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
Building Permits Double in Valuation
By the end of May, the value of the building permits in the city of Aspen was up to $187.8 million, or more than double the $91.4 million in permit valuation on May 31, 2015, the Aspen Daily News reported. The city had issued 246 commercial and residential building permits through the same date, which is the date of the most current building department report, up slightly from 220 at the same time last year.
However, construction activity in the city of Aspen so far this year is pacing ahead of 2015, with a handful of high-value building permits skewing numbers to make the upswing appear greater than actual conditions on the ground. But while the city expects to beat last year’s number of $330 million in construction valuation, no one is projecting $600 million worth of permits to come in the door this year.
City Hall Fate Still Unknown
After a year of voting in favor of plans for a new, one-roof city hall building, Mayor Steve Skadron instead expressed his preference for keeping the municipal government seated in its historic downtown building at July meeting, the Aspen Daily News reported.
Council continues to discuss whether or not to build a 52,000-square-foot building on Galena Plaza adjacent to the library, or keep government offices in the armory and build a smaller office project across Main Street.
Councilman Adam Frisch is still undecided, and is hoping for more information about how the city would function if split up between two buildings. Council members Art Daily and Ann Mullins expressed their preference for moving forward with the so-called “Galena option” for the new 52,000-square-foot building, which according to staff estimates would cost millions less and require less disruption to city services. Councilman Bert Myrin has been against the 52,000-square-foot project since his election last year.
A well-heeled community group is promising to raise the funds to convert the armory into a community center should council move out of the building.
New Lift 1A Moves 70 Feet
In its current state, the Gorsuch Haus development proposal moves the entrance to a new Lift 1A up approximately 70 feet up and to the east from the loading area of the existing chairlift, the Aspen Daily News reported.
The new terminal would be 3 feet lower than the current 1A due to extensive regrading contemplated with the site plan, according to planners, and most of that distance would be covered in snow in the winter as well, so skiers will be able to click in and slide the extra 20-plus yards. The entrance to a new high-speed quad replacing the aging Lift 1A, which would cut the ride time of the current lift almost in half. The plans for Gorsuch Haus include an 81-key lodge encompassing 68,000-square-feet of above-grade development in a north-south oriented building reaching 49 feet tall at its highest point.
The 70-foot difference between the old and new lift loading areas is less than an estimate publicized by developers of the Lift One Lodge project, which would be located directly downhill of the Gorsuch Haus on South Aspen Street. The public relations campaign branded “Lift 1A for All Aspen,” funded by the Lift One Lodge developers, claims that the distance from the old to the new lift would be 123 feet. The Gorsuch Haus project goes back in front of the Planning and Zoning Commission Aug. 16, before moving on to city council.
Retail Sales in June Up 13 Percent
Retail sales in the city of Aspen surged ahead 13 percent in June compared to the same month last year, according to a city of Aspen consumption tax report. The economic shot in the arm brought 2016’s year-to-date collections to 4 percent above last year. Industries posting the largest monthly gains in June were construction (32 percent), automobile (24 percent), accommodations (22 percent) and miscellaneous (22 percent). The industries experiencing the largest declines were luxury goods (7 percent) and utilities (5 percent).
Total reported retail sales in the city hit $58.7 million for the month. The city collects 2.1 percent of that in sales tax supporting parks and open space, affordable housing, transportation and child care.
Lodging tax collections were up 27 percent from the same period last year. Annually, the lodging tax, which adds 2 percent onto nightly hotel-room bills, is now 6 percent above prior year collections through June. The variance between tax collections and accommodation industry taxable sales is due to onsite non-room sales, which are included in the taxable sales for accommodations.
Increased Parking Rates to Remain
Increased parking rates in the downtown core combined with other incentives intended to keep people out of their cars are having their desired effect, according to the Aspen Daily News.
City council decided going into this summer to enact a three-month trial where parking rates at meters in the downtown core went up 50 percent across the board. The hope was to increase the amount of available parking spaces by 10 percent while bringing in 25 percent more revenue, or $150,000 over the course of the summer, to fund programs that support alternate forms of transportation.
