Rules would affect subdivisions in county

The county commissioners are taking another hard look at solving affordable housing issues within Gunnison County. At a work session on Tuesday, April 8, county staff began presenting the board with a new proposal for affordable, or essential housing regulations. Read More »

Will go up for rest of Gunnison County

A month after they ended a system that charged affordable housing fees based on a residential project’s geographic location, the Gunnison County commissioners made a similar change for commercial projects on Tuesday, April 1. Read More »

Legislation may be ready by early 2008

After making essential  affordable housing a priority two years ago, the Gunnison County commissioners seem poised to put inclusionary housing requirements for new devolpment on the books.
Read More »

Offseason excitement alert! The call is out to fill the Crested Butte town council chambers Monday evening. I get the feeling advocates for certain outcomes might be pushing the river in Monday’s case since both issues in question—a senior center location and support for tap fee and infrastructure breaks with the Whetstone housing project—are sort of in the middle of the evaluation and decision-making process. But, as in life, it never hurts to show up.

Emails are circulating asking local senior citizens in the North Valley to show up (not necessarily speak) to indicate support to the council to let them use a portion of The Depot for a senior center. The organizers say that the old HCCA offices at the north end of the building would be perfect for such a gathering spot that they envision being used for socializing, meals, informational opportunities and just an all-around community center of gravity. 

Town council is open to the idea but there are some logistics being brought up by staff, including the idea of using that space for some town offices when a renovation of the current town hall takes place at the start of next year. Staff also wants to make sure the seniors understand the reality of the Depot situation and there doesn’t appear to be a super rush needed for a definitive decision on May 20. Nevertheless, I anticipate a room full of wisdom and experience — a great gray-haired gathering —to fill the chairs in the council meeting room Monday.

The developers of the proposed Whetstone affordable housing project also put out a call Tuesday to “all who are interested in the Whetstone project to attend the Town of Crested Butte’s Council meeting on May 20th in the Council Chambers at Town Hall, where the project team will provide Council with a quick project update.”

The development team sent out a press release Tuesday in which they emphasized several times the “collaborative” nature of the project. “The project is stronger thanks to this input, and we invite you to continue to show up and voice support for much needed workforce housing in your community.”

Few will argue the need expressed for workforce housing. How it happens, however, still matters. The development team recently officially asked that tap fees be waived if the town provides water and sewer utilities. They have also made clear that while they will continue to pursue a roundabout and pedestrian underpass at the entrance to the 255-unit development by Brush Creek, they will build and rent the housing with or without that particular infrastructure in place.

One thing to keep in mind is that a council and staff are tasked with not just reacting to a room full of neighbors and constituents, but they have to evaluate all the potential ramifications of any decision and take action based on facts and the future impacts as well as emotion. The Whetstone press release mentioned the “profound collaboration culture” that is part of the Whetstone design process. There has indeed been a ton of outreach and information sharing over the project as there should be given its magnitude. That doesn’t mean everyone has to agree with everything that emerges from the process, and it certainly doesn’t mean future long-term impacts should be ignored to achieve short-term benefits, no matter how valuable.

As I mentioned in last week’s paper, it seems logical that the roundabout and pedestrian underpass should be considered part of the essential infrastructure of this project and not looked at as some add-on that would make the project better but isn’t a necessity. It is. Building 255 units that could house probably 600+ people without making sure the access to transit is easy and safe doesn’t make sense. It’s not like the town isn’t getting pushback over parking issues now and that’s before hundreds of additional people will be invited to be part of the CB community but living two-and-a-half miles from Elk Avenue. Who wants to send their kid across the highway every morning during the Trade Parade even with flashing alert lights and traffic calming devices to catch the RTA or school bus? 

I see too where the development team is asking the town to forego $7.5 million in tap fees for the project. In a nutshell, tap fees are used to essentially replace water and wastewater assets that deteriorate over time. Whetstone will add about 10% more capacity to the whole system, so it matters. If new development doesn’t participate in the fee, the financial burden simply will shift to existing rate payers.

Eliminating tap fees is a huge ask and one the town doesn’t ask for itself with its own affordable housing projects. They write a check from the general fund to the water and sewer fund because they know they need to. And while it would cut down on initial development costs, it would also hinder utility upkeep and future performance. 

Future impacts of poor transit access and unpaid utility fees matter and need to be addressed at this stage of the collaborative development process.

This development could and should be a wonderful place for people to live. Kudos to all those putting in the hours to figure it out. It is an aspirational workforce housing development that has the full support of all the local government entities. But it needs to be based in reality and decisions made beyond just checking a major goal off the list as fast as possible.

