SAN MIGUEL COUNTY PLANNING COMMISSION  MINUTES-) REGULAR MEETING  April21,2022 On-line Meeting  Present:  Lee Taylor, Chair Josselin Lifton-Zoline, Vice-Chair M.J. Schillaci, Secretary (via Zoom) Ian Bald, Member Matthew Bayma, Member Tobin Brown, Sr. Alternate (via Zoom)  Planning Staff Present: County Staff Present:  Kaye Simonson, Planning Director John Huebner, Senior Planner Amy Markwell, County Attorney Carmen Warfield, Clerk to the Board  Nancy Hrupcin, Legal Assistant, County Attorney's Office  9:19 a.m. Chair called the meeting to order.  The commission began by considering ifany members had a conflict ofinterest or if there had been any ex-parte communication regarding the application. While some ofthe members did state they lived in Aldasoro, none had any vested interest or had participated in any  ex parte communications prior to the hearing.  9:15A.M. PUBLICI HEARING: REZONE APPLICATION Representative: SE Group and Klein Çote Edwards Citron LLC Applicant(s): Town ofTelluride / San Miguel County Property Owner: Diamond Ridge Telluride, LLC Zone District: (F) Forestry, Agriculture and Open  Location: PIN#: Proposal:  Last Dollar Road Parcel(s): Lots 1-R-A, 2-R, 3-R Diamond Ridge; Request to Rezone a portion oft the subject property to the Community Housing (CH) Zone District, LUC Section 5-324, with the remainder of the property to continue tol be zoned Forestry, Agriculture and Open (F),  456530318011, 456530317012, 456530317013  LUC Section 5-307 MOTION  Kaye Simonson, Planning Director, gave the background and presented the rezone application for The Ridge, a community housing project rezone to Community Housing (CH). San Miguel County and the Town ofTelluride are currently under contract to purchase Lots 1-R-A, 2-R and 3-R, Diamond Ridge. The intent is to rezone a portion oft the property to Community Housing  1Page    (CH), for the purpose of developing affordable housing in the future. A development plan has not been prepared. Should the property be rezoned and the purchase completed, the Town and County would then move forward with development plans, at which time specific details The subject ofthe proposed rezone application is Lots 1-R-A, 2-R, and 3-R ofDiamond Ridge, containing about 105 acres. The property is currently zoned Forestry, Agriculture, and Open (F). The airport is immediately to the south and is zoned Public (P). The Deep Creek Ranches subdivision to the north is zoned Low Density (LD), while the other adjoining parcels are zoned Iti is proposed to rezone only aj portion of the three parcels to Community Housing (CH), with the remainder continuing to be zoned F. Ifapproved, the BOCC resolution will include al legal description describing the boundaries oft the zone district. The rezoning area: is 39.21 acres. While split zoning of parcels is not expressly prohibited by the Land Use Code, issues can be alleviated by a very specific delineation oft the zoning in the approving resolution. Because the Town and County have not yet purchased the property, aj property line adjustment application has not been submitted; the current owner would not want the property reconfigured. Ifthe property is purchased, staff strongly recommends proceeding with aj property line adjustment There is a developed access point from Last Dollar Road. It is expected that development would be clustered, leaving a significant amount ofa area for open space, recreational trails, and other uses. Water service would come from the Town ofTelluride; the Town has stated that they would be able to serve this property. Wastewater would either go to the regional wastewater treatment plants, or to an onsite system, depending on cost, design, and other development- Because the actual number of units that would be developed is not known, it is not possible to do afull traffic study at this time. Itis known that Last Dollar Road would have to be paved from Public notice was mailed to all property owners within 500 feet oft the subject parcels prior to March 31,2022. Notice was also mailed to the Bureau ofLand Management as mineral rights holder on March 22, 2022. Notice of the Public meeting was posted on the property on March 25,2022, and re-posted on April 8, 2022, after the original notice was discovered tol have been removed. Removal ofp posted notices by parties other than the applicant does not invalidate the posting oft the notice as required by the Land Use Code. The posting oft the required sign was The meeting agenda was published in the Telluride Daily Planet and Norwood Post on April 6, The application for the rezone was sent to referral agencies with comments received from the County Surveyor, requesting corrections to the legal description. There were also comments  regarding density, site design, and services would be addressed.  