The Crested Butte News Serving the Gunnison Valley since 1999
$170,000 “going to be tight”
The town of Mt. Crested Butte is ready to make some improvements to the Nevada Ridge subdivision and has cashed in a letter of credit to get the work done.
Community development coordinator Carlos Velado told the Town Council at a meeting on Tuesday, July 19, “We’re holding a letter of credit on the Nevada Ridge subdivision in the amount of approximately $170,000. That letter of credit is set to expire on August 1.”
Local governments that want to make sure developers are going to do what they say to the standard expected by the local authority often require letters of credit. If the development doesn’t meet the standard or isn’t complete, the local government has the ability to cash in the letter at the bank to secure funding for the work.
Velado said the letter of credit had been extended several times, most recently in November, in hopes that the extension would give the developer time to get the work done through the summer.
“A letter had been sent to the owner with a list of the things that need to be improved and that the town is prepared to cash in the letter of credit to do that work on the owner’s behalf,” he said.
By the following week, the town had started the process of cashing in the letter of credit with Community Banks of Colorado. But town manager Joe Fitzpatrick warned that the numbers used to arrive at the amount of money available through the letter of credit are pretty “stale now.”
“I’m not exactly sure if we’ll be able to complete everything on that list,” Fitzpatrick told the council. “Our goal is to complete as much as possible, but we’ll have to re-bid a few of the items.”
The Nevada Ridge subdivision sits at the top of Hunter Hill Road, high on the northwest side of Crested Butte Mountain and, according to Nevadaridge.com, there are 15 undeveloped and buildable lots available below the Buckley ski run and above the Championship ski run. Nevada Ridge has been the launching site of the town’s firework’s display for the last couple of years.
When construction first started at the development in 2004, Fitzpatrick said the property was well taken care of and watered regularly. But as interest in the 15 lots faded, trees and landscaping were neglected and have since died or struggle to hang on.
Still the developer Don Perrotta of Telluride-based Perdon Development, Inc., has been cooperative with the town and willing to get work moving on the site, which has seen only dirtwork.
From the letter of credit, Velado said he would like to have money to “get some work done and improve the current conditions on that site,” he said, listing items from a punch list that needed improvement, like landscaping and weeds, road and retaining wall repairs.
“There are a lot of trees and things that need to be replaced, because they died,” Fitzpatrick added, “and we need to have some money set aside to take care of the landscaping and site for the next couple of years.”
When asked if the $170,000 would be enough, he said, “It’s going to be tight.”
Velado said he was hoping to see work start on the property before the winter sets in.