As in most of life, showing up makes a difference. Local council members and commissioners are certainly influenced when members of the community take the time and effort to show up and make a point. The skateboard community effectively showed up, expressed the positive potential of a new park and it resulted in a sweet million dollar amenity for the community I see used constantly these days. 

There will no doubt be people showing up Monday at town hall to advocate for both a senior center and workforce housing. Good on ‘em. That is a part of the democratic process. 

It will provide some offseason excitement. But ultimately, hard choices come down to those in the elected chairs who must take into account all the details and impacts of a decision. I trust the decisionmakers will look at the entire picture and what it means weeks and months and years from now when taking action, and not just when they are facing a room full of neighbors.

—Mark Reaman

Further discussion planned over whether to include on November ballot

By Mark Reaman

While not every Mt. Crested Butte council member is enthusiastic about the idea, it appears a majority are willing to put an affordable housing tax increase initiative on the upcoming November ballot. Council discussed the idea at the May 7 meeting after mayor Nicholas Kempin raised the idea at a work session. The money could be dedicated to affordable housing projects.

“Some councilors have said they would like an increase in the STR (short-term rental) excise tax put on the ballot, and I feel very strongly we should not do that yet,” said councilmember Janet Farmer. “It has been in effect going on four years and when you compare our STR tax rate to other ski areas, we are one of the higher ones already. To increase that more is a problem, and I would vote no on that.”

A 2.9% excise tax went into effect in 2020 on STRs in Mt. Crested Butte and it brings in about $1 million annually. The total tax applied to STRs in Mt. Crested Butte is 16.8% between the different taxing entities. 

Councilmember Steve Morris said he too is no fan of increasing taxes, but the reality was that money is needed to do housing projects and the citizens would have the final say. “I’m not super gung-ho on a tax increase but I’m still stuck with the idea of the problem being the solution,” he said, referencing a potential increase in the short-term rental excise tax to fund the Mt. Crested Butte affordable housing needs. 

“I’m looking at the potential projects for attainable housing that need funding and for me offering the option and letting the constituents decide if they see value in a tax increase on STRs is okay. I personally don’t want to really raise taxes but for me it seems money is needed for projects,” Morris said.

Morris pushed back on Farmer’s worry that if Mt. Crested Butte has higher STR fees, people might choose to not come to the town. “I’ve polled a bunch of people and no one looks at their tax rate when they go on vacation. You pay it because you’re on vacation,” he said. “In my head, the logic is to put it on the ballot.”

“I agree no one really looks at tax rates before they go on vacation but they could be shocked and go ‘holy moly’ when they check out and feel like they’ll never come back,” said councilmember Alec Lindeman. “But I feel nothing is working appropriately enough at the moment to get us enough money for the potential upcoming projects.”

“My thinking is if we do anything it has to go on the ballot and be very transparent,” said councilmember Duane Lehnertz. “The council won’t be deciding the action, it will be the constituents’ decision. So, I support putting something on the ballot and letting the people weigh in.”

“If we do that it reflects what would be perceived as our opinion,” said Farmer.

Responding to a question from councilmember Roman Kolodziej, town attorney Gerry Dahl said the town could not propose a real estate transfer tax since such taxes were eliminated in the early 1990s in Colorado through a provision to the state constitution approved by voters. He also clarified to Kolodziej that any new impact fee needed to be studied and shown to have direct a solid nexus for being implemented.

Town manager Carlos Velado told the council that Mt. Crested Butte already has a $1,441 impact fee applied to building permits. He too said that fees do not have to be approved by voters, but a fiscal impact analysis has to be done to provide a nexus to the proposed fee increase. 

Kempin said that the discussion warranted enough support to have the council look at the idea of putting a potential excise tax increase initiative on the upcoming ballot and asked that the item be included on the upcoming agenda. Council would have to make a decision on ballot language by August.

If only someone could have waved a magic wand that would have immediately taken me from my suburban neighborhood to the skin doctor in Montrose last week, that would have made everything so much easier. But it didn’t happen….

Let’s me first say that the official detour driving from Crested Butte to Montrose via Minturn and I-70 is a looooong trip even on a beautiful day. Having to take it last week, it confirmed again that central Colorado is pretty darn pretty but man, it’s a drive-and-a-half. Being able to take County Road 26 for the return as the sun set was a treat in more ways than one. It too was beautiful and brought me to a place relatively close to the valley that I should have spent more time in. It is remote, filled with wildlife and gorgeous. I was happy to have that option coming home and the CR 26  journey was a blessing.

