REAL ESTATE IN THE NEWS

spring24

REAL ESTATE IN THE NEWS

Current Events in the Roaring Fork Valley of Particular Interest to the Real Estate Community

Compliments of the Aspen Board of REALTORS® A rundown of government and business activity over the last month, focusing on issues and items that are of particular interest to the Real Estate community.

ASPEN

Palm Tree Festival Signs on for Five Years

Aspen City Council extended a five-year lease to Belly Up to continue hosting its Palm Tree Festival at Rio Grande Park, the Aspen Daily News reported. It was started in 2023 and returned early this year for its second appearance. The event was approved with a contingency that festival partner Belly Up produce a free, annual, outdoor concert for the Aspen community.

Palm Tree Music Festival Aspen is one of several Palm Tree festivals held around the world. This summer, festivals will occur in the Hamptons, Lake Tahoe and Oahu. Past events have been held in Dana Point, California; Egypt; Cabo San Lucas, Mexico; Croatia and Australia.

Aspen Considering Waste Diversion Program

The city of Aspen will create a program to keep more construction and demolition waste out of Pitkin County’s swelling landfill, an effort officials hope will ease pressure on the solid waste facility and cut down on greenhouse gas emissions, the Aspen Daily News reported. The program would require a new full-time employee and begin by this fall.

The program would be loosely modeled off of Pitkin County’s existing construction waste diversion requirements, which call on contractors with county-permitted projects to divert 35% of their total waste from the landfill by weight as well as 100% of reusable materials like concrete, untreated wood, asphalt, rock and scrap metal.

Occupancy Rates Stable

Despite the 2023-24 winter season’s occupancy rate being down 4.1% compared to the previous year, two Aspen resorts and hotels — Aspen Meadows Resort and MOLLIE Aspen — added a combined 166 rooms in local inventory and helped occupancy rates remain stable, the Aspen Times reported. The 14% increase in rooms led to a 59% occupancy rate to close out the winter season. One reason for the numbers being down, however, was a decrease in Australian visitors — attributed to higher airfare costs — and the reopening of Japan post-COVID-19, which drew regular visitors elsewhere

But amid the decrease, room nights sold during winter increased 3.3% due to more available inventory. Aspen experienced a 6.9% decrease in winter occupancy rates from the previous year, but still ended with a 60.3% occupancy rate. In addition, the number of rooms occupied in Aspen rose by 5.8% due to the opening of the Mollie and the reopening of the Aspen Meadows after a renovation.

City of Aspen’s Carry-Forward Continues to Grow

The city of Aspen’s funds have grown rapidly since the beginning of the COVID-19 pandemic, with officials saying they are saving for increasingly expensive infrastructure and construction projects such as the Lumberyard affordable housing project, the Aspen Daily News reported.

The city’s spring-adjusted opening fund balance has grown from $212.6 million in 2020 to $330.5 million in 2024, a roughly 14% increase per year. If the city continues with the same general trends from the last four years, the spring-adjusted opening fund balance in 2025 could be around $50 million greater than in 2024. The city’s ability to pay for the 277-unit Lumberyard development has come under scrutiny. Estimates released in August showed Lumberyard costing from $361 to $754 million depending on construction costs, debt issuance and budgetary decisions.

Early Childcare Center Passes First Round

Aspen City Council advanced an ordinance to build a 94-student early childhood education center at the Burlingame Ranch affordable housing development, the Aspen Daily News reported. The council will vote on whether to finalize and pass the ordinance during a second reading at a future meeting.

The ordinance would approve amended land-use entitlements for the childcare center, but it would not establish a funding plan or a construction timeline for the project. The facility would be located on a vacant 39,000-square-foot lot on the west side of Harmony Road immediately south of its intersection with Ford Road at the entrance to Burlingame Phase I. The proposed 15,300-square-foot structure would have two stories. The facility would include three playgrounds, with one playground dedicated to each of the facility’s infant, toddler and preschool age groups.

City Sales Tax Up in February

Aspen’s two sectors that fuel the retail economy saw healthy leaps in revenue generated through February, beating last year’s figures by double-digit percentage points, according to the city’s monthly tax report as reported by the Aspen Daily News. Accommodations and restaurants-bars combined to produce more than $80 million in sales in February, making up more than one-half of the month’s total revenue generated.

