This week’s $69 million purchase of the Silver Lining Ranch next to the Aspen Club included a 10-bedroom, 6-plus-acre mansion and something else of value to the new owner – a short-term rental license .
The 18,000-square-foot, 10-bedroom mansion was acquired by Meriwether Companies and Revere Capital, who also partnered with Fireside Investments to buy the Aspen Club property out of foreclosure for $52.59 million. in January 2021.
The new owners said the rental property “will complement the revitalization of the Aspen Club. The 144,248 square foot project is currently in development and will feature hospitality, culinary, fitness, health and wellness offerings.
By closing the home deal on Wednesday, the new property got ahead of the city’s new STR regulations that go into effect Saturday. Ordinance 9, passed by the Aspen City Council in June, prohibits the transfer of STR licenses with the change of ownership of a property.
Under the new rules, the STR license is revoked upon closing of the sale and the new owner must apply for a separate STR license.
A press release for the sale, one of the highest prices paid for a single-family home within the city limits, even noted that the property had an STR license.
“Boulder-based Meriwether Companies plans to continue to operate the home on an overnight rental basis to complete the revitalization of the Aspen Club,” the statement read.
The city defines STR properties as those rented for a period of 30 days.
The city has not accepted STR license applications since the Aspen City Council passed a moratorium on new STR permits on Dec. 7 of last year. The moratorium expires late Friday, and on Saturday the city will begin accepting STR license applications exclusively from non-licensees. The new licenses will be valid until the end of 2023.
Existing STR licenses don’t expire until Dec. 31, and the city will begin accepting renewal applications through November 2023, said Emmy Garrigus, who oversees the city’s reimagined STR structure. December 31 is also the deadline to renew existing STR licenses for 2023.
“We have a whole slew of permits issued before the moratorium, and we have a second generation of people wanting to get STR permits,” she said.
Currently, the city has 1,319 STR permits on file that were issued under the old regulations. The new regulations cap STR licenses in 14 neighborhood area districts, meaning some license applications processed in the coming weeks will be put on a waiting list, Garrigus said.
There are no limits to conventional STR permits in commercial and lodge areas. The classic STR is accessible to non-owner and owner-occupant residences rented more than 120 nights per year.
STR Classics are one of three types of licenses the city distributes under the restructured program.
The other two types of permits are defined by the city as follows:
• Owner-occupied short-term rental license— “The STR Owner-Occupied Permit (STR-OO) is only available to City of Aspen residents who are homeowners and can prove that the property is their primary residence. STR-OO permits are issued to full-time residents of Aspen and are limited to 120 rental nights per calendar year from the date the permit is issued. If an applicant wishes to put their property on short term for more than 120 nights per year, they can apply for an STR-C permit.
• Short-term accommodation-exempt rental permit — “The STR Exempt Lodging Permit (STR-LE) is available only to Lodging and Condo-Hotel properties that meet the definition of Lodge or Condo-Hotel by (city code), Use categories. Some features of lodges and condo hotels include, but are not limited to, shared reservation and cleaning services, combined utilities, and on-site, in-person management and reception services during regular business hours. desk. Properties eligible for STR-LE permits must be marketed under a unified brand and marketing model where individual ownership of units is secondary to the central brand of ownership. There is no limit to the number of rental nights permitted under the STR-LE permit.
The cost of exempt lodging permits is $148; homeowner and classic permits are $394. STR license holders are also required to have an annual business license, priced at $150 per year.
The city will also realize additional tax revenue from STRs if voters in November pass the creation of an excise tax that would come in two versions – a 5% tax on overnight stays in owner-occupied units and lodges and condo-hotels, and a 10% tax on properties that are not primary residences for the owners or are used for investment purposes.
The city said the proceeds would go to Aspen’s affordable housing efforts and the remaining funds would be used for environmental initiatives as well as infrastructure maintenance and repair.