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Section 3-212 Commercial Zone District
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3-212.A. Purpose. The purpose of the Commercial Zone District (C) is to allow land to be used for retail and service commercial establishments and uses, affordable housing, together with accommodations uses. Some recreation, multi-family residential, accessory and institutional uses may also be appropriate, especially those that strengthen the Town’s commercial core.

3-212.B. Use Table. The uses permitted by right and the uses permitted on review in the Commercial Zone District are as follows:

Commercial Zone District Use Table

Uses Permitted By Right

Uses Permitted On Review

1. Retail Commercial Establishments, as listed in note 1, below

1. Schools as limited by Note 4 below, Public Buildings and Institutional Uses

2. Service Commercial Establishments, limited to the following and similar uses (see Note 5):

a. business office

b. catering service

c. financial institution

d. parking lot or garage

e. personal service including barber or beauty shop

f. radio or television broadcast facility

g. studio for arts instruction

2. Recreation and Entertainment Establishments, limited to the following and similar uses:

a. billiard parlor

b. business, fraternal or social club or hall

c. dance hall

d. ice or roller skating rink

3. Rental, repair and wholesaling facilities, in conjunction with permitted retail commercial and service commercial establishments, provided all such activity is clearly incidental to the permitted use and conducted within a building

3. Shop Craft Industry

4. Condominium-Hotel, Hotels, Lodges, Roominghouses, Boardinghouses, Short-Term Dwelling Units (pursuant to and subject to Note 6 below)

4. Vehicle Repair Shops, as defined in Article 2, Division 1

5. Storage of materials accessory to permitted uses 1, 2, 3 & 4 above, provided all such storage is located within a structure

5. See C.10

6. One-Family Dwelling Units in Backman Village Subdivision, Lots 1 through 28, inclusive

7. Multi-Family Dwelling Units: a. on lots greater than 5,875 square feet, per notes 2 and 3; b. on lots 5,875 square feet or less, per note 2

8. Parks, Open Space and Recreational Uses

9. Designated Employee Dwelling Units and Affordable Housing Units; see note 2

10. Parking of motor vehicles

11. Timesharing, pursuant to the provisions of Section 6-413 of this Title

12. Mixed Use Development: a. on lots greater than 5,875 square feet, per notes 2 and 3; b. on lots 5,875 square feet or less, per note 2

Note 1: Retail commercial establishments shall be limited to the following and similar uses:

1. Antique shop

18. Furniture store

2. Appliance store

19. Gift shop

3. Art gallery

20. Hardware store

4. Art supply store

21. Hobby shop

5. Automobile accessory store

22. Jewelry store

6. Bakery

23. Job printing shop

7. Bar

24. Key shop

8. Bookstore

25. Liquor store

9. Camera shop

26. Pet shop

10. Candy, tobacco or cigarette store

27. Paint and wallpaper store

11. Catalogue store

28. Pawn shop

12. Clothing store

29. Photography shop

13. Decorator shop

30. Restaurant

14. Department store

31. Sporting goods store

15. Drugstore

32. Stationery store

16. Florist shop

33. Variety store

17. Food market

34. Medical marijuana facility and retail marijuana establishment

Note 2:Restriction on Residential Dwelling Uses.

No residential use as defined in Table B as Uses Permitted by Right B.7 shall be permitted within the first or ground floor of a building or structure (that floor which is closest to the elevation of the adjacent street), unless such use is set back an average of thirty-five (35') from the front exterior wall of the building or structure as measured perpendicularly from the front exterior wall. In no case shall such use be closer than twenty feet (20') from the front exterior wall. Such setback may be modified by the Planning and Zoning Commission pursuant to Article 6, Division 3, “Planned Unit Development,” or varied by the Planning and Zoning Commission pursuant to Article 6, Division 2, “Variances.” For the purposes of this section, the “front exterior wall” of building or structure shall mean that wall which establishes the front yard, or in the absence of a front yard, the front lotline. Also, for the purpose of this section, the “front lotline” shall mean the frontage along the street with the shortest linear frontage for lots which have more than one street frontage.

Note 3:The floor area of such residential dwelling units, excepting floor area restricted as affordable housing and designated employee dwelling units, shall not exceed 35% of gross floor area of all structures per lot unless modified pursuant to Article 6, Division 3, “Planned Unit Development” and in no case greater than 65%. See graphic representation (below) which illustrates how to calculate the floor area of residential dwelling units for the purpose of conformance with this note.

