Carbonate Street Development

Project title: Carbonate Street Development

Project purpose or justification: With vacancy rates for rental properties falling below 5%, the average Chaffee County tenant has seen a significant increase in their rental rates since 2016. In response, across the County, 110 Low Income Housing Tax Credit (LIHTC) units have been constructed; however, they exclusively serve households earning less than 60% of the Average Median Income (AMI). A recent Housing Needs Assessment (HNA) indicates that 91% of Chaffee County households still view homeownership as, "out of reach." In fact, area experts recommend 440 new rental units (countywide) simply to ‘catch up’ or balance the rental market. The problem boils down to this: More than half of Chaffee County residents (61%) are caught in between subsidized housing options, meaning they are either unable to afford the market-rate for home ownership and they make too much money to qualify for the available rental assistance. In the end, finding a place to live in Chaffee County is extremely difficult.

Project scope: Carbonate Street is composed of two phases.

Phase I of Carbonate Street attempts to be part of the solution by creating 60 deed restricted rental housing units supported by the Chaffee Housing Authority along with a stand-alone childcare center building which will be owned by the Town. The apartment deed restrictions cap rental rates at no more than 80-120% of AMI with a unit mix consisting of 30 studios (80% of AMI), 24 one-bedroom units (120% of AMI) and 6 two-bedroom units (120% of AMI). These deed restrictions will remain in place for a minimum of 30-years.

Project completion of what will be known as The Midland Apartments will be done in phases in June and July of 2025. Lease rates, excluding utilities, start at the following monthly rents:

• Studio: $1,099
• 1 Bedroom: $1,749
• 2 Bedroom: $2,339

For rental inquiries, please visit the property website at: https://themidlandbv.com/

• Parking:
• Off-Street Parking: 33 Spaces
• On-Street Parking: 30 Spaces (Along Carbonate Street)

Buildout of the Early Childcare core and shell will be completed by July 2025. The Town is working on unlocking a federal grant (funded by the Department of Housing and Urban Development) supported by the office of Rep. Brittany Pettersen, that will complete the tenant finish for the Childcare facility. As part of the build-out, the Town will select an operator for the facility which will serve pre-K children and provide a critical service for the community. The Early Childcare facility is designed to consist of 3 classrooms and office space over a 4,600 SF footprint, with an adjoining play yard.

In addition to the facilities being developed, the project provides public improvements for the community including the build out and paving of Carbonate Street through Collegiate Commons, paving of the alley serving the Midland apartments, as well as providing public parking on both sides of Carbonate Street.

Phase II remains in the planning stages but is designed to provide for individual ownership of the finished housing units.

Carbonate Street Phase II conceptual plan consists of:

• For Sale: 29 Units
• 13-3 Bed/ 3 Bath
• 16-2 Bed/ 2 Bath

Project objective: Directly targeting the local need, The Carbonate Street Project is a public-private partnership in which the Town in partnership with Fading West and Tributary Development. The Town has been able to secure substantial state grants to support the apartment deed restrictions and general affordability. In addition, the Town’s land contribution has helped subsidize the construction of the Childcare facility.

Project deliverable:

1. Create a minimum of 65 new units of various types of housing with rents or sale prices serving households earning between 60 – 140% AMI. No short-term lodging allowed; condominiums prohibited in perpetuity through either a ground lease or deed restriction.
2. Preferential treatment for local employers and employees in tenant selection process and criteria.
3. Long-term ownership & management turned over to Chaffee Housing Authority.
4. New childcare space built to serve children 0 – 5 years old.
5. New commercial space(s) built aimed at cultivating and supporting local year-round entrepreneurs and businesses

Project stakeholders:

• Town of Buena Vista,

• Buena Vista Sanitation District

• Buena Vista Town Attorney

• Buena Vista Water Clerk

• Chaffee County Fire Protection District

• Sangre de Cristo Electric Association (SDCEA)

• Buena Vista Public Works Department

• Buena Vista School District R-31

• Buena vista Engineering and Planning Consultant

• Chaffee County Building Department

• Spectrum

• Fading West

• Tributary Development

• Gates Family Foundation

• Colorado DOLA

• Colorado Housing and Finance Association (CHFA)

• Rep. Brittany Pettersen (Department of Housing and Urban Development)

Project timeline: A high-level overview of the project schedule, including significant milestones and deadlines.

General Funding - Complete
August 10- Mobilization
August 15- Start Construction
October 1- Project Complete
October 15 - Groundbreaking Ceremony
November 2023 – Factory Construction begins on Apartment Units
April 2024 – Mobilization and Site Construction Begins
July 2025- Project Completion

Project budget:

13 Different Funding Sources

Budget Impact: There may be up to $10,000 of consultant fees needed to survey and plat the easement vacation for the right of way adjacent to Lot 2. If the Board would like to proceed with Option 1 or Option 2, a budget adjustment of $10,000 utilizing ARPA funds is required. Larger budget impacts related to the development itself are a part of the proposed 2022 capital budget already.

Rep. Brittany Pettersen (Department of Housing and Urban Development)

Childcare and Community Projects Funding Grant