Suzie and Denis were there at the beginning, and now the beginning of the end

By Mark Reaman

The Crested Butte Town Council and the Gunnison County commissioners this week agreed to sign the Memorandum of Understanding (MOU) between the government bodies, some state regulatory divisions and the Mt. Emmons Mining Company (MEMC), which is a subsidiary of mining giant Freeport-McMoRan.

MEMC now owns the molybdenum mining rights and associated water treatment plant (WTP) on Mt. Emmons, also known as Red Lady.

The MOU essentially outlines a path for future responsibilities of the parties. The end goal is to ensure the WTP that treats water in Coal Creek above the town of Crested Butte is secure in future operations and molybdenum mining will not take place on the site.

A crowd of almost 50 people attended a rare Friday evening Crested Butte Town Council meeting on February 26 in Jerry’s Gym at the town hall. Town attorney John Belkin presented a summary of the MOU. “This document represents 40 years of effort to the present day,” he said before outlining the recent actions that started last fall and led to the MOU.

“We have had several conversations with representatives of the state and Freeport as recently as one o’clock today and I think we understand each other now,” said Belkin. “We have developed trust and that is something that had been missing in the past.

“Freeport has been clear with what they want and we’ve listened,” he continued. “The town and the county have been straightforward with what we want and Freeport has listened. The MOU contemplates that with time everyone will get what they want. The goals of the MOU are very achievable. It might take two or five or ten years, but I’d venture closer to two.”

The deal has Freeport and the MEMC funding two years’ worth of WTP operating costs immediately.

The parties will all work together to achieve compliance of all environmental laws and issues associated with the site; work to develop site-specific water quality standards for Coal Creek; pursue the disposition of mining and mill site claims and land tied to the claims; and work together with the federal legislative delegation on any mutually acceptable legislation required to implement long-term solutions to a molybdenum mine on Red Lady.

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“The Freeport decision, while a defensive one, was in their best interest and the community’s interest,” said Belkin as he explained that Freeport has ties to the mine site through a 2007 acquisition of Phelps Dodge, which at one time owned the mining rights and built the WTP.

Under federal regulations, once associated to a mine site, a company always has possible liability for that mine site. So if an accident turned it into a federal Superfund area, Freeport could be responsible for the cleanup cost.

“It is all sort of fortuitous how it fell into place,” said Belkin. “It is pretty amazing how we ended up here.”

Last fall the town and county pressed state and federal regulators for some financial “surety” since then-owner U.S. Energy was experiencing financial turmoil. Belkin said after those meetings, “We understand that both the state and Freeport shared conversations with the U.S. Environmental Protection Agency in the context of U.S. Energy’s financial status and the continued operation of the water treatment plant.”

In response to a question from councilman Jim Schmidt, Belkin said Freeport has indicated it would like to cut the annual operating costs of the plant, which is about $2 million per year. That might include a major upgrade to make the plant more modern and efficient. How and when that might happen has yet to be determined. “They are committed to upholding the environmental standards or doing better,” Belkin said.

Councilman Roland Mason wanted to make sure that after the two years’ worth of operating money is spent, the town wouldn’t have to pay for operating the WTP.

Belkin said while the government bodies tried to negotiate more than two years of operating costs, ultimately all the parties were comfortable with the two-year figure and the future.

The bottom line is that Freeport now has responsibility to continue operating the WTP in perpetuity. If for some reason Freeport or MEMC would go into bankruptcy, Belkin said the state and feds are involved and would have to step in and sort out the situation in that unlikely possibility.

“We are comfortable where we are right now and I feel really good about this whole thing,” reiterated Belkin. “I’m happy we’re here.”

So was the public in general. HCCA Red Lady program director Alli Melton said it was “exciting to see this monumental shift in the conversation over the last couple weeks. Now we really need to roll up our sleeves in the next two years and determine a final solution that protects the watershed and the mountain. But this is a historic moment when the mining company has no real interest in mining. We support the council entering into the MOU.”

Red Lady Coalition president Bill Ronai agreed. “This is a good document that sets up a good framework to move forward,” he said. “It protects the water and then sets the stage to address the mining issue. Our board strongly urges the council to sign the MOU.”

Crested Butte resident Sue Navy has been involved in the mining fight since it started almost 40 years ago and was a founding member of HCCA. “Thirty-nine years ago I sat in this very room and heard about the proposal for a mine on Red Lady,” she told the council. “I’ll tell you that this feels a whole lot better being here tonight. Thanks to everyone.”

Jeremy Rubingh has been active in the fight and made a movie about the situation several years ago. He too spoke in favor of having the council sign the MOU, emphasizing that it protects the town’s watershed. He also said he appreciated the inclusive process in getting to an MOU.

In response to a question from Suzanne Pierson, Belkin said once the mining claims and associated lands are “disposed” from the mining company, the land would likely go back under federal control. “There won’t be a waterslide or condos once the land situation is resolved,” said Belkin. “Freeport has said they would like us to educate them on how to make that happen. It would more than likely go back to the federal government with a caveat that it can’t be used for mining.”

Belkin also added that the local and state governments, along with groups such as the Trust for Public Land, might assist Freeport with the land transfers and the improvements to the WTP.

