shall run with the land and be binding on all successors in interest: 1. Within one year of the date of this approval, and prior to the release of the current affordable dwelling unit deed restriction, the Applicant shall complete both a. and b. and c. and be subject to d., as follows: a. Be under contract to purchase a buy-down unit approved by APCHA at the Category 3 rate as mitigation to eliminate the Category 1 affordable housing dwelling unit restriction. The buy-down unit must also meet the Marketability Standards (Appendix I) as stated in the Guidelines. APCHA Staff will work with the Applicant prior to purchase completion to provide guidance on necessary updates. b. The buy-down unit must be within the Aspen Urban Growth Boundary. c. The applicant shall maintain the existing unit configuration and convert the unit to a Caretaker’s Dwelling Unit and file an updated deed restriction with APCHA upon accomplishing a and b. d. The Applicant may be granted an extension of six to twelve months by the Community Development Director to allow for the procurement and delivery of a suitable APCHA Staff approved unit, or to allow the existing tenant to complete their current lease in keeping with APCHA guidelines, or due to any unforeseen building permit or remediation issues. Such request will be submitted in writing and reviewed administratively by Community Development Staff. The unit must remain in compliance with the deed restriction. 2. The Applicant shall adhere to all material representations made in public hearings and in the application. Resolution No. ___-2019 Page 3 APPROVED AND ADOPTED on the 18th day of December 2019. BOARD OF COUNTY COMMISSIONERS OF PITKIN COUNTY, COLORADO By ATTEST: Greg Poschman, Chairman Date Jeanette Jones Clerk to the BOCC APPROVED AS TO FORM: APPROVED AS TO CONTENT: John Ely, Cindy Houben, County Attorney Community Development Director Case #P019-19 PID #273512106001 300 SO SPRING ST | 202 | ASPEN, CO 81611 970.925.2855 | BENDONADAMS.COM November 6, 2019 Leslie Lamont, Senior Planner Pitkin County Community Development 130 S. Galena Street Aspen, CO 81611 Leslie.Lamont@pitkincounty.com RE: 715 Willoughby Way Amendment to BOCC Reso. 38-2109 Please accept this amendment to the approval granted to 715 Willougby Way through the adoption of BOCC Resolution No. 38-2019. The application requested off-site replacement of an existing two-bedroom, Category 1 deed restricted Employee Dwelling Unit (EDU) from Lot 1 of the Cheek Subdivision. The approval granted by the Board of County Commissioners allows the buy-down of an acceptable replacement unit within the Urban Growth Boundary. The approval assumed the buy-down unit would also be a two-bedroom unit. To account for the Category 1 to Category 3 shift, an additional $148,595.50 cash-in-lieu payment was required. (Category 3 was the preference of the Aspen/Pitkin County Housing Authority.) We reviewed the approval with the APCHA and agreed that we would first look for an acceptable unit within the City limits before expanding our search to the expand our search to the UGB, effectively adding the Airport Business Center. Surprisingly few units are eligible for buy-down given various association prohibitions and APCHA’s reluctance to accept a single-unit within an otherwise free-market complex. Five eligible units were identified with none being actively available for purchase. We were able to entice one owner into selling. The unit is a three-bedroom unit located in Hunter Creek Condominiums. We reviewed and agreed upon certain improvements necessary to render the unit acceptable to APCHA. Those improvements have been made and the unit is ready to be deed restricted and transferred to a qualified purchaser. We would like to revisit the additional cash-in-lieu payment required in Reso 38 in light of our providing a larger unit. Going from a two-bedroom unit to a three-bedroom unit offsets the shift from a Category 1 to Category 3 designation. Below is our analysis using the same cash-in-lieu figures as used by the APCHA staff in May. 715 Willoughby Way Parcel ID: 2735-121-06-001 Approval FTEs Housed Category Cash-in- Lieu Rate Mitigation Provided Existing Unit Two- Bedroom 2.25 1 $313,445 $705,251 Replacement Unit Two- Bedroom 2.25 3 $247,447 $556,756 Difference $148,495 The above chart shows the genesis of the additional $148,495 due in the original approval. The table below changes the replacement unit to a three-bedroom. Proposal. Our proposal is to provide the Hunter Creek unit as Category 3 unit to be sold through the lottery, with no additional cash-in-lieu payment. We believe the three-bedroom unit, at a Category 3 designation, provides an equivalent mitigation as the existing on-site two-bedroom Category 1 unit. (The