F. Aldasoro Ranch, father to the east, is also zoned LD.  application sO no parcel has more than one zoning designation.  specific considerations.  the intersection with the airport road to the property.  photographically documented both times.  2022, and the application has been available online since March 21,2022.  2/Page    received from the Aldasoro Ranch Owners Company, Meadows at Deep Creek Mesa (MDCM) There were also 99 written comments from 97: individuals received. (One person submitted3 letters.). Ofthose, 77 have been in support of the rezoning, and 22 (20 individuals) have been in opposition. Those in support have written oft the significant community need for affordable,  HOA, and the Deep Creek Ranches HOA.  workforce housing.  10:08 a.m. Break 10:15 a.m. Reconvene.  Gabby Voeller, Senior Planner with the SE Group gave her presentation. She iterated that this is au unique opportunity to house residents ofthe community. There are very few opportunities left close to town. Iti is estimated there would be 10.5 tons less ofCO2 emissions with a closer commute. Iti is proposed as a clustered development within the R-1 school district, with  municipal water that can be developed.  Jody Edwards then added to the presentation. He stated that the application is for rezoning, not Kevin Geiger, Town ofTelluride, Town Attorney, added that the town has evaluated the current system and can accommodate the additional demands on water independent of the Society Turn project. The commission asked what number ofunits the water demand was based on. Kevin replied that it was based on 150-240 units which are parallel to the Lawson Hill use. Itis  development.  anticipated it would take 5-7% of the system-wide demand.  11:07 a.m. Break 11:15 a.m. Reconvene  The Chair opened up Public Comment. Those who addressed the commission: Doug Tooley- Concerns about County'sprocess project meets standards for the rezone  Adrienne Christie, TOT Council - Neighborhood & community character, agrees the Christine Mitchell, Aldasoro family - The family is following their father's wishes. Vickers asked them to release the covenants. They are asking for denial ofthe rezoning. Rick Simonson, Specie Mesa Resident - Does not support the density and infrastructure  issues. Feels it is ini the wrong order.  Ashley Story, Aldasoro family - Wants the rezone denied  3IPage    Shanna Peterson, Aldasoro family - Against the rezone. Issues with DOLA application. Dan Enright, TOT Council - Please focus on the application. Speculative & hypothetical Melanie Brown, owner Deep Creek Meadows -] Inconsistencies in the application. Feels David Lavender, Deep Creek resident - Could have a profoundly negative impact on the Telluride region. Understands the desire to live here. Feels they want more affordable housing to build more hotels. Itisall about the money to be made. Against development in the region. Feels this will be the end of Deep Creek Mesa as we. know it. Dave Pressler, 3620 Last Dollar - Opposes the rezoning. He was limited on his construction and only allowed one well. Feels there needs to be more discussion and Virginia Luccarelli, 26-year Deep Creek resident - Against the rezoning. Feels itis moving too fast. Concerned with roads and traffic. Feels the project is not affordable. Jim Luccarelli, Vice-Chair of Telluride Fire District board believes the District was not consulted. Feels lack of planning and thought in the application. Talked of plane crashes in the area, not a safe location for the density. The no-left turn at the Spur is not an Sarah Lavender Smith, Last Dollar Road resident - Is for affordable housing but wants delays. Will change their neighborhood. Would like the area turned into a conservation Pam Bennett, Aldasoro sister- - Original ranch was zoned in the 1970s for low-density population and sheep grazing. In 1990. Aldasoro decided to utilize the reserved zoning and to downzone Deep Creek Mesa. At that time 300 acres were zoned for the airport and thei remaining area as Agriculture Forestry with one home per 35 acres. Likes the low density. PUD. Agreement with Vickers and Aldasoro shows on the Title Commitment and the property transfers. Asked the Planning Commission to support the memorandum Angie Peterson, Aldasoro sister- Feels all land is sacred. This location does not work for rezoning. This proposal that is before you is not with the keeping with the original plan or spirit ofI Deep Creek Mesa. It goes against what we as a family, and Jack Vickers agreed to when the potential golf fcourse was denied. Even with the denial, dad still had pending financial commitments toj pay off1 his sister Mary Louise. They were ranchers, not developers. Jack Vickers committed to buy the property even ift the golf course was denied. I assure you Jack Vickers stood up, shook Aldasoro's hand. They had a deal  Feels it was negligent not to include the FAA. development is not part of this application.  