Mt. CB considers community housing for OROS development

Six units proposed on Crystal Road

By Kendra Walker 

More affordable housing units could be on the way in Mt. Crested Butte, as the owner of the upcoming OROS condominium project is working with the town on a community housing plan. The town council reviewed the plan during their February 5 meeting.

The OROS development plan, located at 17 Marcellina Lane, is a multi-family development consisting of two buildings and 38 condominium units. The town’s inclusionary zoning requires that 15% of all new single-family, duplex and multifamily units shall be developed as community housing for sale. The 38 new units trigger 6.6 community housing units, and owner Amy Alvarez is proposing the development of six deed restricted community housing units off-site on 12 Crystal Road and an associated payment in lieu for the remaining fractional unit. The full payment in lieu to the town would be $3.7 million if no community housing was built.

The off-site location on Crystal Road, known as Potamos Place, is zoned low-density multi-family. The community housing plan includes a mix of three three-bedroom units, two two-bedroom units and one one-bedroom unit. Alvarez and her team noted that the community housing units will be built and completed prior to the issuance of a Certificate of Occupancy (CO) for the first phase of OROS free market development, as per town staff conditions.

OROS representatives explained that the building scale and topography of the location at Marcellina Lane is very challenging and expensive to design and build. Alvarez noted the price to build per square foot on Marcellina is at least 35% to 40% more than the Crystal lot. She reiterated many times how expensive the project is going to be and that they are going to lose money to build, but the Crystal location will allow them to take less of a financial hit. 

“When you look at the cumulative effect of design constraints, design and construction costs and ongoing HOA costs, we thought this was better and would allow us to achieve building these and providing them in a manner that will serve the community while also being mindful of those costs,” said an OROS architect. 

Town staff has determined that the project meets several factors that permit off-site community housing, including that the Crystal Road location is convenient to transit, is close to other primary residences and away from short-term vacation accommodations, and the project proposes superior energy efficiency and utility savings.

OROS representatives said the community housing units will have additional amenities, including garages, solar panels, all-electric and other energy efficiencies. “We are using the same building standards as the free market project,” Alvarez told the council. “We are going to be using the same type of materials and builders and suppliers and energy efficiencies. We are going to be able to provide very nice community housing to the community. That’s my commitment to you guys.”

The Mt. CB planning commission approved the design review for the OROS free market development in November 2024. Per town code, a community housing plan for a condominium development must be approved prior to, or concurrent with, the approval of the preliminary plat. The preliminary plat must also be approved before the free-market units become available for presale. 

Mayor Nicholas Kempin disclosed that the community housing location is adjacent to his house, and councilmembers Alec Lindeman and Valeda Scribner also noted that they live on Crystal Road. All three stated that they believe they can make a fair decision regarding the project. 

“On the heels of our last meeting with the different project, I’m trying to be really mindful of how I approach this brand new one,” said council member Roman Kolodziej, referring to the Upper Prospect planned unit development (PUD). “Do we have the cart before the horse and are we talking about a community housing plan on a project we don’t know if it fits into our values and master plan and guiding values…things we talked about being too late in the game on the last project. How do we best approach that?”

Town manager Carlos Velado explained the difference between this OROS project and recently approved PUD projects such as Upper Prospect and the Villages at Mt. Crested Butte. “This is a use-by-right project, and it is zoned high-density, multi-family. The straight zoning of the use-by-right project is following the rules we set. The town has already decided it’s something it’s ok with and can be built,” he said. “That is different from Upper Prospect which is a PUD. That works in the opposite direction, where they have to go through a more extensive process because they are making the rules to fit their project and asking us to approve it.”

Velado further explained that if the council approves the community housing plan, OROS would then go to the planning commission for design review. “It’s their job to make sure it meets town codes to meet design review.”

Council member Bruce Nation expressed concern about the one-bedroom unit meeting the current demands of individuals and families in the community. Alvarez explained that they are limited on that lot and don’t have space to build another two-bedroom and additional parking. 

“I actually like the diversity of units,” said Scribner. “As somebody who has looked for a one-bedroom unit, there are very few, if any. It does provide an option to somebody who doesn’t need a two- or three-bedroom.”

“The demand is still there for every type of unit across the board,” said council member Steve Morris, noting that the Sawtooth affordable housing project in Gunnison has nearly 700 people on the waitlist. “I agree that every one of these has value.”

Morris expressed that he still had questions for staff regarding the town’s housing strategy, current housing fund numbers and whether a payment in lieu might be a better deal than the value of the housing. “I’m not going to vote in favor of this without getting additional info. A lot of it for me becomes the value play,” he said. “I just want to understand where the value of this project lies.”

Morris also noted, “This is better than most stuff that’s come across our way. My need for additional due diligence and information is not a lack of endorsement of what you’ve put together.”

“I’m pretty impressed with what we’re seeing,” said Kolodziej. 

“I do appreciate all the efforts you’ve put toward this project,” Lindeman told the OROS team. “I think Steve’s considerations are reasonable and I’m more prepared to take our time with it.”

The council voted to continue the conversation to their next meeting on February 18. If the town council approves the community housing plan and the preliminary plat of the free-market development, the final step will be for the project to go through design review for the community housing plan with the planning commission.