applicant is not attempting to recover the $37,090 in over-mitigation if this route is accepted.) Alternatives. The applicant understands the County has ongoing affordable housing projects requiring substantial funds to bring to fruition. The applicant could provide the entire mitigation in the form of a $705,251 cash-in-lieu payment to the County. This money could assist these County efforts. In this case, the Hunter Creek unit would remain free-market and likely be sold by the applicant. The applicant could sell the Hunter Creek unit directly to the County for housing its staff. The unit could be provided with or without a deed restriction, at the direction of the County. Both of these options are in response to ad hoc comments about the County’s housing needs and not in response to any specific request. Background on the 715 Willougby property is provided in the attached application (approved) from May, 2019. The APCHA referral memo from the original application is also attached. Ultimately, the applicant is looking to finalize this process and have the deed restriction officially lifted from the 715 property. We are happy to provide additional information or provide a tour of the Hunter Creek property. Please do not hesitate to contact me if I can aid your review. Kind Regards, Chris Bendon, AICP BendonAdams LLC Attachments: 1. February, 2019, application (minus attachments) 2. May, 2019, APCHA referral letter Proposal FTEs Housed Category Cash-in- Lieu Rate Mitigation Provided Existing Unit Two- Bedroom 2.25 1 $313,445 $705,251 Replacement Unit Three- Bedroom 3.0 3 $247,447 $742,341 Difference ($37,090) February 25, 2019 Suzanne Wolff, AICP Pitkin County Community Development 130 S. Galena Street Aspen, CO 81611 Suzanne.wolff@pitkincounty.com RE: 715 Willoughby Way; Lot 1 Cheek Subdivision Please accept this application requesting the replacement of the existing deed restricted Employee Dwelling Unit (EDU) from Lot 1 of the Cheek Subdivision. The property consists of a conforming 1.364-acre lot in the R-30 Zone district with a single-family residence and a two-bedroom employee dwelling unit (EDU) – both approved under BOCC Resolution No. 82-72. This property has been under the same ownership for the last twenty plus years during which the attached EDU was rented to the same employee until this year. After the original tenant vacated, a new tenant was vetted through APCHA and is currently occupying the EDU fulfilling the unit’s mandatory occupancy requirement. The owner’s circumstances have significantly changed in the last several years and health has become a primary concern for continued occupancy of the home. The owner has a full-time travelling healthcare team and is limited in his ability to stay in the Aspen area for prolonged periods of time due to the elevation. Request While they are assessing their future needs and whether the unit would potentially be converted into a CDU, the owner and his family are interested in replacing the housing mitigation and removing the on-site EDU. Given the history of the Cheek Subdivision deed restriction language, precedent land use cases, and our discussion with APCHA staff (all outlined below) the applicant team believes that there are two pathways forward for the elimination of the EDU deed restriction on the subject property. The applicant requests the ability to mitigate for the elimination of the deed restriction on the property through a cash-in-lieu payment or a buy-down unit. Subdivision Background Exhibit 1 715 Willoughby Way Parcel ID: 273512106001 The initial application for subdivision was reviewed in September 1976 (Exhibit 8) – where Robert Cheek requested conceptual approval for a fathering lot and two new one-acre lots. It appears that the application was tabled while some of the issues identified by staff (ditch and easement concerns) were addressed and the application was brought back before the County Boards in late 1977 / early 1978 (Exhibit 9). Between these initial discussions and the application coming back before the Boards and Commissioners, housing requirements changed within the County. Cheek was responsive to the updated requirements and proposed each property contain an employee unit. Included in this application is a copy of Cheek’s request for permission to replace these employee units, with the approval of the appropriate county authorities, with employee units in other locations (Exhibit 10). The applicant reviewed records of meeting minutes and staff findings and searched for information that might shed light on any proposed rationale for the employee housing program that was recommended for the subdivision, and the applicant has not found any discernible evidence of any further discussion that might have taken place