ISSUE # 44 .... AVH Expansion: Community AdvANTage or Fiscal Over-Reach?

"The advantage that hospitals have over other institutions is that hospitals are community-based. You can't outsource your work; you can't move your emergency department to Pakistan."     -- Mark Shields, columnist "In nothing do men more nearly approach the gods than in giving health to men." -- Cicero

 

This issue of The Red Ant is focused exclusively on Aspen Valley Hospital (AVH) and its proposed expansion.  There are many public benefits of such a grand plan, however there are also many weighty concerns worthy of community discussion and consideration.  Please be sure to read the new "Community Voices" section at the end of this issue.  

AN OVERVIEW OF WHAT'S GOING ON AT AVH 

It's 2010 and Aspen has outgrown its 25-bed community hospital.  Built as an in-patient facility in 1977 -- and given the shift to far more outpatient services today -- our aging community hospital has developed inefficiencies: overcrowding, lack of patient privacy and inappropriate patient encounters.  The Aspen Valley Hospital expansion master plan cites a focus on the decompression of existing space.  According to AVH leadership, with contemporary design and function standards, a new and upgraded AVH will be better positioned to address the medical issues already being treated there.   Aspen Valley Hospital is currently seeking city council approval for Phase 2 to further expand its facility and improve its existing services with a major outward and upward overhaul.  As part of a proposed 7-year timeline, Phase 2 would be the largest of the four phases, tripling the size of the 33-year-old facility from 70,000 to 215,000 square feet. Phase 2 would address patient privacy issues with new wing of private rooms, creating a logical segregation of services that improves the internal "flow" of the facility and the establishment of critical infrastructure for potential future expansion.   

THE PHASES

The expansion plans would create a health care "campus" on AVH's existing site, including the expanded hospital itself, medical office space, affordable housing and additional parking.  The phase-by-phase improvements are designed to take into account realistic expectations of what can be achieved while simultaneously managing the challenge of not disrupting services and compromising safety during construction.   Notably, each phase was designed to offer self-contained threshold improvements that can stand alone.   

PHASE 1:  Expansion and Renovation of Obstetrics - DONE (2008)

PHASE 2:  Improvements to zoning, segregation of internal traffic flow, privacy and space for operations such as upgraded patient care (from 25 to 36 refurbished private rooms), cardiac/pulmonary rehab and physical therapy relocated to a second floor, same day surgery moved to contiguous space with other surgery, relocation of food service and dining, 12,000 s.f. of medical office space, a basement receiving dock, a 220-space parking garage, affordable housing and site work (loop road and storm water retention ponds).  Currently in the approval process. (2010-2012)

PHASE 3:  New emergency department, new imaging department, expanded surgical operations, the remaining 15,000 s.f. of medical office space, an elevated helicopter pad above the ER, a new ambulance entrance and garage, and basement space for storage and non-clinical operations.  (2013-2015)

PHASE 4:  A new front entrance, new registration/admitting area, better-located outpatient services, and completion of garage and external traffic operations.  (2015-2016)  

DOCTORS' OFFICES AT AVH?

The AVH expansion proposes the addition of 27,000 square feet of medical office space in the new facility.  Designed to provide superior doctor-patient access, on-site medical office space is a new standard for modern hospitals.  But is this medical office space really needed at AVH?  At council's direction, city staff is currently looking into how much medical office space already exists in town. Meanwhile, The Red Ant has determined that 27,000 square feet is the equivalent of 2 x the Music Tent (seating area). As for the demand for such space, according to AVH sources, several local doctors have made early commitments to rent the new space.  (As a tax-supported public entity, AVH cannot under-cut market value rents in town to fill their space.)  The Red Ant thinks that on-site medical office space is a luxury that, frankly, we don't need, (especially given the additional mass and scale it would add to the facility), and cannot afford.  

THE IMPACT OF OTHER HOSPITALS IN THE AREA

AVH is a small community hospital, essential to our community for general acute care such as general surgical, medical and outpatient service.  Lucky for Aspen, AVH offers more than most community hospitals do, such as a fully-capable OB service, a non-invasive cardio program, a very strong orthopedic surgical program, chemotherapy services, trauma certification and a variety of state-of-the-art diagnostic tools.    Acknowledging that the duplication of services with nearby hospitals is a bad economic model, AVH leadership states their commitment to "managing the delicate balance between meeting the service-based needs of our community and keeping focused on what we do well."    There are several established medical centers within a 100 mile radius of Aspen.  Our proximity to world-class care in the region is well known, which has definitely raised concerns about our local needs vs. our willingness to travel to have them met.  It also raises the question of AVH's need (desire?) to compete with nearby facilities:

• Valley View Hospital (Glenwood)
• Vail Valley Medical Center (Vail)
• Shaw Regional Cancer Center (Edwards)
• Steadman-Hawkins Clinic (Vail)
• St. Mary's Hospital (Grand Junction)

AVH leaders reiterate that the hospital expansion is not intended to add services already provided by nearby hospitals, highlighting that in many cases, AVH already has strong relationships and collaborates extensively with Valley View in Glenwood, sharing specialists in urology, gastroenterology, ear-nose-throat, neurology and oncology. In addition, AVH regularly refers patients to Valley View's cath lab which compliments our cardiology program, as well as additional referrals to Shaw, St. Mary's, University of Colorado, Swedish and Presbyterian St. Luke's (in Denver), and such national centers as the Cleveland Clinic.   AVH also works with specific programs like Sally Jobe for breast health and Blue Sky Neurology at Swedish for their stroke program which provides real-time consults to the ER here.   But note, Valley View Hospital's CEO Gary Brewer recently told the Post Independent that the recent approval for the sixth and final phase (143,000 s.f. total -- 29,600 of which is a cancer center) of their 10-year expansion "will be the first step in moving the hospital ahead into the future as a regional health care facility."  If the valley is to soon have a large, brand spanking new "regional health care facility" 40 miles down the road, what do we REALLY need here in Aspen?  Shouldn't this factor into our local decision-making?!      

SHOW ME THE MONEY

Taking into account the uncertainties in our world today, just how big does AVH need to be, how much will it cost and frankly, most importantly, who will pay?    Projections at this stage are that the 4-phase AVH campus development will run in the neighborhood of $120 million.  For now, however, the only consideration on the table is Phase 2.  (The $6.5 million Phase 1 obstetrics center was completed in 2008, paid for with the remaining funds from a 2003 bond issue and hospital cash.)  AVH leadership is looking at a 4-pronged financing plan for its future expansion phases:  cash on hand + revenue bonds + philanthropy + general obligation bonds.    These numbers are a rough example, but consider:  the hospital currently has about $43 million in cash on-hand.  But, unlike the leadership at the city-owned Wheeler Opera House, AVH realizes that it cannot simply throw all this cash on-hand into the construction bucket.  Rather, AVH knows that it needs a minimum of 180 days worth of cash on-hand at all times, which is approximately $28 million.  So there is around $15 million available for Phase 2 from this source.  Then, given its bond rating from Moody's of BAA3 (which is based on operating revenue projections), AVH could raise approximately $26 million through revenue bonds.  These revenue bonds would be paid off through operating revenues of the hospital itself.  So, call it about $40 million currently available for Phase 2, without raising a nickel through philanthropy or general obligation bonds (the kind that we approve at the polls and repay with property tax increases).   The Red Ant has recently met with AVH leadership, and they assert that they will contract for and construct only that which they have the money to pay for -- the difficulty being that they don't yet know the final cost estimates and funding capacity of the four sources of funds.  One thing is certain, they say -- the funds that are available will be allocated to a construction scope that results in a finished stand-alone project, but many variables are "still in play."  (Especially the variable that includes the potential need for general obligation bonds.  Without knowing the costs, this will very likely enter into the near-term mix.)   In its typical, inimitable and predictably fiscally irresponsible fashion, the city planning department informed council before its first public hearing on Phase 2 that "concerns such as how the hospital plans to pay for its expansion and its policies related to treatment of patients with Medicaid and Medicare should not be considered" when evaluating AVH's Phase 2 expansion proposal. The Red Ant cries, "Horse-pucky!"  Our elected representatives should absolutely take "the money issue" into account.  If there is to be even the slightest, shortest, fleeting consideration of EVER needing public funds for a project, the "who pays" question is as important as any other consideration.  If AVH can independently, privately bring some version of Phase 2 to fruition, this too should be taken into full consideration.  

