REAL ESTATE IN THE NEWS

winter24

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

City Purchases Two-Bedroom Condo for $1.1 Million

The city of Aspen is moving forward with the purchase of a $1.1 million condominium to serve as housing for city staff, the Aspen Daily News reported. The purchase of the 687-square-foot, top-floor condominium with two bedrooms, a bathroom and a deck located in the ABC brings the city’s total stock of employee housing to 68 units. City employee housing is separate from housing managed by the Aspen-Pitkin County Housing Authority and is reserved specifically for municipal workers.

The funds for the purchase itself will come out of the city’s 505 housing fund, which is designated for city employee housing. It is still undecided whether city employees will rent the unit from the city or be able to purchase it and then later sell it back. It could be used for an essential employee, such as a snowplow driver, who needs a shorter response time to work.

Aspen Utilities Customers Can Expect Price Hike

Aspen utilities customers are likely to see slightly higher water and electricity bills starting in 2024, the Aspen Daily News reported. Average residential customers will see increases of  $19.54 on their monthly electric bills and of $5.25 on their monthly water bills. The increases will differ depending on the property’s location and needs (average Red Mountain customers, for instance, will see a $53.20 increase on their water bills due to pumping costs).

Average small commercial customers will see a $23.78 increase on their monthly power bills. Average large commercial customers will see a monthly increase of $86.80. Generally, the average commercial customer can expect a $41.78 increase in their water bill. It will cost $12.5 million to run the utility’s water services and $14 million for electricity in 2024. The utility’s largest costs are power purchases and capital projects, and the city must increase rates to compensate for the rise.

Aspen Retail Sales Down in August

The eighth month of the year saw an 8% drop in taxable sales produced by Aspen’s retail economy compared to August 2022, the Aspen Daily News reported. Taxable sales amounting to $105.7 million in August were off the mark of $115.2 million posted in August 2022, according to the city of Aspen’s monthly tax report. Year-to-date sales through August were nearly flat at $845.4 million, a 1% bump over the $836.4 million rung up through the first eight months of 2022, according to the report. The accommodations, construction, liquor, jewelry, utilities, marijuana, and bank/finance sectors also experienced double-digit percentage declines in August.

Residents, Natives Split on Tourism

Aspen’s natives and transplants are somewhat split in their views of the town’s quality of life and local tourism industry, according to a survey conducted on behalf of the Aspen Chamber Resort Association, reported by the Aspen Daily News. The report says that 61% of participating Aspen residents held a net positive view of Aspen’s tourism industry but Aspen natives — residents who were born in the Aspen area and still live here — were the most likely group of respondents to hold that view, with 77% saying they feel positively about Aspen tourism.

Meanwhile, transplants were less likely to feel positively about Aspen’s tourism industry (54%) and showed similar, if not greater, divides on other tourism-related questions. Majorities in all these groups did generally view the industry favorably. Only 13% of all Aspen residents surveyed said they felt negatively about Aspen tourism.

Amy Simon Leaving Position at City of Aspen

After 30 years working for the city of Aspen, Planning Director Amy Simon will leave her position in January, the Aspen Daily News reported. Simon celebrated her 30-year anniversary with the city’s community development department in April. She first joined the city shortly after completing her master’s degree in historical preservation from Boston University in 1993.

She served as the city’s historic preservation officer from 1993 until 2020, when she was promoted to the position of planning director. She will move to Denver to begin her new role as the historic preservation design review supervisor at the city and county of Denver.

New Lighting Code Ordinance in Effect

A new ordinance marks the first change to the city’s outdoor-lighting regulations since 2003, the Aspen Daily News reported. The new ordinance establishes lighting zones, adds “lumen maximums” and regulations on “light trespass.” The ordinance also designates specific hours for lighting, suggests lighting types and has some exclusions for holiday lighting. It went into effect immediately.

Aspen Sales Flatten

Hotels and lodges saw their sales volume plummet 21% in September and Aspen’s year-to-date overall retail performance was nearly identical to the first nine months of 2022, the Aspen Daily News reported. September sales amounted to $97.1 million for Aspen’s retail economy, which drew $103.6 million in September 2022. That’s a 6% dropoff. Sucking the most wind, with a 27% dive in sales in September, was the marijuana industry, which posted $646,372 in sales, down from $881,146 in September 2022.

The bigger-dollar sectors also took hits: Food and drug was down 10%, from $7.2 million to $6.5 million; fashion/clothing dropped 9%, from $13.1 million to $11.9 million; construction was off by 6%, from $10.9 million to $10.3 million. Accommodations went from producing $27.6 million in sales in September 2022 to $21.9 million last September.

