Council to air out issues with Caddis Flats plan

Will the toothpaste come out of the tube?

There are some concerns and questions from Crested Butte Town Council members over the affordable housing project being proposed for the lot at Sixth and Belleview. The 30-unit building known as Caddis Flats would accommodate low-income residents and is made affordable through local government contributions and four-and-a-half to five million dollars in federal tax credits.
The council wants to have a thorough discussion of the project next Monday, December 9 before deciding whether to change some town zoning and pave the way for the 21,000-square-foot building.

“Without the zoning issues coming together this project won’t move,” explained Crested Butte building and zoning director Bob Gillie. “There is action to be taken by you as the Planning Commission and the council. BOZAR is starting to review issues with the project. This ordinance tonight would allow BOZAR to grant a conditional use for this type of project in the T-zone. But that doesn’t mean they would do that. It sounds like we are moving fast but the project is under some time constraints.”
The council was scheduled to put the first piece of the complex zoning puzzle in place on Monday, December 2 but it was evident that some councilmembers were uncomfortable with the pace of the process and had some deeper questions about the project in general.
The proponents of the project hope to apply for the tax credits in March. They want the town zoning and approvals in place before that application is made.
“If we took a vote on this ordinance tonight, I sense we could be split down the middle and I’d rather give everyone time to get their questions answered. So we should take that time,” suggested Mayor Aaron Huckstep after an hour’s worth of discussion.
The council will hold a public meeting on Monday, December 9 to air out any concerns about the project. That meeting is scheduled to begin at 5:30 p.m. They are encouraging members of the public with concerns about the project to come to the meeting or voice their concerns to the councilmembers before Monday.
“Get every card out on the table that you want to see,” added Gillie. “It’s a good idea to hold that type of discussion on the ninth.”
“It is important to have a holistic discussion on the project instead of just addressing it a piece at a time,” concurred Councilperson Jim Schmidt. “Let’s hear all the pluses and minuses on the ninth.”
At the December 2 meeting, the council was to consider an ordinance that essentially would allow a project in the T [Tourist]-zone to be 100 percent residential when certain deed restrictions are applied and it would add to the intent of the district that residential units would be allowed in the zone as long as they were long-term rentals.

Town control and tax hits…
Huckstep pointed out that there are currently several housing facilities already located on T-zoned lots in town. The Meadows and Silvanite were built in the T-zone and the zoning was changed by a previous council to restrict such housing projects in that zone.
Gillie presented the council with a detailed memo addressing some of the issues that have come up with the project. He looked at other similar vacant lots in Crested Butte and pointed out concerns with those parcels. He concluded that it would take such a tax credit project for this type of project to occur in Crested Butte.
In the case of Caddis Flats, the proponent is bringing a specific development for this particular parcel to the town so the town is limited in its ability to do things like direct it to another location. Gillie makes it clear that BOZAR and the proponents have several issues to work out if the development is to be ultimately approved for that site.
Town finance director Lois Rozman also presented the council with an analysis of potential lost income to the town from the zoning change. Her conclusions show the town would lose approximately $30,000 per year in tax revenue as a result of the project. Additional first-year impacts would total more than $100,000 in lost building fees, lost real estate transfer tax and money used to make up for reduced tap fees. The county and school district would take an annual loss from the project’s property tax exemption.
Former councilperson John Wirsing spoke to the council and said that while he likes the idea of affordable housing in town, taking away dedicated space for tourism-related businesses in a tourism-oriented town was not a good idea. “That zoning was changed to encourage shops and businesses and hotels in the town,” he said. “We need those places for those types of businesses to exist in this town.”
“If this project was brought forward without the word ‘affordable’ in it, we all know it wouldn’t have gotten this far. It’s an awesome idea but it’s the wrong location. If it doesn’t work in town then maybe it doesn’t belong in the town. Maybe it actually belongs in Mt. Crested Butte. Don’t lead these guys down the road and when you see it doesn’t fit or belong in that location tell them no. That’s not fair to anyone. I’m a big fan of affordable housing but that doesn’t trump losing area in the T-zone,” wirsing said.
“I help manage some places that were bed and breakfasts in the T-zone that didn’t make it,” countered resident Susan Eskew. “Now they are being used as homes and are rented out for vacation rentals. I have a soft spot for people trying to live in town. I think we should try to accommodate people downtown who help contribute to a rich, cultural community.”
Crested Butte resident Jim Starr is president of the Gunnison Valley Housing Foundation. “John’s reasoning is flawed. In order to have tourism businesses you need employees,” he said. “Local businesses are having problems finding good employees who can show up on time and don’t need to depend on public transportation. It is good to have people live near their work. Too many resort towns are being lost when too many second-home owners come in and buy up the homes. We don’t want to lose this community. This project is timely and critically needed. If the community is going to thrive, we need to make some changes to the rules we have.”
“Affordable housing is an important issue in the basin,” said Butch Clark of Gunnison. “The location is really quite excellent to serve the needs of those who would be using it.”

Is the toothpaste out of the tube?
“I look at this project potentially housing more than 60 people who wouldn’t have to drive up from Gunnison or Crested Butte South,” said Councilperson Jim Schmidt. “That’s a lot of cars not on the road.
“As far as the site, I disagree with John,” Schmidt continued. “It is tight. No doubt about it. There will be some congestion. But I have faith in the Housing Authority and Mr. Coburn to do this project right. They say they are allocating enough money in an ongoing maintenance fund to keep it nice. This is a very worthwhile project.”
“No one disagrees that we could use more affordable housing,” said Councilman Chris Ladoulis. “But I’m appreciative of John’s comments. The concerns I keep hearing are about that site. We need to separate what we need to weigh. The project might be good, but is the site appropriate? I’m afraid some are looking at this as a silver bullet and it isn’t. The site scores high from the state agency granting the tax credits because it is one of the more valuable sites in town. We need to be thinking about the unintended consequences of allowing it there. I’m hesitant to displace property for tourism-based businesses.”
“It seems to me the process to get here has been rushed,” added Councilperson Roland Mason. “A lot of things have not been vetted. Everyone loves the idea of providing low-income housing but I keep hearing issues about the location.”
“Each step we take pushes a little more toothpaste out of the tube that can’t be put back in,” said Councilperson Shaun Matusewicz. “At some point, we will have taken so many little steps the council won’t be able to say no. We need to get more questions answered. I’m a renter. I’d trade some T-zone for affordable housing. But I have some questions about this project that need to be answered before we vote on anything.”

The whole town is already a boutique hotel
Susan Eskew pointed out to the council that in Crested Butte, the residential area was turning into the tourist-oriented zones. “People are renting out their houses through things like VRBO all over town,” she said. “Don’t be hard and fast in your thinking. Standard hotels may not work here at the moment. Shift your thinking and see that there are beds being rented in town but it is being done in the houses. A hotel is probably never going to be built on that site.”
“We aren’t the only town dealing with the issue of affordable housing,” said Huckstep. “We in Crested Butte talk so much about the value of our community and the people who live here but we are challenged by the idea of changing some zoning to allow for residential units that would be long-term housing for low-income renters. I don’t know how to reconcile those two things.”
The council agreed to send questions to the staff to be answered before Monday. They want to have a deep discussion over the project on December 9 when all the proponents can be at the meeting.
“If we have a big discussion on the ninth, we will know that either the toothpaste is coming all out of the tube or it is going to stay in the tube,” concluded Huckstep.