REAL ESTATE IN THE NEWS
REAL ESTATE IN THE NEWS
News 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
RETT, Taxes Pacing Downward
June closed out the first half of 2023 with a swoon in sales of commercial properties and free-market residences Aspen which combined to lag more than 50% behind the same month in 2022 and were nearly 33% off the pace set from January through June last year, the Aspen Daily News reported.
The city of Aspen’s monthly consumption and tax report showed sharp declines in real estate transfer tax collections for the first six months of the year. Total sales volume was down the first half of this year, with 265 property closings recorded in 2023 and 350 closings in 2022, the report says. The 39 transactions in June averaged $1.8 million per sale, compared with 64 in June 2022 that averaged $2.4 million per sale, the report shows. RETT’s benchmark performance came in 2021, when the housing fund made $20.1 million and the Wheeler/arts account collected $10.8 million.
Real Estate and Sales Tax Numbers Lagging
City of Aspen lodging tax numbers through June are looking more like 2019, though average daily rates during ski season soared by comparison, while off-season months are still comparable to other years, the Aspen Times reported. Though occupancy rates have slipped, because the average room rate has increased in recent years, the sales tax revenue is remaining the same.
There are three areas losing steam: sports equipment, clothing, and marijuana. These sectors all show declines in city tax revenue. The biggest percentage change is health and beauty with a 20 percent gain, but that shouldn’t be too impactful because it only represents $5 million out of a $1.2 billion economy.
Council Finalizes Sales Information for Burlingame
The Aspen City Council discussed the sale process for the 79 new units at Burlingame Ranch Phase III that will become ready for occupancy this fall, the Aspen Daily News reported. Phase III will include 100% deed-restricted affordable housing units that will be put up for lottery and sale through the Aspen-Pitkin County Housing Authority. The unit mix includes 25 one-bedroom, 17 two-bedroom and 37 three-bedroom units. This phase of the complex is expected to house around 200 local employees, on top of the 400-plus currently housed within the project’s previous two phases. The 79 units will be sold in four groups, two buildings at a time, roughly between September and November. Part of the sales process will allow for right-sizing, where in-complex current Burlingame homeowners may bid on a unit that is either larger or smaller in size to adjust for new numbers in their family size.
Snowmass Village
Long-Term Lease at Krabloonik Ends
Snowmass Village’s town council made the exit of the Krabloonik dog-sledding operation official by agreeing to an out-of-court settlement agreement, the Aspen Daily News reported. The agreement allows Krabloonik to remain operational through June 2024 on the condition that its dogs are properly cared for and the ownership starts the process of finding new homes for the Alaskan huskies. The agreement beholds Krabloonik to a conditions-laden wind-down plan, and it ends litigation between the town and the Krabloonik ownership, Dan, and Ginny Philips. Also, it spells the end of commercial dogsledding on the town-owned property since 1976.
The town terminated Krabloonik’s lease Nov. 1 in the wake of a landlord-tenant fallout that began last summer when a best-practices committee concluded the operation underperformed on several lease stipulations relating to the dog’s wellbeing. Once the lease expires, the town will hold onto the property, but its fate is undecided.
Basalt
Downtown Project Going Over Budget
Basalt’s major municipal undertaking of sprucing up the appearance of Midland Avenue and making it more pedestrian and bicycle friendly will require the town government to dip into its reserves for an amount still to be determined, the Aspen Daily News reported. Inflationary construction costs in recent years as well as an expanded scope of the project have driven up the price, but town officials said the budget is well positioned to absorb the expense of an important community investment without neglecting other projects or services.
The town currently has $13.7 million in revenues available for the project. The town’s goal is to keep the project’s expense within a range of $17.2 million to $18.2 million, depending on whether there is a $1 million or $2 million contingency. The project is being tackled in two phases. The first phase is underway on Midland Spur, the short street in front of CC’s Cafe and Town Hall. The contract for that phase is $4.2 million. Phase two will focus on Midland Avenue itself, where sidewalks will be widened, pedestrian and cycling enhancements will be made and a water line will be replaced among other things.
Carbondale
New Forest Service Buildings in the Pipeline
The U.S. Forest Service plans to remove three buildings on its property on Main Street in Carbondale and replace them with a new 6,800-square-foot office and visitor’s information area in 2024, the Aspen Daily News reported. The agency said the aging current facilities no longer meet the needs of the Aspen-Sopris Ranger District and are costly to maintain. The existing office building was constructed in 1939 as the district ranger’s residence. The visitor information area was added in 1995.
Work is expected to begin in early 2024 and last 18 to 24 months. Neighborhood sidewalks might require closures during construction. The White River National Forest is receiving nearly $4.5 million from the Great American Act Legacy Restoration Fund, which will cover much of the anticipated costs of the project.