Snowmass Village

Almost Half of Budget Toward Capital Expenses

Snowmass is planning to spend $31 million of its $72 million budget in projected expenditures in 2024 largely on transportation, land, road, and housing projects, the Aspen Times reported. The $31 million allocated to capital projects will be funded largely through the town’s reserves that have been built up over time. About $9.5 million will go toward mall transit plaza improvements, $3.4 will go toward Town Park improvements, $2.7 million will go toward the Brush Creek and Kearns Road culvert construction, and $4.6 million will go toward purchasing 10 units at Faraway Apartments to provide additional workforce housing.

Krabloonik Looking to Rehome More than 100 Dogs

Krabloonik Dog Sledding must rehome more than 100 Alaskan huskies, the Aspen Times reported. The order comes after a settlement with the town of Snowmass Village approved in July deemed this 2023-24 winter season the dog sledding operation’s final. Krabloonik needs about 115 dogs to operate this season, said owner Dan Phillips, and he’s hoping they will all get adopted by the time the season ends April 1. It will have until June 1 to end its operations and vacate the property, according to the settlement.

Snowmass Voted No. 1 by Conde Nast

The people have spoken by voting Snowmass the No. 1 ski resort in the U.S. and Canada, in Conde Nast Traveler’s 2023 Reader’s Choice Awards, with Aspen Mountain and Aspen Highlands nabbing the No. 5 and No. 14 spots, respectively, the Aspen Times reported. “For our 36th annual Readers’ Choice Awards, voters weighed in on their favorite ski resorts in North America. Colorado resorts once again dominated the list of US ski resorts this year, with three of the four mountains at Aspen Snowmass making the top 10 (sic),” Jen Murphy reported on Nov. 7. It’s a major acknowledgment for Snowmass, which in the past has struggled to be recognized next to its glitzy sister, but not a surprise for those who know the ski area and village best.

Basalt

Cool Reception from Council for Proposed Development

Council gave lukewarm reception to a sketch plan presentation on a 9.3-acre parcel west of the Basalt Post Office and public library, known as the Jadwin parcel, during an October meeting, the Aspen Times reported. Applicants and council clashed over community benefit and the consequences of development – and ultimately tabled a decision on the sketch plan until Nov. 14.

The plans include 68 residential units with a mix of single-family townhomes, duplexes, and apartment units. Of those 68 units, 24 of those units will be deed-restricted Category 2 rentals, which is 100% of AMI by Basalt standards. The deed-restricted units will be a mix of 3-bedroom, 1-bedroom, and studio units in an attempt to meet local affordable housing needs.

Tree Farm Approvals Pending

Eagle County officials say they will “likely” approve certificates of occupancy for portions of the Tree Farm project in El Jebel despite uncertainty about when affordable housing will be constructed, the Aspen Daily News reported. The Tree Farm was approved by Eagle County in 2017 and included specific language on when 40 price-capped apartments and 10 for-sale affordable housing units must be built.

The 40 price-capped units must be completed before the county issues certificates of occupancy on the first 142,000 net square feet of development. The 10 for-sale, affordable housing units must be completed as development progresses past the initial 142,000 square feet. There is no problem with the pacing of the 40 price-capped rental units. The uncertainty exists with the for-sale affordable housing units. They are collateral damage in a legal dispute between Tree Farm founder Ace Lane and one of the developers who bought into the project, Walt Brown Jr. of Scottsdale, Arizona.

Basalt Approves Next Phase of Midland Project

The Basalt Town Council voted to approve a $7.69 million contract for the second and final phase of the Midland Avenue Streetscape Project that’s been debated for months and still might be the subject of a town vote, the Aspen Daily News reported. Town staff and consultants chopped $4.72 million off of the project after contractors’ bids came in higher than expected in June.

The next phase includes features like expanded outdoor dining areas for restaurants and more public gathering spaces. Crosswalks will be enhanced; bike parking will be expanded, and the look of the downtown will be spruced up. The first phase of the project focused on overhauling Midland Spur, the short street west of downtown. Additional parking was added to offset 22 parking spaces that will be lost by converting most of Midland to parallel parking. The Midland Spur project included wider sidewalks, better stormwater drainage, significant underground utility work, and better landscaping and lighting.

Carbondale

Forest Service Project Moves Forward

The U.S. Forest Service is progressing with plans to demolish and replace facilities on Main Street in Carbondale despite a petition signed by 1,400 people asking the agency to pause and reconsider the project, the Aspen Daily News reported.