regarding placing the affordable housing units off-site. The Cheek general submission was approved by the Planning and Zoning Commission allowing for the three requested lots. When Cheek returned before the Board of County Commissioners in August 1981, he submitted a GMP (growth management plan) application. The application – as presented to the Planning and Zoning Commission – was competing for a growth management allotment. The property, which was 10.7 acres zoned R-30, was allowed up to 15 or 16 units of density per zoning. Cheek expanded his initial proposal to subdivide into five lots, four of which would be developed into duplexes each with an unrestricted unit and a low-income unit, and the fathering parcel (Lot 4) remaining a single-family residence. The application was scored against several other projects and it received a score of 91.8% and the Board approved the application. After receiving a GMP allotment (Exhibit 11), the application moved before the Board of County Commissioners for a final Subdivision-PUD and a Special Review approval for a five-lot subdivision with duplex uses on four of the five lots. Each new lot was to contain a restricted (employee unit) and an unrestricted (free market) unit. The Board granted approval on December 14, 1981 with conditions (Exhibit 12). These conditions were later updated and memorialized in the Subdivision Improvement Agreement filed in November 1982 (Reception No. 245303). 715 Willoughby Way Parcel ID: 273512106001 The Cheek Subdivision Final Plat (Rec. No. 245302 / Book 14 Page 8) was recorded November 4, 1982. The plat further memorialized the Board of County Commissioners approval, showing the approved lots with the addition of the sewer, utility, and private access easements (Exhibit 13) that were granted by Cheek to the Metro Sanitation District, the Salvation Ditch Company, and Pitkin County. Protective Covenants The Protective Covenants were recorded in December of 1982 (Book 437 Page 543). The Covenants outlined architectural controls and general building restrictions. They include language from the land use approvals and the Subdivision Improvement Agreement outlining the restrictions for all five lots regarding: building envelopes; zoning regulations; mining, drilling or quarrying; business uses; signs; animals; no re-subdivision; service yards and trash; underground utility lines; the number and location of buildings; affordable housing; completion of construction; fireplaces; driveways; energy codes; tennis courts, setbacks, height limitations, roofs and antennae; trees and landscaping; utility tanks; temporary structures; exterior lighting, off-street parking; garbage and sanitation; fences; drainage; construction damage to public / private roads; firearms; noxious or offensive activities; enclosure of unsightly facilities; and restricted housing. The Covenants further outline access and easement agreements within the subdivision. Clause 2 of Article XI of the Covenants states that the ‘covenants contained in this instrument shall terminate January 1, 2012 or at the time of final dissolution of the Colorado corporation not for profit known as the Cheek Subdivision Homeowners Association, whichever date shall occur first.’ In searching the Colorado Secretary of State’s records, we corroborated that the Cheek Subdivision Homeowners Association was dissolved in 2008, rendering the Architectural Control Committee and the Protective Covenants defunct prior to the 2012 termination date. 715 Willoughby Way Parcel ID: 273512106001 Cheek Subdivision Deed Restrictions The Occupancy Deed Restriction (Rec. No. 376978) for the low-income restricted unit on Lot 1 was filed September 27, 1994, which placed the following conditions on the unit: • Restricted unit must be low income / Category 1. • A vacancy clause with noncompliance penalty. • Occupancy limited to occupancy by no more than two adults and related children. In looking through the other deed restrictions for Lots 2, 3, and 5 (Reception Nos. 318996, 404602, and 381334, respectively) the intent of the deed restrictions was generally consistent, but we found a few differences. Lot 4 is the fathering parcel and was not required to provide an affordable housing unit on site. The deed restrictions for Lots 1 and 2 are nearly identical except for the vacancy penalty. The deed restriction for Lot 3 has minor differences in terminology including the use of ‘employee dwelling unit’ and ‘Category 1 employee’ (instead of ‘Affordable Employee Unit’ and ‘low-income’) and the inclusion of a clause prohibiting the owner and family members from occupying the Employee Dwelling unit as a guesthouse. Perhaps the most important difference in Lot 3’s deed restriction is the addition of the ability to remove