its should be delayed  participation. Requesting denial.  Urges a no vote.  acceptable choice.  easement and preserved for Open Space.  between Aldasoro and Vickers and deny the application.  4/Page    worked out with all the restrictions explained and agreed to. That handshake is memorialized in ai recorded document with both men's signatures. This is the why behind Diamond Ranch subdivision and sale to. Jack Vickers. Please hold Jack Vickers tol hisl handshake and signature. Aldasoro's are not NIMBYists, they want to be part of Scott Bennett, 4th Generation Local-Concern ofi fire danger in high density, water availability, and wastewater treatment. Struggling tol keep up with current and future water demand and there are no clear funding sources. Feels should consider alternate sites for Affordable Housing. Would like to deny or continue this application Erik Aura- Recreates in the area. Concerns of access to trails. Traffic concerns to the  the solution.  round-about; felt airport traffic was not included.  12:15 p.m. Break 12:24 p.m. Reconvene  Todd Creel, TOT Resident-There is a need for housing in the area. He was. hired by Jack Vickers in 2017 as his broker. Feels iti is a cart before the horse with this up-zoning. He stated Mr. Vickers had told him he wanted out oft the agreements with the Aldasoro family. Concerns about transparency and the availability of water. Lisa Henson-Concered about further rezoning on the mesa.  Amy Levek, long-time SMC resident- Has seen a lot of change in our community, and the last few years have been pretty brutal with people being displaced, gentrification, and other changes that have eroded the community. Housing is the basis for keepinga a community. This is ai rezoning application, not a development plan. Look to the future and replace much ofthel housing that has been lost in addition to: filling the need for affordable housing. The land does meet the feasibility of this use. Karen Lavender, Last Dollar Resident - Main concern ist traffic. The traffic makes students late to school. She is part of the three pioneering families ofthe mesa, Collins, Lavender and Aldasoro. Consider the history of their presence and that they are against Frannie Aura- Owns three businesses. Distressed regarding the alignment with. Jack Vickers. Feels lack of due process regarding the DOLA grant. Concerned with wildlife, especially elk. Requesting a no vote. Committed to Deed Restriction, just not here. Joanna Spindler- Supportive of the rezoning. Democracy at work. Feels these are visionary and collaborative efforts to build affordable housing. Feels the Planning Commission has used due process and aligned with years of desires for affordable  the application.  housing. Pushing affordable housing out is detrimental.  5Page    Rosie Cusack-Appreciates discussion. Feels that the consultants not living here. The rezone is not right for the community. Feels that Jack Vickers should rezone all his land Emily Scott Robinson- Supportive of the rezoning, Historically, the land was Ute lands before the white man' s history and the Aldasoro' s owned it. Feels our officials have worked sO hard to develop affordable housing and this is aj practical project. Jim Farrar, Deep Creek Resident - Feels that this process is not transparent. Jennifer Barker, Last Dollar Resident- Does not support the: rezoning. The mesa is a Carolyn Farkouh, Telluride resident- Feels community housing is not compatible with Deep Creek Mesa. Feels the mesa should be preserved, not developed. Feels could do Jesse Niethammer, works with water distribution in Aldasoro. Agree we need affordable housing. Concerns with environmental impacts on bringing water to the area. Concerned that the land cannot support this development. Objects to the rezoning. Laurie Collins, Deep Creek Road resident - Supportive of affordable housing. Concerns with increased traffic and railroading the covenant. Wants the process to be slow and Geneva Shaunette, TOT Council- Affordable housing is encouraged by the state. Water rights have to be approved by council and are ai really big deal. There were 77 letters of support. Many members oft the community are for this. Sometimes big problems