The agency awarded a $6.3 million contract to a Grand Junction firm for demolition of three existing buildings dating from the late 1930s, which is expected to commence early in 2024.

The decision to forge ahead comes from the Forest Service’s desire to avoid a full redesign, which would take 12 to 24 months to complete, and cost between $100,000 and $250,000. It could also jeopardize a $4.3 million grant for the project through the Great American Outdoors Act. Opposition to the project stems from lack of historic preservation, development of a non-electric building, and design modifications.

Hockey Rink Expands

The Steadman Philippon Arena near Carbondale, which opened in November 2022, is set to grow, the Glenwood Springs Post Independent reported. Garfield County Commissioners approved an expansion for the hockey arena, home to Colorado Extreme Hockey, for a new rink and more parking. The rink sits on Catherine Store Road. Sheldon Wolitski is the founder and president of Colorado Extreme Hockey, as well as the visionary behind the rink’s expansion. He hopes to build additional rinks in the valley.

Glenwood Springs

Donegan Property Gets Approval in a Different Scope

The new development plan for the chunk of land formerly known as 480 Donegan was approved mostly for storage facilities and some commercial units, the Glenwood Springs Post Independent reported. After the multifamily housing development named 480 Donegan was shot down by Glenwood Springs voters in May 2022, the property owners switched to proposing storage and commercial development instead.

The 15.8-acre property was split into three lots behind the Glenwood Springs Mall. Lot one is already developed with existing commercial buildings. Lot two was proposed as having three self-storage facilities, three employee housing units, some office spaces and additional warehouse storage spaces. Lot three is slated for future commercial development.

Pitkin County

Holiday Peak Travel Days Shift Because of School Calendars

Changes to school vacation calendars have pushed commercial airlines to shift their peak winter traffic at the Aspen-Pitkin County Airport a little later than last year, the Aspen Daily News reported. According to the winter schedule of daily flights, provided by Bill Tomcich, local liaison between the airlines and local stakeholder group Fly Aspen Snowmass, ASE will reach its winter peak of about 37 flights per day on Dec. 21, five days later than the peak’s arrival in the previous three winters.

The airlines will ease off that peak about five days later than usual. This year, that day will be Jan. 8. The airport will then see around 31 commercial flights per day through January. The shift comes in response to changing school vacation schedules.

Multi-Jurisdiction Housing Coalition Gets Some Funding

The Aspen City Council has given tentative support for the city’s 2024 contribution toward a new valley wide affordable housing program, the Aspen Daily News reported. The city of Aspen could give $450,000 to the program — expected to launch as a pilot next year — which seeks to help working locals purchase free-market housing in the Roaring Fork and Colorado River valleys and ultimately converts those homes into deed-restricted units.

The coalition includes eight member organizations, including the cities of Glenwood Springs and Aspen, the towns of Carbondale, Basalt and Snowmass Village, Eagle and Pitkin counties, and Colorado Mountain College. Under the housing buy-down program, West Mountain will subsidize 20% of a home purchase by a qualifying local workforce member, so long as the home price does not exceed $1 million. In exchange, participants will be required to place a deed restriction on their homes that caps the future home price and ensures that future residents also are working locals.

RFTA to Cut Winter Services Down

The Roaring Fork Transportation Authority plans to cut service by 7% this winter because of a bus driver shortage, the Aspen Daily News reported. The primary cut will be made to BRT (bus rapid transit) service — the most frequent and direct in the valley. RFTA will reduce 15 trips daily at peak morning and evening times by reducing frequency to 10 minutes from 7 minutes in past winters. The Highlands Flyer service from the Brush Creek lot to Aspen Highlands will be eliminated. Service between Aspen and Highlands will be reduced.

The expectation is that RFTA will be down 10 to 15 drivers this winter. The board agreed to a staff proposal in September to raise the starting pay from $25.68 per hour to $30 per hour for year-round drivers to spur recruitment. The pay scale was also adjusted so that veteran drivers get to the highest rate faster to help with retention.

Property Owners Cut $1.3 Billion in Appeals

Property owners in Pitkin County who successfully appealed their new valuations this year received a cumulative $1.33 billion in reductions, the Aspen Daily News reported. Soaring reappraisals this year triggered about 4,000 appeals of values. About 2,400 protesters reached agreements with appraisers in the Pitkin County Assessor’s Office, and the remaining 1,593 property owners requested hearings before officers appointed on behalf of the county Board of Equalization. Of those 1,593 protesters, 654 or 41% received a downward adjustment on their property values. Another 403 or 25% reached stipulations that eliminated the need for a hearing. The total of those appeals equals $1.3 billion.