“But to be clear, the community cannot pay to operate the plant,” Belkin said. “That would be unconstitutional.”

Belkin emphasized there are still a lot of unknowns on the table that have to be worked out.

“I was with Suzie at that meeting in this room 40 years ago,” said Denis Hall to the council. “I understand the need for transparency and holding this meeting. But sign the damn thing and let’s get out of here.”

Given his long tenure with town government, mayor Glenn Michel asked Schmidt to read the motion that would have the town enter into the MOU. He did so and the motion was approved 6-0 (councilman Paul Merck was out of town) and the people in the room applauded. The meeting lasted less than an hour.

Signing of the MOU also appeared on the March 1 agenda for the Gunnison Board of County Commissioners. The motion to do so carried unanimously, and garnered much praise from the board.

Commissioner Phil Chamberland, who represents the upper East River Valley, expressed his gratitude to Freeport-McMoRan for its cooperation in mapping out the agreement.

“I’d like to publicly thank Freeport for coming to the table like they did and being willing to sit down and try to find a solution with us,” Chamberland said. “I think this is wonderful, quite frankly.”

Chairperson Paula Swenson commended county attorney David Baumgarten for leading negotiations with Freeport.

“I want everybody in this community to understand that David has been the tip of the spear in moving these negotiations forward and keeping everybody at the table, and getting people to understand how important this is from all aspects,” Swenson said. “Thank you, David, for coming to us last August with this ‘aha’ moment and moving this forward with the communities and the state and the mining company.”

The beginning of a long relationship 

by Mark Reaman

The Crested Butte Town Council will meet Friday and the Gunnison County Commissioners will meet Tuesday to discuss and take public comment on the proposed Mt. Emmons mine and water treatment plant (WTP) deal.

A memorandum of understanding (MOU) has been drawn up between the town, the county, several Colorado regulatory departments and the Mt. Emmons Mining Company (MEMC), a wholly owned subsidiary of Freeport-McMoRan that now controls the mining rights and WTP on Red Lady.

The MOU outlines a path toward a permanent solution to keep the WTP secure and operating and to potentially take off the table the idea of a molybdenum mine on Red Lady.

As explained in a lengthy Crested Butte News story last week, the MEMC entered into an acquisition agreement with U.S. Energy, the longtime permit holder of the mining rights and the responsible party for the WTP. What was not clear in last week’s News story was the motivation of Freeport and MEMC.

Basically, under federal Environmental Protection Agency regulations, a company associated with a mine site in the past is essentially always associated with the site and carries some liability if something goes wrong on that site. Freeport purchased mining company Phelps Dodge in 2007. A subsidiary of Phelps Dodge, the Mt. Emmons Mining Company, at one time controlled the mining rights and built the water treatment plant. Thus, Freeport carries some potential liability with the Red Lady situation.

Freeport spokesman Eric Kinneberg confirmed in an email this week that the company will be putting up two years’ worth of operating costs for the water treatment plant and will work with the other entities to really address concerns with the site.

“Mt. Emmons Mining Company, a wholly owned subsidiary of Freeport-McMoRan, Inc., and various local and state authorities entered into a memorandum of understanding to serve as a basis for future cooperation and agreement regarding the appropriate management of the water treatment plant and ancillary environmental issues on the Mt. Emmons Mine Site,” Kinneberg stated. “Mt. Emmons Mining Company previously owned the Mt. Emmons site and constructed the water treatment plant, but was not involved in prior mining, which took place on the site from 1881 through 1970.”

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“As the previous owner of the site and water treatment plant, Mt. Emmons [Mining Company] wanted to ensure sustained operation of the water treatment plant that discharges to Coal Creek,” he said.

Kinneberg reiterated the points in the MOU, writing, “Mt. Emmons will work cooperatively with the parties to the Memorandum of Understanding to protect the public health, safety, welfare and the environment of the Mt. Emmons Mine Site and Coal Creek…”

Those points include compliance with all applicable environmental laws and regulations; finding and implementing technical solutions to the environmental issues at the site; pursuing disposition of the mining and mill site claims and fee simple lands (which encompasses area property owned by the mine owner, including those lands under which the ore body lies, which are the fee simple patented lands) in a mutually beneficial way; and working with the federal legislative delegation on any mutually acceptable legislation required to implement long-term solutions, along with addressing other issues.

Crested Butte mayor Glenn Michel said the Town Council wants to give the public an opportunity to vet the progress on the mine situation. Town attorney John Belkin will present the MOU Friday evening and the public will have a chance to ask questions.

“The purpose of the meeting is to inform the public of the MOU, allow the public to ask questions and provide comment, and for the council to discuss the MOU in public. The council has been informed on the development of the MOU over the past months by the town attorney, so our discussion should be limited. At the end of the discussion and considering the public input, the council may vote to direct the mayor to sign the MOU on Friday night,” Michel said. “I expect a lot of questions from the public at the meeting on Friday. We all should remember the MOU is an agreement that the signing parties agree to work together to find a solution to the Mt Emmons mine and there are still a lot of answers to be ironed out. This is only the beginning of a long relationship—there is still a long way to go.”