Note 4:The P&Z shall deny an application for a public school as a use permitted on review if it determines (1) the proposed school meets the definition of a school as provided for in Section 44-3-103 of Colorado Revised Statutes; and (2) allowing such a school will prohibit the establishment or continuing operation of an establishment that serves alcohol pursuant to the Distance Requirements set forth in Section 6-2-160 of the Municipal Code.

Note 5:The East 300 Block of Colorado Avenue between Willow and Alder, is subject to the Vitality [Use] Setback in Section 3-213.E. and the Service Commercial Limit in Section 3-213.F. It is also subject to the Service Commercial Uses, Use Permitted by Right found in Section 3-213.B of the Historic Commercial Use Table.

Note 6:Pursuant to and subject to all applicable terms and limitations imposed in the Telluride Municipal Code Chapter 6, Article 1 (Business Licenses).

3-212.C. Dimensional Limitations. The following dimensional limitations apply to all uses permitted by right and uses permitted on review in the Commercial Zone District:

3-212.C.1. Minimum Lot Area. Two thousand five hundred (2,500) square feet.

3-212.C.2. Maximum Lot Area.

a. Eleven thousand seven hundred and fifty (11,750) square feet unless modified pursuant to Article 6, Division 3, “Planned Unit Development”.

b. No limitation provided the development is comprised of hotel, lodge, roominghouse, boardinghouse, short-term dwelling units; facilities for conferences, performing arts, or special events, provided such facilities are available to local non-profit organizations1; excepting the following: the net floor area of uses other than those listed above shall not comprise greater than thirty five percent (35%) of the gross floor area of the structure minus floor area dedicated to affordable or employee housing. The uses within such structure(s) shall be memorialized in a development agreement or instrument as approved by the Town Manager.

1"Available to local non-profit organizations" means such facility shall be available free of charge a minimum of twenty (20) days per calendar year between the hours of 6:00 a.m. and 12:00 midnight, or the number of days and times as otherwise approved by the Planning and Zoning Commission pursuant to Article 6, Division 3, "Planned Unit Development", for use by local municipal, school, religious, public service organizations, and not-for-profit educational, charitable and artistic organizations.

3-212.C.3. Minimum Lot Width. Twenty-five feet (25').

3-212.C.4. Minimum Lot Frontage. Twenty-five feet (25') for all lots.

3-212.C.5. Minimum Front Yard. No limitation.

3-212.C.6. Minimum Side Yard. No limitation.

3-212.C.7. Minimum Rear Yard. All buildings, five feet (5'), provided this requirement shall not be applied so as to prohibit below grade structures within the rear yard setback.

a. The rear yard setback associated with a repositioned or relocated rated or non-rated THAS Secondary Structure may be reduced from five feet (5') to a minimum of zero feet (0'). A variation may be granted by H.A.R.C. provided H.A.R.C. finds the development application maintains or improves the historic rating designation of the historic structure according to the Telluride Historic and Architectural Survey and upon condition that the applicant stabilizes, improves and maintains such structure in good repair.

3-212.C.8. Setback to the San Miguel River, River Trail and River Park. Notwithstanding the above provisions, the following minimum setback from a property line which is adjacent to a property which is zoned or entirely dedicated for Open Space or Park and contains either the San Miguel River or River Park Trail, or from the River Park Trail or the San Miguel River in the absence of such zoning or dedication, whichever is more restrictive, shall be ten feet (10'), however, in no case shall the average setback of the building facade be less than fifteen feet (15'). For the purposes of this section, the determination of setback shall include any building or structure, or portion thereof, including decks, porches, railings and fences.

3-212.C.9. Minimum Bulk Plane. Notwithstanding the above provisions, buildings shall be set back a minimum of one (1) horizontal foot for each one and a half (1.5) vertical feet, excluding chimneys, from a property line which is adjacent to a property which is zoned or entirely dedicated for Open Space or Park and contains either the San Miguel River or River Park Trail, or from the River dedication, whichever is more restrictive.

