Upper Prospect approved, but work will have to wait on Water and San

Council does not appease request to begin horizontal construction

By Kendra Walker 

While contemplating the development complications surrounding the Mt. Crested Butte Water and Sanitation District’s main sewer line capacity issue, the Mt. Crested Butte town council passed the second reading of an ordinance approving the Upper Prospect major alteration final planned unit development (PUD) plan during their February 18 meeting.

The proposed plan by developer GCM Squared LLC creates 52 single-family lots over approximately 42 acres of unplatted land within the Prospect subdivision in north Mt. Crested Butte located where Prospect Drive ends and becomes a dirt road, leading up to the Umbrella Bar at Crested Butte Mountain Resort (CBMR).

During the second reading review, Upper Prospect representatives requested a modification to the council’s condition for approval regarding water and sanitation. Per the condition, the town will not issue any construction, excavation, land disturbance or building permits for the project until the developer obtains the Mt. Crested Butte Water and Sanitation District’s written approval of the developer’s water and wastewater utility plans. The district has asked that no building permits be issued for upcoming major developments until it has rectified its main sewer line capacity issue.

However, the Upper Prospect team requested a change to the condition that would allow them to begin horizontal infrastructure construction, such as roads and pipelines, prior to the district’s approval.

“This is a long-run project. We want to do horizontal infrastructure work soon after the application is approved,” said Upper Prospect attorney Aaron Huckstep. “As written, the condition prohibits any work until the trunk line issue is resolved. We view this as a moratorium. New information indicates the trunk line issue isn’t going to get resolved any time soon. The district said they didn’t expect work to begin on the trunk line until summer 2026.”

Huckstep explained that the district recently held a meeting with developers. “It’s clear the district’s position is that the developers fund the improvements. They won’t undertake the work until developers have some sort of financing,” he said. 

“We believe that approach is illegal and not enforceable. I don’t think that’s fair or appropriate under the circumstances,” said Huckstep.

He continued, “Help prevent a moratorium. We simply want to do the horizontal infrastructure at our own risk and the existing conditions don’t allow us to do so. It would still prohibit building permits for residential vertical construction until the Water and Sanitation District has approved plans for those utilities. During that time we’ll be working with the district to get that resolved.”

Huckstep estimated that the horizontal infrastructure construction would take 12-15 months. The council asked about impacts the horizontal construction would have on the public accessing the trails in the area. 

“The trails will not be impacted through the process of this work,” said Huckstep. “I don’t think it would be any more dramatic than at a later time.”

“My concern is if you do it and get delayed by another two years, does that make that area inaccessible,” said council member Bruce Nation. “My concern is you put in water lines and the district comes back and says these aren’t good enough and then you have to tear them down and double construction with more impacts to the recreation and environment up there.”

Huckstep said the town could require that the applicant provides reasonable access for people recreating and for Vail Resorts activities during construction. 

“If we were to approve this request of modification, what, if any, risks are there to the town?” asked mayor Nicholas Kempin. 

“There is no financial exposure to town,” said town attorney Gerald Dahl. “In terms of having construction take place, that’s then going to perhaps sit for a year or two until the trunk line issue is resolved. It certainly will affect the landscape for a project that won’t have sewer service right away.”

“It’s not minor saying you want to do this before Water and Sanitation gives permission to do it,” said council member Bobbie Sferra. “We have multiple projects all just waiting to get this issue resolved, and every one of them is going to want to add a special condition on it. I personally feel this needs to be resolved before we say yes, because we’ve got seven or eight other projects all behind them that will probably want the same thing. I know everyone is anxious to get this all resolved, but I think we need to be fair to all parties.”

Council member Valeda Scribner recognized everyone’s frustrations with Water and San’s vague communication, “but I don’t think that makes it OK to leave their input out of this. I don’t feel comfortable saying we can continue with development knowing there are issues. 

“If they are giving guidance that we should not approve construction and land disturbance until we have a resolution and plan for the trunk line repair available, then there’s a reason for that. And we should get that insight from them as to the impacts and have a resolution before continuing down that road,” continued Scribner.

The council voted to approve the final PUD plan without any modifications, and Upper Prospect will have to wait for Water and San’s approval of the development’s utility plans. At the end of the meeting, Sferra brought up the topic of Water and San once again. 

“Is it possible to get Water and San in here to talk to us?” she asked. “I don’t have any idea the extent of the issues. I really don’t understand exactly what’s going on and I think hearing from them would be important. These are huge decisions.”

“We’ve tried for past applications,” said town manager Carlos Velado. “I’m equally as frustrated. We can formulate that ask and see where it goes, but I don’t know how much we can compel the district to come.”

“I’m an advocate for getting people in the room,” said town attorney Gerald Dahl. “I’m happy to work with the mayor and Carlos to try and make our case as convincing as possible in everyone’s interest to be more frank and be in the room.”