Two months into summer, available spaces were up 12 percent in the downtown core, and revenue was up 26 percent. More cars have also been using the city’s Rio Grande public parking garage, where occupancy is up 17 percent, another goal of the program.
The additional monies are funding free bike-sharing passes, bike tunes, RFTA passes and Car2Go memberships for commuters who sign up for the “Drive Less” program. They also support the Downtowner on-demand ride service, which began the summer as an experiment but will likely be continued. In September, October and November, parking rates will return to previous levels. But council members agreed to raise them again for the winter high-season months of December through March.
Snowmass
Snowmass to Get First Hardware Store in Decades
Local Matt Pine will open a hardware store on the second floor of the Snowmass Center, the Aspen Daily News reported. The town has operated without a place to buy simple building tools for more than 30 years.
He plans to opened Ajax Supply in early August in the former town council chambers above Taster’s Pizza (which housed the town’s last and short-lived hardware store). The town’s population has increased by 60 percent since the Base Village agreement was approved in 2004, and demand for construction supplies has also risen.
While construction on the 1.1-million-square-foot Base Village has been stalled for the better part of a decade, Snowmass’ population has gone in the reverse direction, jumping to almost 3,000 residents from 1,822 at the start of the new millennium, according to U.S. Census data.
Ice Age Center Stalled Until Lawsuit is Over
Litigation that threatens to further stall the completion of Snowmass’ Base Village may also hamper the development of the Ice Age Discovery Center, the Snowmass Village Town Council told the nonprofit in July, according to the Aspen Daily News.
Discovery center representatives were hoping to make headway on a memorandum of understanding with the town so they could forge ahead with fundraising and recruit additional board members. They instead heard that agreements tied to Ordinance 9 — which gave the go-ahead to restarting Base Village last year — haven’t been finalized because of the lawsuit between Base Village owner Related Colorado and spurned partner Sunrise Company.
Within those agreements is language about Building 6, which would be deeded to the town by Related Colorado as a community benefit associated with Base Village, and used as the permanent home for a museum that tells the story of the 5,000-plus ice age artifacts pulled from Ziegler Reservoir in 2010-’11.
Uncertainty about when, or if, Building 6 will then be deeded to the town by Related prompted the three council members in attendance to suggest Snowmass Discovery, a 501(c)(3), consider an alternative path for the project, which needs to raise at least $6 million for the museum build out and an endowment.
Three Property Tax Questions Coming to Snowmass Voters
Snowmass Village will ask voters in November whether to approve a property tax increase that would provide an additional $500,000 annually for the Aspen School District, according to the Aspen Daily News.
The school’s request, to help offset a statewide funding shortfall created by the restrictive taxpayer’s bill of rights, had been considered and extensively debated by the Snowmass council for more than a year before approving Resolution 27 on Aug. 15.
Requests from three special districts during 2016 have the potential to increase residents’ property taxes by about 15 percent. In May, voters overwhelmingly approved a mill levy increase to fund a new wastewater treatment plant for the Snowmass Water & Sanitation District. The 2 mill increase is worth about $80 per $1 million of assessed residential property. This fall, the Snowmass Wildcat Fire Protection District said it will ask for increased property tax revenues to fund a $17 million new station to replace its 45-year-old facility on Owl Creek Road. It’s estimated that request could add another 2 mills to taxpayers’ bills.
Snowmass Gets Parking Stickers
A new digital system for guest parking got the green light from town officials, doing away with the old paper permit system, the Aspen Daily News reported. Vehicles will be tracked by license plates rather than through permits adhered to the window. The old method, which has been used for more than 15 years by guests, merchants, employees, seniors and others, is being seen as a relic of the last millennium. Day skier parking in the Base Village structure, which the town does not operate, will be unaffected by the technology change.
Guest permits are honored in most of the town’s numbered lots that are contiguous to Carriageway Road (also known as Snowmelt Road) and are required of people staying in hotels such as the Westin.
Basalt
Basalt to Get an Underpass
Pitkin County approved $640,000 toward the completion of an underpass in Basalt that officials say is needed to ensure the safety of pedestrians crossing busy Highway 82, the Aspen Times reported.