Michel said because of the magnitude of the issue, the meeting would take place at the Crested Butte Town Hall in Jerry’s Gym so a possible crowd can be accommodated. “Although the meeting will be held on a Friday night in the gym it will be run as a normal Town Council meeting,” Michel explained. “There will be a lot of excitement and emotion in the room. Let’s all be respectful of our fellow citizens, as we always are, and have an informative and productive meeting.”

Kinneberg said no timetable has been established to accomplish all the things in the MOU but every indication from the parties involved is that the desire is to get it done as quickly as possible.

The Crested Butte Town Council meeting will be held Friday, February 26 at 6 p.m. at Jerry’s Gym. “I would encourage as many people from the community to show up so that we send a strong message of support for the MOU as the town of Crested Butte continues to work towards a permanent solution to the mine,” said Michel. “This will provide legitimacy and momentum for our future actions.”

The county commissioners will address the MOU as part of their regular Tuesday, March 1 meeting.

So you can spend your Friday night partying with the Crested Butte Town Council and getting your wild side on as you immerse yourself in acronyms. It is Friday after all—maybe do a shot for every acronym you hear or treat it as an acronym bar trivia night. Accumulate points for the ones you know. There’s the MOU (Memorandum of Understanding), the MEMC (Mt. Emmons Mining Company), the WTP (Water Treatment Plant, which seems more family friendly than the Water Treatment Facility or WTF). You have the beginner acronyms like HCCA and RLC, and can score intermediate points for knowing state agency stuff like CDPHE and DRMS.

The unusual Friday meeting will focus on a potential mine deal: the black cloud that has hovered over the north end of the valley for four decades as the community moved definitively away from mining and toward tourism (see Denis B. Hall’s column on page 19). The bottom line is that an MOU agreement has been in the works for months between a bunch of local and state political boards and a giant mining company, Freeport-McMoRan. Normally that might be cause for skepticism and concern. But the reality is everyone I’ve talked to who has been involved with the discussions has a smile on their face and a lift in their voice because real progress appears possible.

Skepticism is a part of this place and won’t fade away easily. That’s fair. Plus it is probably appropriate for a measure of skepticism to be a part of the deal in these early stages. As has been stated, there are a lot of knots left to untie to make this deal complete. But the difference is there appears to be an honest partnership. All sides—the local governments, the state and federal regulatory agencies and the private mining company—all swear they want to work together to untie those knots and do it expeditiously. There is commonality of purpose.

That is very different from the years when myriad mining companies came in to announce they could do an “environmentally friendly mine” and make the community rich through increased tax revenues and jobs. The community was beyond skeptical whenever it heard that sales pitch—it was protective and resolute of its quality of life and it fought every such foray successfully.

This time, it appears the mining company understands it has an obligation to the community, both legally and morally, to protect the water and environment around the mine. In the most basic of laymen’s terms, based on past actions, Freeport is tied to the mine site and has some potential responsibility to make sure it doesn’t blow up. If it does, they could be on the hook. So, it seems to me this deal is probably a cheap insurance policy for them, as opposed to waiting for something bad to happen and then getting the bill.

Looking over Freeport’s recent public news announcements and year-end financial report, putting up even several million dollars and trying to work out solutions with Red Lady amounts to an accounting error by an intern. Capital expenditures amounted to $6.35 billion for the year 2015. The current commodities market is hammering the company and the stock but Freeport is one of the world’s largest mining companies. Its debt, its revenues and its expenditures are all calculated in the billions. Last week, the corporation announced it had reached an agreement to sell a 13 percent stake in a southeast Arizona copper mine to a Japanese partner that will raise $1 billion in cash.

Plus Freeport has enough molybdenum at two other Colorado mines (Climax and Henderson) to not worry about the colossal cost and associated massive headache of trying to open another mine in the middle of the United States three miles west of the hornet’s nest of Crested Butte.

The company is also pulling back on its Henderson molybdenum mine, resulting in an approximate 65 percent reduction in Henderson’s annual production volume. Doesn’t sound like the company needs to open another moly mine any time soon.

This Red Lady deal is real but it’s probably not at the top of the corporate agenda at every meeting.

The bottom line is that working relationships are important when striking a deal. In this case, it appears a good group of people have gotten together, earned each other’s trust and started what could be the beginning of the end of the precarious water treatment plant and enduring mine issue on Red Lady. A corner has been turned.

So show up Friday night in the Crested Butte Town Hall, ask a few questions, learn a few new acronyms, support what looks like the start of a good deal for the community and encourage the council to sign on to the MOU so we can EANE (Enter a New Era).

—Mark Reaman

P.S. In a somewhat ironic note, it was pointed out to me Tuesday that the other event taking place at the same time as the MOU meeting – is the Miner’s Ball at the museum.

As the old saying goes, “It ain’t over till the fat lady sings.”

Well the Red Lady isn’t singing yet but she’s warming up her vocal chords. There is hope and there is change with the mine fight. And it appears it could be for real.

This might be the beginning of the end of a long fight that has permeated the culture of Crested Butte and some of Gunnison County. And in a somewhat ironic twist, the 40-year-old fight over the appropriateness of a molybdenum mine on the outskirts of Crested Butte could be resolved because one of the biggest mining companies in the world is now involved.

