Commissioners deny second amendment to TSG exception agreement; TSG says school district has signed LOI to buy Ilium lots

The San Miguel County Board of County Commissioners on April 2 voted unanimously to deny consideration of a proposed second amendment to Telluride Ski & Golf Company's (TSG) amended and restated exception agreement covering lots in Ilium/Sunshine Valley.

Planning staff had presented a redlined draft amendment that would give TSG additional time (essentially two years from the amendment) to commence construction on phase-2 parcels or to sell vacant lots. Staff said the redline would have allowed TSG to meet its contractual obligations by building at least one unit or selling a lot within that timeframe. Commissioners repeatedly pressed staff and TSG for clarity on whether the language would create a low bar (one lot or one unit) to satisfy the amendment.

Stephanie Solomon and Sherry Reeder, TSG representatives, told the board that TSG has received a signed letter of intent from the Telluride R-1 School District to purchase all of TSG's remaining vacant lots in Ilium. Solomon said: "We've actually worked on that, negotiated. It's with, we've got the letter of intent right here. Both parties are in agreement. Sherry is authorized to sign it. She would like to sign it today and make it official." TSG said it also has at least one backup prospective buyer and that it has been in contact with a number of interested employees; TSG reported seven preliminary expressions of interest on the six for-sale single-family homes.

Commissioners criticized the long-running pattern of missed deadlines and slow sales associated with the prior agreement and expressed frustration over repeated extensions. Commissioner Galena Brown urged staff not to continue lengthy renegotiations and said the county should focus on getting housing built or sold. Following discussion, the board voted to deny consideration of the second-amendment proposal; the motion passed unanimously.

TSG and county staff also agreed an interim path: TSG gave a voluntary commitment to attempt to sell the six for-sale units to TSG employees first. The county and TSG agreed to a 30-day target (until approximately May 5) for TSG to get those units under contract to employees; if that effort fails, TSG will list the units on the San Miguel Regional Housing Authority site. TSG also proposed covenants that would include a right of first purchase in favor of TSG and a 3% annual cap on resale appreciation for the deed-restricted units; staff said covenants will be recorded and reviewed prior to sale.

Ending: Commissioners denied the requested amendment but left room for sales to proceed with a different owner. Staff will monitor TSG's promised steps and bring any further requests or agreements back to the board.