February was sandwiched between the season’s two highest-profile on-mountain events: The Winter X Games at Buttermilk were held from Jan. 26-28 and the 2024 FIS World Cup was held March 1-3 at Aspen Mountain. 2024 also is a leap year, and February gained an extra day.

Aspen’s event calendar in February included the Palm Tree Music Festival, Aspen Laugh Festival and Winter Words.

Snowmass Village

Old Snowmass Working to Become Dark Sky

Old Snowmass is working to become the valley’s first Dark Sky community, the Aspen Times reported. The Snowmass Creek Capitol Caucus, a nonprofit neighborhood organization, is working with Dark Sky International, an organization that assists communities, towns, and cities around the globe to tackle the problem of light pollution and offer solutions on how to bring it down. As part of the process, Pitkin County released an updated version of the lighting code to the public on their website, which has been in the works for four years. The county based the new codes on best practices and are in line with what other communities are doing on the Western Slope that is working.

Lottery Preference Given to Locals

The Snowmass Village Town Council unanimously approved an ordinance that will give locals an advantage in the town’s lottery system for deed-restricted housing, the Aspen Times reported. The ordinance, which council members have discussed at length for months, will give locals a leg up in the lottery for the town’s stock of about 200 ownership units. It defines locals as people who have lived in Snowmass for at least eight years prior to graduating high school with an absence of no more than six years post-graduation.

The Town Council originally proposed allowing only graduates of Aspen High School to be considered under the local lottery preference. But after receiving input from residents who said children may go to other high schools for specific reasons like certain special education programs, council members agreed to add Basalt High School, Roaring Fork High School and the day program at Colorado Rocky Mountain School in Carbondale to the ordinance

Snowmass Approves Affordable Housing Purchase

The Snowmass Village Town Council unanimously approved the purchase of residential property next to the Snowmass Center to use the land for workforce housing, the Aspen Daily News reported.

The vote did not finalize the purchase. The town and the current property owner must complete due diligence processes and other final steps before the sale is closed. The property comprises 2.9 acres of vacant land with current approvals for 110,000 square feet of residential floor area. The town hopes to use the property for workforce housing, according to a town memo. The purchase price for the property is $12.5 million.

Basalt

Wildfire Detection Camera Added to Midvalley

A ninth wildfire detection camera system will be added in the Roaring Fork Valley in early June on Crown Mountain in the midvalley, the Aspen Daily News reported. The latest installation will be funded by the Roaring Fork Valley Wildfire Collaborative with financial support from the Roaring Fork Fire Rescue Authority and a private donor. The total price was $40,000, with half covered by the private donor.

Cameras already are in place near Aspen at Red Mountain, Ajax Mountain and Williams Mountain, near Snowmass Village at Jack Rabbit Ridge, on Red Table Mountain in the Upper Fryingpan Valley, near Carbondale and Redstone on Elephant Mountain and near Glenwood Springs on Lookout Mountain and Sunlight Mountain. The Aspen Fire Department purchased the first detection system by a company called Pano AI in Colorado in 2022. There are now 43 Pano stations throughout the state and another 21 stations are scheduled to be installed this summer.

Basalt Says ‘No’ to Midland Foes

Basalt town government’s major public works project to transform Midland Avenue received a huge vote of confidence from voters in May, the Aspen Daily News reported. A citizens’ initiative to pare down the project’s budget and preserve angled parking in the downtown core failed with 335 votes in favor and 809 against. A “no” vote in this case was support for the undertaking, formally known as the Midland Avenue Streetscape Project.

Project foes forced the election by collecting 365 signatures of town voters on a petition, but the campaign failed to generate additional support. The 70% to 30% in favor of the project mirrored a November 2021 vote that gave the initial support to the project. That election allowed the town to extend bonding authority and a property tax to pay for the Midland Avenue project, affordable housing and “green initiatives.”

Basalt Welcome New Council Members

Two newcomers to Basalt government and one familiar face won handily in the race for three council seats, the Aspen Daily News reported. Hannah Berman received the most votes with 460 while Angele Dupre-Butchart tallied 435. They sought public office for the first time.

Former mayor and councilman Rick Stevens will return to office after collecting 360 votes.

