REAL ESTATE IN THE NEWS
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
AspenX Rebranded as Aspen Collective
The Aspen Collection launched in November at Aspen One’s two brick-and-mortar locations, at the base of Silver Queen Gondola, in Aspen and Snowmass Village and online, replacing the controversial AspenX brand for luxury apparel and experiences, the Aspen Daily News reported.
Internally, the new vertical under the Aspen One umbrella will be called Aspen Ventures, alongside Aspen Skiing Co. and Aspen Hospitality. Externally, the brand will be known as Aspen Collection for apparel and rentals. On-mountain experiences will remain available through the Aspen Collection website and other Aspen One offerings. AspenX was rebranded after a tepid public and consumer response.
Lumberyard Demolition Begins
The first phase of the Lumberyard affordable housing project has kicked off, marking a major milestone in a project that was years in the making, the Aspen Daily News reported. Phase zero of the project began after the Aspen City Council approved an initial $3 million contract for Gould Construction to begin abatement and demolition. The city is breaking phase zero into two parts, 0.1 and 0.2. Phase 0.1 — abatement of asbestos and contaminated soils, demolition and recycling of existing structures, and demolition and recycling of existing asphalt and concrete — will continue through spring 2025.
The pre-construction work marks the physical start of what is expected to be the city’s largest-ever affordable housing development. The city purchased the initial Lumberyard property next to the Aspen Airport Business Center in 2008 and began conceptualizing the project in 2019. Council members gave a green light to the project in September 2023.
Sales Tax Passes $1 Billion
Year-to-date sales of more than $1 billion through September marked the first time Aspen’s retail economy topped the 10-figure milestone, based on a monthly tax report the city and financial data from previous years, the Aspen Daily News reported. For those keeping score down to the dollar, $1,008,435,564 was the collective amount generated by the Aspen business sectors that collected sales taxes — from mom-and-pop boutiques to five-star hotels— from January through September.
The record amount for year-to-date September was 7% higher than the $942,464,351 in taxable sales recorded through the first nine months of 2023, according to the report. Last year through September was on par with the $939,343,979 produced through the first nine months of 2022, when COVID-19 pandemic-related restrictions were loosened or lifted entirely.
City Approves 2025 Budget for $178 Million
The city of Aspen approved a $175.3 million budget, which is a 13.7% increase from the 2024 adopted budget, the Aspen Daily News reported. Council members agreed to remove a $240,000 request to move forward with the Marolt Bike Skills Trail project. After the Aspen Parks and Open Space department presented its 2025 budget, some council members wanted to pause on the bike skills project to examine other locations.
Next year’s budget includes major contributions to infrastructure projects like the Lumberyard housing project, the initial phase of which tripled in cost, the Castle Creek Bridge, water and electric improvements, and the Armory Hall redevelopment. There were also requests for nine new full-time equivalent positions in the city. That would include the reinstatement of a second deputy city manager who would oversee the built-environment functions as the city embarks on major projects like the Lumberyard and the entrance to Aspen.
Real Estate Firm Changes Ownership
Coldwell Banker Mason Morse, a Roaring Fork Valley real estate firm with more than 100 brokers, is under the new ownership of a company with a presence in the ski-town markets of Crested Butte, Vail and elsewhere in Colorado and the West, the Aspen Daily News reported.
With its roots dating to the early 1960s, the locally run franchise, which has offices up and down the Roaring Fork Valley, is now operated under the umbrella of Coldwell Banker Mountain Properties, which is based in Vail and has locations in Breckenridge, Crested Butte, Frisco and Winter Park. Coldwell Banker Mountain Properties is owned by California-based The Select Group, a real estate firm established by Dan Jacuzzi in 1980.
Phase Zero Lumberyard Costs Triple
Costs for the first phase of the Lumberyard affordable housing project tripled from its 2022 estimates, the Aspen Daily News reported. The most recent estimates for the approximately 300-unit housing project presented during an Aspen City Council budget work session show the cost for phase zero of the Lumberyard increased to $45.12 million from an initial estimate of $14.25 million in 2022. Added scope to the schematic designs and construction inflation costs are largely to blame for the cost increase.
Hard construction costs increased by 243%. Added scope contributed to 53% of the increase and inflation contributed to 47% of the increase. Phase zero of the project is scheduled to be completed over two years in 2025 and 2026. It will include utility and roadway infrastructure work and demolition of existing structures on the plot of land next to the Aspen Airport Business Center. The city plans to begin demolition and abatement of the site at the end of 2024.
Organic Waste Diversion Up 70%
One year after the city of Aspen imposed an organic waste diversion ordinance, the amount of food waste diverted to the compost section of the Pitkin County landfill increased by 70%, the Aspen Daily News reported. The organic waste diversion ordinance, which the Aspen City Council approved in February 2023, prohibits all businesses with retail food licenses from disposing of organic material such as food into landfill trash. Organics must be composted or donated. All restaurants were required to start composting in October 2023.