The county commissioners on Tuesday OK’d the allocation of $240,000 from the general fund of the road capital budget and $400,000 from the open space and trails department for the project on Basalt Avenue. An additional $750,000 has been budgeted for the project from the Elected Officials Transportation Commission fund, as well.
Because the county has experience with the Aspen Business Center pedestrian crossing, it makes sense for Pitkin County and RFTA to team up to manage the Basalt project, officials said. At least two lanes will be open at all times during construction to keep Highway 82 traffic flowing.
Durango Company Receives Whitewater Park Contract
Pitkin County has awarded a construction contract worth $770,000 to a company in Durango to build a whitewater park in the Roaring Fork River near Basalt’s Elk Run subdivision, the Aspen Daily News reported. The in-channel work, to be completed by next February, includes extensive rock work in the channel and on the riverbank and the installation of two wave-producing concrete structures anchored into the riverbed.
The upstream wave is designed to appeal to kayakers, while the downstream wave should also be suitable for stand-up paddlers at some water levels.
After a recent bid process, the county awarded the contract to build the in-channel features of the whitewater park last week to Diggin’ It River Works Inc. of Durango. The company has recently built whitewater parks in West Glenwood and Durango. River Restoration of Carbondale, which designed the West Glenwood wave, has designed the Basalt project and its two wave-producing features.
Basalt Voters to Decide Riverfront Fate with Two Questions in November
Basalt voters will be able to choose whether they want to buy additional land to augment a new river park and, in a second question, decide if they are on board with a significantly scaled-down plan to develop that park, compared to an earlier proposal, according to the Aspen Daily News. The Basalt Town Council came to what they called a “perfect compromise” during a meeting in late August.
Opting for what became known as the “minimalist” plan for the land occupied by the former Pan and Fork trailer park will knock an estimated $3 million off the cost of the Basalt river park bond issue. The land the town is considering purchasing a 2.3-acre parcel, of which only about 1 acre is developable, currently owned by the Roaring Fork Community Development Corporation (CDC). If the town doesn’t buy the land, more of it could be developed, possibly as a riverside condo hotel as per an option with Lowe Enterprises.
El Jebowl to Get Youthful Makeover
The new owners of El JeBowl are aiming to make it a strike among young people, and their industry experience may make that possible, the Glenwood Springs Post Independent reported. Craig Spivey and Tom Weber, partners in Bowlounge in Dallas, purchased the bowling business in El Jebel on Aug. 15. They bought the bowling alley from the Stecklein family, which started it in 1992.
El JeBowl is closed for renovations but will reopen to the public in mid-September as Bowlounge. It will open for league play later in the month. The 16 bowling lanes and equipment will remain unchanged. Virtually everything else is undergoing an extreme makeover. The bar room will be opened up and the bar itself wrapped around toward the current food counter, doubling the seating. The bar and other decor will be covered with recycled wood from bowling lanes. Bowlounge in El Jebel will carry 20 or so microbrews on tap and feature local brewers. They also will serve specialty drinks inspired by the movie “The Big Lebowski,” including All the Way, The Jesus, Donnie’s Element and, of course, The Dude.
Carbondale
Broadband Questions Coming to Voters in November
Carbondale voters will likely be asked if the town should actively work to provide unlimited broadband Internet service to its residents, in keeping with a Garfield County-wide broadband examination that has been underway for months, the Sopris Sun reported.
The town’s Board of Trustees (BOT) approved a ballot question that asks voters whether they want to “opt out” of SB 152, a 2005 statute passed by the state legislature that prohibits local governments from getting involved in the broadband business. At least two other towns in Garfield County — Parachute and Silt — will be putting a similar question on their ballots in November. Two other towns, Rifle and New Castle, are believed to be headed in the same direction.
Glenwood Springs
Bustang Ridership Surpasses Expectations
The Colorado Department of Transportation’s express bus service that runs from Glenwood Springs to Denver and along the Front Range celebrated its one-year-anniversary with the announcement it surpassed expectations, the Glenwood Springs Post reported.