With the transfer of Mt. Emmons mining liabilities and assets from U.S. Energy to a wholly owned subsidiary of Freeport McMoRan, a series of goals will be put into place; if accomplished, they could take away the hovering black cloud of a potential industrial mine on the west side of Crested Butte and Red Lady mountain.

It may not yet be time to pop a Champagne cork but it might be time to walk down the aisle and take a look at which bottle of bubbly to buy.

We are collectively entering a process that could end a long confrontation and everyone could walk away happy. The water treatment plant could be modernized and be funded to operate in perpetuity. Coal Creek could get the attention it needs. The town and northern part of the valley could feel comfortable that a moly mine will never be dug on an industrial level inside Red Lady. The new owner of the property, the state agencies that regulate the property and the town and county that monitor that property are all working in collaboration to reach a happy ending. Cautious optimism is overflowing.

It’s sort of weird. Like it or not, part of Crested Butte’s modern identity is resort- and amenity-based but it was founded as a coal mining town. As such, Crested Butte has become known in part for its passion over a 40-year-old fight to a keep a molybdenum mine off of Mt. Emmons, also known as Red Lady.

So many people over those decades have contributed to this moment. Holding off the mine while moly prices fluctuated and eventually declined mattered. An innovative watershed ordinance in town that was upheld by the state Supreme Court mattered. Constant vigilance by the community and its organizations like HCCA and the Red Lady Coalition mattered. A united message sent to those who came into the valley looking for moly riches and being told bluntly that would never happen mattered. A community that was not afraid to use the courts, diplomacy, publicity and passion to guide its deliberate future mattered. Not being afraid mattered. Period.

Nothing is finalized with this MOU (memorandum of understanding) deal yet. There is still a lot of work to do. But an agreement hammered out by representatives of the affected entities appears to be a solid road map toward a final solution that benefits all parties. Who’d a thunk it? The town, the county, the state, the feds, a giant mining company are all on the same page or at least reading the same chapter of a good book.

There will no doubt be a lot of smart people vetting every step of this deal along the way. As there should be. HCCA will continue to play its role as a watchdog. The RLC will monitor the economics. The town and county will be in the middle. The state is actually playing a major role in pulling it all together. And the feds are very aware of this progress. Perhaps as a result of last summer’s Gold King Mine incident, everyone is doing whatever they can to move this forward.

And the overall feeling is that this is a game changer. There is real opportunity.

The town council and county commissioners will formally consider the details of entering into that MOU agreement in a few weeks. There should be a comfort level with the direction this new development takes and an understanding of the outcome by all of us. Part of that will likely come in trust with our elected representatives and their staffs.

The community that has been so invested in this fight can look over the agreement on page 13. So touch base with your representatives to tell them what you think. Then let your councilperson or commissioner take a stand on what could be a new future—a future that has the potential to be mine-free with a critical water treatment plant that works and is safe. A future of collaboration instead of constant confrontation.

The change is upon on us. Now we can hope and begin the work to make that hope an honest reality. It is not time to pop the cork but it could be time to buy a bottle of good Champagne.

—Mark Reaman

Non Attorney – Client Privileged and Confidential Communication

TO: Town Council

FROM: John D. Belkin, Town Attorney

Barbara Green, Special Counsel

CC: Todd Crossett, Town Manager

DATE: February 15, 2016

RE: Memorandum of Understanding (the “MOU”) for Mt. Emmons

1. U.S. Energy Corp.  / Mt. Emmons Mining Company Transaction.

The MOU attached to this Executive Summary is the result of conversations among Freeport-McMoRan and its wholly-owned subsidiary, Mt. Emmons Mining Company (“Mt. Emmons”); the State of Colorado Department of Health and the Environment, Water Quality Control Division (the “Division”); State of Colorado Department of Natural Resources, Division of Reclamation Mining and Safety (“DRMS”); Gunnison County (the “County”); and the Town of Crested Butte (the “Town”; together with Mt. Emmons, the Division and DRMS, collectively, the “Parties”).

Mt. Emmons is a Party because U.S. Energy Corp. (“USE”) has transferred (or is in the process of transferring) all properties, mining and mill-site claims, improvements, permits and the mine project rights to Mt. Emmons.

2. Background Efforts on the Wastewater Treatment Facility.

Between 2006 and 2009 the Town, the County and High Country Citizens’ Advocates (“HCCA”) (collectively, the “Community Parties”) brought actions before the Division and the State of Colorado Office of Administrative Courts to make the Division require USE to satisfy certain surety requirements (i.e., pre-paid wastewater treatment plant operator contract and liquid financial assurances) and naming USE affiliated companies as co-permittees on the discharge permit (“Permit”) for the Keystone Mine wastewater treatment facility (“WTF”).  The administrative law judge found that although the Division has the authority to require USE to satisfy financial and other assurances as conditions to the Permit, the circumstances at the time did not appear to warrant the Court requiring the Division to impose financial and other assurances.

