At a June 29 special meeting, the Pagosa Springs Town Council approved the acquisition of two condominium complexes and a townhome complex for the purpose of expanding workforce housing in the community.
The council gave its permission by approving ordinances for staff to seek out purchasing the three properties, and staff will now place bids on these properties on behalf of the town.
First readings of each of the ordinances took place on June 10.
The town is pursuing the purchase of Masters Place Condominiums, Village Point Condominiums and Elk Run Townhomes, all of which are currently part of Club Wyndham.
According to an agenda document on the matter, Masters Place Condos includes “20, 2-bedroom units, with the intention of providing moderate-income workforce housing rental units.”
Village Pointe Condominiums includes “32, 2-bedroom units, with the intention of providing moderate-income workforce housing rental units.”
Elk Run Townhomes has “18, 2-bedroom units,” with the intention of also providing moderate-income workforce housing.
Passage of the second reading of the three ordinances came after the council decided to go into executive session, where the public is not allowed, to discuss the strategies to purchase these properties.
The council and town staff have labeled the potential purchase of these properties for use as workforce housing as Project 102, working closely with the regional housing coordinator Jeff Sams on the issue.
In correspondence with the SUN, Town Manager David Harris explains the town would become the property manager of the workforce housing rental units for the short term.
However, “long-term, we have yet to decide the best organizational structure for this project, such as a housing corporation or whatever,” he wrote.
“All of this, of course, assumes that the town is the successful bidder for all three properties,” he adds.
At the meeting, Development Director James Dickhoff explained that the town’s “base bid” for the Masters Place Condos would be a little more than $2 million, with the town planning to offer $4,721,472 for the Village Point Condos and $2,432,700 for the Elk Run Townhomes.
After the executive session, council member Gary Williams explained that when he first came to the council, more than four years ago, the town was struggling to build workforce housing “with an outside contractor to help us.”
“And because of the cost of material, the cost of labor and the cost of money … it has made it harder and harder to make it happen,” Williams said.
He added, “With this unique opportunity, we can purchase 102 units,” already built, for “affordable workforce housing.”
Council member Brooks Lindner added that this acquisition “gives us the opportunity to do” workforce housing “in a much more fiscally responsible kind of way than other options we have looked at.”
Mayor Shari Pierce called it “a very unique opportunity for our community,” stating that workforce housing is “second on our goals list and this really helps us check that box.”
Council member Mat deGraaf noted he is “cautiously optimistic,” adding that “we are wading into an auction where we don’t know the outcome, and I hope that the odds are in our favor.”
Council member Leonard Martinez said suggested it is an opportunity to do something “truly unique in our state” to advance workforce housing.
During public comment, resident Nancy Rea expressed concern that Wyndham is “walking away from these properties, explaining that “they don’t just walk away if they’re making money.”
She suggested the town might be getting into a money trap since these properties likely need “major infrastructure upgrades” in the near future.
”These buildings have been sitting there. They are old buildings and they are going to continue to require maintenance. And I think about the ongoing utility costs, the water, the electric,” she added.
Resident Gary Noland expressed that he is concerned with parking in the area, with the “number of units versus the number of parking spaces.”
He added,”It’s gonna take a lot of work to keep these buildings up,” saying that “Wyndham has done an excellent job … they keep it clean, they keep the buildings up. It looks nice.”
He added that he fully understands the need for workforce housing, but wanted to make sure that the town “upholds” its “obligation so that everyone’s quality of life in the area stays the same, for the people moving into Masters Place and the people who surround it.”
During later public comment, Rea expressed that she hopes the plan works to help solve the need for workforce housing in the community.
However, “I am just so concerned for the residents of Pagosa Springs, that you are taking on a burden that’s going to affect the people in our community for years and years and years to come,” she said.
When motions were made for the three ordinances, they each were passed unanimously by the council.
derek@pagosasun.com
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