The Crested Butte News Serving the Gunnison Valley since 1999
Trust funders need not apply to
Caddis Flats…
The Crested Butte Town Council Monday night asked questions and requested information about the 30-unit, three-story affordable housing project being proposed next to True Value at Sixth and Belleview. The council did take the first step toward approval as they agreed to hold a public hearing on changes to the zoning code that would allow a T (Tourist) zoned lot to accommodate 100 percent affordable housing units. That public hearing will be held December 2.
The council (as the town Planning Commission) will consider a specific zoning change to the lots in question that would shift two business-zoned lots to the T-zone on December 9. That will set up the opportunity for a PUD (planned unit development) to be started that would allow the low-income housing tax credit project (LIHTC) to move forward.
Gunnison Valley Regional Housing Authority executive director Karl Fulmer gave an overview of the project to the council at a work session before the council meeting. He said the members of the development team were excited about the potential for providing quality, long-term affordable rental units in town. He said the project, known as Caddis Flats, would utilize tax credits awarded through the Colorado Housing and Finance Authority (CHFA). The renters who qualify to live in the units will have to earn less than 60 percent of the AMI (average median income) per year. At the moment, that would be less than $28,860 for a single-person household. Rent on a one-bedroom unit could be about $300, depending on the renter’s income.
“We had an official site visit from our CHFA representative and the organization is quite impressed with the site selected and level of local cooperation and commitment for the project,” Fulmer said. “Remember that these will not be subsidized rents but rents set on income categories. We will screen all potential renters. They will have to make enough to pay their rent but not enough to go beyond the AMI qualifications. We will check out their past rental history and credit rating. Not just anyone will qualify to live here.”
Melanie Rees of Rees Consulting is conducting a needs assessment study of the area. Her figures are showing there is a definitive need for such rental housing in this price range for local workers.
Rents will range from $306 per month plus utilities for a one-bedroom unit for someone making 30 percent of AMI to $835 per month plus utilities for a two-bedroom unit for someone making 60 percent of AMI. The project would be built to high energy-efficiency standards so utility costs are expected to be pretty low.
“There is a need for one- and two-bedroom units that this project addresses,” Rees said. “The location from a marketability standpoint is ideal. It is close to public transportation and very walkable. It is near the grocery and the bus stop. Let me say too that I have been involved with several of these types of projects in mountain resort towns. They are very attractive and attractive over time. Beaver Creek has one that is practically ski-in ski-out. Steamboat has a nice one at the base of the mountain.”
Bill Coburn is the designer for the project. “We looked at other sites such as the town’s affordable housing land and the old Crested Butte Academy site. This site is ideal, really,” he told the council. “The apartments sit far back to the west of the lot. A nice business building could still be built in front of it near Sixth Street. Ultimately, you’ll see commercial stores along the street. The other properties wouldn’t rank as high for the tax credits.
“I think we’ve come a long way since we first approached you for money,” Coburn continued. “I think the parking requirements are too high but we have been able to be within the town requirements for height, most of the setbacks, parking and floor area ratio. We are at the upper limits but not beyond.”
Coburn promised the council that the building would be designed to be a “good looking building in a great spot with quality construction. We want to allay some of the fears out there.”
Councilperson Jim Schmidt wanted to make sure “trust funders” didn’t end up in a nice cheap apartment. He was assured that based on income requirements and verification, that was unlikely.
Outgoing Councilperson John Wirsing asked if lots in Mt. Crested had been considered since the scale of the building might be more appropriate. “No,” answered Coburn. “We pictured this as workforce housing in Crested Butte. This was envisioned as a community project with the amenities of town close to public transportation, the school, the jobs.”
When asked by Councilman Glenn Michel about the potential loss of sales tax to the town by using commercial-oriented lots for affordable housing, Fulmer admitted that was probably going to happen.
“But this is a project that supports business in town,” Fulmer said. “A stable employment base is a benefit. To have a sustainable economy, you need to provide quality, stable housing for the workforce. Yes, you will lose some revenues but this supports the town in a different way.”
Town finance director Lois Rozman was asked to do a basic financial analysis for the council before the next meeting. Town public works director Rodney Due was also asked to provide pros and cons of the project from his department’s point of view.
Coburn said he had investigated putting a “boutique hotel” on the site and it just didn’t work. “It’s not feasible on that site. I tried and it wasn’t even close. Down the road, it would have been something like an office building with residential above it that went there instead of a hotel.”
Fulmer said he was confident the building would be aesthetically pleasing. He said a part-time, off-site employee would spend approximately 20 hours a week managing the project to make sure it was maintained.
The residents have to qualify for the apartments every year. If they start to make too much money, he said they would be transitioned out of the property.
“A lot of it is the natural progression,” Fulmer said. “People’s lives advance and they look for new opportunities. We expect most of the renters to be in their mid-20s to mid-30s. We envision them to be stable employees of the local economy.”
Coburn said the tax incentives would provide enough money to make the project an affordable, quality one. “The materials used in construction will be durable,” he said. “There is money for a large maintenance budget. Thanks to the tax credits, this will be something the town can be proud of.”
As for the upcoming public hearing on the zoning change, the council wanted to make sure there was a logical progression of consideration. “Should we look at the specific property at the same time?” asked Councilperson Shaun Matusewicz.
“This ordinance adjusting the zoning is a general-type stroke,” explained Crested Butte building and zoning director Bob Gillie. “Most zoning and code changes come as the result of a specific project request.”
“We are trying to set it up to give you as the council time to chew on all this,” added town manager Todd Crossett.
In agreeing to place the public hearing at the next meeting, Schmidt was passionate about the need for the affordable housing project. “Affordable housing is always going to be a need in a ski town,” he said. “For 23 years I pretty much lived paycheck to paycheck. Getting into town affordable housing changed my life. It made it more comfortable,” he said. “I see this as a chance to help provide a good life for some people in this town.”
The council will begin chewing over the project in earnest at the public hearing on December 2.
The development team is aiming to have everything lined up and in place so they can make the March 3 application deadline to obtain the tax credits.