take big spending to solve. There are valid concerns, ift there was aj perfect location the housing John Miller, Gold Run resident ofTelluride- Supportive ofthe project. Every project has Peter Lundeen- Housing, traffic, and wildlife are concerns. Need balance. Feels there is Debra Harvey- Concerns with large-scale and environmental impacts. Does not feel it is Nick Farkouh, on behalf of1 16: members of the Deep Creek Subdivision - Agrees with the opposition. Concerns about the process. Feels the pro-comments are: misleading and Facebook' like. Doesn'ti feel it is compatible with the surrounding zone districts. Morgan Smith- Filed a long written comment. Concerns about density and feels the  to help the community. Is for affordable housing.  jewel, home to wildlife. Concern for the elk.  better than what is proposed.  careful to avoid unintended consequences  would already be built.  impacts. Not many parcels are available this close to town. an need for further information. Against the rezone.  a good use oftaxpayer money.  community concerns are being ignored.  6Page    John Pandolfo, Superintendent of Telluride School District- The school district really needs affordable housing, iti is a big issue. Public housing is ofu utmost importance. Michael Saftler- The idea of affordable housing is at the forefront. Concerns with the process, water, traffic and expense. Wants to stop the process right now.  1:46 p.m. Closed Public Comment. 1:47 p.m. Recessed. 2:20 p.m. Reconvened.  The commission asked if water was considered in regards to fire suppression. Kevin Geiger confirmed that the demands for fire were included in the calculations. There would need to be a tank installed, similar to the one up Tomboy Road and in Two Rivers, to be used for fire The commission further inquired about the wildlife pathways, to which Gabby replied there would need to be a study and referral to the CPW with the development plan. It was also discussed that the FAA: and Fire District were notified as referral agencies, but did not respond. Questions were asked about a traffic report. There was only the letter submitted from the The commission was asked by Amy Markwell, County Attorney, ift they had enough information Ian Bald asked what the negative consequences would be ofhaving a continuance ofthis discussion. Kaye Simonson iterated that it would certainly affect the land purchase. Ift there is no rezone the land will no longer fit the goals for affordable housing and then the property would no longer be a viable choice for the town and county to purchase. She added that the rezoning is only the first step, and then there will be a full development process with ample public review. Matt Bayma inquired if the county had done any research on the private agreements. Kevin Geiger, TOT Attorney, responded that the property in question is not in the. Aldasoro PUD. There are some linked provisions. In regards to the agreement, iti is a private agreement, a personal covenant with no statement that iti runs with the land. They have done some analysis and iti is a contract between private parties and does not run with the property. Kevin also spoke ofsomei interesting developments in current case law, specifically a case involving the Town of Monument, and the government not being liable for the diminution of property when buying land for residential use as the government entity obtained the property for aj public purpose. The case looked at the nature of a private covenant and asked ifaj private covenant can restrict a governmental entity from exercising its legitimate authority to advance aj public purpose. The holding states, that where a governmental entity has obtained property for public purposes (affordable housing being aj public purpose) the government may use that land for aj purpose inconsistent with ai restrictive covenant without compensating all the other landowners who are subject to that restrictive covenant. It is as ift that restrictive covenant does not apply to the  suppression.  engineer that is in the application; there is no hidden traffic report. to make a decision to recommend to the BOCC regarding this rezoning.  