The Crested Butte News Serving the Gunnison Valley since 1999
Performance bond finalized
By Kendra Walker
Last week, the town of Mt. Crested Butte finalized a performance bond and agreements that will allow its contractor, Bywater Development, to commence vertical construction of the Homestead affordable housing development under building permits. During their July 16 meeting, the Mt. Crested Butte town council approved an amendment to the Homestead Development Agreement with a “4-Way Agreement” between the town, Bywater, its lender Alpine Bank, and the bond company West Bend Surety. The agreement reflects remedy provisions should Bywater go into default with the project.
Last fall, the town selected Bywater to complete the unfinished 22-unit community housing development in the Homestead subdivision, after the previous developer, Lance Windel, went into default and did not fulfill the contract. The town paid $750,000 as part of the settlement agreement to extinguish the contractual relationship. This performance bond and 4-Way Agreement ensures that if Bywater goes into default, history will not repeat itself and the town will have control of the land and available money to finish the project.
Under the 4-Way Agreement, Alpine Bank has the option to first acquire the Homestead property and assume all of Bywater’s obligations to complete the affordable housing project should Bywater go into default. If Alpine defaults, the town will then have the remedy to acquire the property and call the bond. “We believe this is to the town’s benefit in that the bank will be positioned to take over the project promptly and the town will avoid the cash flow and project management obligations it would otherwise face under the current agreement,” explained town attorney Gerald Dahl in a memo to the town council.
“Having these bonds in hand is a precondition to any vertical construction on the project,” said Dahl. “Bywater is ready and anxious to commence that work…This collectively now permits Bywater to commence vertical construction under building permits so as to not delay progress on the project.”
With the town in receipt of bonds to proceed, Bywater is full steam ahead with construction.
The demolition of the original Homestead foundations was completed in May and Bywater now continues to work on utilities and the retaining wall on the backside of the development. Building foundation work began last week. “We made good progress on our vertical construction since we were given the green light to proceed,” said Joel Wisian of Bywater, noting that footings and walls were poured last week. “All our foundations will be in when winter sets in,” he said of the goal to have all retaining wall, concrete work and foundations done by mid-November. “We’re working through how to do vertical framing work through the winter.”
The project consists of 22 two- and three-bedroom deed-restricted residences, ranging in size from 1,150 to 1,600 livable square feet plus attached garages. Wisian said he projects to be done by September of next year. “The goal is that the last home will be able to be occupied by September 2025. But it’s dependent on what Mother Nature gives us.”
When asked by council members about the current state of the construction zone for the surrounding neighborhood, town manager Carlos Velado told them it has significantly improved from previous years. “It’s been night and day from where it used to be,” he said, noting that the site is fenced off, construction parking is uniform and the hours of construction are posted and respected by the crew. “I don’t want to speak for the whole neighborhood, but from someone that lives in the neighborhood and someone that lives in the town, I’m very appreciative of the care and security and craftsmanship that we’ve seen up to this point. That did not exist with the last builder.”
The town continues to post updates on the Homestead construction progress on the town website at https://mtcb.colorado.gov/projects-initiatives/homestead-affordable-housing-project