KINDA PREGNANT?

What the community does not need after a potential go-ahead on some version of Phase 2 is a "there's no turning back now" scenario that mandates further, immediate construction, and worse, general obligation debt financing to "complete" the project.  The Red Ant fears an immediate (and likely) rush to get a bond measure on the next ballot for Phase 2.  Will the push for approvals and financing for Phases 3 and 4 (and specifically the bonds needed to fund them) then begin as soon as work on Phase 2 gets underway?  Will the community be given time to assess the needs for further expansion before said expansion begins?  The aggressive timeline indicates no.  The timeline should definitely change.  

MORE AFFORDABLE HOUSING!?

As with any development project in town, yes, you can bet there is yet another affordable housing mandate built into the AVH expansion plan.  Early estimates have the design and construction costs at $5-$6 million. (Affordable for whom? That's a minimum of $227K/unit subsidy!)  If it must be so, The Red Ant appreciates that the 22 units would be studios and 1-bedroom units for working professionals of the hospital itself.  (With AVH retaining ownership of the units and renting these to their employees, the horrific issue of unit neglect and no oversight of HOA management/reserves that plagues much of the local "owned" affordable housing becomes moot.)  On the other hand, however, much like affordable housing throughout the valley, the AVH housing stands out like a sore thumb -- high-density, bright lights in a rural setting -- and is distinctly the blight of the AVH campus.  The good news is that council recognized this at the first public hearing and the mass and scale is likely to be reduced. But really, is this affordable housing really needed? On-site? At this stage?  

COMMUNITY APPROVAL - TIMELINE

• Council conceptual approval of the Master Plan (May 2009)
• P&Z approval of the Master Plan (April 2010)
• Council approval of Phase 2 (meetings begin June 2010) 
• Voter approval specific to funding (bonds) - TBD
• Council approval of future expansion phases - TBD

AVH: SOME SERIOUSLY GOOD STUFF....

An update of the AVH facilities seems absolutely appropriate at this stage of its lifecycle.  If you've been there as a patient or visitor, you know why.  And the proposed contemporary layout and design standards will surely improve service and care.  Plus, these upgrades will likely enable AVH to attract and retain the best doctors and staff.  We are very fortunate to have such an exceptional community hospital here.  And this is as good a time as any to consider and weigh the decisions about a partial or full-blown hospital expansion.  The Red Ant says, "Good work, AVH. You have demonstrated significant improvements in fiscal discipline in recent years, and your willingness to step forward with significant private contributions for a sizable facility upgrade is a noteworthy sign of your on-going commitment to the community."   

AND THINGS THAT MAKE YOU GO HMMMMM....

The time to ask the hard questions is right now.  It is imperative that we collectively gain comfort with the answers and contingencies -- for the current proposal as well as AVH expansion beyond Phase 2. 

• Are there future commitments and risks that we're not recognizing or weighing as a community or as Aspen property owners? 
• 27,000 square feet of on-site medical office space?  This may be how it's done at state-of-the-art medical centers elsewhere, but do we really need this additional density (not to mention expense) at AVH, especially given the commercial office space vacancies in town?
• In the evolving "new healthcare environment," what happens if/when AVH is told what they can charge for services and therefore cannot generate enough operating revenue to service their revenue bonds?  Who then picks up the tab?
• Currently 22% of AVH's patients are covered by Medicare and Medicaid, and the hospital writes off $2.5 million in unpaid patient billings each year.  What happens to AVH's ability to sustain its high level of service and projected revenue if/when both of these numbers increase dramatically?
• With a 4-phase planned build-out, is the risk not ultimately being borne by the taxpayers?  Is this facility being funded by the people who need the services, or is there some coercion by parties that will not be held accountable down the road?
• Would the size and structure (and scope and cost) of the project be any different if it were financed strictly with private dollars?  (Fiscal discipline with private vs public dollars is often self-regulating.)
• Given the imbalanced demographics of the Aspen electorate, general obligation bond issues usually pass.  Can Aspen's tax-paying property owners sustain/justify/afford the increases in property taxes to commit to and complete a 4-phase AVH campus build-out in the current economy?
• Do we really need more affordable housing, or is this just a standard government mandate?  In recent years, the supply-demand dynamic for affordable housing has changed dramatically. Wouldn't $5-$6 million, if it were available, be better spent by the hospital specifically on the community's healthcare needs?
• The developers have done a notable job fitting this 215,000 square foot facility into the hospital's current 19-acre Castle Creek Road location.  But just because they can do it, does this justify the added density at our gateway to the Maroon Bells and Ashcroft?

THE RED ANT SUGGESTS:

Aspen is a community that loves its entitlements.  And a modern, state-of-the art hospital certainly fits that bill.  But, Phases 1 and 2 sound like they're nearly covered - privately (in the financial sense).  For what's not economically feasible with available (read: private) funds for Phase 2, hold off.  Lose the medical office space, push back on the affordable housing, and downsize the parking to complete Phase 2 without going to the taxpayers for general obligation bonds. We surely can't trust city council to recognize that general obligation debt financing is anything other than free money!  

Besides, at the completion of Phase 2, the hospital will be fully functional and a major improvement to the existing facility.   If Phase 2 is all the community wants (and is willing to afford), Aspen will still have a world-class hospital with logical and efficient flow, private patient rooms, cardiac rehab, improved physical therapy and significant fixes to surgery (without rebuilding it).  There should be no rush toward further expansion until Phase 2 is complete and its contributions and solutions are assessed.  With this new infrastructure in place, future expansions are certainly possible.  But let the community decide.  In due course.  

Additionally, The Red Ant has recently learned of AVH's "next" expansion  effort -- above and beyond the aforementioned $120 million project.  It seems that the Aspen Medical Foundation has recently commissioned a study for a separate, large "continuum of care" facility on another nearby site.   This project will be comprised of 100 units for independent living, 40 assisted living units and 20 nursing home units.  Yes, it's true -- our demographics are definitely changing.  And this could likely enable AVH to convert the Whitcomb Terrace Assisted Living facility next to the hospital into affordable housing instead of building the new structures, but "Whoa, Betty!"  This is an enormously ambitious financial undertaking for our community in a tough economic environment!    The Red Ant does not see debt financing as free money -- probably because it's not.  AVH's ambitious plans are clearly on the fast track for public financing.    Let's get ahold of this runaway train.  

COMMUNITY VOICES - NEW!!

The Red Ant is pleased to introduce a new feature that presents citizens' perspectives on the critical issues.  Please enjoy and consider the contributions of Aspen Valley Hospital CEO David Ressler followed by AVH neighbor and businessman David Ducote on the subject of the AVH expansion:  

• RESSLER

The current Aspen Valley Hospital facility was built in 1977, at a time when services were oriented toward inpatient care and longer lengths of stay. At the time, Aspen already had a substantial need for emergency and trauma services, thus resulting in a sizable emergency room for the size of the community. In addition, the hospital was ahead of its time by having included several private patient rooms, with the remainder of the rooms having two beds. The hospital was located on a beautiful large campus on the outskirts of town, with easy access for the community and plenty of room to grow and expand as needs would later dictate.  