3. The MOU.

Conversations leading to the MOU began following a written request from the Town and the County in August 2015.  The Town and the County requested that the Division impose financial assurance requirements on USE because of concerns that USE might not have the financial capacity to continue to operate the WTF.  In response, the Director of DRMS, Ginny Brannon, and the Director of the Division, Pat Pfaltzgraff, convened a series of meetings among the Parties.  Over the last four months, as the conversations have progressed, the Parties agreed that the only way to resolve concerns would be to work in concert.  The Parties have spent considerable time discussing a cooperative partnership concerning the continued operation of the WTF, the reclamation of the mine site (the “Site”) and the disposition of the mining and mill-site claims and patented fee lands in connection with the mine.  Those goals are reflected in the MOU and can be summarized as follows:

– Protection of the environment through Mt. Emmons’ compliance with environmental laws and regulations;

– Parties’ implementation of technical solutions to environmental issues at the Site;

– Parties working on funding solutions to address environmental issues at the Site;

– Mt. Emmons’ disposition of the mining and mill-site claims and fee simple lands;

– Parties working with the federal legislative delegation on legislation to implement long-term solutions (e.g., disposition of mining and mill-site claims and fee simple lands).

– Parties’ development of site specific water quality standards for Coal Creek, with monthly technical meetings to address the same;

-Division’s continuation of the current Permit for the WTF at the Site until the June 2017 Gunnison Basin Rulemaking before the CDPHE, Water Quality Control Commission; and

Perhaps most importantly, the MOU also provides that Mt. Emmons voluntarily pre-fund the first two years of contactor labor costs at the WTF by escrow or other suitable mechanism (based on the annual operating budget, approximately $1 million) following transfer of ownership from USE to Mt. Emmons.  This substantially accomplishes what the Town and the County requested of the Division in their August 2015 correspondence.

4. Conclusion.

The MOU reflects the framework for the Parties to work cooperatively to accomplish the goals of the MOU.  It represents the beginning of what should be a long relationship of working together to solve the complicated issues that the Crested Butte community has worked on for decades.  The difference from earlier efforts is that unlike USE, Mt. Emmons is a willing partner in solving these issues with the goal of protecting the environment, and DRMS and the Division are taking leadership roles as partners with the Town and the County.

While the steps forward following execution of the MOU could well take years to implement, and with certainly require the continued commitment of the Parties working with the local community, on-going trust building is the linchpin to accomplishing the MOU goals.  The cooperation and efforts of Mt. Emmons, the Town, the County, the Division, DRMS, HCCA, Senator Bennett and many others will be crucial to our success.  The Parties would like to thank everybody for their efforts over the years in reaching this important day, namely the Crested Butte community, HCCA, the Coal Creek Watershed Coalition, the Red Lady Coalition, Senator Bennett, and the long list of others that have worked tirelessly over the years to reach this moment.

Not an affordable housing complex

By Alissa Johnson

The Mt. Crested Butte Planning Commission took its first look at a proposed apartment complex behind the Nordic Inn this month. The project aims to bring about 80 long-term, market-rate rentals to the town—and while members of the Planning Commission expressed general support for the idea, they raised several concerns that need to be addressed during the design process.

Under the current plan, Legend Communities, Inc. would purchase the Nordic Inn and the adjacent vacant lot, which includes a cul-de-sac vacated by the town a couple of years ago. The developer would then build two to three buildings, one of which could be an addition to the Nordic Inn and would feature a combination of rental units and hotel rooms.

The development is being proposed as a planned unit development (PUD), which would require rezoning.

“From our standpoint, …the Nordic Inn in its current configuration would continue to be operated with this development in place,” said Ken Stone. He and his wife help manage the Nordic Inn and are in discussions with Legend Communities to continue doing so if the sale and development move forward.

Current Nordic Inn owner John Johnson explained, “When I bought [the inn] I realized that it was one of the largest undeveloped lots on the square… One of the goals was to find a project that is economically viable, beneficial to the community, and keep the inn intact.”

Currently, there are two concepts under consideration, both in sketch form.  Architect Chris Morrise of DTJ explained that Concept A has two four-story buildings tucked against the hillside, accommodating 76 one- and two-bedroom units, and a small building that would be an expansion of the Nordic Inn and would likely include hotel rooms and long-term rentals on different floors.

“One of the things we are trying to do is achieve a density that makes sense financially,” Morrise said, also noting that the multi-building design was intended to preserve view corridors and break up the mass of the buildings.

Concept B also offered two buildings tucked against the hillside but included a third building near the inn. The buildings would scale down in size as they moved away from the hillside and toward the inn, and the third building and the inn could potentially be connected.

Both concepts included surface parking (one spot per bedroom), gear storage, outdoor play areas, some snow storage, and access to the parking lot off of Treasury Road. A two-bedroom unit is expected to go on the market for $1,800 a month.

Planning Commission member Sara Morgan said she liked the density and the way the massing of the buildings was pushed against the hillside, but pointed out that if the lot is part of the Downtown Development Authority, certain design guidelines would need to be met. The potential development of the Biery-Witt Center across the street would also need to be considered, and she wanted assurances that the units would be rented to long-term locals.

“The market rate for a year could be less than a week at Christmas,” she said.

Planning Commission member Reed Meredith pointed out that the town received considerable pushback when it vacated the cul-de-sac without receiving financial compensation. He wanted to see a buffer or step-down toward the nearby residential lots, and access to and from the parking lot off of Emmons Road instead of Treasury.