Snowmass Village
Council Welcomes Female-Majority Leadership
The Snowmass Village Town Council is poised for a historic female majority after November’s election, two years after the council broke ground with a 3-2 female majority, the Aspen Daily News reported. Alyssa Shenk won the race for Snowmass mayor and Cecily DeAngelo and Tom Fridstein won the race for two open seats on the town council. Shenk, DeAngelo and Fristein will join council members Britta Gustafson and Susan Marolt, both of whom were elected to town council in 2022. With Shenk at the helm and DeAngelo joining the council, Snowmass will for the first time see a 4-1 female majority on its town council.
Snowmass Projects Conservative Budget
Citing a plateau in revenue growth, the town is budgeting conservatively for 2025, the Aspen Daily News reported. The budget estimates $159 million in revenues and $169 million in expenditures. One of the largest expenditures in the town’s budget, personnel services, is increasing only 4% in 2025, compared to 7% in 2024. The town is proposing a new full-time police officer to help improve officer safety for the one on-duty officer per day.
About $123 million will be spent on capital projects. The largest capital projects include the Draw site affordable housing project ($86 million), land acquisition for affordable housing projects at the Snowmass Center ($12.5 million), the Little Red Schoolhouse redevelopment ($8.5 million), and an Upper Woodbridge Road culvert replacement ($2.75 million).
Basalt
Council Codifies “Missing Middle” in Housing Categories
Basalt elected officials voted to expand the town’s affordable housing categories to capture eligibility for the “missing middle” and the lowest earner in the deed-restricted market, the Aspen Daily News reported. Basalt Town Council voted unanimously to authorize the creation of Categories 0, 4 and 5 in its community housing guidelines and to increase the Area Median Income requirements for new residential and commercial development.
Category 4 will apply for households earning 121-150% of the AMI and category 5 will be for those earning 151-200% of the AMI. Category 0 will capture households making 50% or less of AMI. According to the most recent data from the U.S. Census Bureau, the median household income in Basalt was $103,409 in 2022. Before the code change, the town’s three affordable housing categories went up to 120% of AMI.
Council Approves Public Art Plan
Basalt Town Council approved a 10-year Arts Capital Improvement Plan (ACIP), which will guide the acquisition, display and funding of public art beginning in 2025, the Sopris Sun reported. The document was drafted by Town staff and the Basalt Public Arts Commission (BPAC) to meet the 2020 Master Plan objective to “create a long-range and comprehensive arts and culture plan for Basalt.” Strategies include art competitions (much like the mural competition held on Midland Avenue in the summer of 2023) and annual grants given by BPAC directly.
Basalt Fund at Nearly $35 Million
Doug Pattison, the town’s finance director, presented the proposed 2025 budget in October to a town council meeting, and he expects the town to enter 2025 with $34.6 million, $12.4 million of that in the town’s unrestricted general fund, the Aspen Daily News reported. About $6.2 million of the budget is earmarked for personnel, the largest share, 34%, going to the Basalt Police Department. The town employs 51.12 full time equivalents, which is a way to quantify workload across positions.
Pattison predicted that licenses and permit fees will decline in 2025, with a $958,200 projected finish for 2024 and $356,100 revenue for 2025. He credited this in part to the Basalt Center Circle development at the old Clark’s Market building, which is now expected to pull permits this year instead of next year. Sales tax revenue slowed this year, due to the “volatility” of some aspects of the sales tax base, like sporting goods stores and restaurants.
Commercial Space Gets Live-Work Classification
Owners of a commercial building in downtown Basalt were granted the option to convert their second floor into residential space, but the town council denied their request for short-term rental allowances due to parking and housing crisis concerns, the Aspen Daily News reported.
Frying Pan Inn Association represents individual unit owners at 175 Midland Ave., also known as the Iron Horse building, which has seven two-story units. The owners pursued a special review with the town to allow free-market residential use on the second floor.
Some council members were enthusiastic about a “live-work” building, seeing the conversion as an opportunity to house local workers near their employment or close to transit. The property owners lobbied hard for STR allowance, saying that the small studio size — around 330 square feet — is better suited for STRs than long-term community housing. Ultimately, none of the council members would budge on the STR issue. The owners can still rent the space seasonally, as town code defines an STR as fewer than 30 days.