The road itself is bomber; hardpacked and full of gravel and mag chloride, the Lake City Cutoff is a safe, easy alternative while the Highway 50 Middle Bridge remains closed. Still, it will be nice to have Kebler opened ASAP. But as I write this Tuesday, it is dumping like a sweet March powder morning, so I imagine the Y, Horse Ranch Park and the trees beyond are getting pounded setting back that opening another few days. If only someone could wave the magic wand and have the snow melt as it lands, and the road immediately be like CR 26 by this weekend. Alas…

If only someone could wave a magic wand and make it so that all the people that use Crested Butte as a North Valley service hub didn’t need wheels to get into town. I would love it if the streets were absent of cars and instead were places dedicated to warm naps by the local dogs. But…. 

I appreciate the Crested Butte town council taking a bit more time to listen to public comments and think about how to deal with proposed parking changes for next winter that will have a regional impact. The most drastic proposed change remains making it hard for people to park on the streets near some of the Mountain Express bus stops along Sixth Street longer than two hours during the ski season. That move would essentially take away about 120 spaces for locals living outside CB who admittedly use the area as a park-and-ride to catch a few laps on the ski hill. The town insists there is plenty of free parking inside the Four-way Visitor Center parking lot and that is true most of the time, but not all the time. There will be times the move to push people away from parking near public transportation will be a pain in the butt. 

Some on council feel implementing the punitive action to make people change their habits is worth it to get more people to utilize mass transit before they drive into town. Call me crazy but making it harder for people, particularly working locals who use the proven winter mass transit system to hop on the reliable ski shuttle bus, doesn’t make a lot of sense to me. And the argument that the action basically forces other partners to have to act seems like choosing aggressiveness over collaboration. 

Monday’s council discussion was a positive step on the issue. Council agreed to keep listening to people and consider ideas that accommodate those who live in the valley. Ideas in that realm included having locals be able to register their vehicles with Interstate Parking and the town and not get ticketed if they park longer than two hours in the spaces along, say, Teocalli or Gothic Avenues near the Mountain Express bus stops. Part of that would include gathering data to see how many out-of-town visitors are using Crested Butte parking spaces instead of CBMR parking spots when hitting the resort. That is good information to have as a broader parking and transportation plans begins to form. It might also address the urban myth that Mt. Crested Butte lodging properties are sending overflow vehicles to park in Crested Butte…because the parking regs are so easy to understand and navigate in the winter? Another idea is to not just throw cars into the school parking lot on busy weekends and have people make their way to the Clark’s bus stop, but to have Mountain Express include that lot on its regular rounds during the busy times. It was pointed out that that could actually make the lot a desirable place to park on a powder day since it can be easier to score a seat on the bus before it reaches the crowded Four-Way.

Make no mistake…the town’s ultimate aspiration is to drastically reduce the number of cars in Crested Butte. That’s a good goal that in my view doesn’t yet align with current realities. But over the next many years you can expect more parking permits in more places all over CB. And while the town staff contends there is plenty of mass transit opportunity to make most of the shift now, I don’t see it. I will agree with staff who mentioned Monday the town “can take smaller steps” over time to reach its ultimate goals. By expanding bus service even more, providing public park-and-ride intercept lots at places like CB South and Brush Creek, designing the upcoming Whetstone housing project to include super easy and safe bus options, the fewer cars in town goal could work. That is just a matter of money or maybe a magic wand…

Speaking of Whetstone and money or magic wands…

The county is diligently trying to get its ducks in a row to break ground on the 250-unit affordable housing project near Brush Creek Road by next spring. Details are still being worked out with the town about how to best provide water and sewer services to the site. How to pay for the estimated $130 million project is not yet settled. The county is clear that it is willing to proceed with or without the roundabout and pedestrian underpass that would provide good access to RTA buses on Highway 135 for the hundreds of residents who would be living in Whetstone. 

The idea of proceeding without that roundabout and underpass seems dodgy to me. While I too wish a magic wand could be waved to make the whole project cheap and super affordable, not including that transit element as a part of the core project is a short-term housing fix that would result in major long-term headaches. Adding several hundred more residents two miles south of CB without immediately giving them an easy, safe and convenient way to get into town on mass transit will exacerbate the parking issues the town is currently struggling with. That transit plan, in my opinion, should be considered part of the essential infrastructure of Whetstone just like roads and sewer.

A CB town council member on Monday lamented and warned that there are too many cars clogging the streets in town even during the slowest time of offseason. Huh? While there are definitely more cars parked in CB this April and May than in say 1988, it’s not over the top especially given that the cars are mostly, if not all, being driven by the treasured locals who make up a growing community. A glance at Elk Ave. during a snowy, blowy Tuesday showed clusters of cars centered around the few businesses that are open this time of year, but no one would have a problem finding a space to park. 