Meredith also noted, “The narrative characterized this as workforce housing, and I think without some kind of protection, it won’t be workforce housing because they won’t be able to afford it.”

He was not alone in his concerns. Morgan suggested that the developer hire a credible consultant to determine whether Treasury would need to be re-graded and the intersection with Emmons re-engineered.

Johnson responded, “This is a partnership. Do you want this addition in your town? I can’t speak for [the developer], but I think that’s going to be something you guys need to take on. There’s only so much the economics will support… Why wouldn’t the town want to take on that responsibility?”

“Because you’re asking for a change in zoning and density to what the town roads were built for,” Morgan said.

The Planning Commission ultimately advised the group that having access off of Emmons would alleviate that need. Member John Anderson echoed Meredith’s sentiments about affordability.

“At $1,800, I’m concerned about the little guy. [I think that’s] on the outside of what’s affordable,” Anderson said.

“We think it’s going to come in at a level that is quality but not unaffordable for the incomes people have,” responded Stone, emphasizing that he saw the units as a great alternative for community members in management positions at the north end of the valley but living in Gunnison.

“It’s not necessarily seasonal affordable housing, but for the person who’s making a long-term commitment to the community and it may be a transition to owning a home,” Stone continued.

Community development director Carlos Velado advised the Planning Commission against calling the development affordable housing because that’s not what it is. He also confirmed that there will be an affordable housing requirement, the details of which still needed to be calculated.

Overall, the Planning Commissioned leaned toward Concept A, advising the proponents to revisit access to the parking lot, ensure that planned parking was adequate, and consider the site’s impact on neighboring residential areas. They also wanted to ensure the buildings remained long-term rentals.

Planning Commission chair Dusty Demerson commented on the value of the idea, given the shortage of housing in the community. “I’m glad to see this, so while it may sound negative I can only say from my perspective that I’m happy to see and entertain this, and as a community we all ought to be,” he said.

“We need to figure this out,” Johnson responded. “This is the best viable spot to do it and if we don’t do it here, we’re never going to address the issue.”

The developer hopes to begin construction in late May or early June. In the meantime, the Town Council will need to address planned unit development rezoning and regulation development, and the Planning Commission will conduct a design review.

“It is somewhat ambitious,” Velado said of the timing.

Like the muffed punt in the fourth quarter of last Sunday night’s premier football game between the Broncos and Patriots, there sometimes occurs an event (or events) that change the course of a game and even the end result. Crested Butte currently is flirting with some game changers.

—Significant broadband improvements could be headed to the valley, with some government help. The county and the local municipalities have joined forces to partner with Region 10, a group of six Western Slope counties that collaborate on economic development projects to get faster, cheaper, more reliable broadband to our area. The state would ultimately foot a big part of the bill to get this “backbone” infrastructure to the area that in a few years could lower Internet costs dramatically while speeding up service and making it more reliable. It appears it would be the type of broadband that would give confidence to those who need it for their work to live here. It could change the social makeup of the valley. Game changer.

—Building a 38,000-square-foot building in the Town Park could be a game changer. The Crested Butte Center for the Arts gave a presentation to BOZAR a couple of weeks ago and its team made a strong case for a big building with a cool preliminary plan. The demand for more “art” space is growing as the community expands and the Center seems to have become the catch-all for the arts in the valley. Bringing together uses currently spread out all over town and putting them under one roof (or two) means that roof has to be big. If approved, it would change the scale to the entrance of Crested Butte and change the message people get when coming in. Let’s not even talk pavement for parking. Less green and more art is not necessarily a bad message but it is a different message in that spot.

Adding to that less green part of the equation is a part of the recently completed Parks and Rec master plan. Do not forget that the plan calls for another 14,000 square feet of concrete to be laid down next to the proposed Center for the Arts for a new skate park.

Personally, I am not a big fan of big buildings and more concrete in Crested Butte—especially in the most visible park space in town. It messes with the scale that is different from other resort communities and keeps us different. (I was always a fan of the “campus” approach including that vacant lot across from the Center on Sixth Street). But if the town is headed that way, and BOZAR members seemed surprisingly compliant to the idea, this Center design team has some good ideas on ways to make it more palatable.

—Talks appear in the works to secure a modern and long-term water treatment plant on Mt. Emmons. It doesn’t come through the company with the rights to the molybdenum deposit (U.S. Energy) that is on shaky financial ground at the moment, but rather Freeport McMoRan, a giant mining company that inherited some  responsibility through a purchase of another company several years ago. But Freeport has money, stability and apparently an understanding of the need to help address a legacy mining situation just west of Crested Butte. As part of the talks about the treatment plant, the overall mining situation could come into play and there is a chance at a final resolution to the mining threat that has loomed over the upper valley for decades. Game changer.

—Owners of the property just north of town across from the Gas Café are tweaking a new proposal for 19 homes on the 44 acres. Cypress Equities felt pretty pissed by the result of annexation negotiations with the town last year and are now focused on a county development. According to their position last month, they were not rushing to hook up the home sites to the Crested Butte wastewater treatment facility and so were likely to ask for 19 wells and septic systems. This week, it appears there has been some thaw in the relationship and the developers and the town are seeking a new partnership to work out some sort of arrangement to avoid septic systems and get something other than another standard 19-home suburbia in the mountains.