Carbondale
Spring Gulch Upgrades Grooming Operations
Spring Gulch unveiled its renovated grooming operations building at the Spring Gulch Trail System, after nearly five years in the making, the Sopris Sun reported. The building’s update is part of Mount Sopris Nordic Council’s capital improvement campaign to enhance operations and improve skiers’ experiences, while also mitigating climate change effects. Situated just outside of Carbondale, Spring Gulch is known for its rustic feel and spectacular views. Nordic enthusiasts can roam over 28k of groomed terrain located on private land owned by the North Thompson Cattlemen’s Association and Crystal Springs Ranch. MSNC pays the lease, but visitors—nearly 20,000—enjoy free skiing throughout the winter.
School Enrollment Expected to Plateau
Roaring Fork School District is forecasting level overall enrollment over the next eight years, with the unique variables of the valley zeroing each other out, the Aspen Daily News reported.
As housing growth continues to boom, it is being offset by declining birth rates and increasing costs and affordability. The district could lose a total of 171 students from its total enrollment from its early estimate of 5,789 students this year. That’s a drop of just shy of 3%, and based on this year’s per-pupil funding rate would be a decrease of roughly $2.08 million.
Total births in the RFSD boundaries in 2023 (370 births) were at their lowest rate since 1996 (351, but as part of an upward trend). In-district births have been on a steady decline since a peak of 596 before the 2008 financial crisis, with one anomalous jump around 2016 to 475 from 421. Carbondale-area and Basalt-area boundaries have seen their birth rates halved since the peak (183 to 92 for the former, 179 to 90 for the latter). Glenwood Springs Elementary’s area went from a peak of 124 in 2009 to 68 in 2023.
Glenwood Springs
Glenwood Approves Rental Pilot Program
The Glenwood Springs City Council approved a one-year pilot for an employer-based rental assistance program for businesses in city limits, the Glenwood Springs Post Independent reported. The program is designed to reduce commuting and provide relief for cost-burdened renters. The pilot program will receive $125,000 from the city’s 2C lodging tax to fund its first year. The goal is to assist employees who spend more than 30% of their income on rent, a threshold that classifies households as cost burdened.
To qualify, employees must work at least 32 hours per week for an eligible employer within Glenwood Springs and live, or plan to live, within city limits. The program’s regulations aim to reduce commuting, support local businesses, and improve quality of life.
27th Street Underpass Opens
The 27th Street Underpass in Glenwood Springs opened in October, the Aspen Daily News reported. The $22 million, 17-month project was completed both under budget and ahead of schedule At its peak, 28,000 vehicles pass through the intersection of 27th and S. Glen Avenue per day — and a safer, more accessible route for foot traffic to the 27th Street bus station — and the underpass makes it safer for the 1,700 pedestrians who cross it everyday.
The project is actually two underpasses, one under 27th Street along the Rio Grande Trail, another under S. Glen Avenue south of the intersection from the bus station to the trail.
It is the last of the Highway 82-adjacent bus stops serving the BRT route from Glenwood Springs to Aspen to have an underpass under the highway built. Stops in Basalt, El Jebel and Willits have underpasses, while stops in Carbondale and Aspen are not along the highway.
Habitat to Purchase Units for Affordable Housing
Local nonprofit Habitat for Humanity of the Roaring Fork Valley has plans to turn an already existing apartment building near the Glenwood Meadows shopping area into deed-restricted condos, the Aspen Daily News reported. The organization is under contract and expects to close on the sale of the 2-year-old L3 at Green Leaf Lofts apartment building, 253 Wulfsohn Road.
Local governments, school districts and other employers are contributing funds to the effort to buy the building from owner and developer Stoneleigh Companies in exchange for priority reservations. The building has 88 free-market rental apartments with listed monthly rental prices starting at $1,896 for a studio and $2,450 for a one-bedroom unit, but the nonprofit plans to convert the apartments into deed-restricted ownership condos once the current leases are up. The nonprofit’s proposed unit prices for anyone at 70% to 150% of the area median household income, or AMI, in Garfield County, which is $82,772, will range from $320,000 for a studio (454 square feet) to $388,000 for a one-bedroom unit (722 square feet).
Pitkin County
County Exploring Private-Public Partnerships with New Money
With resounding approval from voters, Pitkin County is preparing to invest new property tax revenue heavily in affordable housing partnerships in 2025, the Aspen Daily News reported.
Voters approved a new property tax to create a dedicated affordable housing fund in the county budget, estimated to bring in about $8.5 million annually. County officials are working on plans on how to spend that, and those call for the heaviest investment in partnerships next year — $9 million. It could include the county-owned Phillips Mobile Home Park, continued support for the West Mountain Regional Housing Coalition’s deed-restriction buydown program and other regional partnerships. County staff estimates that the county could be a 20% partner in new development projects led by other entities, including municipalities.