Look, if a magic wand could be waved to eliminate all the issues we are facing as more and more people choose to actually call the North Valley home, that would be great. If I could click my heels three times and wave the magic wand to return to the pace that allows the local puppies to take a nap in the middle of the street in May, I’d do it at Third and Elk every time the noon whistle goes off. That isn’t going to happen. So thoughtful, deliberate and realistic strategies need to be pursued as the place continues to grow and change…because the place is continuing to grow and change and I’m not seeing any magic wand.

—Mark Reaman

Parcel F discussions to shift into higher gear

By Mark Reaman

With the understanding that the owner of the Village at Mt. Crested Butte (formerly the North Village) property will work with the town to discuss future development options for the town-owned Parcel F, the town council on Tuesday gave final approval to the planned unit development (PUD) major alteration application on second reading. The vote was 6-0.

Under the approval, the development team has until August 1 to figure out an easement for a trail that is dependent on water and sewer infrastructure. Once settled, the final plat can be updated. The biggest discussion Tuesday came up when councilmember Roman Kolodziej asked the development team to agree to a few general potential use changes for Parcel F. Under current restrictions both the town and the adjacent property owners have to agree to a change in use, and currently the parcel is basically restricted to open space and/or recreation amenities such as a playing field. Kolodziej emphasized a desire to adjust that to allow affordable housing to be built on the parcel, but he also suggested a possible extension of town hall or a ball field.

The property owner, Dr. Claudio Alvarez, was in Spain during the May 7 meeting but his representatives, Crockett Farnell and Heather Henry, while raising an eyebrow at the last-minute request, assured the council that Alvarez has always been open to working with the town.

“This is very, very late but we have always been willing to work with town on Parcel F,” said Farnell. “I think it’s an unfair request at this point. I think if affordable housing is suggested for the site, you would be better off doing it at the other sites on the other part of the property where infrastructure will go in. But we are willing to look at anything being proposed. But tonight with not anything to react to, we are not ready to agree to that.”

“We started this four years ago and it took a year to get any real traction,” said Kolodziej. “Unfortunately, we weren’t aware of the extent of restrictions on the parcel until a month ago. That’s why I’m suggesting perhaps we can agree to a couple of items for that parcel. Housing is very important to me.”

“We have always demonstrated a willingness to work with town,” responded Farnell. “We worked on such a scenario and spent months doing so. But in a nonprofessional demand the day before we were going to submit the document, the previous town manager Isa (Reeb) told us to take it out. The opportunity to vet that request has come and gone.”

“My concern is that when Dr. Alvarez sells off some of the tracts we will need to get the permission of more property owners and I anticipate some will say they don’t want poor people living in their neighborhood so I am inclined to vote no on this,” said Kolodziej.

“This doesn’t match up with any process I think you’d want to support if you were the landowner at the end of a four-year process,” said Henry. “We will reiterate we are just getting this request tonight, but we’d encourage you to open a new conversation as fast as you want. You would have to go through the PUD major alteration application process. Frankly there is so much state money available for affordable housing but they want it near existing infrastructure and to be shovel ready. This sounds wildly inappropriate.”

“There is nothing to react to,” added Farnell. “Does the town want five units or 500? Do you want to build a high rise? The Alvarez family is very willing to have the conversations. Ask Gerry (Dahl, town attorney) but I would be concerned with the legality of putting this on us at the eleventh hour. We appreciate the request and we are sincere in helping to discuss and possibly help facilitate that goal.”

Dahl said the town would have to go through the PUD alteration process to change its use and it could be in conjunction with the adjoining property owner (or owners). He pointed out that the ordinance approving the PUD included a timeline lag into August to finalize a trail easement and then update the plat. He suggested that time be used to have the conversation over Parcel F. 

Town manager Carlos Velado told council that the original idea was to have the town and Alvarez work together to figure out the best use of Parcel F but Reeb wanted that taken out of any agreement. He reiterated that consent to change the use of the parcel was always needed from the adjacent property owner. “From our recent council conversations, I’m not sure there is a consensus on what you all want on that parcel,” he said.

“That’s why I suggested we agree to a range of choices,” said Kolodziej.

The rest of the council expressed comfort approving the PUD and working with the development team on the best options for Parcel F. 

“I have faith in the applicant so I am comfortable approving it today knowing the conversation can start tomorrow,” said councilmember Steve Morris. “They have always shown good intent.”

“Parcel F is complicated, but we are happy to have the conversations,” said Henry.

Kolodziej stated Alvarez was “a stand-up guy” and he expressed hope the process could result in a good outcome.

