Trustees direct staff to pursue funding for Southwest Promenade while continuing broader town‑center financing work

Trustees gave staff direction on March 12 to pursue near‑term funding opportunities for a proposed Southwest Promenade mixed‑use prototype while continuing a parallel effort to develop a comprehensive financing strategy for the larger Town Center site, including Sixth Street.

Why it matters: Town Center redevelopment has been discussed for decades. The site has both residential and commercial components; trustees and staff said financing choices will determine whether development can deliver affordable and middle‑income housing, activate commercial storefronts and preserve downtown character.

Staff proposal: Consultant Andrew presented multiple scenarios. One phased scenario would develop the Southwest Promenade first: a mixed‑use building with first‑floor commercial space and eight for‑sale units above. Under the model presented, the town could receive two town‑controlled units to be held or issued to town employees and pursue grants and tax incentives (including Colorado’s new community revitalization tax credit and other state housing programs) to fund the balance. Staff noted an unidentified philanthropic gap in the illustrative pro‑forma and included several potential grant sources and a newly launched state middle‑income tax credit as possibilities.

Trustee concerns and direction: Several trustees voiced concern about “chopping up” the overall town‑center site and urged caution before selling or committing parts of the parcel. Trustee Jess said carving off a small parcel could complicate larger financing for Sixth Street and called for a comprehensive picture before proceeding. Other trustees said launching a smaller, fundable prototype could create momentum and show feasibility to partners and funders. Trustees agreed on a hybrid approach: • Authorize staff to pursue the immediate funding windows for the Southwest Promenade prototype (applications for the state community revitalization tax credit, Division of Housing funds, and other near‑term programs); • Simultaneously continue a broader financing and procurement exploration for the whole Town Center site (examining tax credit, municipal bonding, public‑private partnership and sale‑of‑town‑owned‑parcels options); • Request a municipal financing workshop and deeper analysis on options such as tax‑exempt bonds, COPs or MEHA (the state middle‑income program) and the implications of town ownership vs. sale of parcels.

Operational notes: Staff flagged the commercial component as the most difficult underwriting piece for the full Town Center buildout and suggested the town consider whether to retain or subsidize some commercial space (for incubator or nonprofit uses) to make the overall site viable.

Next steps: Staff will prepare applications for identified funding rounds, assemble a financing workshop that includes examples (including Crested Butte’s recent experience), and return with a clearer financing map for the entire Town Center parcel.