Carbonate Street Development

Project title: Carbonate Street Development

Project purpose or justification: The Buena Vista Board of Trustees has approved the development of two parcels of land for attainable and workforce housing. This will be a public private partnership in which the Town contributes the land, and a private-sector developer builds and manages the buildings.

The Chaffee Housing Authority commissioned a comprehensive update to the 2016 Housing Needs Assessment, which was published in June 2022 (HNA).

The rising cost of housing within Chaffee County can be broken down like this:

The update report highlights the dire need for housing throughout the county as well as in Buena Vista specifically.

A June 2022 study highlighted the 91% of Chaffee County Households

home-ownership is out of reach for 91% of the households in Chaffee County.

average rents have increased 43% since 2016, and there are virtually no units available owing to vacancy rates below 5% and the fact that most rentals (79%) are advertised via word of mouth - making it extremely difficult for newcomers to the local workforce to find rental housing.

The HNA demonstrates the need for 440 new rental units county-wide simply to ‘catch up’, or balance the rental market. This number does not include additional units needed to accommodate a growing workforce or the housing units needed for replacement of local retirees in local jobs.

Carbonate Street Phase I will deliver a majority of smaller housing units - 90% studio and 1-bedroom units. This aligns with the recommendations and data in the HNA. Not only is the production of rental units lagging for-sale units, the community as a whole has an over-abundance of larger housing units even while the majority of the households here are 1-2 person households. This mismatch between demand and supply further exacerbates the affordability crisis by lowering the vacancy rate of appropriately-sized units while forcing more households to pay for more housing square footage than they need.

In addition to a unit mix that is directly targeted at the local need, Carbonate Street will also deliver fully 18% of the 330 total units the HNA states are needed in Buena Vista alone over the next four years. What’s more, Carbonate Street’s 30 studio units that are deed restricted to 80% AMI and under will build 35% of the 85 units HNA says are needed in that income range county-wide. This will actually slightly exceed Buena Vista’s allocated share per the HNA methodology but is more in-line with demands reported by our local empoloyers as more fully described below. All this is compared to the previous 6 years since the 2016 HNA in which less than 10% of all the identified needed housing units were constructed county-wide.

The HNA also explains that the 110 affordable units of housing that have been constructed since 2016 are composed exclusively of LIHTC projects serving households earning less than 60% AMI. While need still remains for households in this bottom end of the income spectrum, the majority (61% according to the Chaffee Housing Authority’s 2022 Housing Affordability Continuum) of Chaffee County’s workforce earns more than 60% AMI, yet less than 200% AMI - leaving them caught without subsidized housing options and yet unable to afford the market-rate ownership or rental housing units that are available.

The Town of Buena Vista commissioned a survey of local employers conducted by the Chaffee County Community Foundation in summer of 2021.

This survey, which garnered responses from seventy-six Buena Vista employers who collectively employ 720 workers further reinforced the impact that lack of workforce housing has on the community, economy, and businesses. The survey showed that one in five employers reports one or more employees who are living without a home - and fully 66% of responding employers reported one or more employees who don’t have stable housing (i.e. they are couch surfing or living day-to-day in various locations).

Project objective: To revive the Pocket Wave to its former glory, providing a space that fosters enjoyment, inclusivity, and community engagement while alleviating congestion at the River Park in Buena Vista.

Project scope:

• Desired outcomes of development on Carbonate Street Lots:
• These outcomes are based on the data collected, and should be affirmed (or tweaked) by the Board to guide the actions taken regarding the development of Lots 1 and 2.

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,
• Atmos Energy
• Buena Vista Sanitation District
• Buena Vista Town Attorney
• Buena Vista Water Clerk
• Chaffee County Fire Protection District
• Aristata Communications
• 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
• Charter Communications
• Lumen (Formerly Century Link)

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

Project budget:

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.

UPDATE (July 25, 2023) - The Carbonate Street Apartment Major Site Plan was unanimously approved via public hearing at the Planning & Zoning Commission meeting on Wednesday, July 19th!

The Board of Trustees will consider approving the deed restrictions that control affordability, and the Development Agreement with Fading West at their meeting on July 25th, 2023. More information is available in the Board packet here.

Background

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Don't worry! We're not giving away the land without any strings attached - the developer (and any future property owners) will be legally obligated to provide housing that meets the community's needs at prices that target local employees who serve our community.

In addition to housing, current concepts for the use of this land include building childcare space as well as commercial space that would support the start-up and support for local entrepreneurs. Neither of these concepts would be owned or run by the Town. Instead, Town will work closely with the Chaffee County Early Childhood Council, Chaffee County Economic Development Corporation, and the Central Mountain Small Business Development Center to design the spaces and find and cultivate the operators.