Town of CB explores reasons for relatively high building costs

Zoning, design, building codes, lot layout all factors

[  By Mark Reaman  ]

In case there was any doubt, the Crested Butte town staff confirmed it costs more to build in Crested Butte than in other places around the county. The main factors include CB zoning requirements, local design standards, building codes and energy efficiency requirements, site efficiencies, along with being farther away from easy access to labor and materials.  

After big gaps were noted between construction costs for affordable housing in Crested Butte and Gunnison, council asked staff to investigate the reasons. The Sawtooth Phase 2 project in Gunnison, for example, is coming in at $350 per square foot, the Homestead project in Mt. Crested Butte is penciling out at $343 per square foot while Crested Butte’s Mineral Point is $430 a square foot and the Paradise Park project is $495. 

Community Development director Troy Russ and housing director Erin Ganser informed the council in a meeting last month that zoning regulations “influence the construction costs more than even architectural guidelines because they dictate mass, scale and form of buildings.” They pointed out that while the Sawtooth II and Mineral Point projects have a similar number of units, 32 and 34 respectively, the Gunnison project has them concentrated in one building while Crested Butte zoning codes require three buildings. That means three foundations and three mechanical systems, for example.

 Crested Butte also has the most stringent energy efficiency requirements and the most complex design guidelines.

“The numbers aren’t pretty on our projects,” admitted Ganser. “A high-density box is the most efficient in terms of cost but that’s not who we are.”

Ganser compared some costs of the Paradise Park project and the Lazy K development in Gunnison. She noted inflation has had an impact but made clear that “our units are essentially small custom homes. None of our parcels are the same, so each building has to be unique.”

Using concrete as an example, Ganser explained the price continues to rise as there is high demand along with a material and labor shortage. “There are only two concrete truck drivers in the valley right now. The carpentry is more complicated in Crested Butte as well. At Lazy K there were two trusses versus 22 on a Paradise Park duplex. There is not one culprit. There are many factors.”

Responding to council questions, Ganser said the town can utilize modular construction but given design guidelines, any tweaks to the design can be expensive with modulars so the preference is to use stick-built construction. “Our design guidelines make modulars harder,” she said.

Mayor Ian Billick asked if it was fair to say that the current town zoning and building codes make it difficult to capture potential efficiencies. Russ affirmed that conclusion.

“As an architect I’ve seen it over and over again,” said councilmember Kent Cowherd. “It is not surprising to me. Frankly, the numbers are less than what I generally see. My clients would love to build for $500 a square foot versus $800. All the corners and rooflines that BOZAR (Board of Zoning and Architectural Review) wants count. But it is a reflection of our town.”

“The character of what we are as a town is reflected in our design code,” said Russ.

“Having a small-town feel is important but scale and mass can drive that,” said Billick. “Are there other ways to reduce the complexity and reduce construction costs?”

“There is probably something between a big box and 22 trusses,” said councilmember Jason MacMillan.

“Character matters but so does affordability,” added Russ.

“Can we simplify and still be interesting at a lower cost,” asked councilmember Gabi Prochaska.

“We are not overdesigning for fun,” quipped Ganser.

Noting there are some simply designed buildings in Paradise Park, Russ said the most recent architectural design for the Paradise Park units focused on the livability aspect of the units for future residents. That resulted in things like more rooflines and higher overall costs.

“Also, we are trying to get as many units as we can on each parcel,” said Ganser. “So getting 16 units on nine parcels costs more than putting nine simple homes on the nine parcels.”

“This information is good to have as we move forward,” said councilmember Beth Goldstone.

Russ noted the town is starting the so-called “infill study” that could set the stage for a change in town zoning if the public and council agree to that direction. “But the earliest such zoning changes could occur would be the end of next year,” he said. “If cost is the only factor that is important, we can change the zoning. Given the study coming up, it is a good time for this discussion.”