Planning commission moves to forward Bayonne Construction conditional-use proposal after developer outlines phased mixed-use plan

The Gunnison Planning Commission moved to forward a conditional-use permit application from Bayonne Construction to the Gunnison City Council after the developer, Josh Blake, outlined a phased mixed-use plan and said he would pursue studies and design changes if the commission signaled support.

At a planning commission meeting, Blake described a roughly 20‑acre proposal split between a Main Street commercial frontage and multifamily residential behind it. Under his current concept, the project could include either about 80 townhomes and 120 apartments (200 units) if three‑story apartment buildings are permitted, or about 80 townhomes and 80 apartments (160 units) if limited to two stories. "If we're doing three‑story buildings, that's 120 units; if it's two‑story, then it'd be 80," Blake said. He said traffic and utility studies will determine whether taller buildings are feasible given fire‑code and infrastructure constraints.

City staff told commissioners that state law requires conditional‑use reviews to consider "reasonable impacts" and reasonable mitigation, and that the commission may only impose conditions grounded in the city's existing code. Staff also said they provided a four‑page engineering memo from consultant Kelly Chapel listing about 16 potential technical issues to consider. "We have to look at what are the reasonable impacts," the staff member explained, urging the commission to request additional information or conditions where appropriate.

Blake described a multi‑phase buildout of four to five phases, with an initial phase focused on a northeast portion containing commercial frontage and about a dozen townhome lots. He said some later phases would require expensive utility work — for example, moving water lines near 600 South — and that he preferred to phase the project so initial revenue from early buildings can fund later infrastructure costs. "We're probably looking at between 4 and 5 phases," Blake said. He added that some studies "take months," and estimated that traffic studies alone could cost between $10,000 and $15,000.

Commissioners and staff raised multiple technical concerns. Staff noted the site is currently zoned RC with a Main Street overlay in part of the parcel, and emphasized the difference between conditional uses (which can be allowed within an existing zone) and rezoning (which requires a public hearing). The staff member warned that some elements Blake requested — such as smaller garages or taller buildings — could require a code amendment or a development agreement and thus additional public processes.

Commissioners questioned water availability, sewer elevations and whether the development would need a lift station or coordination with neighboring utility providers. Blake said existing sewer and water mains on Main Street and along 300 West/600 South may serve early phases but that later phases will require studies and potentially new infrastructure. He described the project’s approach to open space and safety, including a green strip adjacent to the school and landscape buffers along Main Street.

Parking and affordability were a central tradeoff in the discussion. Blake said townhouse garages were planned at about 14 feet by 22 feet with an additional driveway space; he warned that forcing an 18‑by‑18 two‑car garage standard would widen units, reduce the number of townhomes and raise prices. "If we stick with the 18 by 18 garage requirement, then I would need to widen each of our units, and the number of townhomes would be cut down, significantly," he said, estimating townhome prices could rise from about $300,000 to roughly $350,000 if larger garages are required.

Blake also described commercial plans for the Main Street frontage, saying a financial institution has expressed interest in buying the former school‑bus yard parcel for a bank and that the developer envisions a small hotel and renovated commercial space. He said the buildings to be renovated have solid brick walls but need new roofing and facades.

After discussion, a commissioner moved to forward the conditional‑use application to the Gunnison City Council with conditions and recommended studies — including utility and transportation studies, an economic impact/reimbursement analysis and consideration of needed code amendments — and another commissioner seconded the motion. Commissioners and the developer acknowledged the studies may take several months and that the city council would review engineer recommendations and any requested conditions.

The planning commission then took a separate procedural vote to adjourn. The city council will receive the planning commission's referral and the engineering/study recommendations for its consideration.