Candidates Kaja Rumney and Chris Mullen made unsuccessful bids for the three at-large seats. Rumney had 321 votes and Mullen had 195. Current Councilman David Knight was unopposed for mayor. He received 523 votes. Knight is finishing a four-year term on the council.

New Preschool to Open at Stott’s Mill

A new preschool will open in Basalt this fall under the Blue Lake Preschool umbrella and provide options for families seeking infant care, the Aspen Daily News reported. Blue Lake Preschool at Stott’s Mill will be licensed for 50 children, with the majority of the spaces for infants and toddlers under 2½ years old. The other spaces will be for preschoolers 2½ to up to 6 years old.

Carbondale

BuildersFirst Opens in Carbondale

Builders FirstSource quietly opened its new lumberyard facility in Carbondale last August, the Sopris Sun reported. Located just north of the City Market shopping complex on Highway 133, it was the culmination of a years-long process leading to the consolidation of the company’s three operations in the Roaring Fork Valley (Aspen, Willits and Glenwood Springs) at the Carbondale location. The Aspen yard is closed, and the Willits showroom was recreated in Carbondale; the Glenwood location remains for storage.

Capitol Peak Outfitters Changes Ownership

Capitol Peak Outfitters changed ownership from the Howe family to Ted Benge, the Sopris Sun reported. The outdoor experience company provides trail rides with its 25-head stable of horses, guided overnight pack trips and hunting excursions in the Maroon Bells-Snowmass Wilderness.

Benge is a valley local. His partner, Aisha Weinhold, owns Ragged Mountain Sports.Ragged Mountain Sports already has a partnership with The Painted Pig and Weinhold hopes to extend that to Capitol Peak Outfitters, though nothing yet is formal. She and Benge are also friends with local coffee company owners and would like to eventually partner with them to incorporate artisanal coffee into activities with the outfitter.

Thompson Divide Protected After Two Decades

Nearly 20 years of work by conservationists, ranchers and outdoor enthusiasts to prevent oil and gas drilling in the Thompson Divide area west of Carbondale bore fruit when the Biden administration withdrew 221,898 acres from potential leasing, the Aspen Daily News reported.

Secretary of Interior Deb Haaland signed Public Land Order 7939 that removed a vast swath of public land in Pitkin, Garfield and Gunnison counties from mining, mineral and geothermal leasing for a 20-year period. The order affects lands stretching from south of Sunlight Mountain Resort to the Mt. Emmons area outside of Crested Butte. The withdrawal includes 67,040 acres of the White River National Forest in Pitkin County and another 11,432 acres in Garfield County.

Glenwood Springs

Short-Term Rentals Get Amendment

Glenwood Springs City Council voted unanimously to amend municipal code regarding vacation rentals, the Glenwood Springs Post Independent reported. In addition to the impact of vacation rentals on the character of residential neighborhoods and the availability of long-term housing options, ordinance language states that two of the reasons for the consideration of these changes are that “the number of vacation rentals in the city has increased by over 1,000% since 2013, and the city has a housing shortage of 2,000 units. The multiple amendments affect the number of permit caps, the application timeline for permits and the ownership model for permits.

Glenwood Springs Amends Home Room Charter

Glenwood Springs’ ballot question A passed handily, the Aspen Daily News reported. The ballot measure 78.5% in favor of the measure, which is set to add more steps and resident involvement in development in town. The vote added language to the city’s home rule charter that any annexation of land or any residential/mixed-use housing on city-owned land will, after approval from the city, go to a public vote.

Additionally, any development permit adding more than four new dwellings will be subject to review by the Planning and Zoning Commission and approval of city council. Previously, developments of more than eight units required Planning and Zoning review and more than 24 required city council approval.

Pitkin County

Skier Visits Down this Past Winter

Aspen Skiing Co.’s skier visits were down 2.3% during the 2023-24 season, the Aspen Daily News reported. CEO Geoff Buchheister found some silver lining in the performance, noting in a newsletter to SkiCo employees that the company fared better than the U.S. ski industry as a whole. The National Ski Areas Association reported May 22 that skier visits nationwide dropped to 60.4 million this season from 65.4 million the season before. That’s a decrease of 7.3% from the record-setting 2022-23 season.

Reasons for the decrease include a poor start to the season with snowpack, climate change shortening seasons overall, international tourism down as patterns shift and the ever-increasing price of ski vacations as tickets and lodging rates increase.