CDOT initially wished for Bustang to ease some congestion along major highways, but on the Western Slope, it added a public transportation option in a place with limited choices. The trip from Glenwood Springs to Denver runs $29 each way. Bustang gets a $3 million taxpayer subsidy each year.
CDOT offers three Bustang routes: the West line from Glenwood to Denver; the South line, from Colorado Springs to Denver, and the North line, from Fort Collins to Denver. Over all the routes, Bustang had about 15,000 more passengers than expected in its first year, which is about 36 percent above projections. For the western corridor the route averaged 65 daily riders in both directions on average for the first year. Because the demand from the west is so high, Bustang now runs every day of the week, while the other two lines run only Monday through Friday.
Downtown Shuttle Bus Getting More Riders
Ridership is increasing on a new Glenwood Springs shuttle bus as operators have worked to increase awareness about the service and its targeted audience: tourists, the Glenwood Springs Post Independent reported.
One reason for the recent increase is that the shuttle drivers are asking people where they’re headed and actively encouraging people to hop on. Instead of looping clockwise from Grand Avenue onto Eighth to Cooper and back to Grand after a bus stop on Ninth Street, the shuttle will loop the other direction onto Blake and Seventh Street, picking up passengers by the Amtrak station, where more people are hanging out because of restaurants and shopping.
Pitkin County
Real Estate Sales Experience Slump
Real estate prices in Aspen are beginning to feel downward pressure after six months of slower-than-expected sales that followed a $2-billion-plus year, according to the Aspen Daily News.
The number of transactions of Aspen single-family homes, condos and townhouses is off by 44 percent when compared to the halfway point of 2015. Overall sales in Pitkin County through the end of June were down by more than 50 percent below 2015, a year that included nine transactions of $20 million or more.
Through June, there were 13 single-family homes sold in Aspen versus 35 at this time in 2015. Sold dollar volume for this segment was $79.2 million, as compared to $241.5 million last year. But the average sales price per square foot of single family Aspen homes rose more than 8 percent this year, $1,432 versus $1,314 in 2015.
Pitkin County has enjoyed an upmarket since 2012, when more than $1 billion in real estate sales ushered in a recovery that’s remained in place through 2015, when sales surpassed $2 billion for the first time since 2007.
County Airport to Get Busier
As many as 40 commercial flights are scheduled to fly through Aspen this winter, up from 34 last year, the Aspen Daily News reported. The scheduled peaks of activity are anticipated from 7 to 9 a.m., and again from 11 a.m. to 1 p.m.
Delta has also added new service to Salt Lake City, Utah. The airlines serving Aspen are proposing to have 12 aircraft on the ground at a time around noon on peak travel days. The terminal can currently handle nine flights at the maximum in and the boarding area can accommodate seven flights’ worth of passengers.
Carbondale to Crested Butte Trail Considered
Pitkin County is prepared to spend $200,000 to jump start the planning for a long-envisioned trail linking Carbondale and Crested Butte, though the project faces major obstacles according to Open Space and Trails officials, the Aspen Daily News reported.
The OST gave a presentation to Pitkin County Commissioners seeking a resolution to support the application for a Local Parks and Outdoor Recreation Grant from the Great Outdoors Colorado Trust Fund, which is supported by lottery proceeds. The GOCO grant application seeks $200,000. Pitkin County is proposing to put up a $200,000 match to fund the estimated $400,000 in preliminary studies and environmental reviews. While some work has already been done on the Crested Butte side of the route, much of the needed studies will focus on how to get through the 17-mile stretch up the Crystal River Valley from outside Carbondale to the top of McClure Pass.
Planning will be underway by 2017 if the funding is approved. There are obstacles, especially through the 13 miles between the end of the current trail 5 miles outside Carbondale to the town of Redstone, and then the additional 4 miles to McClure Pass.
Construction Waste Is Filling Landfill
Eighty percent of the waste coming into the Pitkin County Landfill is coming from construction, according to officials, and with just 14 years left before the only landfill between Aspen and South Canyon in Glenwood Springs is full, they’re trying to figure out solutions, the Aspen Daily News reported. In most communities, about 20 percent of landfill composition is made up of construction and demolition debris, the rest is municipal waste from residents.