The approved PUD allows the 150-acre property at the base of Snodgrass to develop commercial units, residential housing, deed restricted workforce housing, a trail system and a campus and visitor center for the Rocky Mountain Biological Laboratory. 

Council unanimously approved the PUD with conditions by a vote of 6-0 with councilmember Michael Bacani not at the meeting. 

Utilities, roundabout, bond funding…

By Mark Reaman

Ideally, Gunnison County would like to break ground on the 255-unit Whetstone affordable housing project south of Crested Butte near Brush Creek Road late this fall before the snow flies. However the realistic expectation from county officials developing the estimated $130 million project is that work will likely start a year from now in the spring of 2025.

Assistant county manager for operations and sustainability John Cattles is a point person for the development and he said the county is still ironing out details of a potential water and sewer utility extension with the town of Crested Butte. He said the county will pay all the costs of the extension, but negotiations are ongoing over the so-called “buy-in fee” to join the town’s utility system. “The Town will not have to spend any money on the utility connection and will get additional users paying monthly fees,” Cattles said. “Also, the county will own and maintain all of the new infrastructure from the tie-in point throughout Whetstone so the Town will not have any additional ongoing costs from the extension. The only thing we are not including yet is the buy-in fee to the Town’s systems. We want to discuss that fee further with the Town and hope to eliminate or significantly reduce it.”

Crested Butte town manger Dara MacDonald said there are continuing costs associated with adding that many new customers to the system. “We appreciate the county’s repeated statements of their commitment for the Whetstone project to be treated like all other customers of the water and sewer utility,” she said. “We have provided the county with our estimates of the buy-in and service fees for the project and are awaiting feedback and further discussion.”

Going round and round on the roundabout…

One of the biggest unresolved issues is the concept of building a roundabout with a pedestrian underpass on Highway 135 at the entrance to the 13-acre development. Cattles said that project is estimated to cost about $8.5 million and the county is hoping to obtain grants totaling $10 million so it can also include improved multi-modal path connections that intersect the underpass.

“The County has spent money on the engineering of the intersection and paid for studies required to apply for federal funding,” he said. “We have also acquired land on both sides of the highway for the underpass connection and the roundabout.”

Cattles said the county doesn’t have the funding sources or budget to spend on the road improvements directly. He emphasized that counties are prohibited by state law from using general funds on roads. “The funding we receive from the state for our roads is insufficient to cover even our existing needs. We’ve been able to backfill the public works budget with non-general fund resources like excise tax revenues that the state redirects to counties, but those sources are just enough to maintain current operations and are unreliable,” he said. “Brush Creek improvements will have to come from state or federal funding. We are applying for all possible funding opportunities.”

Alternative traffic calming ideas for Brush Creek intersection

Cattles said the roundabout remains a priority for the county and it will be pursued even if Whetstone is built out. “Our understanding is that CDOT also wants to see the roundabout constructed and is aligned with our intention to build out the intersection as proposed as quickly as possible,” he said. “Gunnison County staff has met with the town of Crested Butte staff, along with RTA and Mountain Express staff to explore options to provide safe pedestrian and bike access to the Whetstone neighborhood while we pursue funding for a roundabout and underpass. We’ve had collaborative discussions with these transportation providers and experts to identify both interim and permanent solutions that could be implemented concurrent with the project.”

Ideas discussed include a regional transit stop being placed inside Whetstone, having the county pay for a seasonal shuttle to serve Whetstone residents until the roundabout is complete (expected to be hundreds of thousands of dollars annually) or installing traffic calming measures and pedestrian safety measures on Highway 135 to slow traffic prior to a roundabout being constructed. 

“The traffic calming we have in mind would be a combination of things like an island for pedestrian refuge and perhaps other structures along the road to slow traffic (combined with lower speed signs of course) and a warning light that pedestrians could press when crossing, not a stop light,” Cattles explained. “We are not sure what CDOT will support but they’ve allowed similar mitigation strategies in other places, such as Buena Vista which is a four-lane highway. We are beginning to develop proposals for CDOT to review now.

“We want it to be and feel safe so folks will use transit and walk or bike on the trail to town even while we work on the ultimate solution,” Cattles continued. “That’s why we are proposing interim solutions until the underpass is funded and built.”

Surprise! Money is an important issue

Cattles said the county needs to proceed with Whetstone while continuing to work on funding the intersection since the highest priority is building workforce housing. Having to pay for the roundabout without state and federal grants would increase average rents in Whetstone by about $2,850 annually. “The project will not be sustainable or meet our policy goals to serve the community workforce if the project costs continue to rise,” he admitted.

