San Miguel County approves minor Skyfield PUD amendment and ends ADU deed restriction after owners agree to pay $272,843 fee

The San Miguel County Board of County Commissioners voted unanimously April 2 to approve an insubstantial PUD amendment for Lot 12 in Skyfield North and to terminate an accessory-dwelling-unit deed restriction for the same property after the owners agreed to pay the current employee housing impact fee of $272,843.

The PUD amendment, described by Associate Planner Nicola Kerr as an administrative correction, adjusts the platted building area to reflect preexisting encroachments: an eave overhang extending about 4.5 feet beyond the building area, a corner of the building about 0.1 foot over the platted limit, and a patio extending about 7 feet over the platted building area. Commissioners signed the resolution so the administrative approval can be recorded in lieu of a new plat.

Kaye Simonson, planning director, described the ADU deed restriction that applies to Lot 12 because the primary dwelling exceeds 5,000 square feet. Simonson told commissioners: "My recommendation is to approve termination of the deed restriction for the accessory dwelling unit, and direct staff to prepare the termination agreement ... subject to the payment of an employee housing impact fee in the amount of $272,843." The fee figure is based on the county's current method of calculating the employee housing mitigation amount for a 6,999-square-foot house.

Property owners Richard Cornelius and attorney Tom Kennedy said they had not realized early on that two different deed-restriction regimes existed (for houses above and below 5,000 square feet). Cornelius told the board the ADU has not been rented and has been used occasionally for friends and family. He also said the owners are selling the property due to health reasons and wanted to resolve the restriction before sale.

Commissioners discussed but rejected modifying the deed restriction to allow owner or family use in perpetuity. Commissioner Lance Waring said he is "content with Mr. Cornelius's offer of full payment" and commissioners expressed concern about setting a precedent of amending deed restrictions on a case-by-case basis. The motion to approve termination, conditioned on payment of the $272,843 mitigation fee and preparation of a standard termination agreement, carried unanimously.

The county manager and planning staff will prepare the termination agreement for signature by the property owner and the board chair; staff confirmed the agreement will be recorded and follow county procedures for such terminations. The PUD amendment resolution will be corrected to name the correct board chair on the signature block before recordation.

Ending: The two actions close related items that were considered together on the agenda: the administrative PUD correction and the deed-restriction termination. Staff will finalize the termination agreement and the recorded amendment once the payment and paperwork are completed.