PitCo Commits $1 Million to Housing Program

The Pitkin County commissioners overcame their wariness of financially assisting people beyond their borders and committed $1 million to an innovative affordable-housing program, the Aspen Daily News reported. The county is investing in the Good Deeds program that will be launched in July by the nonprofit West Mountain Regional Housing Coalition. Good Deeds will help people in the region buy a free-market home in return for placing a deed restriction on it and limiting annual appreciation.

The housing coalition will provide up to 30% of the funds for the purchase of a home at the closing of a sale. It can be used for homes priced up to $1.5 million between Basalt and Aspen; up to $1.2 million between Glenwood Springs and the El Jebel areas; and up to $800,000 between Parachute and Glenwood in western Garfield County. Eagle County is offering a similar program that covers the Basalt-El Jebel area.

Property Owners Appealing Valuations

One year after thousands of Pitkin County property owners learned how much their values had soared in 2023, dozens are still working through the system to fight for lower tax bills, the Aspen Daily News reported. Records provided by the Colorado Board of Assessment Appeals show 113 protests were filed by Pitkin County property owners after they had exhausted the local administrative review process.

Hearings are scheduled before the state board this summer. The BAA is a board of nine appraisers. The BAA is the third step in the appeal process. New property values are determined every other year in odd years in Colorado. Notice of values were mailed out and posted online in May 2023 for 16,722 property accounts in Pitkin County. There were about 4,000 appeals filed in the first step, which was handled by the assessor’s office. Of those, 1,593 property owners didn’t like the outcome, so they appealed to the next step.

Short-Term Rentals Get Amendment

Glenwood Springs City Council voted unanimously to amend municipal code regarding vacation rentals, the Glenwood Springs Post Independent reported. In addition to the impact of vacation rentals on the character of residential neighborhoods and the availability of long-term housing options, ordinance language states that two of the reasons for the consideration of these changes are that “the number of vacation rentals in the city has increased by over 1,000% since 2013, and the city has a housing shortage of 2,000 units. The multiple amendments affect the number of permit caps, the application timeline for permits and the ownership model for permits.

Aspen Chapel Awarded TDRs

Pitkin County commissioners put aside their wariness of awarding transferable development rights and awarded more than what was requested to benefit the Aspen Chapel, the Aspen Daily News. Chapel officials proposed that the 56-year-old structure be designated on the Pitkin County Historic Register, which prohibits changes to the structure. They also asked for two TDRs as an incentive for the action. The TDRs will raise money that can be used for short-term maintenance and longer-term capital improvements.

TDRs are used to achieve various land-use goals, such as preserving historic structures or limiting backcountry development. The rights can be sold by the owner and used by the buyer to increase a house size in areas deemed appropriate for development by the county. The prices have soared to more than $1 million per TDR in recent years. Commissioners awarded three TDRs to the chapel.

St. Benedict’s Monastery for Sale for $150 Million

The 3,800-acre St. Benedict’s Monastery property in Capitol Creek Valley was listed for sale for $150 million, the Aspen Daily News reported. The sale has been anticipated for a couple of years after the Cistercian Order of the Strict Observance that oversees the monastery decided the remaining monks would be relocated. The monastery has operated in Capitol Creek Valley since 1956. It includes a working ranch, with more than 1,000 irrigated acres, and a spiritual center and affiliated cabins for guests. Neighbors and conservationists are hopeful that the new buyers will be conscious of the nearly 8,000 acres of preserved land around the site.

Redstone Castle Receives Approval for Conversion to Wellness Center

PitCo commissioners approved plans to convert the stately Redstone Castle property into a wellness retreat, the Aspen Daily News reported. The castle won’t include lodging for tourists. Instead, four cottages of 1,200 square feet and two bedrooms each and four cabins of 1,800 square feet and three bedrooms each will be constructed for tourist accommodations. The castle will include an area for reception, socializing, dining, employee housing, finishing kitchen, and staff lounge and treatment rooms. The barn/indoor riding arena will be improved as a hydrotherapy facility including but not limited to pools, sauna, gym changing rooms and a lounge.

Food will be prepared in the commercial kitchen, taken to the finishing kitchen in the castle and served to guests. The plan also calls for construction of a 4,800-square-foot greenhouse where fresh vegetables will be grown to feed the guests.