Only a couple of hangers-on were present Monday well past 10 p.m. to witness the Ketchum City Council enact ordinance changes that will bring about different building designs, more affordable housing and, possibly, more hotels.
The council approved multiple text amendments, added a new chapter for workforce housing linkage and replaced the entire chapter governing the Community Core zoning district, culminating months of work by elected officials, city staff and consultants.
The council took a defibrillator to zoning and design ordinances, hoping to restore vitality to the heart of Ketchum—a town that is seeing its full-time residents move south, its businesses struggle and its sense of community wane.
Residents and affected parties attended a half-dozen meetings on changes to the city's zoning and design regulations since the proposals landed at the council's feet last month.
The latest round Thursday, Oct. 26, Friday, Oct. 27, and Monday, Oct. 30, provided a final forum for debate, revisions and finishing touches on the ordinances, which the city hoped to pass before Election Day, Nov. 7. On that day, voters statewide will decide the fate of Proposition 2, an initiative that would force counties and municipalities to compensate property owners when zoning changes devalue their land.
While Ketchum a year ago launched a multi-pronged attack on the city's problems, city officials were hastened by the looming deadline.
Critics of the expedited process included former Ketchum Mayor Ed Simon, an attorney.
"It's a poorly written initiative, and it's causing panic," he said Monday. "I think you're on the right track, but I caution you."
The council said it was moving fast, but not ignoring due diligence.
"Originally, I shared your concerns," said Councilwoman Terry Tracy. "As we started to get into the process, I became more committed to (it) and more comfortable with it. What Proposition 2 did for us is set a deadline. We tend to work at glacial speed. This motivated us."
Mayor Randy Hall agreed, saying the process had been underway for a year.
"Although it sounds like this is a knee-jerk reaction to Prop 2, it isn't," he said. "We were already part way through the downtown master plan."
Although the council approved seven ordinances Monday, much of the public comment centered around affordable housing requirements.
The city is looking at two ways to increase affordable housing: inclusionary zoning and linkage. The former applies to the community core, Tourist and General-Residential-High Density zones. It requires 20 percent affordable housing for the increase in square footage above set minimums for each zone. Workforce housing linkage applies to all new development city-wide. It would require developers to mitigate for the housing demand that new construction creates.
Developer Steve Burnstead, who owns the Bald Mountain Lodge site on Main Street, said enacting too high an inclusionary zoning requirement could derail his, and other hotel developers', plans.
"(Inclusionary zoning) is really a disincentive," he said Thursday. "You need to allow a residential component, and you shouldn't burden it. You already have linkage."
Ketchum officials have stated repeatedly that they want to provide incentives for hotels. Developers have stated repeatedly that incentives need to be more than just allowing market-rate residential units in the projects.
"These are very expensive buildings," Burnstead said. "You cannot pay for them just renting them out 50 percent of the year. We have to compete with Sun Valley. You guys are putting road blocks that may be destroying the economic model ... someone is trying to produce for you."
Ketchum officials later added more flexibility to the code for hotels.
Tom Nickel, owner of Ketchum's Sawtooth Club and Roosevelt Tavern, advocated for affordable housing ordinances, saying personnel retention is his most difficult task.
"It's far and away the toughest and most time-consuming part of my job," he said Monday. "The system needs help."
He added that the "very fabric of our town" is in jeopardy.
"(Diversity) keeps things more vital and way more interesting," he said.
Mayor Randy Hall agreed that affordable housing is necessary not only for a lively community, but for essential city services.
"We can't even hire police or firemen to protect the people of Ketchum," he said. "I think we're on solid ground here when proving findings for this ordinance."
To offer incentives for the creation of affordable housing units, the city has increased the allowable density for projects in the core, the General Residential-High Density and Tourist zones. The city also relaxed parking standards and building coverage requirements.
The city approved a form-based code system that includes a floor area ratio cap. Floor area ratios regulate a building's volume in relation to its lot. The maximum FAR in the core is now 2.25. Developers won't be subject to inclusionary zoning if they build a smaller, 1.0 FAR building. Anything above that will be subject to 20 percent inclusionary zoning for the building's total square footage, including additions.
While some property owners argued that the affordable housing requirement was unfair because it forced them to subsidize other people's housing, council members defended the 2.25 number from those who wanted it higher.
"There's a large segment of this community that's afraid of and opposed to larger buildings," said Councilwoman Terry Tracy.
"Ultimately, I wanted more," said Councilman Steve Shafran, "but I'm very supportive of where we are."
Property owners in the Tourist and General Residential-High Density zones will also be affected by ordinance amendments.
New development there can have a maximum 1.6 floor area ratio and a minimum of .5 FAR. Exempt from inclusionary zoning requirements are buildings less than .5 FAR or 5,000 square feet, whichever is greater. Anything between .5 and 1.6 is subject to 20 percent inclusionary zoning. The exemptions were added to not overly burden owners of smaller properties with inclusionary zoning and linkage fees or construction.
"We're taking a huge step," said Councilman Baird Gourlay. "In my opinion, we're making moves that have never been made in this city."
RANDY HALL Photo by David N. Seelig
