Durango City Council approved the annexation and initial high-density residential zoning of a property off Florida Road near Metz Lane this weekfor the proposed development of a five-building housing development.
The property address is 1720 County Road 240, a 1.3-acre parcel on which sits the home of Randy Ash, who said at a public hearing on Tuesdayhe intends to sell the property and approves of the proposed development.
City limits abut the property along its northern and southern boundaries.
Developer Reynolds Ash + Associates proposed a 17-unit development of five buildings housing four triplexes and one fiveplex, Elizabeth Boone, an architect with the developer, said at the hearing. The project would include 28 parking spaces, three storage buildings and a retaining wall on a hillside to the south.
She added the units would be prefabricated and all-electric.
Reynolds Ash + Associates is actively looking for prospective buyers, one of which is Durango School District, she said. The school district has issued a request for information for workforce housing, and four developers have indicated interest.
The estimated total project cost is about $18 million, she said.
She said the developer is looking to price units well below the market average cost of about $770,000, noting workers are being priced out of the housing market and the project could be a solution for moderate-income households.
“In order to do that, we are going to be offering a return on investment of this development of only 18%,” she said. “That is well below the market rate of 25% to 30%.”
The proposed project would be subject to Fair Share requirements, which ensure a portion of developed units remain accessible to the workforce with levers like deed restrictions and income requirements, according to the city.
Boone said Reynolds Ash + Associates proposes a Fair Share exemption on the condition each of the 17 units would be sold to households earning no more than 150% area median income. Under that model, a two-bedroom unit would cost $455,680. A three-bedroom unit would cost $541,120.
Should the developer elect to pay a fee in lieu of selling Fair Share units, or sell just two units with Fair Share requirements – other options in the Fair Share program – the costs of the units would rise by several tens of thousands of dollars, she said.
Ash, after clarifying he has no relation to Reynolds Ash + Associates, advocated for the development by sharing a heartfelt history of the property under his family’s ownership.
“This is very emotional and hard for me because this property was bought in 1948 – 78 years ago. My wife and I are the third-generation on this piece of property,” he said.
He said he was brought home from the hospital to “a shack and an outhouse” on the property in 1952. The old outhouse still stands outside his modern 3,000-square-foot home, visible from his kitchen window.
He and his wife support the development for two reasons, he said: 1. He intends to sell the property either way and he prefers new families “start their legacies” on the property; 2. Durango needs more housing for nurses, doctors, teachers, firefighters and law enforcement.
“There’s a great need for doctors and nurses, but I encourage the City Council and the developer to work through any issues of the conditions with all tact and diplomacy,” he said.
The conditions of the annexation and high-density residential rezoning are:
- Future development is subject to Fair Share requirements.
- The annexation agreement will be signed by the city and Reynolds Ash + Associates and recorded with the county clerk’s office.
- If Reynolds Ash + Associates doesn’t fulfill requirements of the agreement or begin development within three years of the agreement’s execution, the city may hold public hearings to rezone the property to the least dense zone.
- All promises and claims made by Reynolds Ash + Associates shall be deemed binding.
City Council will review Reynolds Ash + Associates’ development proposal during a later subdivision process.
cburney@durangoherald.com
