Glenwood Springs approves $500,000 loan to help Cavern Springs residents buy mobile‑home park

Glenwood Springs City Council voted 5–2 on May 7 to commit a $500,000 forgivable loan from its 2C workforce-housing fund to support Cavern Springs mobile home park residents’ effort to buy their park and convert it into a resident-owned cooperative.

The loan, described by staff as a conditional, forgivable subsidy tied to an affordability covenant, is intended to preserve 98 units for local workforce households. City staffer Watkins told the council the city’s workforce-housing fund currently projects roughly $900,000 by year-end and that a $500,000 commitment would leave the fund with an estimated $400,000 for other needs.

Residents, organizers and regional housing partners urged approval. Maria Hudid Alvarez, who identified herself as a Cavern Springs resident and a leader with Mountain Voices Project, said the request was about long-term stability: “This is not a handout; this is an investment in stability and workforce retention and in the future of this community,” she said.

Alex Dowey, a member of the city’s Workforce Housing Board, said the board unanimously recommended the full $500,000 because the proposal aligns with the 2C fund’s mission and leverages larger regional commitments. Dowey said the financing package under discussion would be part of a roughly $24 million acquisition plan that includes pledged contributions from other governments and lenders.

April Long, executive director of the West Mountain Regional Housing Coalition, described the financing stack and the model the residents would use, including a deed restriction and operating/capital reserves to keep lot rents affordable. Long said the purchase price was in the low‑$20‑million range and that local governments had pledged roughly $5 million so far (Aspen $2 million, Snowmass Village $1 million, Carbondale $500,000, Pitkin County $1.5 million). She told council that the residents must submit an offer in early June and — if accepted — would have 120 days to close, meaning the financing and terms would be firmed up during a tight due‑diligence window.

Not all speakers supported the request. Local resident Rob Anderson urged council to reject the request on fairness grounds, arguing funds should be used only for projects inside city limits: “Choosing one group to support financially over another is morally unacceptable,” he said. Other opponents raised the scale of the purchase price and questioned whether the city should subsidize a park located outside municipal boundaries.

Council debate focused on two main issues: whether the request fits the 2C ballot language and whether spending voter‑approved accommodation taxes on a park outside city limits meets the voters’ intent. Supporters noted the ordinance enabling 2C explicitly allows funding for projects “in and adjacent to” the city and said Cavern Springs houses many city workers and children who attend Glenwood Springs schools. Dissenting council members said adjacency and geographic scope were ambiguous and warned the council may face many similar requests in the future.

Mayor Dame called the question after extended comments. The recorded vote was: yes — Mayor Prom Zalinski, Mayor Dame, Councilor Wymer, Councilor Smith and Councilor Shaker; no — Councilor Townsley and Councilor Schmall. The motion passed 5–2.

What happens next: the funding commitment is a conditional pledge and staff said no funds will be exchanged until due diligence and closing conditions are met. If the resident‑ownership effort fails to close, the city’s contribution would be de‑obligated and not spent. Council members and presenters also said the regional partners plan to continue assembling the remaining financing before an expected June offer deadline.

Action item: Council approved a motion to provide a $500,000 forgivable loan to the West Mountain Regional Housing Coalition to support Cavern Springs resident acquisition, subject to the affordability covenant and the findings in the staff packet. The council’s 2C advisory board had recommended the request by a 7–0 vote prior to the council hearing.

The council will receive status updates as the financing advances; staff noted the deal depends on other local government commitments, lender terms and a tight due‑diligence schedule.