The Crested Butte town council and staff have been consistent in stating the need for the roundabout. “The town council remains firm in their expectation of a roundabout and pedestrian underpass to adequately serve the 250+ households in the Whetstone development,” MacDonald reiterated this week.

For the county, the bottom line is that higher building and development costs impact rents. “At $130 million we can maintain average rents at 125% AMI (Area Median Income).  Actual individual rents will start at 80% AMI and go up to market rates. Our goal is to keep these AMIs as low as possible,” emphasized Cattles. “We feel this average is near the top of what is possible while still serving the community need and we’re working to drive average rents lower by cutting costs, securing more grants, and through potential alternative financing strategies that may reduce finance costs to the project.”

Practically, that means rents would be approximately $1,680 a month for a two-bedroom unit for those in the 80% AMI category. The average rent lands at the 125% AMI which converts to about $2,600 a month for a two-bedroom unit for three people.

As for financing the cost of development, Cattles said aside from potential grants, the county will use tax-exempt bonds. He said they will go to market to issue that debt once all permits are in place and the county is ready to start work. “Once debt is issued, we will have to start making payments so we must make sure we minimize the time between debt issuance and when we get units occupied and start collecting rent,” he concluded. “There is an outside chance we may be able to start some work in the late fall before snow flies but more likely we will start in the spring of 2025.”

Interest rates, construction costs and town regs all a money factor

By Mark Reaman

While expressing disappointment with getting dinged with the “cold reality” of rising construction costs and higher interest rates, the Crested Butte town council on Monday again lowered the number of affordable housing units they would finance and build in Paradise Park from 17 to 14 and shifted from borrowing $10.1 million under a 30-year Certificate of Participation (COP) to $8.4 million with a 20-year term. Council officially voted 5-0 to enter into the revised debt structure and executed the site lease agreement. Mayor Ian Billick and councilmember Jason MacMillan did not attend the April 15 meeting.

Given the expected timeline, interest rates could shift before the debt is issued in late May and while lower rates could result in more units being able to be built, a higher interest rate could lower the number even more. The pricing for the COP and purchase of the debt is slated for May 30 with closing and funds being issued to town on June 11. 

Construction for phase 1, which involves building nine units to be leased up in 2025, would start this summer. Phase 2 includes five units to be rented in 2026. The Town anticipates charging rents that are affordable to households making 80-100% AMI (Area Median Income). Household income limits will be largely dictated by grants secured to help fund the project. The Town indicated that when the units are sold in 10-20 years, they anticipate targeting households earning 140% AMI and below.

Total development costs to the town would be $12 million, or $857,000 per unit, including interest costs. Under the COP, the town could consider selling the units after 10 years. A sale would be expected to bring in about $7 million (after 20 years). Before rents come in to help pay the debt, the town will borrow $1.3 million from its capital or general fund in 2026 to begin the COP repayments. That will be paid back over the 20-year financing term.

The average annual debt service for the town is expected to be $600,000. Given the finances, town would no longer fund the Good Deed, Green Deed or any other potential housing opportunities that might come along while under the COP debt. With the COP, town property would be put up as collateral, but the financial consultants for the town said the collateral being called is extremely rare. 

The town will put up the town hall, the Old Rock Library and the Ruby affordable housing buildings as collateral. 

Crested Butte housing director Erin Ganser told the council Monday that the new model lowers financing costs and produces the most housing units in the shortest period of time while preserving town-owned land as a resource for future development of deed-restricted housing. “This allows for better choices with the 20-year term and is a more conservative view for financing,” she said.

Councilmember Kent Cowherd asked for some council consideration to stay with the 30-year-term that allowed 17 units to be built. His logic was that the council would reevaluate the situation after 10 years no matter what.

“We started with the idea of 32 units being built then it went down and now we are at 14. I would like to build as many units as possible and three more units could be six more bedrooms. That’s a lot to me,” he said. “It is something to at least consider. We could get out after 10 years.”

Ganser reiterated that if interest rates go up in the next month, the number of units could decline even more. “This is hard. Financing costs with interest rates have blown up since we started along with construction costs. It’s a horrible combination,” she said.

Councilmember Beth Goldstone said that 14-unit number was still in flux and she still didn’t have the deep analysis she requested about building costs and why they were higher in Crested Butte at about $550 a square foot versus Gunnison and the Sawtooth housing project that was coming in at about $340 a square foot. Staff provided a broad overview document with no actual numbers included.

“We have higher regulatory costs than other places,” noted Ganser, who said the staff hadn’t had the in-depth conversation with the county and other entities to make sure a cost analysis was comparing apples to apples. “Our regulatory environment and community identity are what they are. Changing that is your call.”