—The Crested Butte-Mt. Crested Butte Chamber of Commerce and the primary public marketing entity in Gunnison Valley, the Tourism Association, is not only hopping on board the fat bike train, but hoping for a place in the engine. Chamber director Dave Ochs is a biker and he looooooves himself some fat bike. TA executive director John Norton is a biker and he is tooling around on a carbon fatty this winter. They both like trails and they see an opportunity. They are the main push behind the Fat Bike World Championships in January and Ochs likes to emphasize Crested Butte is a “bike town.” They want to catch this wave in the first set and provide a new standard for Colorado mountain resort towns in what appears to be a growing fat market.

Incidentally, that fumbled punt on Sunday was recovered by the Denver Broncos and led to the New England Patriots’ first loss of the season. The guy who fumbled the punt, Chris Harper, was cut and out of a job the next day.

Game changers have consequences.

—Mark Reaman

When lawyers and scientists start throwing around concepts like serendipity and connectedness, you know we have something to be thankful for this holiday weekend. The synchronicity of life can be subtle or shocking, but it is always happening and wonderful when it is noted.

Let’s look at a powerful example of the connectedness as it directly relates to a shadow that has loomed over the north end of the valley for 40-some years: The Red Lady mine situation.

As Crested Butte shifted from a mining economy to a tourist-based economy, the idea of a new industrial molybdenum mine on Mt. Emmons upset some of the new folks in the upper valley. Despite the history of mining in this mountain village, they (we) fought the idea with brains and brawn over the decades. It became a part of the Crested Butte story and its culture.

And now—sort of out of nowhere—there appears a new and initially promising path to lead the valley toward an end to this particular shadow. A mining firm with experience and money, Freeport-McMoRan, appears to understand it has a nebulous but legal connection to the aging water treatment plant on Coal Creek. While it never thought of mining here, one of the companies it bought years ago did. And that connection matters legally under federal Superfund regulations. So Freeport seems to be willing to stand tall and talk about how it can help address a seemingly never-ending issue.

County attorney David Baumgarten used the connectivity description. He gave some examples of the various threads that seem to be coming together to form the new path.

A. The connected efforts of the community and its citizens over decades;

B. The maturing and strengthening of the relationships between the local governments and the State;

C. The coordination between the State’s Division of Reclamation, Mining and Safety with the State’s Water Quality Control Division (in completely different State departments) thanks to their Directors and staff;

D. The coordination of the local, state and federal governments;

E. The candor of Freeport in being directly at the table;

F. The unfortunate but teachable moment that the Animas spill provides;

G. Perhaps the realization by new U.S. Energy officials reflected in the third quarter financials of liability and cost outweighing the slight prospect of future development. 

There is a respect and gratitude in Baumgarten’s examples to the work that took place from the early hippies in town to the current businessmen and women on the Red Lady Coalition, the tenacious enthusiasts of HCCA and the general citizens of the valley who wrote a letter or said a prayer to keep Red Lady free of a new mine.

He acknowledges the growing relationships between not only local governments in the valley but between those governments and the state and the feds—relationships not always on common ground, by the way. He recognizes the needed thread of a major mining group with resources to deal with a mining legacy in our backyard and that company being willing to be honest and helpful. Throw in a national calamity when a toxic spill contaminated the Animas River and plummeting energy prices that have wounded U.S. Energy’s ability to comfortably run the water treatment plant (along with new management for that company) and you have the series of developments that has led to this new path. Separate threads that alone are not particularly strong but together weave a powerful potential.

A senior water quality scientist at the state level, Andrew Ross, said that the day after a meeting with the state, town and county over their U.S. Energy concerns, the EPA had a meeting with Freeport-McMoRan to discuss situations like the Gold King Mine incident near Durango. The issue of Superfund liability on the Mt. Emmons water treatment plant was brought up and Freeport understood the situation.

“It was serendipitous timing,” Ross noted.

Yes it was.

Things happen for a reason. The Universe always works, whether you believe it or not. Understand that this is a brand new path. It is an unexplored path. It is a very preliminary path. But it is a path with light. The path may lead to nowhere soon. It may shine a light on the shadow to the west of town. It may lead to the final lifting of a weight from the shoulders of the community that has felt the pressure for decades. It may fizzle—or it may explode like a Fourth of July finale. But it is new and there appears to be optimism from everyone.

So here we are on another Thanksgiving weekend. The ski area has opened its lifts and snow is in the forecast. Smart people are working together to solve an old problem. I’m a believer in the Universe—in synchronicity. It appears we are in a time for real thanks. People are noting the connections and how they might all come together in that perfect sweet spot.

Have a wonderful Thanksgiving, everyone.

—Mark Reaman

by Mark Reaman

New line-up takes their seats

Town manager Todd Crossett gave a little speech of appreciation November 16 to departing mayor Aaron Huckstep and councilmen Shaun Matusewicz and Skip Berkshire. New council members Paul Merck, Laura Mitchell and Erika Vohman were officially sworn in, along with new mayor Glenn Michel. Councilman Roland Mason was voted in as mayor pro tem.