Today, the facility is over 30 years old and is no longer a contemporary example of a modern hospital plant. Healthcare is no longer delivered in the same manner as it was 30 years ago, and there are technologies/services provided today that did not exist when the facility was designed and constructed. Consequently, as patient care has increasingly shifted to an outpatient environment, and as new services and technologies have been acquired to better meet the needs of the community, the facility has undergone a transition in which the outpatient departments have invaded former inpatient spaces.  

The impact of the invasion of inpatient space is that the hospital is now improperly "zoned." Inpatient, outpatient, service and public purposes are all inappropriately intertwined and commingled. In addition, there is inadequate space in virtually every department for modern patient-centered care, evidenced by a lack of privacy and "mix" of inpatients and outpatients.  Curtains are often the only barrier between patients while walls are now the contemporary standard.  

In 2005, the AVH Board of Directors commissioned a needs assessment to evaluate the facility's adequacy and determine if a "right-sized" hospital could be located on the existing site. The results of the needs assessment, which assumed the same breadth of services over a minimum 20-year time period, demonstrated that virtually every clinical department is approximately half the size that it should be by today's healthcare standards.  

In addition, it was determined that the hospital campus should incorporate medical office space and co-locate local physician practices within the hospital they clinically support. This is an essential component of a modern healthcare campus and enables timely medical and surgical care to patients. Also, it affords patients with access to modern physician offices with the availability of the full range of diagnostic tests available on-site. 

Finally, the needs assessment determined that the existing hospital campus was the best site for expansion.   The Master Facilities Plan is the product of these efforts and represents a phased approach to achieving a modern and appropriately sized facility based on contemporary standards. It also achieves the explicit board-directed goals of being environmentally responsible and sensitive to the neighborhood and community impacts of light, noise and views.  After a great deal of input and analysis, and with the support of the staff, it has been designed to serve the medical needs of the community for decades to come.   

• DUCOTE

I writing to express my concerns related to the proposed Aspen Valley Hospital expansion adjacent to the Meadowood Subdivision.  Meadowood is a low density neighborhood with vast open spaces, excellent views and a general feeling of integration into the natural landscape.  Meadowood also maintains a large open area (adjacent to the existing hospital facility) for recreation, hiking and cross country skiing.  This area is for the benefit of Meadowood residents and the general public.  

Unfortunately, the scale and scope of some commercial facilities adjacent to Meadowood do not adhere to the benign characteristics of a residential neighborhood.  The high school and hospital are both standouts in their respective visual impacts on the area.  However, despite the size, unattractiveness, traffic demands, servicing requirements and other operational impacts of these types of facilities, hospitals and schools are clearly necessary institutions in a well-functioning community.   The hospital expansion, as proposed, crosses the line between functional community services and related infrastructure which are responsibly planned -- into the area of public sector fiscal and aesthetic recklessness.  

The hospital seeks to develop operational capacity so that it can effectively compete with newer, more efficient alternative health providers down valley.  In addition to simply serving the primary community, the institution also wants to become a health services "destination."    The fact that a proposal of this enormity is in process without material input from adjacent residential homeowners is beyond comprehension.  In a municipality that micromanages every aspect of development and regularly intrudes on the private property rights of its citizens and property owners, how is a project of this financial and environmental scope sailing along without the typically arduous (and frequently ridiculous) obstacles placed upon other private developers?  

I suspect that part of the explanation is that the quasi-public nature of the hospital, coupled with the umbrella of public need, effectively "immunizes" the institution and its plans from proper scrutiny.  This should not be the case.  The hospital expansion should be subject to the same public scrutiny, impact assessments and financial viability tests as any other project. 

While the proponents will advocate that this exercise has been undertaken, the fact is, it has not.   If a developer wanted to put 85,000 square feet of new retail, a 12,000 square foot office building, a 220-space garage and 22 condos on the hospital site, would we be having the same discussion?  The fact that the hospital provides a necessary public service may mitigate traditional barriers to growth encountered in the Aspen community.  It does not eliminate them.  

The Aspen Valley Hospital project needs to be completely re-assessed.  The hospital is aged, improperly sited and an outgrowth of ineffective historical planning. The expansion is a huge economic bet where administrative bureaucrats are putting substantial taxpayer dollars at risk in an uncertain environment.  It is also too big and too detrimental to an area surrounded by residents, wildlife and untouched natural landscape.  The "compounding" nature of the hospital's requirements, in that primary hospital space expansion begets the office space need which begets a huge parking requirement which all allegedly begets the criminally stupid 22 subsidized housing units, makes this project untenable as planned.   Please seek a more rational and balanced approach to accommodating the healthcare needs of the Aspen community.    

THE NEXT COUNCIL MEETING

City council will be meeting again on the subject of the AVH expansion, Phase 2, on Monday, June 28, at 5:00pm at city hall.  There will be time for public comment.  The Red Ant encourages you to attend.

ISSUE # 43 .... Aspen's Public ServANTs Run Amok

"The difference between genius and stupidity is that genius has its limits" --  Albert Einstein

THEY LOST UNDERPANTS??

Readers of our local papers nearly choked on their morning coffee last week when both fish-wrappers lead with bold headlines on the results of a recent independent audit of operations at the Aspen Police Department.  It seems that over 75% of randomly selected criminal cases proved to have had errors in the collection, cataloging and preservation of evidence!  Weapons, drugs and cash could not be found, nor could a couple of mini-skirts and a pair of undies.  No joke.

Auditors call the error rate "unusually high."  Ya think?  The Red Ant calls it sloppy, irresponsible and unacceptable.  But not surprising.  The APD, after all, reports to our esteemed city manager, Steve Barwick, who continues to demonstrate his ineptitude and lack of management capability.  (Never mind council recently rewarded Barwick with an employment contract worth $170,000/year -- see Issue # 41:  ObservANT of City Hall).

The audit was ordered by police chief Richard Pryor, in his third year in the role.  (It seems that a recent case prosecuted by the D.A. was compromised by APD evidence management problems.)  Apparently this is the first audit in APD history.

In addition to completely overhauling the evidence procedures, auditors recommend that the APD get accredited with the Colorado Professional Law Enforcement Standards.  It would not only reduce the cost of police insurance for the city but would also demand high standards of our police force.  (Scary to contemplate the existing standards, isn't it?)  While The Red Ant gives kudos to Chief Pryor for this open and transparent effort to improve the APD, the hesitancy to expedite this important accreditation because its adoption "might not jibe" with the APD's "traditionally unique style" is nothing short of outrageous.  You're the police!  Serve and protect, remember?  Get over this "unique style" B.S.! Law enforcement should not compete with Boogie's on style points!

SAVE THE SLICE!

While the APD takes independent steps to potentially improve itself, council takes steps to squash entrepreneurship and protect select businesses.  Who knew that Torre, our one-named tennis-teaching man-about-town councilman, was a Keynesian economist?!  The Red Ant was certainly surprised!  Flummoxed by the inception of Frank's (a food cart that serves hot dogs, bratwurst, chicken sausage and lobster rolls at the corner of Mill and Hyman), which was recently issued a business permit by the city, Torre led an effort for council to scrap Aspen's food cart program entirely.  Not only does he not see how food carts and Aspen "mix," he also worries that the young proprietors' new venture might take business away from New York Pizza.  What?  So now council makes policy decisions on whether or not their favorite late-night pizza joint might be challenged?  Puh-lease!

Not only do food carts have strict compliance requirements with environmental and health regulations, they must also work out of a licensed kitchen and have the blessing of adjacent property owners.  In the case of Frank's, those neighbors include an art gallery and a fur store.  Torre doesn't like that at all.  "That doesn't work out well," he lamented to the Aspen Daily News, adding nary a word about healthy competition and that "messy vitality" that our local government so regularly espouses.