Community Development director Troy Russ added that on the Crested Butte regulatory side, there were a number of factors contributing to higher costs. “It’s things like scale, density, shared walls and building efficiency,” he said. “It’s who we are. To change those things could happen but take time through the Compass process.” He explained that while Sawtooth-II in Gunnison and Mineral Point in Crested Butte were providing a similar number of units, Sawtooth-II was one building while Mineral Point was three. 

No one on the council was enthused with a shift in financing and reduction in unit numbers. “The 30-year term is longer than I’ve been alive,” remarked councilmember Anna Fenerty. “I’m not comfortable with the lack of flexibility in that scenario.” Councilmember Gabi Prochaska agreed.

“I’m a little uneasy we are borrowing more than $1 million from our other (general and capital) funds,” said Goldstone. “When the proposed housing fee didn’t pass a couple years ago it was said that the reason was in part that we didn’t have a plan. Now we have a plan but not enough money. If there is another opportunity in the future for more money for housing, we should consider it.”

“We aren’t giving up more housing units forever, just for now,” said councilmember Mallika Magner. “We have had some trouble selling affordable units in the past but we know there is a demand for rentals.”

“We have already spent a million dollars designing these,” added Fenerty. “We are trying to be as intentional in this process as possible. I’m a bit uncomfortable to take out that much debt, but this builds the most units in the quickest period of time. A previous council provided land for the trailer park where I was able to grow up. This will provide 14 opportunities for the future.”

“We are faced with cold reality,” concluded Magner. “We all wanted more when we started the process. And we want to provide a great product and not provide crappy places for people. It is disappointing and we all wish more were possible.”

Council voted 5-0 to proceed with the 20-year COP that at the moment will provide funding to build 14 units.

By Dawne Belloise

Although he’s never skied as a participant in the Grand Traverse, Eric Phillips is certainly familiar with the event as both a photographer and a member of search and rescue teams. In 2022, he was hired to help film a movie about the iconic annual event that sees pairs of skiers set out across the wild terrain of Crested Butte’s backcountry, over Star Pass headed to Aspen in the deep winter snow. As part of the event safety team, Eric heads into the backcountry on the Aspen side five days before the event to set up the race course and radio communications. He recently joined up with the CB Search and Rescue Team. As a professional photographer, he’s learned to bring more battery packs and heat packs to keep those camera batteries warm for the entirety of the event.

Eric grew up in the greater Chicago suburbs with his twin sister, Carrie Phillips, who also lives in the valley. As twins, Eric recalls that they shared everything from birthdays to friends so that by middle school, they grew tired of being around each other constantly and started to drift apart. “My parents tried to have separate events for us, especially on our birthdays. In high school, we had a lot of classes together and we started to get really close again. Knowing that someone has the same lived experiences that you have your whole life is really cool,” he admits.

In high school, Eric spent his time on skateboards and BMX bikes. “Mountain biking is very different than what it looks like here in CB,” he says of his suburbs. He also achieved Eagle Scout status as a Boy Scout. “I’d spend my summers working as a small boat sailing instructor and eventually the camp ranger for a Boy Scout camp in Wisconsin where I had gone as an 11-year-old kid. By the time I was 13, I was allowed to work there,” which he did until he was 21. Eric had also done some backpacking trips in New Mexico with the Boy Scouts when he was 14 and 17. “I loved hiking in the mountains and the outdoors, and it was a big spark for me to explore the outdoors more.”

After graduation in 2014, Eric’s family packed up and left the suburbs to move to the family cabin on Silver Lake, Wisconsin. He laughs about having a hallway for a bedroom which his sister had to walk through to get to her bedroom. With his love of teaching in the outdoors, 18-year-old Eric got a job as a snowboard instructor at a ski resort five minutes from the family cabin. “I started snowboarding when I was 11. The resort was a 200-foot repurposed garbage dump hill called Wilmont,” which is now owned by Vail Resorts. From there, Eric enrolled at Gateway Technical College for his general education requirements, choosing Environmental Science as his major, “Because I thought it was the best of the options available at that college.” 

After his first year, he transferred to the University of Wisconsin in Green Bay as a sophomore. He was a snowboard instructor at Granite Peak in Wausau, Wisconsin, and in 2015 he received his level 1 instruction certification from the American Association of Snowboard Instructors (AASI). The resort was about 90 miles from his college so every Friday he’d head out to teach snowboarding for the weekend and then make that long trip back to college on Sunday night. “I realized then that I cared more about instructing and learning about instructing snowboarding than I did about the college courses I was taking. That’s when I knew I needed to make a change about what I was doing because I didn’t want to be stuck in Wisconsin or a lab all day.”