7Page    governmental entity as long as they are advancing that public purpose. He continued that, one of the comments said that it has to go through a condemnation first and get a court to decide that is the issue. That is actually not what Monument says, it's the exact opposite. It says there is no compensable interest there. Iti is not necessary to go through a condemnation case as it doesn't exist. It doesn'trun against the government when the government is advancing aj public purpose. Once the town or county acquires that property to advance a genuine governmental purpose, that private, restricting covenant has no effect on the government as the owner oft the property. The importance oft the public process was discussed. The underlying zoning needs to be done before a development plan can be prepared. The commission spoke regarding how the creation ofthe Community Housing Zone was not for a specific property. As the housing crisis is very serious, the intent was for an opportunity for landowners to build affordable housing without going through extreme costs and processes to make it easier for a developer to create affordable Addressing the concern that this was a strategy for al back-door way for Mr. Vickers to get water. Kevin Geiger replied that there is a term in the contract that the Town would consider the extension of water to his remaining parcels. But itj just says, 'in good faith', which doesn't commit to it. Town Council would have to take the issue up and bej passed by Ordinance with the recommendation of the town manager and the planning commission. They could also impose Toby stated his concern with the pace oft the application. The commission also requested a site Ian Bald added that it is nice to see aj proposal that is not always sticking the workforce in MJ also added her thoughts that the rezone will change the Mesa, but we. need housing for the people that are here right now. She supports the rezone becoming effective at the closing. Concerns about the wildlife corridors and looking at traffic from the Deep Creek Road access. Josselin agreed with MJ, adding that we. are playing catch up on housing and there is an ethical obligation to house workers. We need to consider who has the right to live here, who gets to live Lee Taylor questioned the possibility ofcontinuing and what that would do to the grant process. Mike Bordogna, County Manager stated that more than a week's delay would put a monkey wrench in the process and compromises the closing date, causing the deal toj fall through. The  housing projects.  further conditions.  visit prior to the BOCC hearing. undesirable, shady lots.  here, and how hard it is to live here.  grant can only be given ift the property can be rezoned.  MOTION by Josselin Lifton-Zoline to approve Resolution No. 2022-01 and recommend the Board of County Commissioners approve rezoning a portion ofLots 1-A-R, 2-A, and 3-A, 1. The proposed rezoning complies with the standards ofLand Use Code Section 5-  Diamond Ridge, to Community Housing, based on the following findings:  1803, Rezoning;  8Page    2 The proposed rezoning is consistent with the Purpose ofLand Use Code Section 5- 324, Community Housing and the higher density that may be proposed is not incompatible with 3. The Applicant and Representatives have demonstrated that the Property can be developed in a way that protects the public health, safety and welfare, including the provision of water and wastewater treatment; mitigation of geohazards; site access; and mitigation ofimpacts on the environment, consistent with the purpose and standards ofLand Use Section 5-324  surrounding land uses, neighborhood characteristics or community character:  Community Housing; 4.  The proposed rezoning implements Land Use Code Article 2, Land Use Policies  and inj particular the policies of Section 2-29, Housing;  5. Thej proposed rezoning is consistent with Land Use Code Section 1-4, Purposes of 6. The proposed rezoning is consistent with and implements the Telluride Regional Area Master Plan, an element of the San Miguel County Comprehensive Development Plan, and inj particular Section E, Affordable Housing, int that it will help provide an adequate self- contained supply ofaffordable and community housing to meet the needs of seasonal employees And with the addition to the resolution to request that the application is re-sent to referral agencies asking for review and response prior to the BOCCI hearing, that CPW be added as a referral agency, and that a site visit be conducted prior to the BOCC hearing, and with a request that the planning departmentfolow-p with those referral agencies.  the Land Use Code;  and permanent residents.  SECONDED By MJ Schillaci  AMENDMENT requested by Lee Taylor to further require an opinion letter from the traffic consultant regarding traffic down to the spur and Deep Creek as it was not  addressed.  Josselin and MJ accepted the amendment. Josselin and MJ accepted the amendment.  