In addition, Torre is quick to point out that Aspen has plenty of low-cost food options.  What?  Wasn't it just two summers ago that council was so concerned with a decline in "locally-serving businesses" that they mandated one!?  (See Issue # 4: Welcome, Chairman Mao's Diner.)  So do we or don't we?  Or does council just want to prop up the businesses of their friends and thwart the efforts of newcomers?  Get back to work on the real issues, guys.  (Do you even know what those are?)

It's only a matter of time before Torre the Keynesian brings TARP and bail-outs to Aspen's restaurant scene.  After all, New York Pizza is simply too tasty to fail.

SPEAKING OF AUDITS ... HOW 'BOUT ANOTHER?!

Hmmmm.  The Red Ant wonders just how APD Chief Pryor managed to commission that approximately $5500 audit.  (The city is not fond of outside audits.)  Given the poor results, this further demonstrates why the city is not only loathe, but fighting tooth and nail to prevent an independent audit of its 2009 municipal election.  If the police department can have such problems, just imagine what's being hidden in the city clerk's office!

It's already been shown that city officials know how Aspen citizens voted.  This violation of state and election laws is just the tip of the iceberg.  For one thing, it's likely been the case for many, many years.  But that's not all.  The city is fighting Marilyn Marks in court on her open records request to examine the scanned ballot images in order to test the interpretation software. They're in deep-bandini with the District Attorney who is looking into the very complex issues concerning violations of state law, election law and Aspen's municipal code -- and will determine based on the findings whether or not criminal charges are in order.  Also, the election commission (that notably has equal power to council) has collected numerous citizen complaints and allegations against the city clerk including: making special "early voting" arrangements for some (not all) citizens, not requiring that voter ID's be checked at polling places, using an uncertified voting system, ignoring the tabulation of write-in votes, and conducting a non-anonymous ballot election, among other negligence.  The election commission is currently wading through the deep and treacherous waters of election mismanagement claims while council hopes these will all disappear (or at least be swept under the rug) when they place a "keep vs. repeal IRV" question on November's ballot.  Right.

Working feverishly at the behest of council (including mayor/lawyer-who-has-barely-practiced, Mick), city attorneys Worcester and True are laboring to defend the city clerk against all of the negligence and mismanagement claims -- at taxpayer expense.

There is a very simple solution.  Conduct an independent audit.  That's all.  Just do it.  The results will be embarrassing.  But then admit, apologize and make changes to correct the mistakes so they don't happen again.  If the APD can do it, so can the city clerk.  Then begin to rebuild the public's trust in our municipal elections.  Until then, city leadership just looks guilty.  Really guilty.  They're fooling no one.  Remember Queen Gertrude in Hamlet?  "The lady doth protest too much, methinks." 

(NOTE:  The upcoming primary on August 10 and election on November 2 are thankfully coordinated by the Pitkin County Clerk.  This is entirely different from the kangaroo court in the clerk's office at Aspen's City Hall.  For more information, visit www.pitkinvotes.org)

THE RED ANT SUGGESTS:

Despite this weekend's chilly reminder that we live at 8000' and the weather is indeed mercurial, summer has finally arrived in our fair little city.  The annual Food & Wine festival is upon us. And as you dust off your hiking boots, get air in those bike tires and sharpen your garden shears, The Red Ant wishes to remind you of several wonderful Aspen summer sights and sounds, treats and traditions that are not to be overlooked in what is always our shortest season:

• The most beautiful patio in Aspen is at Cache Cache.  Nobody's outdoor dining has such a setting, and the flowers there are simply the best around.
• The Garden Terrace at the Hotel Jerome has a list of wines by the glass that alone warrant a stop at Aspen's crown jewel.
• Don't forget to pick up "The Salad with Chicken" to-go from The Big Wrap and enjoy a picnic on a bench along the mall.
• There's nothing like an iced cold lemonade on a hot day from Paradise Bakery.
• Get there early for a happy hour drink along the sidewalk at LuLu Wilson.
• Yay! The Red Onion is back!
• Enjoy breakfast outside at Main Street Bakery - it's always worth the wait!
• Aspen's Saturday Market begins Saturday, June 19.
• Hang out with coffee at Peach's, on Aspen's "see and be seen" corner at Hopkins and Galena.
• Don't miss Aspen's old-fashioned 4^th of July Parade, at noon.  Salute our vets, wave to kids on the floats and laugh out loud at the preponderance of Pugs.
• Before July 18, take time to experience the Aspen Art Museum's "Restless Empathy" exhibit - an eight-artist exhibition on view throughout Aspen.
• There is no better way to spend an afternoon than with wine and cheese on the lawn at the music tent.
• Re-visit our treasured Victorians with an early evening walk through the west end.
• Make at least one "loop" through the Hunter Creek Valley while the wildflowers are in bloom.
• Refresh with "grown-up" lemonade at Ajax Tavern.  (Yes, The Red Ant likes her lemonade!)

How can summer in Aspen not make you smile?  Let the fun begin!  Enjoy!

ISSUE # 42 .... Ever VigilANT in Aspen

"One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors."       --- Plato

 

CITY HALL: A TARGET-RICH ENVIRONMENT

The Red Ant endeavors to bring you several future issues that cover critical, high-profile and often spendy projects and programs that affect our lives in Aspen.  The research and interviews are well underway.  But Aspen's city hall has an uncanny knack for interrupting these efforts with discussions and decisions that are often not to be believed, and as such, warrant coverage in interim issues.  These guys put the "fun" in dysfunctional!

CONSTRUCTION IN ASPEN: MAKE IT DIFFICULT AT ALL COSTS?

Nearly one year ago, The Red Ant learned of a unique building permit promotion that the City of Denver had successfully enacted.  In short, between June 1 and July 15, 2009, the city offered free building permits (valid for 180 days) that were issued on the spot to citizens or their contractors.  Mayor John Hickenlooper stated the objective of the promotion as "an effort to stimulate the local economy by offering an incentive for residents to make improvements to their property."  Common improvements to single-family homes and duplexes included basic interior remodels, basement remodels, roof repairs/replacements, central heating/A-C installation, solar panels and stucco/siding.

The results were impressive.  Denver pulled 1,234 free building permits for $6.2 million worth of construction during the 7-week promotion.  This was a savings to citizens of $85,000 in permit fees.  The average daily volume for qualifying permits increased 3-fold. 

I immediately presented this information to council during the public comment period.  Surely it would have been a signal of good faith from city leadership, not to mention a boon to local plumbers, carpenters, dry-wallers, electricians and roofers, for Aspen to jump on a similar free permit bandwagon to kick-start some construction activity and keep people working.  Council immediately waived it off to "staff" for evaluation .... And it went away.  Maybe it was the messenger.  But maybe they just don't care.  You can just imagine the glazed eyes at the council table!  Support construction?  These guys? Are you kidding?

The Red Ant certainly laments the missed opportunity of imitating such a potentially economically beneficial idea, but never as much as upon learning last week that city council has passed tougher rules and regulations for construction in Aspen.  Apparently noise from "on-site manufacturing" (such as stone-cutting) recently upset the residents of an affordable housing complex (where Mayor Mick lives, incidentally).  Now, such "on-site manufacturing" must be done with a special permit and decibel monitoring.  More layers, more controls.

In its ongoing efforts to continually thwart building and development, and in doing so, drive away construction jobs, city council has clearly lost all sight of the important economic contributions of the construction industry to this town. 

SUBSIDIZED TRASH CANS?