3-212.C.10. Setback for High Intensity Use. Notwithstanding Section 3-212.B., no High Intensity Use as defined in Table 3-4 shall be permitted within a structure whose access to that use, or which use is located outside a structure, which is within fifty (50') feet of a property line which is adjacent to a property which is zoned or dedicated for Open Space or Park and contains either the San Miguel River or River Park Trial, or fifty (50') feet from the River Park Trail or the San Miguel River in the absence of such zoning or dedication; whichever is more restrictive, unless such uses are authorized and approved by P&Z subject to the provisions of Article 6, Division 1, “Uses Permitted on Review”.

3-212.C.11. Maximum Primary Facade Width. Fifty feet (50'), unless modified by H.A.R.C. In no case shall such modified width exceed seventy five feet (75').

3-212.C.12. Minimum Floor Area. No limitation.

3-212.C.13. Maximum Floor Area.

a. All buildings, above grade floor area to lot area ratio shall not exceed one point five to one (1.5:1), except as provided below.

b. In calculating such ratio, that square footage of floor area shall be excluded which is designed and built to provide exclusively for the storage or parking of motor vehicles.

c. The maximum floor area may be increased above the one point five to one (1.5:1) ratio, but not greater than two-to-one (2:1); provided, that the additional floor area between one point five to one (1.5:1) and two to one (2:1) is restricted to commercial use, or accommodation use.

d. The maximum floor area may be increased above the one point five to one (1.5:1) ratio, but not greater than two point two five to one (2.25:1); provided, that the additional floor area between one point five to one (1.5:1) and two point two five to one (2.25:1) is restricted to designated employee dwelling unit(s), or affordable housing units(s).

e. The gross floor area of any on-site affordable housing unit that is required by the development of the lot and provided to satisfy the affordable housing requirement of the site development shall be exempt from the gross floor area limitations as set forth in this section but only if hotel uses comprise a minimum of fifty percent (50%) of the gross floor area of the on-site development. Should on-site affordable housing in excess of the requirement be provided, and is not associated with satisfying the mitigation requirements of other development, then the excess on-site affordable housing gross floor area shall also be exempt from the gross floor area calculation of all structures per lot provided all other regulations are met.

For the purposes of this subsection:

(1) The gross floor area of any hotel unit shall be traditional in size; the maximum hotel unit size shall not exceed nine hundred (900) square feet; the average hotel unit size shall not exceed six hundred (600) square feet; and no hotel unit shall include a kitchen.

(2) The hotel portion of the on-site development shall be deed restricted in perpetuity to hotel use and shall survive foreclosure by legal instrument to the satisfaction of the Town Attorney.

(3) The hotel use shall not be condominiumized except as a single unit.

f. The maximum floor area may be increased above the one point five to one (1.5:1) ratio, but not greater than two point two five to one (2.25:1) pursuant to Article 6, Division 3, “Planned Unit Development.”

g. Covered or enclosed open space shall be included in calculating floor area. “Covered or enclosed open space” means ground area which does not permanently provide at the pedestrian level unobstructed access to light and air, or which is roofed, heated, or physically, psychologically, or visually closed to public access and view.

h. For lots with fifty (50) feet of frontage or less, a minimum of one thousand (1,000) square feet of net floor area of ground floor commercial use for each twenty-five (25) linear feet of frontage shall be provided. The commercial use shall be increased or decreased proportionally for every linear feet greater or less than twenty-five (25) feet. For lots with frontage greater than fifty (50) feet, this requirement can be varied pursuant to a “planned unit development.” For lots that have more than one street frontage, this requirement applies to the shortest linear street frontage which would also constitute the front lot line. Developments comprised solely of hotel, school as permitted by review, public facility as permitted by review, or institutional use as permitted by review, are exempt from this requirement.

i. The gross floor area of any multifamily residential dwelling unit shall not exceed four thousand (4,000) square feet.

3-212.C.14. Maximum Building Height.

a. All buildings, thirty five feet (35') provided that the maximum height may be increased up to forty feet (40'), if approved pursuant to the PUD process.

b. The height of the primary facade of a building shall be not less than sixteen feet (16').

c. Upon review and approval of H.A.R.C., the building height may be increased to forty feet (40'), provided that the maximum above grade floor area to lot area ratio shall not exceed a ratio of one point two to one (1.2:1), regardless of any other LUC requirements including, but not limited to, parking and employee housing.

d. Upon review and approval of H.A.R.C., an architectural element may be located on top of a building, provided that the element may not extend more than twenty percent (20%) beyond the highest point of the building. No element shall exceed one hundred fifty (150) square feet of gross floor area or ten percent (10%) of the structure’s ground coverage, whichever is less.