Learning to be a member of the council

The staff will be given a few tutorial sessions on how to be good council members and work with the town staff. Crossett plans to hold a seminar over the basics at the next council meeting in December. There is also the potential for a retreat that would include some team building exercises. Crossett said he and mayor Glenn Michel have touched on the idea of the council moving toward developing a long-term strategic plan for the town.

Sales tax tops Whatever

Sales tax was up in September over the same month in 2014. That even included comparisons with the Whatever, USA bump. September 2015 sales tax revenue was up 3.5 percent and so far for the year is up almost 12 percent.

Affordable housing guidelines

Town planner Michael Yerman said about 20 people took part in the second class dealing with affordable housing. He said there will be a two-hour work session with the council to go over the latest affordable housing guidelines. That is scheduled to take place Monday, December 7 at 5 p.m.

Executive sessions

Town attorney John Belkin gave each new council member a summary of the state open meetings law and talked about the use of executive sessions by the council. Such sessions are held behind closed doors without any public present. The council then went into an executive session to talk about possible negotiations about the Mt. Emmons project and the former Slate River annexation proposal.

Cats

The council last month approved the designated snowcat routes in town for both the Irwin group and the Crested Butte Nordic Center. At the request of Irwin’s Alan Bernholtz several council members had wanted to take the approval process out of the public hearing process and make it an administrative approval instead to simplify the process. Town attorney John Belkin argued against that and the council decided to punt and let the newly elected council deal with the request.

Other stuff

—The town hopes to start making ice at Big Mine ice arena on November 23. A new blue Zamboni is waiting in the wings.

—Crested Butte water systems manager David Jelinek was publicly recognized for graduating from the Colorado Public Works Institute. The 90-hour training course has already come in handy, according to Jelinek.

The Crested Butte-Mt. Crested Butte Chamber of Commerce winter forecast meeting last Friday brought together folks who are confident that this winter will be great. Predictions and updates centered on more people, better events, new attractions (like a cool Umbrella Bar at Painter Boy) and lots of optimism. I was shocked!

Over the last couple of weeks, radical Islamists blew up a plane with a bunch of Russian tourists, instigated carnage in Beirut, and struck fear in Paris with the brutal killing of civilians. People are scared and civil liberties are being questioned again. These ISIS crazies, by the way, are bombing Muslims who don’t fit into their tiny belief box as much as they are going after Western targets.

The news outlets around the country spent Monday and Tuesday focusing on rich, crazy actor Charlie Sheen announcing he is HIV-positive. Distraction Action…

Same as it ever was…

Dave Ochs is excited about fat bikes and especially the Fat Bike World Championships coming to town in January.

Americans and citizens of Europe are shocked that young men from the Middle East would strike out violently at the West. Meanwhile, American drones are dropping bombs not just on Jihadi John but on weddings and hospitals in Yemen, Libya, Syria and Iraq…

CBMR is opening the lifts Wednesday with a zany costumed pirate theme party. It is free for everyone that day but you should not expect to ski Headwall.

United Airlines has decided it can make more money elsewhere with the plane it uses to fly between Denver and Gunnison in the spring. Local business flyers are upset. Some see conspiracy, given the timing of the decision after the vote to increase RTA sales taxes. It sounds more like United considers this market on the bottom rung of the ladder.

Same as it ever was…

Conservative pundits like Weekly Standard editor Bill Kristol wants to see 50,000 troops storm the Middle East. Senator John McCain feels similar. Both were huge cheerleaders of invading Iraq. I wonder if there is any connection to those actions and current events—plus, what could really go wrong?

My health insurance premiums are skyrocketing again. This system is absolutely absurd and extremely painful for someone like me.

While there has been nothing official yet, it appears the developers of 44 acres just north of Crested Butte are leaning toward going through the county approval process for their proposed development with the idea of approximately 19 homesites. They went to the town a year ago for an annexation but have stated pretty clearly they were basically fed up with red tape and hoops. So the town loses a lot of perks and the county gets….suburbia between The Gasser and the cemetery. Water and sewer is in flux so, as usual, it’s not over until it’s over and there might be some fireworks in the process.

The corner of the bar at Kochevar’s on almost any late afternoon these days sure looks similar to what it looked like, say, 25 years ago…

Same as it ever was…

Donald, Ben, Hillary, Ted, Bernie, Carly. Who isn’t totally comfortable with any of them as Commander in Chief?

There is some angst floating around the valley. For some it may be Silent Tracks or Share the Slate. For others it could be how hard it is to find a cheap place to live. Still others might be questioning the state of the company that is responsible for the Mt. Emmons water treatment plant and the potential for a mine on Red Lady. Did someone say ski area expansion plans? Is 38,000 square feet too big for a new community Arts Center or should we be building 50,000 square feet for the future and a kabillion more kids in town? How about development on the edge of town and its impacts on Crested Butte?

People are excited as the valley gears up for the start of another ski season. Talk of El Niño, running ski lifts, and enough people coming in to provide locals a living get people psyched this time of year. The energy just before opening is always fun…

Same as it ever was…

—Mark Reaman