the Agreement, or deed restriction, with approval of the Pitkin County Board of Commissioners. Figure 1: Lot 3 Unit removal clause Lot 5’s deed restriction also contained the same language. At this point in time it is unclear why the deed restrictions evolved over time from a mandatory unit with vacancy penalties to being able to be removed with Board of County Commissioners approval. In looking at the recordation dates it would appear that Lot 2 filed its deed restriction in January of 1990, Lot 1 filed in September 1994, Lot 5 filed in May of 1995, and Lot 3 filed in May of 1997. It is possible that these changes resulted from the evolution of the housing program itself and were reflective of the policies in place at filing. Additional Approvals The First Amended Plat of the Cheek Subdivision (Rec. No. 388231 / Book 38 Page 90) which re-subdivided Lots 1 and 2, was filed December 12, 1995. Despite being called a ‘re-subdivision’, this amended plat effectively served as a land swap allowing for better access onto Lot 2, by forfeiting the upper north west corner of the property to Lot 1 and widening the lot area accessed off Willoughby Way. The areas that were exchanged are highlighted in yellow (land gained by Lot 2) and orange (land gained by Lot 1) below. 715 Willoughby Way Parcel ID: 273512106001 Figure 2: 1995 land swap between Lots 1 and 2 In April of 1996, the Board of Adjustment approved Resolution 96-08 which approved a Floor area variance of 40 square feet for the construction of an airlock on the unrestricted single-family residence (Reception No. 393427) on Lot 1. Comparable Precedent Cases Through our research of the Cheek Subdivision, and through discussions with Staff we have identified two similar requests that have been brought before the BOCC. One is Lot 5 of the Cheek Subdivision (Exhibit 14) which successfully removed its EDU in 1994; and, the second is 125 Stillwater Drive (Exhibit 15) which applied for the removal of the Employee Dwelling Unit in October 2015. Lot 5 went through an approval process to pay cash-in-lieu to remove a bedroom from its deed- restricted unit in order to only have to provide a two-bedroom unit. This request was approved, however the property changed hands and it appears the approval was never exercised. Instead, the new owner of Lot 5 performed an off-site replacement of the employee unit effectively removing it from the property and title in late 1994. The record shows that a three-bedroom unit in Aspen was purchased and sold through the APCHA sales process. Lot 5’s application for a Minor Amendment to a Development Permit was approved by the Community Development Director with full support from both staff and APCHA. Lot 5’s request was approved with the following conditions: • The Housing Office shall have final approval of the three-bedroom buy-down unit offered by the applicant. The unit shall be deed restricted as a Category 1 unit before approval of a building permit for the free-market unit. Should building permit approval for the free market residence be necessary before a deed restriction can be recorded, the applicant shall enter into a contractual agreement with the Housing Office guaranteeing the deed restriction of the unit after the contractual obligation of the lease is concluded. 715 Willoughby Way Parcel ID: 273512106001 • This memorandum of approval shall be recorded in the Office of the Clerk and Recorder of Pitkin County, prior to issuance of a building permit for the free market residence on Lot 5. • Prior to recordation of the deed restriction, the three-bedroom employee unit shall be inspected by the Building Inspector and shall be required to comply with the life/safety requirements of the Uniform Building Code. In May of 1995, the owner of Lot 5 recorded a deed restriction for a one-bedroom Caretakers Unit (Reception No. 381334) which is different than a ‘low-income’ or ‘employee dwelling’ unit. By definition it is not required to be rented. Additionally, Caretaker Units are not treated the same as an affordable housing unit in that they have no income cap and are not linked to an affordable housing Category. In 2015, the applicant at 125 Stillwater Lane, legally known as Lot 3 Stillwater Ranch Subdivision, requested to eliminate its Employee Dwelling Unit and the corresponding deed restriction in exchange for a cash-in-lieu or buy down of an existing off-site unit. Additionally, 125 Stillwater proposed to convert the unit to a Caretaker Dwelling Unit. The property, zoned AFR-2, contains 1.76 acres and was originally approved under the Stillwater Ranch Subdivision (Resolution No. 94-233), and subsequent Growth Management (Resolution No. 94-125) for four new lots each containing “one above grade, low income, one-bedroom affordable