Where does it end?  Aspen subsidizes housing, transportation, recreation... and now trash cans?  When council approved an ordinance in March that requires residents to buy bear-proof trash cans by June 1, they asked the Aspen Police Department to come up with ways for the city to help defray the costs of the purchase.  Last week, the APD came back to council with the message that the government should stay out of the trash can business.  (Ya think?) The police found that most residents are already on board with the new law and felt that rewarding trash can hold-outs is not the way to achieve full compliance.  As you can imagine, Mayor Mick lost it.  Without being in a position to give select people free stuff, how will he effectively maintain his punish/reward governance reputation?!

Now, the trash can scholarship decisions rest with city manager Steve Barwick.  He will determine which trash can scofflaws get taxpayer-funded handouts. It seems that councilman Torre hopes to provide trash cans to several "long time locals" who've contacted him with their complaints. Ridiculous, of course, but at least now we will learn that elusive answer to "what makes a local?"  (See Issue # 35, "The L Word.")  Council has long differentiated "locals" from others, and now The Red Ant is beginning to recognize that being a "local" in council's eyes means that the rules are different for you!

Free "trash" from Mick is nothing new, but the steps the guy will take to tilt the playing field and perpetuate class warfare in Aspen never ceases to amaze The Red Ant.  And, given it's been shown that the city knows how each of you voted in the May 5, 2009, municipal election (and likely most elections prior to that too), The Red Ant bets Mick will reward his ardent supporters..... with trash cans.  You can't make this stuff up!

FYI - if you don't have your bear-proof trash can yet, call ACE Hardware at 925-3031.  They offer 3 sizes:  95 gal ($260), 64 gal ($230) and 32 gal ($180), and are taking orders now.  Plus, ACE delivers.

ELECTRIFYING.  OR NOT.

A mere 4 weeks after citing increased electrical bills as one of the key reasons for commercial rent increases in Aspen (see Issue # 40 "VacANT"), The Red Ant is pleased to report that the city will now "assess" whether their tiered electrical rate structure, based on consumption (biggest users pay the highest rates), is working as envisioned and/or if there are any "unintended consequences."  The bad (but not surprising) news is that the city has re-hired the same outside consultant who originally recommended the program to evaluate it now.  (Hmmm... sounds just like city clerk Kathryn Koch auditing her own election!) 

Reporting to city public works director Phil Overeynder, the Phoenix-based consultant, who was paid $43,270 in 2008-09 to design the plan, will now evaluate it in two phases ... at the cost of $16,120 to start and another $17,390 later.  This is how the city puts your tax dollars to work. 

B.Y.A. (BECAUSE YOU ASKED) -- PENSIVE ABOUT PENSIONS?

The Red Ant has heard from several of you recently, inquiring about the status of the city of Aspen's "pension plan" for its employees.  Given the alarming status of public employee pension funds throughout the US, this was certainly an issue worthy of examination, especially in the current economic environment and the tight local 2010 budget.

In California, for example, according to a Stanford University study commissioned by Gov. Arnold Schwarzenegger, the state is in far greater financial trouble than anyone knew, now that it has been reported that the state's three public employee pension funds (CalPERS, CalSTRS and UCRS) "lost $109.7 billion in portfolio value in one year (June '08 to June '09) and are currently in a shortfall of more than half a trillion dollars."  By law, taxpayers are required to pay the pension shortfalls since, unlike the federal government, local governments cannot print money to cover budget deficits. 

What does this mean locally?  Back to Aspen's City Hall ... Where do we stand?  What is the status of our "liability" as taxpayers?  How are things being run over there?  At first inquiry, The Red Ant heard back from the city clerk who wrote, "There are no pension funds as the city does not have a pension fund.  We have a defined contribution plan.  The taxpayers are not required to pay shortfalls as there is no pension fund."  Good news, right?  Well, not so fast...  The good news is that we have a defined contribution plan.  But contributions are a compensation obligation of the city and are part of the payroll budget.  Have these contributions been made?

The Red Ant's follow-up inquiry was addressed by city finance director Don Taylor, who outlined the city's retirement plans.  For a change, some good news from city hall:

• Thankfully, Aspen DOES NOT have a defined benefit plan, which is based on ending compensation and the number of years worked.
• In its defined contribution plan, the City of Aspen offers a deferred compensation (457) retirement plan, a Roth IRA and a 401(a) retirement plan. 
• The city contributes 5% of the employee's gross salary to the 401(a) retirement plan.  This increases to 6% at five years and 7% at 10 years. 
• From a budget perspective, there is a proportionate roll-up: as city employee salaries increase, the city's compensation obligation (the "contribution") increases.
• The city's contributions are current and managed professionally by external managers the International City Management Association Retirement Corp (ICMARC) and Nationwide, which handles legacy contributions for the longest-term Aspen employees.
• Notably, in Aspen there is no vesting period.  This is unusual.  The majority of municipalities have vesting periods before employees can receive the full benefit of the contributions.  This makes Aspen's plan slightly more expensive, and provides no incentive for employees to remain in their jobs.
• In 2009, the city contributed $1.2 million (2.39% of operating expenses), and $1.3 million is budgeted for 2010 (2.63% of operating appropriations).  NOTE:  While the City's operating budget* decreased year-to-year (by nearly $1 million --- $50.3M to $49.4M), so did the number of employees due to lay-offs.  And contributions still increased... in real dollars and as a percentage of the budget.
• The Roth IRA is available to employees who wish to put away after-tax dollars in order to accumulate earnings that will not be taxed later upon withdrawal.   
• Employee contributions to the deferred compensation 457 plan are optional; the 457 functions similarly to a traditional IRA.  Public employees may contribute pre-tax dollars from their salaries and pay applicable taxes on the principal and earnings upon withdrawal.
• With a deferred compensation plan, the city (and thus the taxpayer) does not have to make up any losses that are incurred due to market forces and/or management losses.  However, if the payroll budget does not cover the compensation obligation (the "contribution"), these funds will have to come from elsewhere in the city budget.
• (For Aspen police officers, it's a little different.  They opted out of social security, but are required to contribute 9% of their gross monthly salary to the 401(a) plan.  The city matches this 1:1, and the contribution is fully vested after 5 years of employment.  After 5 years, while the required employee contribution does not change, the city will contribute 10%, and after 10 years, 11%.) 

In short, compared to other states and municipalities, Aspen, because it is not invested in statewide retirement programs, is not subject to the nightmare earnings issues and unfunded scenarios that we keep hearing about.  With our defined contribution plan, we have no future liability. But remember, the city's compensation obligation to its employees is indeed a payroll budget line item, so Aspen taxpayers are indeed stakeholders in the collection and payment of these funds.  Taylor summed it up by stating, "It's one of the few things the city gets right."  Keep up the good work, Don!

(*Beginning in 2009, the city ceased budgeting separately for operating appropriations.  These percentages are based on fund levels that were part of the city's operating budget prior to this change.)

CALLING ALL "COUNTY ASSESSOR" CANDIDATES

After the recent property tax hikes, is this the year that Pitkin County residents want County Assessor Tom Isaac to run for re-election unopposed?  The deadline for filing is June 4.  This position pays $85,000/year.  If you or someone you know is interested, go quickly to www.PitkinVotes.org for more information.  And please spread the word!

AN "ANT BYTE" IN THE DAILY NEWS

This letter to the editor (click here) was printed in today's Aspen Daily News.  The nonsense never stops!

THE RED ANT SUGGESTS:

Get ready to vote!  Pitkin County has a primary election on August 10.  Unlike many other places, in Pitkin County EVERYONE (Republicans, Democrats, Libertarians AND Unaffiliated voters) can vote for county elected offices.  And we have several critical races:  2 Board of County Commissioner seats and Sheriff, among others.

Friends of The Red Ant who live in Pitkin County (yes, all of you on Red Mountain, Mountain Valley, Snowmass, Woody Creek, etc) who have been frustrated by so many local issues decided in city elections, this is YOUR opportunity to make a difference.  Please join the effort.

