CB Council takes brief timeout from affordable housing debate

But not before more comments

Proposed revisions to the Crested Butte affordable housing ordinance continue to draw comment from both supporters and detractors. At a December 19 meeting, the council decided to take a timeout. Instead of scheduling Ordinance 19 for a public hearing in January as planned, the council scheduled another work session on the matter for January 30, with formal discussion and possible action scheduled for February.

 

 

The affordable housing consultant originally hired by the town, Melanie Rees of Rees Consulting Inc., told the council that holding a work session looking at the broader affordable housing picture might be in order. “I’ve been a consultant on this issue for 20 years and I’m a strong proponent of affordable housing for community preservation,” she said. “But affordable housing regulations must work and must survive. The requirements must turn into affordable housing,” she said.
“A linkage fee like you are discussing is an excellent tool, but I have concerns with how the program is structured. I think this program needs to be fine-tuned,” she said. “You should look at other options as well in light of the current economic conditions. Look at ways developers can meet your requirements and get affordable housing produced.”
Rees told the council that to use their metaphor, there are a lot of legs on the affordable housing stool. The affordable housing committee that she worked with developed a strategic plan and the controversial linkage fee is just one aspect. There are a lot of other elements in the plan, she told the council. “For it to really work, people need to feel the housing program is fair. It has to work and survive. Everyone needs to develop an understanding that there are a lot of legs on this stool. This isn’t the only tool in the toolbox.”
Rees suggested a joint work session between the council and the town affordable housing committee; the council agreed this was a good idea.
At the suggestion of councilperson David Owen, mayor Aaron Huckstep then opened the meeting to public comment, since a number of people were attending the meeting.
“Everyone wants a quality affordable housing program,” said local attorney Chuck Cliggett, “but it’s got to work. The term ‘affordable’ has to apply to both sides of the equation. If it doesn’t work for the developers as well, it just won’t happen.”
Cliggett also said the town was in the middle of a horrible economic downturn, and stopping all growth through unreasonable fees could end up costing local people jobs and money.
Local restaurateur Peter Maxwell said he and his partners were hoping to expand their building to include a rooftop deck and bar. “It would increase revenue, taxes for the town and the number of employees we have. But the latest increase of 4,100 percent in affordable housing fees isn’t reasonable,” he said. “The expansion under the old rules would cost us $5,000. Under the current rules, it would be closer to $90,000.
“If this increase stays, we won’t be doing the rooftop deck,” he continued, “but we will look to go to a place like Denver or Colorado Springs to open another Maxwell’s Restaurant. That takes money and jobs out of here. We pay close to $100,000 a year in sales tax. Instead of expanding the business and the tax revenue here, we’d look at a seven-year exit strategy instead.”
Architect and Sixth Street Station developer Gary Hartman reiterated a number of points he had previously made to the council when arguing for them to repeal the current fees. “The notion of an affordable housing ordinance is a noble and just cause that represents a socially responsible provision for a community to rally around. However, when reviewing the regulations as currently proposed and digging beneath the surface, you will find that this particular ordinance and its assumptions are misguided and the final result will fall short of the town’s goal of creating affordable housing units in the current economic climate.”
 Rumors Coffee and Tea House and Townie Book Store co-owner Arvin Ram asked the council and Rees to find out in which other resort towns such affordable housing fees were stopping growth. “These are special places,” he said. “You have to be hearty and strong to live here. You live here to be part of the community. I’m not into the doom and gloom of the economy. This is an opportunity economy. I think this proposal is pro-Crested Butte for people who want to live here.”
Center for the Arts board member Jennifer Hartman said the fees would kill the proposed expansion for the Center for the Arts. “Why weren’t developers brought in to be part of the process that came up with this so they could give their perspective?” she asked. “It may be a good time for that to happen at the work session next month. It’s better to work collaboratively and make sure it pencils out. This ordinance is broken.”
Affordable housing committee member Margot Levy said the ordinance was about preserving the community. “I’m a little unhappy it is focused on the fees. There is more to this ordinance than the fees. Getting units on the ground is what is important. And it is fine that the developers who develop the problem mitigate the problem.”
Contractor Ben Somrak said he had planned to work on the Maxwell roof project but that was now on hold. “Implementing a 4,100 percent increase is too much,” he said. “I see affordable housing out there now and a lot of it is on the free market. Now may be the time to purchase something. As Arvin said, there is an opportunity in times like this. You can get a job and buy a place for under $200,000. That’s what affordable units cost during the bubble.”
Billy Rankin has lived in Crested Butte almost 20 years and has rented. “I’d love to buy a place in town someday but it’s still expensive. Affordable housing cuts to why we’re different from other towns. You can still walk downtown here and see locals who live here. I could look in Gunnison or Crested Butte South or Riverbend but I want to stay in Crested Butte. I love living in town. I think Ordinance 19 will help keep Crested Butte what it is.”
Former mayor Alan Bernholtz said he wanted to talk about the philosophy of affordable housing. “Everyone is making good points on both sides,” he said. “When we were in the bubble we were trying to play catch-up. 4,100 percent sounds a little high for an increase. But we need people living here. I just ask that you be reasonable in your decision. Ordinance 19 seems pretty reasonable. Put something in place so that when the economy starts moving again we’ll have something in place to help the community.”
The council noted that it had received several emails from people lobbying on both sides of the issue. The council will meet again to discuss the topic with Melanie Rees on January 30 at a work session.

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