Ranch Land Approved for Conservation
Pitkin County commissioners voted to approve a plan that will preserve a historic ranch outside of Carbondale rather than turn it into a subdivision, the Aspen Daily News reported. The new development plan for the former Tybar Ranch, now known as Turnabout Ranch, will vacate prior approvals for six homes of up to 7,500 square feet each and instead conserve 125 of 458 acres.
The conservation easement will be placed on meadows on the east side of the ranch that has been identified as an excellent habitat for deer and elk. The Dorans will also dismantle an 18,000-square-foot, red barn prominent along Prince Creek Road. There are approvals for a 20,000-square-foot indoor riding arena and 28,000 square feet of agricultural buildings for a horse barn and other uses, which the new owners hope will be an equine-tourist destination. An existing employee housing unit will be redeveloped with the barn.
Glenwood Springs
Commercial Space Sparse in Availability
Commercial space is at a premium in the Glenwood Springs area, the Glenwood Springs Post Independent reported. There has been a 20% increase in the cost of commercial property in the last two years, and right now about 5% of space is vacant. People are opting for the commercial retail space as office space is still pricey compared to Front Range options.
There are a variety of new businesses popping up throughout Glenwood Springs, like Roaring Fork locals, mostly from Aspen, Dyna Mei Sanchez Rimkus partnering and leasing the Aspenite, and then her and her husband Tobias Rimkus leasing the Rimkus Real Estate ERA Powered on Grand Avenue, which they characterize as a Colorado-based luxury brokerage. The Hotel Denver was also recently purchased by an Aspen local, Tony Sherman.
Pitkin County
Aspen Valley Ranch Declares Bankruptcy
An entity that is controlled by Charif Souki and behind the ownership of Aspen Valley Ranch declared bankruptcy in its latest attempt to stop creditors from foreclosing on the 813-acre property with a gated community in Woody Creek, the Aspen Daily News reported. Bankruptcy also was declared by Strudel Holdings, a Souki entity that owns one-half of Ajax Holdings, in order to put off an auction by creditors to sell its assets, which include the Coldwell Banker Mason Morse real estate firm in Aspen.
The filings came amid a dispute between Souki, who lives in Aspen and Houston, and the lenders, who say Souki has defaulted on $90 million in personal loans that have soared over $120 million with interest, according to court records. Souki pledged Aspen Valley Ranch and Ajax Holdings as collateral for the loans that he received last decade. Souki bought Aspen Valley Ranch, mainly undeveloped but with historical features and structures, in 2013. He built 11 luxury homes, selling three of them in 2021 for $46.5 million. The eight other homes would be included in the sale.
Assessors Pass State Audit
Pitkin County had a record number of appeals of property valuations after reappraisals were conducted this year, but a state audit showed the assessor’s work was spot on, the Aspen Daily News reported. Eagle County, which includes properties in the middle Roaring Fork Valley, also was informed that there were no compliance issues with its reappraisals. If the state finds problems, it forces a county to redo the appraisals.
The state government requires each of the 64 counties in Colorado to perform a property reappraisal every two years, in the odd-numbered years. Many property owners were shocked when they received the notice of valuations in early May because prices soared so drastically.
The values determined by the assessors must fall within a 95% to 105% median ratio range. Pitkin County was found to be at a median of 99.1% for single-family homes and 99.5% for condominium units.
SkiCo Announces Restructuring
The Crown family announced a new company structure where an entity called Aspen One will oversee Aspen Skiing Co., Aspen Hospitality and the ASPENX divisions, the Aspen Daily News reported. David Tanner has been hired as chief executive officer of Aspen One. Geoff Buchheister was hired in the spring as CEO of the skiing operation. Alinio Azevedo is CEO of Aspen Hospitality and Darcy Loeb is chief operating officer of AspenX. Tanner most recently served as CEO for six years with Boardriders Inc., a multinational company which includes the brands Quiksilver and Billabong. He oversaw 10,000 employees with 1,000 retail stores in 26 countries.
Pandora’s Expansion on Track
Aspen Skiing Co. plans to open Pandora’s “as soon as the snow allows” in the 2023-24 season, Aspen Journalism reported. This summer’s work includes installing the new lift and cutting approximately 18 acres of trees from national forest lands and 15 acres from private lands
To facilitate the new terrain expansion that will add 153 acres to the ski area on the upper east side of Aspen Mountain, Pitkin County and the U.S. Forest Service approved clearing up to 106 acres of trees for gladed and traditional ski runs. This will require cutting an estimated 4,226 tons of timber over three years; the project is now in its second construction season. It’s the first major expansion at Aspen Mountain in decades and introduces intermediate glades to the ski area.