• To register to vote, click here.
• To request a mail-in absentee ballot, click here.  (Do this sooner vs later.  Your ballot must be received by the county clerk by 7p on August 10.)
• For early voting, mark your calendars now for the week of August 2-6, in the county clerk's office, 530 E. Main Street, Suite 101, 8:30a - 4:30p

The Red Ant will continue to remind you of this important primary, and will of course weigh in once all the races are determined next week.  In each race, the top two vote-getters (regardless of party) will be on the November ballot.  THIS PRIMARY IS CRITICAL FOR PITKIN COUNTY'S FUTURE.

Issue # 41 .... ObservANT of City Hall

OUR BIG BAD BUDDY BARWICK'S BACK (IN THE NEWS)!

Aaahhh, city manager Steve Barwick.... The Red Ant cringes to report that our naïve and complacent electors (4/5 of them; Skadron was absent) unanimously voted recently to provide Barwick with an employment contract with the city worth over $170,000 annually.  The contract notably prevents Barwick from "committing an act of gross negligence or malfeasance."  In his 11 years in this role, Barwick, who works at the direction and discretion of council, has never had a contract.  He has asked for a contract before, but previous councils recognized the potential political pitfalls of granting one due to Barwick's spotty record as city manager.  Barwick is the city manager who:

• ...misled voters in 2005 with a city brochure for the Burlingame affordable housing project that stated there would be a $62,500 per unit taxpayer subsidy when in reality it was closer to $400,000 per unit. And it wasn't just a "brochure error."  He personally promoted that $62,500 throughout the media and then later denied that the city had ever used that number.
• ...enabled the Burlingame housing project to be built without a budget, unless you want to count one written on a McDonald's napkin, resulting in an anticipated $75 million in unexpected costs thus far.
• ...initiated the $18 million purchase of the BMC property and completed it without an appraisal, bankrupting the housing fund.
• ...led, oversaw and continues to lead wasteful expenditures of millions of dollars of public funds on unrealistic, ill-conceived, cart-before-the-horse, failed projects and programs such as the ZG Master Plan, the Main Street Median and the outdoor pool at the ARC.
• ...approved, enabled and then defended the use of city employee "purchase cards" for meals at Aspen restaurants in excess of $250,000 in 2007 and 2008.
• ...granted "free housing for life" at a city-owned ranchette (valued at $14 million in 2009) to the city public works manager in order to keep him from leaving Aspen for a job elsewhere.  Yep, Barwick rewarded the guy for NOT having a succession plan in place!
• ...recently attempted to have an Aspen citizen "punished" by the Rotary Club for dissenting with the local government, despite his first amendment constitutional right to do just that.
• ...did not require the most fundamental election controls in city clerk Kathryn Koch's office, where her negligence in mapping the designated marketing district for the November 2009 election resulted in the city foregoing nearly $1 million in tax funding for marketing purposes.
• ...has ducked any and all responsibility for the serious unresolved problems, broken commitments and violations of the law associated with the May 2009 municipal election.

 Each of these issues (obvious "acts of gross negligence and malfeasance," in The Red Ant's book) was presented to council prior to their consideration of Barwick's annual request.  I know because I presented them.  But the contract was a foregone conclusion, which should surprise no one.  In their sadly predictable fashion, council immediately jumped to the defense of Barwick, making excuses for him and his job performance to-date:

• Ireland:  "It's a difficult job.  It's a broader scope of duties than a city manager in a typical town of this size would face."  And, this contract "is also key in attracting a good successor to Barwick. Whoever that person is will want to know that their predecessor was treated well."  To which The Red Ant says, "He's Aspen's CEO.  The job is not so difficult as to ignore basic management principles and fiscal responsibility."
• Romero:  "All of those decisions actually rest here at the city council table.  We bear the brunt of the success or failure of those decisions."  And, this contract and severance package "allow for greater candor and more honest discussion between the city manager and council."  To which The Red Ant says, "Wow.  We'll remember your admission of responsibility for these 'acts of gross negligence and malfeasance' when we head to the voting booths next year.  And Dwayne, does it really take a $170,000 contract to have an honest discussion with your employee?"
• Johnson:  praised Barwick's performance.  To which The Red Ant says, "You've been on council for almost a year now.  It's time to tune in and get with the program."
• Torre:  called the public comment on Barwick's abysmal performance as city manager "cowardly."  To which The Red Ant says, "It actually took a lot of guts to get up there in front of council and truthfully report on Barwick's known record.  Calling someone a 'coward' for speaking out against the government is a thinly-veiled attempt to silence your detractors."

Citizens of Aspen, your elected council DOES NOT want you to criticize the local government.  Especially with the hard truths.  The Red Ant is committed to shining a bright light on efforts to silence the electorate while perpetuating cronyism and rewarding mediocrity with your taxpayer dollars!

 JUST ASK STEVE!?!

And, in late-breaking news, the Aspen Daily News reports that $475,000, generated in a 2004 public-private "land-lease" agreement between the city and the developers of Obermeyer Place, has gone "unaccounted for."  While the city did not "collect" on the lease of city-owned land that was used by the developers during construction, the developers were on the hook for $475,000 in public improvements -- 13 items were listed to satisfy the requirement, but the Aspen recycle center at Rio Grande Park was the primary focus.  Nobody can clear up the issue -- Helen is no longer mayor, and the city's asset director and assistant city manager have long-since left their positions.  Current assistant city manager Randy Ready states that the work was done and all was reconciled, but with the staff turnover, there are no records.  At press time, Obermeyer is digging for its records to show how the money was spent.

C'mon people!  Leave Helen and the former employees alone.  Just ask Barwick!  He's been in his role as city manager (a.k.a. CEO of the city of Aspen) for 11 years now.  And given that he has just been rewarded with a nice employment contract for his "job well done," surely he can quickly and thoroughly fill in the blanks and put the whole issue to rest.  Or can he?  A former city employee who was close to the issue tells The Red Ant, "The city manager's office's decision to handle the Obermeyer improvements off the city's books is typical of the 'outcome-based' culture of that office.  Work was probably done (environmental health, site work, planning and design) but at what cost? And how was the money really spent?  Since the the funding did not pass through the city's books, I am not surprised that they're having difficulty proving it."  

While Mick vows to "get to the bottom of it" and go after Obermeyer if records can't be produced, Barwick is currently preparing to spend $175,000 of your tax dollars in coming weeks on paving, landscaping and security cameras at the recycle center.  (Yes, council approved this!)  It appears to The Red Ant that Barwick just wants to finish the recycle center this spring and sweep the missing $475,000 issue under the rug.  Kudos to the Aspen Daily News for breaking this story!    The Red Ant will follow it (and Barwick) closely!  "Afterall," The Red Ant says, "it happened on his watch!"

GOOD RestaurANT NEWS

To briefly follow up on Issue # 40, "VacANT," The Red Ant is pleased to report that the D-19 space and Popcorn Wagon are under new ownership.  Hope springs eternal that the return of these Aspen favorites is indicative of a trend toward renewed vitality in the commercial core!  And yum, popcorn!

ANALYSIS PARALYSIS

 Regardless of where you stand on the issue, The Aspen Club's timeshare expansion proposal came before council Monday night for the SIXTH time since January!  And council predictably punted once more.  It seems Mick can't vote yes on this land-use question until the deal includes a mandate that current owners/investors are restricted from selling until the development is complete.  Aspen Club owner Michael Fox wondered aloud what this had to do with the "public benefit" of the proposal.  (Public benefit being a key component of land-use applications.)

In discussions, councilman Romero made the City Council "Ya Think" Statement of 2010 (to-date): "I think this is over-reaching from the government sector to the private sector....We should be looking at this for its strengths and merits as a land-use application, not on the strengths and merits of the applicant."  Ya think??

