Durango schools under contract to buy 35-unit Lightner Creek Apartments for staff housing

Durango School District officials said the district is under contract to buy Lightner Creek Apartments, a 35‑unit multifamily complex in Durango, in a transaction the district expects to close in the coming months.

The purchase price is $10,000,000, about half of the $20,000,000 the district set aside from the 2024 bond for workforce housing. Chief Operating Officer Chris Coleman told the school board the property is inside city limits, less than four miles from downtown, and includes a mix of studios, one‑bedroom and two‑bedroom units the district believes will be useful to recruit and retain teachers and other staff.

The board was presented with the district’s three‑phase housing approach: A) buy existing units, B) partner with developers, and C) develop on district land. Coleman said the Lightner Creek purchase advances Plan A and allows the district to move quickly on housing needs while other options are evaluated.

“We set out with the passage of the 2024 bond, allocating funding to tackle workforce housing,” Coleman said. “This property presented itself and it makes a lot of sense from a timeline standpoint. It gives a strong value in buying a large number of units at once.”

Why this property: Coleman said the 35 units trade for roughly $290,000 per unit, a price point favorable in the current Durango market. He said the district conducted due diligence and believes the complex can be operated to “positively cash flow” even with rents subsidized well below market.

The district will inherit existing leases and has negotiated with the seller to allow residents the option to extend leases through May 31, 2026. Coleman said those lease extensions are being honored; units with longer leases will remain occupied until those agreements expire. He said the district expects move‑in availability for staff on or about June 1, 2026, and possibly earlier depending on lease turnovers.

“We gave every resident the opportunity to renew their lease,” Coleman said. “We will inherit those leases, and we will honor those leases.”

How it will operate: The district plans to create a housing advisory committee to recommend eligibility criteria, pricing tiers and a selection process. Coleman said preliminary models aim to charge staff rents significantly below Durango market rates; staff discussed a target range that could put a single teacher’s rent “somewhere in the neighborhood of $700 to $800 for a one‑bedroom,” with district leaders later saying they hoped to keep beginning‑teacher housing costs at or below about $1,200 per month.

“We want this to be sustainable and affordable,” Coleman said. “It’s not free housing — it needs to be managed to continue the program and allow future purchases.”

Board members pressed for details on prioritization and management. Rick Peterson and student board member Colin Kravis asked how the district will prioritize units if demand exceeds supply. Coleman said the district intends a weighted lottery and will work with the housing advisory committee to assign points for factors such as household income and hard‑to‑fill positions. He said the district will contract with a local property manager rather than manage the apartments in‑house.

“We can only spend bond funds to rent to teachers and staff of Durango School District,” Coleman said when asked about eligibility. “That is the clear baseline.”

Superintendent Karen Chesser said the purchase moves bond funds toward an immediate, tangible outcome while the district continues to pursue longer‑term options on district‑owned land and partnerships with local government and private developers.

“This will help us recruit special education teachers and other staff who struggle to find housing in Durango,” Chesser said. “It’s a concrete first step.”

Next steps and risks: The district anticipates an early Q4 2025 closing and said it is finalizing the contract. Coleman noted the units are independently condominiumized, a feature that offers flexibility to sell individual units later if needed. He listed remaining steps as finalizing closing, standing up the advisory committee, developing rental tiers and contracting a property manager.

Potential risks include tenant transition and ensuring rental rates are competitive enough to attract staff while preserving long‑term program sustainability. Coleman and other staff said those risks are being addressed through lease extensions, due diligence and modeling of multiple pricing scenarios.

Why it matters: Durango leaders framed the move as an immediate response to a local housing shortage that experts and district staff say is hindering teacher recruitment and retention. Board members emphasized the purchase is a first phase and not a full solution to the broader community housing shortage.

“This 35‑unit investment won’t solve the regional crisis,” Peterson said, “but it gives us a place to start and data to inform phase two and three.”

Ending note: School leaders said they plan to return to the board with advisory‑committee recommendations on qualifications, rental tiers and management agreements before units are offered to staff.