The Crested Butte News Serving the Gunnison Valley since 1999
“A new idea here wouldn’t be bad.”
By Alissa Johnson
The owner of the Nevada Ridge subdivision appeared before the Mt. Crested Butte Town Council on Tuesday, June 7, to request a four-year extension of a planned unit development (PUD) for the property. The council ultimately denied the request despite arguments from the proponent that the approved PUD made the property more attractive for potential buyers.
The PUD was originally approved in 2006 for seven single-family units and four duplex lots, for a total of 15 units. But according to Community Development director Carlos Velado, no physical units have been built on the parcel, which is just under 11.5 acres. The original owner did install some infrastructure in the form of boulder retaining walls above the West Wall Lodge and the San Moritz Condominiums.
Bill Clark, a senior vice president with Community Banks of Colorado, explained that the current owner, LSC Summit Colorado, LLC, is an affiliate of the bank and acquired the property through foreclosure.
Clark requested the four-year extension for several reasons, including his assessment that the real estate market has improved but not bounced back and questions among potential buyers about ski resort health. He also confirmed that had he been involved a year ago, he would have requested an extension longer than one year.
“We’re requesting four years because we think this is not something where we’re going to find a developer in a nine-month time frame or even a year and a half. Coming in a year or two at a time didn’t make a lot of sense,” Clark said.
Representatives from neighboring properties, however, asked the council to deny the extension. Reed Meredith represented the Summit Association and expressed concerns over the condition of the retaining walls. It was not his first time appearing before the council on the matter.
When LSC Summit Colorado, LLC requested an extension of the PUD in 2015, Meredith asked the council to reject the extension or at least secure more funding for an escrow account related to a letter of credit associated with the property. Nearly $30,000 remains of approximately $167,000 and he wanted to see more funds available in case there were issues with the walls.
“The situation hasn’t changed… The Summit Association is opposed to granting the extension, certainly for four years,” Reed said, reminding the council this wasn’t the first extension. “The PUD is probably getting a little long in the tooth.”
Ken Stone, manager of the West Wall Lodge, said the property’s homeowners association also opposed the extension. “Their concern is that at the time this was approved there were no owners at West Wall, and they would love to be part of a public process. They do have concerns about things that would affect the property and currently have big concerns with the stability of the property itself,” Stone said.
Velado confirmed that the original PUD was 10 years old and had been extended two times, first in 2013 and again in 2015. “This would make the third extension request for this particular PUD,” he said, though he later noted that not all of those extensions had been granted to the same owner.
Velado also confirmed that an outside assessment of the retaining walls was conducted a couple of years ago. According to the report, Velado said, “The walls were not constructed properly… so due to that they are not reliable. As time goes on the current state is not going to get any better, so from my seat the big issue that’s in existence within this PUD are those walls.”
In response to questions from the council, Clark confirmed that the bank had looked at the issue of the walls but opted not to repair them prior to finding a buyer.
“The number [for repair] is fairly large and a pretty significant range because it partly depends on whether you completely remake the walls…,” Clark said. “Thus far we haven’t felt it to be prudent on our part to go in and do work that could be at cross purposes to what the developer might come in and do.”
Real estate agent Channing Boucher also responded to questions, confirming that buyers are still interested in the property but are concerned about the hills, the soil, and the ski resort. ”It has been under contract twice… and it was a dollar issue and faith in the ski resort health,” Boucher said.
After much discussion, mayor Todd Barnes reminded the council that it would be impossible to make everyone happy. “You’re not going to make people satisfied, whether you extend or don’t extend,” he said.
Councilmember Nicholas Kempin indicated that he would be open to a one-year extension, but the rest of the council didn’t seem to agree.
“Ten years ago when the PUD was approved, West Wall was just beginning. There are a lot of owners there that were not involved [in the process], and I think a new idea here wouldn’t be bad,” said councilmember Ken Lodovico.
Lodovico made a motion to deny the extension, and the council voted to deny the extension, 5–0. Councilmembers Janet Farmer and Danny D’Aquila were not in attendance.
Easements that allow skiers to cross the property are still in place. According to Velado, Nevada Ridge is still a PUD; there are no longer specific development criteria attached to it. Future developers would need to go through that approvals process to determine those criteria.