THE RED ANT SUGGESTS:

• Follow the money  While the city budget is never exciting reading, it is important to learn and know how our local government is spending taxpayer money.  For example, there's a $2.8 million line item in the 2010 budget for the initial design of Burlingame phase II.  And, recent news reports have mentioned notable contributions to the RETT due to several large real estate closings (The Limelight, The Lodge at Aspen Mountain).  With these tidbits, The Red Ant senses a coordinated effort brewing to float a HUGE ($100+ million?) bond to complete the build-out of the city's largest and most controversial affordable housing project.  Yikes!
• Monitor  The Red Ant suggests that we all watch the activities of and public expenditures developed, promoted and approved by city manager Steve Barwick.  He has an established record of fiscal mismanagement and bad decisions. 
• Write to council  Let them know you're watching.  And you care.  While The Red Ant is sadly aware of the real repercussions and retributions for standing up to the government (see Issue # 19 of The Red Ant: Fear and Loathing in Aspen, CO), there are still opportunities to periodically (and less controversially) weigh-in on the issues.  There is an email link to all council members on the homepage of www.TheRedAnt.com
• Speak out  As The Red Ant learned the during the winter hiatus, when the cat's away, the mice will play.  We all have to work together to foster change around here.  If you can't speak out publicly, please stay in touch and let me know what you're hearing, seeing or thinking about.

 The Red Ant will keep you posted and opine on the issues, and always welcomes your feedback and input. 

ISSUE # 40...vacANT

ASPEN'S SCARY COMMERCIAL BUSINESS TREND - VACANT! "Let us not look back in anger, nor forward in fear, but around in awareness."                            --- James Thurber   EMPTY STOREFRONTS ABOUND This week, The Red Ant embarked on an unscientific walking tour of the downtown core to gauge the extent of the vacancy virus that has infected Aspen.  It was an eye-opener.  "For Lease" signs fill storefronts on literally every block.  And that's without noting the commercial office space vacancies on other levels!  Word is that this is just the start.  A quick run-down on some retail vacancies, on a block-by-block basis: The Little Nell lost Oilily, but current tenants Dennis Basso and Gorsuch are playing some musical chairs with space and filling that back up. However, a big question mark hangs over the status of NY-based Italian Wine Merchants who've had the former bookstore space all winter but with no activity.  Durant Street is in bad shape.  North of Nell, despite its attractive facelift, has lost Lil Boogies, Aspen Luggage and Stanfield Fine Art.  Across the street in the former Kaelin building, the Denimaxx store has packed up and left.  In the Ajax Mountain Building, Noori's and much of the upper level tenants have pulled the plug.  On Cooper Street, the Aspen Grove Courtyard has its annual turnover:  Peek-A-Boo is gone, and the Chepita space is apparently being re-worked into three new stores.  Fat City Plaza lost Noodles by Kenichi, and Kali's is relocating, perhaps to one of the Chepita spaces across the street.  The old Guido's location still awaits a replacement for Ruth's Chris steakhouse.  Pattie's Gemagination flew the coop, as did Durrance Sports and several Bidwell Building tenants (that's another story entirely) on the Cooper Street Mall.  The Hyman Avenue Mall isn't faring much better.  One half of the Paragon building and the Columbine of Aspen space are advertising their availability, and of course Fly bar has been empty now for over a year.  Down the way, Syzygy's former location and the former offices of The Dancing Bear (above L'Hostaria) are empty.  Same goes for the building next to Little Annie's.  On Hopkins Street, Prints Charming and The Hidden Jewel are gone, as is J. Mendel across from the Fire Station, and The Steak Pit and The Double Dog Pub at the west end of the block. A total of 37 empty storefronts puts the commercial vacancy at levels not seen since 9/11; office space is in FAR worse shape!  The silence is deafening! DON'T JUST BLAME THE LANDLORDS! According to Ruth Kruger of Kruger & Co. who specializes in commercial space, property taxes have generally doubled in the past year.  One of her prime properties saw its taxes increase from $87K to $157K (that's $6.90 to $12.50 per sf).  She reminds The Red Ant that in the 2007 mayoral election, Mick promised that we'd figure out ways to roll back taxes if/when something like this increase occurred.  THAT certainly doesn't seem to be happening, but Kruger reports (and The Red Ant confirms) that many landlords are working with their tenants on a case-by-case basis.  The Red Ant encountered two Aspen landlords today while out and about.  Both were anxious to talk about the current commercial real estate situation; one even did so while in the barber's chair!   In addition to the exorbitant increases in property taxes thanks to the aggressive valuations in 2009 by the Pitkin County Assessor, The Red Ant was reminded that the City's "tiered cost" energy program kicked-in this past year.  Originally designed to punish owners of large homes for their energy use, the tiered program charges the highest rates to the largest consumers.  An unintended consequence (or is it?) of this pricing program is that commercial properties fall into the large energy consumer category and have seen "exponential" energy rate increases.  Most commercial leases in the downtown core are triple-net leases, meaning that the costs of maintaining the property, the taxes and the insurance are passed along to the tenants.  This makes landlords an easy target when businesses fail.  But when long-time locals Bob and Cindy Glowacki recently closed the doors of The Steak Pit and The Double Dog Pub, Glowacki didn't blame his landlords.  In fact, he noted that they were willing to work with him.  "Just lowering the rent wouldn't have made it successful," he said in an Aspen Times interview, acknowledging that there are multiple economic factors that impact the success or failure of a local business.  For example, his food costs had increased 50% since 2006.  Several of his employees and many of his customers quickly blamed the "greed" of the landlords, but there are clearly a number of factors that contributed to the closing of the business. WHAT ABOUT THE NATIONAL CHAINS AND LUXURY BRANDS? To this point in time, there hasn't been much movement among the luxury brand retailers.  Only Brioni (between Fendi and Frette on Mill Street) has vacated its space.  Some contend that these tenants can afford to be loss-leaders for their corporate headquarters - it's just the cost of having a presence in Aspen.  Others say that a lot more may be happening behind the scenes.  Some may just be waiting for their leases to run out.  Time will tell. Kruger points out that several national retailers have recently been looking at space in Aspen.  They've wanted to be here, and the current timing might be favorable.  But even the national chains are being cautious.  NOVEL EXPERIMENTS Several savvy business owners have taken advantage of the space availabilities in town.  Local artist Tania Dibbs took a short term lease on the Hyman Avenue Mall last fall, naming her place "107 Days," the term of her lease.  Soon, a "+/-" appeared before the "107" and she stayed all winter.  The Red Ant contacted Tania and confirms that she plans to stay for a while. The Red Ant also spotted a temporary "outlet" store for B. Jewel on the Cooper Street Mall, a model that Boogie's has employed throughout the past year --- doing short-term deals for empty locations where sale merchandise can be effectively moved. Additionally, this past season brought us several "Pop-Up" stores - retailers who signed short-term leases and simply operated out of existing spaces with temporary "store-in-a-box" set-ups. (Walls, décor, lighting and inventory are all brought in and set up, just as easily as they can be broken down and taken back out.)  Several of these Pop-Ups have now packed up and gone, but this rent model provides low-risk opportunities for retailers who want to test the market while avoiding infrastructure costs.  THE BOULEVARD OF BROKEN DREAMS It actually broke The Red Ant's heart to walk west from the Hyman Avenue Mall.  D19 has been empty since last summer along with its adjacent sibling, Aspen's beloved Popcorn Wagon.  Gone are its quick snacks for hanging out by the fountain, and late-night crepes and gyros before the last bus home.  Across the street it gets much worse.  From the Wheeler Opera House westward, there's nothing.  Nada.  Zip.  Zilch.  The Motherlode remains empty, upstairs and down.  The Thrift Shop left.  The Chrystal Palace Grill closed.  This sad stretch has become Aspen's urban blight.   * Late-breaking news:  The Aspen Daily News reports that D-19 and the Popcorn Wagon are "under contract."  Hope springs eternal that the new ownership will have these two popular and high-profile spots up and running for the summer season!   DEAD MAN WALKING Rumors abound during Aspen's off-season, and while The Ant was out "touring," there was much unsolicited speculation about the future(s) of several businesses: Ingrid Anthony, James Perse, Stefan Kaelin, Bonnie Young, Fun World Lab/Nine, to name just a few.  Let's hope this is not the case! But if these businesses are facing tough times ahead, The Red Ant can only then designate as "corpses" the unfinished eyesores where Stage 3 once stood, and its cross-town twin, Dancing Bear 2, on the former Chart House site. CRIES FOR SUBSIDIES - NOT THE ANSWER! Several recent letters to the editor bemoan the loss of several long time establishments and call for preposterous actions such as the City buying commercial buildings and leasing the space out at below-market rates.  (With what?? - The Red Ant asks.) Clearly, the Aspen nanny state with its subsidized housing, subsidized rec center and subsidized transportation, combined with our national bail-out mentality, has subsidized Aspenites calling for more handouts to sustain businesses that simply can't make it here.  The fact remains, Aspen is a very expensive place to live, work and play.  Landlords ARE working with their tenants, but they too have to cover escalating costs.  To artificially prop-up businesses that have unsustainable business models on the taxpayers' dime takes the subsidy thing too far - even for Aspen! DESPITE VACANCY RATES, AVH LOOKS TO ADD 27,000 S.F. OF OFFICE SPACE No, your eyes are not deceiving you.  Despite the unbelievable quantity of vacant commercial space in the downtown core, Aspen Valley Hospital is looking to add 27,000 square feet of new medical office space as part of its enormous proposed 214,000 sf expansion!  AVH CEO Dave Ressler recently explained that the expansion will be built in phases and as funds are available.  The funding sources for this gigantic $100 million project will come from a combination of sources -- cash on hand, debt financing (bonds) and philanthropy.  When pressed, Ressler acknowledged that debt service on the general obligation bonds is indeed paid through additional property taxes!  So, the Aspen taxpayer will likely be paying for even more inventory to be added to our current supply!  (The Red Ant will be covering the proposed AVH expansion in a future issue.) ON THE BRIGHT SIDE After nearly three years of vacancy and ownership limbo, Aspen's Red Onion is slated to open this summer!  At last!  Locals and tourists alike will be happy to see this historic favorite thriving on the Cooper Street Mall. Welcome back, Red Onion! DIAMONDS IN THE ROUGH Despite the vast emptiness surrounding them, two of Aspen's favorite restaurants remain (and thrive!), like remote tropical islands in turbulent seas:  Rustique Bistro (on Monarch, between Hyman and Hopkins) and Brexi (at the corner of Durant and Monarch).  In this economy, it can't be luck that keeps them open.  And The Red Ant is not aware of any "cheap" rent scenarios either.  She's guessing that they're both operating from good business plans that take into account the inherent challenges of their leases.  Don't let their new-found "remoteness" keep you away.  Hang in there, guys.  (FYI --Rustique is open all off-season!)  THE RED ANT SUGGESTS.... Here are several ideas for the City to improve the near-term business climate in Aspen:  Re-examine Aspen's paid parking program.  When local business is down, how about "first hour free" or other parking incentives for shoppers/diners?  The off-season is the time to experiment and evaluate new programs.  (And does the paid parking program really generate $2 million in revenue for the City?  Perhaps that's a bit excessive in this economic environment?!) Take a proactive, pro-business stance with local businesses and work to "get to yes."  In other words, collaborate with business owners rather than standing in their way.  (The soon-to-open Red Onion wants to offer outdoor dining on the Cooper Street Mall.  The fire department says no because it needs to be able to get a truck through in an emergency.  That is indeed very important, but rather than just saying "no," how about finding a creative solution so that both parties win?!  Surely there's a way. Get to yes.) Create a commercial/retail category in the tiered energy program.  If the reason for the program was a dis-incentive for large home construction, then moving commercial buildings to their own energy pricing category should not affect that rationale.  What CAN Mick do to roll-back taxes now that we are in the improbable situation that he discussed during the 2007 campaign?  The options should be top priority!  Council should convene a work session immediately.   The Red Ant asks, what are your ideas?

