CB council approves pre-annexation agreement for Whetstone

A future council will have the actual decision over annexation

[  By Mark Reaman  ]

The Crested Butte town council on Monday passed a resolution approving a pre-annexation with Gunnison County over the proposed Whetstone workforce housing project. It was emphasized that the pre-annexation agreement was not an annexation agreement, but it set up the potential for an annexation of the property within five years of the development being completed. County representatives indicated they had no issue with the obligation to file for annexation within that timeline and to let the town council at that time decide on the issue.

Under the pre-annexation agreement, the county would be responsible for ownership of Whetstone and ongoing maintenance of all public infrastructure including public utilities, streets, sidewalks, trails and parks. A financial impact study indicated such an annexation would have a “revenue neutral” impact on Crested Butte resources. 

Given there is no commercial business at Whetstone, there is no additional sales tax expected to be generated for the town through annexation. Sales tax to the town coming from Whetstone residents will happen with or without annexation. The project is exempt from property taxes so the town will not see any revenue on that front. 

The current council sees two primary benefits of a future annexation: it will extend its legal influence over future development along Highway 135 another two miles to the south; and it will expand the voting population of Crested Butte as Whetstone residents will then have the ability to participate in town elections as well as become active in Crested Butte boards and commissions.

“This pre-annexation agreement does not obligate the town to annex the property,” said Crested Butte town manager Dara MacDonald at the July 15 council meeting. “It does obligate the county to petition for annexation within five years of completion of the project and this lays out some of the terms.”

She said the reason to have a pre-annexation agreement in motion now is that the town has the leverage with the county to ask for such an agreement given negotiations over the utility extension agreement currently in play as part of the development. “It gives town the right to evaluate an annexation in the future,” she said.

“This will give future councils the ability to consider an annexation,” emphasized mayor Ian Billick.

“I’m against annexing the property,” stated councilmember Gabi Prochaska, who summarized that the pre-annexation agreement “is forcing the county to ask a future town council to consider annexing.”

Citizen Jim Day asked what benefit annexation would have for people living in Whetstone and if they were able to vote in town elections, why not extend that right to locals living in places like Riverbend. 

Haden Spencer asked for more thorough transparency over the annexation process and how it would work in the future. She wanted to make sure there was plenty of opportunity for public input in an annexation proceeding. 

Jim Watson seconded Spencer’s concerns about the future process and pondered why new residents of Whetstone might get to vote in Crested Butte but people who have been long-time second homeowners in town like himself cannot.

Town attorney Karl Hanlon said annexations are covered under state statute and include a long process with opportunities for public hearings.

Billick said he saw the social benefits of a potential annexation of Whetstone given the approximately 600 people it would house. “I like to see a lot of civic participation opportunities and this could encourage that,” he said. “We need a community engaged and involved. This could help with that.”

The council voted 5-0 in favor of the resolution approving the pre-annexation agreement. Councilmembers Mallika Magner and Beth Goldstone were not at the meeting.

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