(1) No such element shall be permitted if it substantially reduces or blocks an adjacent structure’s access to light or air.

(2) No building shall be allowed more than one (1) architectural element.

(3) The burden of proof shall be on the applicant to establish how the excess in height will benefit the neighborhood and the Town.

(4) In determining whether to approve an architectural element, H.A.R.C. shall consider, but not be limited to, such site conditions as large lot size, placement of the structure on the lot, the relationship and proximity to adjacent neighboring structures, major street intersections and dead end streets, and whether the element would create a positive focal point.

e. The height of a structure rated as “contributing” or “supporting” by the Telluride Historic and Architectural Survey may be increased if the applicable following requirements are met:

(1) The height increase is necessary to replace an architectural element historically associated with the structure during the “period of significance”; or

(2) For buildings which have existing primary facade heights of twenty feet (20') or less, the addition is stepped back from the primary facade a minimum of four (4) horizontal feet for each one (1) vertical foot of increase in height; for buildings which have existing primary facade heights of greater than twenty feet (20'), the addition is stepped back from the primary facade a minimum of three (3) horizontal feet for each one (1) vertical foot of increase in height; and

(3) Is stepped back from side streets and side alley rights-of-way a minimum of two (2) horizontal feet for each one (1) vertical foot of increase in height.

Height increases authorized pursuant to this subsection C.14.e shall not be subject to compliance with the requirements of subsection C.14.d of this Section.

f. The height of all roof mounted mechanical and service equipment shall be counted in determining building height.

g. Renewable energy fixtures and equipment are permitted to project above building roof membrane for existing buildings provided H.A.R.C. finds that the following items are complied with:

(1) The visual impacts of active solar collection devices shall be subservient to the historic integrity and visual characteristics of the building.

(2) Screening that is consistent with design guidelines shall be provided to shield fixtures that are in the sight line of the street or alley at which they are viewed.

(3) All fixtures and equipment shall be located in the least visible location possible while maintaining the efficiency of the solar panels proposed. For example, PV shingles and propanel/standing seam integrated products can be used to achieve minimal visibility.

Furthermore, renewable energy fixtures and equipment are permitted to project above the building roof membrane for existing buildings provided that:

(4) Renewable energy fixture and equipment heights do not exceed three feet (3') if more than seventy-five percent (75%) of the roof is covered with panels.

(5) Fixture and equipment heights do not exceed four feet (4') if fifty percent to seventy-four and nine-tenths percent (50% to 74.9%) of the roof is covered with panels.

(6) Fixture and equipment heights of up to five feet (5') are permitted if less than fifty percent (50%) of the roof is covered with panels.

(7) All fixtures shall be installed in a manner that conforms to the Uniform Building Code, and roof load engineering may be required.

(8) All fixtures and equipment shall possess an anti-reflective top coating, such as TOPS (tempered glass tefzel glazing) or titanium dioxide. All metal surfaces shall be a matte finish.

(9) Top-of-pole ground mounts shall be permitted on the ground provided H.A.R.C. finds that:

(a) Fencing or screening is provided surrounding the fixtures.

Furthermore, renewable energy fixtures and equipment shall be permitted provided that:

(b) The fixture(s) conform to all setbacks.

(c) The highest portion of the ground-mounted fixtures does not exceed six feet (6').

(d) Fixtures are located in the rear third of the structure or site.

h. Renewable energy fixtures and equipment that are incorporated into new structures shall be permitted to project above building height limits provided H.A.R.C. finds that the following items are complied with:

(1) The visual impacts of active solar collection devices shall be subservient to the historical integrity and visual characteristics of the building.

(2) For new structures, renewable energy fixtures shall be incorporated into the design of the building to minimize their appearance.

(3) Screening that is consistent with design guidelines shall be provided to shield fixtures that are in the sight line of the street or alley at which they are viewed.