housing unit” to be constructed with the free market residential unit.” The single-family home, constructed in 2002, filed a deed restriction (Reception No. 472145) which states that the deed restriction can be “removed by the Owner with the approval of the Pitkin County Board of County Commissioners, subject to the requirements that the Employee Dwelling Unit is removed or modified. If modified, the remaining improvements must no longer be capable of occupancy as a dwelling unit as defined in the Pitkin County Land Use Code and must otherwise meet applicable code requirements.” At the time, APCHA recommended in favor of a cash-in-lieu fee, in the amount of $300,000 to mitigate for the employee dwelling unit – which was based on the “consideration of equitability with the fees-in-lieu paid by other owners of two other Stillwater lots, the 1994 fee-in-lieu adjusted for CPI, and recent County housing purchases in the Aspen and Basalt areas.” The request was approved with the following restrictions: 715 Willoughby Way Parcel ID: 273512106001 Meetings with APCHA In order to better understand current housing needs and demand, the applicant team has met twice with Mike Kosdrosky, the Executive Director of the Aspen Pitkin County Housing Authority. First in October 2018, and recently followed up on February 12, 2019. In our conversations with Mr. Kosdrosky, we reviewed, in very basic terms, the subdivision and the desire to relocate the housing mitigation. At the meetings, we also detailed the property’s compliance with the deed restriction and APCHA rules and asked Mr. Kosdrosky if he was aware of any staff preferences and/or Board preferences for off-site solutions. Mr. Kosdrosky spoke in general terms of the tolerances of both cash-in-lieu payments and buy- down units directing the applicant team to look into units within existing affordable housing complexes, such as Hunter Creek. In our most recent meeting, Mr. Kosdrosky requested additional information (Exhibit 16) on the property in order to review and provide more detailed direction. The applicant team has compiled a separate packet detailing deed restriction, precedent cases, and the code requirements for the removal of the EDU. This information has been shared with APCHA in preparation of the application submittal in the hopes that any alternatives identified be incorporated into discussions prior to Board review. Summary As outlined above, the property at 715 Willoughby Way has been under the same ownership for the last twenty plus years – during which time the Employee Dwelling Unit has been rented out to APCHA vetted tenants fulfilling deed restriction requirements. Recent changes in circumstances have given cause to assess the applicant’s future needs and the ability to replace the on-site housing mitigation. 715 Willoughby Way Parcel ID: 273512106001 The applicant reached out to APCHA Director Mike Kosdrosky to discuss current housing needs and preferences in the County, during which two options were vetted and believed to be valid pathways forward. Both these options, lifting the deed restriction via a cash-in-lieu fee or a buy- down unit, have precedents within the Cheek Subdivision and other properties within the County and provide the basis for the applicant’s request. The review criteria are addressed in Exhibit 1 – with additional exhibits listed below. We look forward to working with you on this project. Please do not hesitate to contact me for additional information that will aid your review. Kind Regards, Chris Bendon, AICP BendonAdams LLC Attachments: Hard Copy 1. Review Criteria 2. Deed Restriction 3. Authorization Letter 4. Title Commitment 5. Plot report and vicinity map 6. Fees Agreement 7. Pre-Application Summary Digital Copy 8. Historical Application Documents 9. Easements and Utilities update 10. Application Letter requesting off- siting affordable housing 11. GMP Application 12. Resolution No. 82-125 13. Cheek Subdivision Final Plat 14. Lot 5 Cheek Subdivision buy-own application 15. 125 Stillwater Lane Cash-in-lieu application 16. Summary packet submitted to APCHA 2.22.19 Strengthening Community Through Workforce Housing 715 Willoughby Way Page 1 LAND USE REFERRAL MEMORANDUM TO: Leslie Lamont, Senior Planner FROM: APCHA Board Cindy Christensen, Deputy Director DATE: May 16, 2019 RE: 715 Willoughby Way, Removal of EDU Deed Restriction / Lot 1 Cheek S/D ______________________________________________________________________________ ISSUE: The applicant is seeking approval to remove the on-site housing mitigation and replace via a cash-in-lieu payment or a buy-down unit. BACKGROUND: The initial application for the subdivision was brought forward by Robert Cheek and reviewed in September 1976. The application was brought back