School District Looks to Cut Spending
An Aspen School District expense-cutting task force aims to reduce spending by $500,000 to $1 million per year to build up the district’s reserve balance after it decreased nearly 75% in the past five years, the Aspen Daily News reported. The district formed the task force of about 30 faculty and staff members after its low reserve balance prompted a slight credit downgrade by Moody’s Investor Services and a citation from the Colorado Office of the State Auditor. The reserve balance decreased from about $8 million to $2 million in the past five years primarily due to the pandemic, curriculum upgrades and salary increases. It represents 6% of the district’s general fund balance but the school wants the balance to grow to be about 10% of the general fund, or $3.3 million, in the next three to five years
Shaun White’s Snow League Coming to Buttermilk
The new action-sports league being launched by Shaun White will air on NBC and stream on Peacock beginning next year, the Aspen Daily News reported. White announced earlier this year that he was putting together The Snow League, a four-stop circuit that will feature halfpipe snowboarding and freeskiing. The league and NBC revealed that the first event is set for March 7-8 in Aspen, with the rest of the schedule still to be announced. White plans on getting 20 men and 16 women in each contest for a prize pool of more than $1.5 million over the first season. A list of athletes who have committed to the league is expected later this year.
Airport Plan, Contracts Approved
Many things are happening at the Pitkin County Airport, the Aspen Daily News reported. First, Pitkin County commissioners approved the airport’s 2025 rates and charges, which will bring the county $7.2 million in revenue. Pitkin County sets rates and charges through a “compensatory” methodology that focuses on the airfield and the terminal, meaning airport users pay for what they use — like occupying space and landing on the runway.
The Airport Layout Plan (ALP), returned from the Federal Aviation Administration in October with no material changes, also received unanimous support from the Pitkin County Board of Commissioners. It will now be sent to the secretary of the FAA. After the secretary signs the new ALP, it will officially be approved for the Aspen-Pitkin County Airport. And, the BOCC approved the 30-year fixed-base operator lease with Atlantic Aviation at the Aspen-Pitkin County Airport.
X Games Announces Pricing, Schedule
X Games announced music headliners and tickets went on sale for the Jan. 23-25 edition of the action sports competition, the Aspen Daily News reported. General admission tickets start at $50 for Thursday but go up to $60 for Friday and Saturday. They provide access to all competitions and musical performances for the day.
A three-day GA pass costs $153. The next tier of pricing, the Après Lounge pass, starts at $159 for Thursday, $185 for Friday and Saturday, and runs $476 for a three-day pass. It grants unlimited access to the Après Lounge, access to up-front viewing corals and other perks. The musical acts for the weekend include Daily Bread, Illenium and a TBA artist.
FAA Approves Airport Layout Plan, Voters Approve BOCC Power
The Federal Aviation Administration has approved the Airport Layout Plan that Pitkin County submitted to the federal agency in May, the Aspen Daily News reported. An ALP is a facilities planning document required by the FAA for airports. It’s a crucial document for the Aspen-Pitkin County Airport to receive federal funds, particularly Bipartisan Infrastructure Act and Inflation Reduction Act money.
The amended ALP includes a runway shift 80 feet to the west, a decision approved by the Airport Advisory Board and the commissioners in the spring. The shift prevents the need to relocate the airport traffic control tower — which would have resulted in a 100-foot tower on the north side of Highway 82, costing more than $100 million of the county’s own money. With the ALP’s approval and Pitkin County voters’ approval of giving the Board of County Commissioners exclusive power to make decisions on the airport, it appears that the upgrades to the Aspen Airport will move forward with widening the runway.
Grant Repairs Program Extended
The Aspen-Pitkin County Housing Authority wants to continue its Essential Repairs Pilot Grant Program in 2025, the Aspen Daily News reported. The pilot program launched last fall made homeowners of deed-restricted units eligible for up to $10,000 in grants for essential home repairs. In its first year, APCHA received 91 grant applications, 51 of which were approved. APCHA received $400,000 in total from the city of Aspen and Pitkin County in 2024. During its 2025 budget presentation, APCHA requested another $400,000 to continue the pilot program into a second year.
Pitkin County Budget Proposes $225 Million
Pitkin County kicked off budget discussions with a proposed $255 million budget for 2025, up 15.5% from the 2024 budget, the Aspen Daily News reported. The budget also plans for a 15.6% increase in revenue over the originally proposed 2024 budget, which was $215 million — a 15% increase from 2023. The revenue and expenditure increase would be lower if it weren’t for the expected bonding for the Solid Waste Center’s planned expansion.
Some of the major expenditures include road and bridge work, $20.7 million over the next five years, and county infrastructure electrification like the Pitkin County Library and Health and Human Services building. The General Fund expenditures are estimated at $55.5 million for 2025, a 4.1% increase in expenditures versus the 2024 original budget and a 2.3% increase in revenue versus the 2024 original budget, ending with 31% of operational expenses — almost twice the recommended fund balance.