(4) All fixtures shall be located in the least visible location possible while maintaining the efficiency of the solar panels proposed. For example, PV shingles and propanel/standing seam integrated products can be used to achieve minimal visibility.

Furthermore, renewable energy fixtures and equipment that are incorporated into new structures shall be permitted to project above building height limits provided that:

(5) Two feet above allowable height limits will be permitted if H.A.R.C. determines that appropriate screening is provided.

(6) All fixtures and equipment shall possess an anti-reflective top coating, such as TOPS (tempered glass tefzel glazing) or titanium dioxide. All metal surfaces shall be a matte finish.

(7) All fixtures shall be installed in a manner that conforms to the Uniform Building Code, and roof load engineering may be required.

(8) Top-of-pole ground mounts shall be permitted on the ground provided H.A.R.C. finds that:

(a) Fencing or screening is provided surrounding the fixtures.

Furthermore, renewable energy fixtures and equipment shall be permitted provided that:

(b) The fixture(s) and equipment conform to all appropriate setbacks.

(c) The highest portion of the ground-mounted fixture(s) does not exceed six feet (6').

(d) Fixture(s) and equipment are located in the rear third of the structure or site.

i. H.A.R.C. may allow heights for elevator over-runs in excess of the maximum building height as established in the LUC, or as approved by PUD, for up to an additional six feet (6') for a total area of no more than four hundred (400) square feet or two and one-half percent (2.5%) of the lot area, whichever is less, provided such over-runs are not visible from adjacent public rights-of-way, river park corridor or parks.

3-212.C.15. Minimum Roof Pitch. No limitation except roofs of buildings located on lots with frontage on Colorado Avenue shall be flat unless otherwise permitted or required by H.A.R.C.

3-212.C.16. Maximum Site Coverage. No limitation.

3-212.C.17. Minimum Ceiling Height. For all buildings located on lots with frontage on Colorado Avenue, the minimum height of the lowest finished ceiling above sidewalk grade shall be not less than eleven and three-quarters feet (11.75') measured from the average sidewalk grade along the building frontage to the bottom of the ceiling, such minimum to apply within an area extending into the building a distance of twenty-five feet (25') from the Colorado Avenue property line.

3-212.D. Off Street Parking Requirements. The following number of off street parking spaces shall be provided for each use in the Commercial Zone District:

3-212.D.1. Parking Requirements in the Commercial Zone District.

Use Category

Required Parking

Residential Dwelling Units

1 space per unit

Short-Term Dwelling Units

2 spaces per every 3 units

Hotel, Lodge, Roominghouses, Boardinghouses

2 spaces for every 3 units

High Intensity Use

One space per 500 square feet of floor area

High Intensity Use: Restaurants

No spaces required

Low Intensity Use

One space per 1,000 square feet of Net Floor Area

3-212.D.2. 

Parking Requirements for development comprised solely* of Hotel, Lodge, Roominghouse, Boardinghouse, and Short-term Dwelling Units for Lots less than 6,000 sq.ft.

Lot Area

Required Parking

0 - 3,000 sq. ft.

4 spaces; or the number of spaces required in Section 3-212.D.1, whichever is less

3,001 - 5,999 sq. ft.

5 spaces; or the number of spaces required in Section 3-212.D.1, whichever is less

*excepting affordable and employee housing

3-212.E. Payment-In-Lieu of Parking. The Planning Director may approve an application for payment-in-lieu of parking for up to two (2) parking spaces required for commercial use or accommodations use.

(Ord. 1561, 2023; Ord. 1542, 2021; Ord. 1541, 2021; Ord. 1524, 2020; Ord. 1495, 2019; Ord. 1463, 2018; Ord. 1446, 2017; Ord. 1429, 2015; Ord. 1423, 2015; Ord. 1422, 2015; Ord. 1344, 2011; Ord. 1316, 2009; Ord. 1248, 2006; Ord. 1177, 2002; Ord. 1163, 2002; Ord. 1112, 1999; Ord. 1106, 1998; Ord. 1092, 1997; Ord. 1033, 1995; Ord. 1011, 1994; Ord. 1007, 1994; Ord. 1005, 1994; Ord. 977, 1993; Ord. 975, 1993; Ord. 970, 1992; Ord. 955, 1992; Ord. 924, 1991; Ord. 869, 1989; Ord. 817, 1988)