to the BOCC in 1977, early 1978 to address some issues brought up in 1976. Between the initial discussions and the application going back to the BOCC, housing requirements had changed within the County. Mr. Cheek was responsive to the updated requirements and proposed that each property contain an employee unit. Two of the deed restrictions – Lot 1 recorded in 1994 and Lot 3 recorded in 1997 – contain the following language: “This Agreement further guarantees compliance by requiring the Owner to pay the equivalent cash-in-lieu fee for an equal employee dwelling unit if found by the Board to be in default of the required employee dwelling unit deed restrictions. The equivalent dash-in- lieu fee shall be determined by amortizing the current price of an equivalent dwelling unit fee over a thirty (30) year period to determine the daily cost of the unit. The daily cost shall be multiplied by the number of days that the unit was found to be in default by the Board to determine the equivalent cash-in-lieu fee. Fees so collected shall be applied to the Aspen/Pitkin County Employee Housing Fund.” Lot 2, recorded in 1990, and Lot 5, recoded in 1995, do not contact that language. SUMMARY: The applicant is requesting to remove the deed restricted unit and release the deed restriction from the property while they explore the opportunity to convert the unit to a caretaker dwelling unit. A caretaker dwelling unit does not require occupancy, nor are there set categories or rental rates. The applicant has provided two options to satisfy the mitigation requirement for said removal – provide a payment-in-lieu fee or provide a buy-down unit. DISCUSSION: Exhibit 2 715 Willoughby Way Page 2 Buy-Down Option: The existing unit is a two-bedroom “low” income unit. The Guidelines define a low-income unit as Category 1. The Guidelines do not allow a buy-down unit for mitigation purposes to anything lower than Category 3. Currently, there is one property that is acceptable to APCHA for a buy-down unit – Hunter Creek. There are approximately 5 free-market units left in the four buildings that the majority are deed restricted. Accepting buy-down units in other complexes creates a situation that would eventually make the unit unaffordable – the HOA dues. The APCHA Board also realized that ownership units less than Category 3 are not affordable to a Category 1 and/or Category 2 household. APCHA has seen a rise in HOA dues over the spectrum of properties due to infrastructure maintenance. If the Board allowed a buy-down option in this situation, a payment-in-lieu fee would need to also be required on the difference between Category 1 and Category 3. Payment-In-Lieu Option: The payment-in-lieu fee stated in the Guidelines reflects the current amounts for the City of Aspen only. The County Code adopted their own impact fees for housing mitigation. Below is a table that shows what the cash-in-lieu fees would be in 2019 if the same methodology had been used – 3% or the Consumer Price Index, whichever is less. The City of Aspen changed their methodology payment-in-lieu for employee housing mitigation requirements within the City in 2015 with an update in 2018. 2015 2016 2017 2018 2019 Increase 0.10%1.50%2.30%2.20% CATEGORY 1 295,077$ 295,372$ 299,803$ 306,698$ 313,445$ CATEGORY 2 246,881$ 247,128$ 250,835$ 256,604$ 262,249$ CATEGORY 3 232,946$ 233,179$ 236,677$ 242,120$ 247,447$ CATEGORY 4 144,393$ 144,537$ 146,705$ 150,080$ 153,381$ FEE IN LIEU - COUNTY CHANGES BASED ON 3% OR CPI, WHICHEVER IS LESS The current City of Aspen cash-in-lieu amounts are as follows: Category 1 $381,383.31 Category 2 342,599.02 Category 3 306,549.65 Category 4 238,687.04 Category 5 168,289.60 Category 6 142,114.19 Category 7 111,438.36 715 Willoughby Way Page 3 The APCHA Board reviewed the application at their regular meeting held May 15, 2019 and discussed three possible recommendations. They are stated below: 1. The Category 1 unit remains as recorded at Reception No. 376978 on December 6, 1994; 2. Accept a buy-down unit approved by APCHA at Category 3 with an additional fee of $148,495.50 ($313,445 - $247,447 = $65,998 X 2.25 FTE’s) to satisfy the Category 1 restriction; 3. Accept a fee-in-lieu at the 2019 Category 1 County rate for a two-bedroom unit - $313,445 X 2.25 FTEs = $705,251.25. RECOMMENDATION: The APCHA Board reviewed the application at their regular meeting held May 15, 2019 and recommend the approval to release the deed restriction by satisfying the Category 1 two-bedroom mitigation requirement by providing a buy-down approved by APCHA at the Category 3 rate with an additional fee of $148,595.50 to be paid to satisfy the Category 1 restriction. The buy-down unit must also meet the Marketability Standards (Appendix I) as stated in the Guidelines.