AMENDMENT requested by Lee Taylor to add CDOT to the referral agencies. To incorporate those amendments and as finally adopted, the resolution included the following: "BEITI FURTHER RESOLVED that the application shall be sent to referral agencies asking. for their review and response prior the BOCC hearing; that CPWand CDOT be added as referral agencies; that a traffic letter be provided analyzing impacts on Deep Creek; and that a. site visit be conducted prior to or concurrent with the BOCCh hearing.'   Josselin and MJ accepted the amendment VOTE PASSED 3-2  Lee Taylor Ian! Bald M.J. Schillaci Tobin Brown  Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent  Josselin] Lifton-Zoline Aye Nay Abstain Absent Matthew Bayma Aye Nay Abstain Absent  9Page    4:00 p.m. Recessed. 4:10 p.m. Reconvened.  LAND USE CODE AMENDMENT:  Amending LUC Section 5-307 Forestry, Agriculture and Open (F) adding Social and Scenic Uses as a use subject to Two-Step Special Use Permit Review/MOTION Kaye Simonson began the presentation by describing how in the past year, the Planning Department became aware of properties being used for wedding venues in the Forestry, Agriculture, and Open (F) zone. LUC Section 5-307 lists the uses that may be permitted in that zone district, by right; by administrative review; by one-step Planning Commission review; by one-step BOCCreview; and by two-step Special Use Permit review. Renting of property for weddings and similar events is considered a commercial activity but there are no listed uses under which it might be allowed in the F zone. The proposed amendment would allow Social and Scenic Uses, which includes weddings and special events, on parcels larger than 35 acres.  4:28 p.m. Opened Public Comment Doug Tooley = Comment about noise orj just an administrative review.  Nicole Pietrese- In support. Consider amending LUC Section 5-307 F to add social and scenic uses for over 200 people. Do events under 200 people need commission approval Ashley Story - Commented that the LUC is not clear of the actual process to go through. DeLanie Young - Asked ift there was ai replat anticipated for Nicole's clients.  Pam Bennett - Supporting the 35-acre standard size.  4:38 p.m. Closed Public Comment  Kaye Simonson added that there has been a shift over the last several years in how property is being used. Staffis not interested in events for under 200 people being an administrative The commission asked ift this use is going toi increase with more events such as weddings  approval as each application can have lots of variables.  happening.  MOTION by MJ Schallici to recommend to the Board of County Commissioners to adopt the amendment to San Miguel County Land Use Code Section 5-307. D, Uses Allowed Subject to One-step Planning Commission Review and Section 5-307 F, Uses Allowed Subject to Two-Step Special Use Permit Review, to allow "Social and Scenic Uses" in the Forestry, Agricultural and Open (F). zone district, based on the finding that the proposed amendment complies with the standards ofLand Use Code Section 5-1802, Land Use Amendments, and is consistent with Land Use Code Section 1-4, Purposes of the Land Use Code, as follows:  1.  Amend Section 5-307 D to add:  XII. Social and Scenic Uses, such as a location for weddings, meetings, retreats, reunions, videoa and film photo shoots and commercials. on parcels containing  10/Page    thirty-five (35) acres or more, and with attendance oftwo hundred (200) or fewer  guests.  2.  Amend Section 5-307 F to add:  XV. Social and Scenic Uses, such as a location for weddings, meetings, retreats, reunions, video and film photo shoots and commercials. on parcels containing thirty-five (35) acres or more, and with attendance of more than two hundred  (200) guests.  SECONDED by Josselin Lifton-Zoline. VOTE PASSED 4-1  Lee Taylor Ian! Bald M.J.: Schillaci Tobin Brown  Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent  Josselin Lifton-Zoline Aye Nay Abstain Absent Matthew Bayma Aye Nay Abstain Absent  APPROVAL OF MINUTES  MOTION by MJ Schillaci to approve the March 10, 2022 minutes as presented.  SECONDED by Ian Bald. VOTE PASSED 5-0.  Lee' Taylor Ian Bald M.J. Schillaci Tobin Brown  Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent Aye Nay Abstain Absent  Josselin Lifton-ZolineAye Nay Abstain Absent Matthew Bayma Aye Nay Abstain Absent  4.54 p.m. Matt Bayma left the meeting.  PLANNING COMMISSION AND STAFF COMMENTS 1.) May meeting will be on May 12 at the Norwood library 4.)LUC Code Amendment for the mitigation fee  2.) SUP application in Placerville 3.)Norwood area SUP 5:00 p.m. Adjourned.  Respegffully Submigfed,  4  Nancy  Attorney  Approved on June 9, 2022.  Wak  SANI MIGUEL COUNTY PLANNING COMMISSION  aieitisei M.J. Schillaci,Secretary  :PCI Planning CommissionPCI Mnoalimaisasy  11Page