Wednesday at the Aspen Armory.
Ray K. Elk/The Aspen Times
Aspen is craving an Armory food hall.
Consulting firms Ripple Creek Properties and Immersed Group on Tuesday presented the Aspen City Council with a proposed budget and financial impacts of renovating the Armory space into a food hall, a renovation that could bring the city about a half-million dollars in benefits.
The Armory, which served as a government building for 64 years before closing in 2021, has been a local topic of conversation for years. City leaders have been exploring multiple possibilities for renovating the Armory, including using it for offices for the Aspen Chamber of Commerce and Resort Association, child care services or a dining hall.
In March, the city approved an Armory Hall design services contract with CCY Architects. Since then, important steps have been taken toward the Armory project, including developing floor plans, meeting with regulators and potential food hall operators, and creating an initial operating budget for the food hall. Despite issuing a request for proposals (RFP) to food hall operators, no proposals were submitted.
“The team plans to move forward to 100% enhanced schematic design and reissue an RFP for operators by October,” Aspen Development Manager Jen Phelan told City Council on Tuesday. “In the meantime, we will continue outreach and have another working session to present design updates, progress and team recommendations, and we plan to hold another workshop on 100% schematic design by October.”
The proposed management structure envisions the city funding all necessary renovations to the food hall, including a full tenant renovation, and hiring a third-party operator to manage the facility. The city would then receive revenue from rent and operating profits. Currently, a master operator model with less involvement from city officials is preferred.
Phelan said the budget goal is between $18 million and $23 million. Mayor Sarah Ott said the city has a preliminary assessment plan for $12 million, but that’s not enough for the proposed budget.
“So what does it mean to close the gap? We could recommend putting the question to voters that revenues for debt service would generate $8 million to $10 million. The city does not have the funds to meet the revenues to meet the required deadline,” she said. “Alternatively, we could look at a completion option certificate or prepayment funds.”
A National Historic Landmark registration marker at the Aspen Armory on Wednesday. Ray K. Elk/The Aspen Times
Ott said the City Council will need to provide direction on this and that the city plans to finalize the 2024-25 budget to present to the council at a later date.
Key decisions the Council must make include identifying investment objectives, defining financial targets and agreeing design flexibility to accommodate different operators over time. The financial impact of these decisions will influence the scope of the project and the funding required to refurbish the building.
The budget’s assumptions include a master operator model, where the operator manages the bar, kitchen tenants and day-to-day operations. Tenants pay a percentage of sales in addition to base rent, and a Common Area Management (CAM) fee is charged to the kitchen tenant. The budget’s conservative assumptions take into account the Aspen market, which indicates that private investment is unlikely due to high construction costs and the project’s specific goals.
Built in 1892, Armory Hall has a rich history and has been renovated multiple times. In November 2023, City Council prioritized plans for the building, naming a food hall and community lounge as top priorities, but office space should still be prioritized. The proposed operating budget envisions the building operating solely as a food hall, with the possibility of incorporating a community lounge within the food hall space.
Both Immersed and Ripple Creek emphasized that building renovation, modernization and tenant improvements require significant investments that will allow the city to provide operators with turnkey space that is ready for immediate use.
