The Crested Butte News Serving the Gunnison Valley since 1999
Three out of four good with structure
By Mark Reaman
Negotiators representing the four parties to the Memorandum of Agreement (MOA) for the Brush Creek affordable housing property voted 3-1 this week to proceed with the proposed structure of a deal with Gatesco Inc., in which the developer would take title to the property. The deal calls for selling the land at the corner of Brush Creek Road and Highway 135 at an under-market cost to the developer before approval of the project is received by the county. The deal structure does include a buy-back option if the proposal is not approved. Crested Butte voted against the motion.
A buy-sell agreement is currently being drafted between Gunnison County in cooperation with the parties to the MOA and Gatesco. Under this week’s vote, the proposed purchase contract may be presented to the developer as soon as the middle of next week.
Gatesco has submitted a sketch plan to the county to develop the approximately 14-acre property with 240 rental units. It has been accepted into the county review process (see story on page 1) and the first work session with the county Planning Commission is slated for Friday, October 20.
Gatesco spokesperson John O’Neal said the reason the developer wants title to the property before approval is obtained is primarily procedural. “My sense is that it’s easier to go through the LUR process and obtain the needed financing as an owner,” he said. “No purchase agreement has been approved yet.”
Crested Butte town manager Dara MacDonald said she was not at liberty to explain the reasoning for the town’s dissenting vote. “The direction I received from the Town Council was given during executive session,” she explained. “I expect there may be a public position coming from the council following the executive session on Monday.”
The Town Council has a regular meeting scheduled on Monday, October 2, with an executive session to discuss the proposed contract.
Crested Butte Mountain Resort is a party to the MOA and CBMR vice president and general manager Michael Kraatz said the arrangement is not unusual.
“Over the years we have entered into a number of similar agreements in which title gets transferred but if certain provisions are not met we are able to take title back. We have a pretty high comfort level with this type of arrangement,” Kraatz said.
Mt. Crested Butte negotiators also are also comfortable with deal structure. “The town of Mt. Crested Butte is comfortable with selling the property prior to the LUR approval. This type of ‘Buy, Sell and Develop Real Estate’ agreement is common,” explained Mt. Crested Butte town manager Joe Fitzpatrick. “The town’s attorney in conjunction with the other parties’ attorneys to the Memorandum of Agreement are working through the details of the contract. The property owner’s, Gunnison County’s, and the parties to the MOA’s right to the property will be protected. Each party will be reviewing the proposed agreement along with the respective attorneys prior to submitting the contract to the developer.”
The Mt. Crested Butte council is meeting on Tuesday, October 3 and they have an executive session scheduled to talk about “negotiations.”
As for the county, county manager Matthew Birnie is confident the public will be protected with any land transfer to Gatesco. “We haven’t even gotten to the point of sending proposed contract language to Gatesco. Any contract we sign will have significant protections to ensure that the project will address our workforce housing needs if it is built,” Birnie said. “Also, the County has ultimate land-use authority over what occurs on this parcel which provides additional protection of the public policy goals.”
As for the split vote on how to proceed, Birnie said a majority of the group is staying on task. “I think the real take home is that we are committed to addressing the housing crisis and don’t believe that taking legal direction from someone who has been hired by a group formed to oppose the proposal is a good way to ensure that a meaningful workforce housing project will be built,” he concluded.
