ADU rental dispute continues with long-term lease submission

Town skeptical of leases 

By Mark Reaman

The two Crested Butte homeowners who do not want to long-term rent their deed-restricted accessory dwelling units (ADUs)—despite a town directive to do so under town code—have submitted signed leases to the town.

Both leases were for a year starting November 28. Both leases were for an annual rent of $12, or $1 a month. The security deposits for both leases were set at $10 and could be paid in two installments. There is an automatic renewal in the leases for ten years at the same rate.

Christopher David Mize who owns the deed–restricted property at 225 Butte Avenue in the Kapushion subdivision signed a lease with David Mize. Meanwhile, John Kiltz, who manages Sopris 715, LLC, signed a lease with Hunter Sage of TNITW, LLC. Sage is a business partner of Kiltz.

The town received copies of the leases Monday from the homeowners’ attorney, Marcus Lock, who had brought up the possibility of a lawsuit over the issue with the Town Council in late November. The Monday email to Crested Butte building and zoning director Bob Gillie was titled “Christopher David Mize; Sopris 715, LLC; Leases in compliance with Notices of Decision dated November 4, 2016…”

The letter to the town acknowledges that the town gave the homeowners until December 19 to come into compliance with the town regulation to rent the ADU spaces.

“The Notices of Decision further instruct us to contact you once the properties have been rented long term in accordance with the respective deed restrictions governing the properties,” the letter reads.

“Accordingly, I am enclosing herewith the leases entered into by Mr. Mize and Sopris 715, LLC. The leases are for 6 months or more,” the letter states. “Please confirm, in writing, that: (a) these leases meet the requirements of the respective deed restrictions on the subject properties and that no further enforcement action will be taken, and (b) that the definition of ‘Rental, Long-term’ in Ordinance 9, Series 2015 is not being applied to these properties. In the alternative, if these leases are not sufficient, please advise me, in writing, the exact deficiencies causing such leases to fail to meet the requirements of the applicable deed restrictions. Similarly, if Ordinance 9, Series 2015 does apply, please provide any explanation as to why it applies.”

Lock asked for the town to respond no later than December 12.

Town manager Dara MacDonald said Crested Butte’s town attorney John Belkin had not yet thoroughly reviewed the leases. “But our initial reaction is that these leases do not satisfy either the intention of the covenants or the letter of the law,” said MacDonald.

“The covenants require that long-term rental units be maintained on the property per the Crested Butte Municipal Code,” continued MacDonald. “While there have been changes to the code over the years, those changes have been made to better define the intention of the community and it is our position that the covenants are subject to these refinements. Thus the leases should be with real people who reside in Gunnison County. It is frustrating that it appears neither of the leases presented are for people who will actually be living in the Crested Butte community.”

Lock had no comment when contacted by the News.

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