Eric decided to take a semester off, intending to enroll in the National Outdoor Leadership School (NOLS), but he discovered that he could get college credit for those types of courses at Western Colorado University (WCU). “I had no idea where Gunnison or WCU was,” but he applied immediately, signing up for a Recreation and Outdoor Education curriculum. “I remember I Googled Gunnison and wondered if there was a ski area close by,” then he saw Crested Butte on the map. “I was thinking, man, I hope it’s a good ski area.” 

Eric’s parents dropped him off at WCU for the winter of 2015/16. “The first day at Western, we were all a bunch of transfer students playing ultimate frisbee and we were all out of breath and had to chop the field size in half,” he laughs at the change in elevation. “But I felt like I had found my people. I climbed Mt. Princeton the first week I was here. In Wisconsin, I was at the top of the outdoor totem pole as the most outdoorsy person in all of my friend groups. Moving to Gunnison, I was at the bottom of the pole. I had so much to learn, and I was so excited.” 

Eric’s new friends decided to drive over Kebler Pass to Paonia that first week. “I remember driving through downtown Crested Butte and thinking it was really cool but I didn’t see the mountain because it was snowing hard that day.” He was hired as a snowboard instructor for CBMR but couldn’t ride until he went through training, which started December 15. Eric’s first day with the trainer and first run was a rope drop on Crystal. “I had my mind blown at so much snow, hucking myself off the cat track, and the instructor came over and said I had to calm down because I was too loose jumping off stuff. But I was losing my mind! I had never skied powder and it was my first ever run riding out west. I didn’t know what to do with myself in powder,” he grins at the memory.

Things were going really well for Eric at WCU and he joined the Western Mountain Rescue Team there. “It’s a collegiate club that WCU has. It’s also the only nationally accredited collegiate search and rescue team in the U.S. I started to learn many things about the mountains and outdoors and I was so stoked to learn.” 

Cleverly, Eric stacked all his classes on Tuesdays and Thursdays so he could teach snowboarding the other five days of the week. He did a ton of hiking and camping, bought his first real mountain bike and started exploring the area. He also bought his first splitboard that year. “It opened up a whole new world. I was learning how to climb the mountains and ride down. I felt like I was living my childhood dream because I had always watched tons of snowboard movies and I thought it was so unattainable and suddenly I was doing it.” He graduated from Western in 2018.

Eric was completely smitten with the valley’s mountains and viewscapes and wanted to capture those images in photos. His iPhone camera just wasn’t cutting it so he bought his first DSLR camera. “I went headfirst into photography. I was taking hundreds of photos every day.” He had stopped teaching snowboarding when Vail Resorts bought the ski area. “I wasn’t making enough money so I switched to serving food at various restaurants in town and focused on photography.”

He then landed a job as photographer for the WCU marketing department. He was sent out to photograph the area for the college’s social media accounts and school events for recruitment and marketing. After graduation, Eric thought he might do mountain guiding or continue pursuing photography. “I ended up going out on a limb to pursue photography,” and was hired to shoot for Travel Crested Butte. “It was an incredible experience and I got to take tons of photos of CB.” 

Eric moved from Gunnison to live with his girlfriend Morgan Tilton in CB just before COVID hit and CBMR closed down the resort. His photography for Travel CB resumed in the summer of 2020. “I eventually left Travel CB to pursue my own photography business, Phillips Photo, in the spring of 2021. I had absolutely no clients and decided to go freelance.” He began shooting properties for real estate agency LIV Sotheby’s, and for other various clients throughout the valley. “It’s definitely been a grind for these past three years but I do make enough to survive and still live in CB. I have a bunch of local clients that I do various photo and video work for.” 

Eric wanted to give back to the community and decided that joining the Gunnison County Planning Commission would be a good way to contribute. The board regulates affordable housing and land use in Gunnison County. “Everyone was talking about housing issues and affordable housing within the valley and I wanted to get involved to try to make a difference.” He was appointed in December 2023 as a one-year alternate and absolutely loved it. “After that first year they asked me to reapply for the full-time three-year position.” Eric appreciates the concerns of people in the valley, “There are a lot of concerned citizens and I try to listen to everybody’s opinion.”

 As for Eric’s housing, his girlfriend was recently able to buy a condo and he hopes to continue volunteering and get more politically involved “to help shape the future of the valley.” His plans for photography are to establish a guiding service in the valley, “So I can show people how to take photos responsibly without trampling the wildflowers and without harming the environment. I have some things in the works and hopefully I can start guiding this year,” he says.