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Elizabeth Milias  TheRedAntEM@comcast.net

Electoons Provoke PetulANT Messages and Obscene Gestures from The Mayor

THE RED ANT UPDATE

Mayor Ireland, City Council and city officials have not responded with humor to attention from the national election integrity community concerning Aspen's May elections. They have consistently swept the problems under the ever-bulging rug,  as they continually attempt to publicly discredit and denounce those who ask questions or go so far as to advocate for election reforms. As nationally-known election experts chuckle at the adolescence of the local antics, Mayor Mick blasts them back with petulant emails, and greets his most identifiable critic with an obscene gesture. The Ant asks your help by both informing yourself of the issues, and making a donation of financial support to the transparency project.  The details follow....  

FINDING HUMOR IN THE POLITICIZED MESS  

The last few months have held only rare moments of Red Ant humor as both Marilyn and Elizabeth have been embroiled in bitter struggles with the City in each of their individual efforts to work toward future election integrity and reforms.  However, the national election integrity community has been rather amused by some of Aspen's unbelievable missteps in conducting its election. (Like leaving 30% of the at-the-time uncounted ballots in an obviously unlocked box in City Hall.)  

A Berkeley-based artists group, BetterBadNews.com, found humor in Aspen's version of "early voting," and produced a hilarious video referencing the City's confounding statements about voter  "privacy," perhaps mispronounced "piracy," and anonymity, or was it "animosity?"  (In fact, Aspen's version of "early voting" is not allowed by law. It was made possible by many rather casual interpretations of the state election laws.)  The creators of the video, after reviewing hours of City Council meeting tapes and written articles, now call our town "Aspenistan."

Our favorite "Electoon":

Click the image to see the video.  

Local public radio station KAJX put a little humor in The Red Ant's Christmas stocking with their commentary on the video.  Click for KAJX Story   

Mayor Mick apparently found no holiday humor in the video, and instead announced

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Issue #39 ------- Aspen's Marketing Mishap-- Vail's Idea?

"Out of the bosom of the Air, Out of the cloud-folds of her garments shaken, Over the woodlands brown and bare, Over the harvest-fields forsaken, Silent, and soft, and slow Descends the snow." 
-- Henry Wadsworth Longfellow  

"But where are the snows of yester year?   -- Francois Villon

 

MARKETING ASPEN WITH NO SNOW? 

In these quiet days of the off-season, everyone in Aspen eagerly awaits the start of ski season, hoping that our lifeblood - SKIING - brings the tourism and related revenues to save jobs and businesses at our hotels, restaurants and shops.
 
But while our competitors in Utah are sending out email blasts (read here) that tout their abundance of new snow and the front range resorts are making snow (of course, Arapahoe Basin is already open for skiing), what does Aspen do?  The City and the SkiCo jointly organized an event over the weekend that screamed to the world in expensive photos that Aspen's slopes are brown,

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Issue #38------- $130 Movie Tickets!

"This film cost $31 million. With that kind of money I could have invaded some country." Clint Eastwood     

 
Tonight's Council agenda includes a staff proposal for expansion of the Wheeler Opera House -- a $3 million line item for expansion planning in 2010. The expansion itself is estimated to cost $30 million.

The Ant did a quick "big picture" overview of the Wheeler numbers and we need to say "thanks" to all of you for taking us to the movies!  With operating losses averaging around $2.5 million per year* for the past few years and with roughly 19,000 tickets sold, YOU are subsidizing the Ant's movie-going at about

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