Council directs staff to draft $4.05M SPET agreement for Nelson Drive housing rights; vote 4–1

The Jackson Town Council on Dec. 15 directed staff to draft an agreement allocating up to $4,050,000 from the 2022 special-purpose excise tax (SPET) funds to the Jackson Hole Community Housing Trust to secure rights to lease or rent six units at the proposed Nelson Drive development for the town’s employee housing program.

Anne Crystal, speaking for the Housing Trust, described Nelson Drive as a leveraged opportunity that uses free land to reduce construction costs and said the capital gap per unit is $675,000. She said the trust had raised $12.8 million in philanthropy toward the project and that the town’s SPET dollars were designed for new rental housing for town employees. The trust said it could proceed with 30 units if the county declined to partner and emphasized timeliness given rising construction costs.

Public comment was lengthy and mixed. Supporters, including housing advocates and several former planning professionals, urged the council to use SPET funds now to avoid higher costs and to house essential workers. Opponents and nearby residents raised concerns about wildlife impacts, water supply, the wisdom of using federal administrative land, the value the public receives for $675,000 per-unit capital gap, and whether the town should seek ownership rather than lease/options.

Council deliberations focused on valuation of the rights, long-term protections if the Forest Service special-use permit expires, and whether four or six rights represented the best use of limited SPET dollars. Leah Filsono, the trust’s attorney present at the meeting, helped draft motion language to include contingency protections: if the Forest Service extends the special-use permit, the town’s rights would continue automatically for the new permit term; if not, the trust would provide the town an equal number of rights of first refusal for ownership units in its existing portfolio.

Councilor Beaman moved the motion to direct staff to draft the agreement with the conditions and an amount not to exceed $4.05 million; the motion was amended on the floor and approved 4–1, with one council member opposing on fiduciary-process grounds. The approved direction requires staff to negotiate contract terms that address potential private litigation or loss of contributions and to return the draft for council review.

The motion does not finalize purchase or ownership; it directs staff to prepare contract language and protections and to pursue final agreements consistent with the council’s direction.