Aspen council hears Lumberyard update as developer seeks $250 million city contribution

City staff and the developer of the Lumberyard affordable housing project presented a timetable and financing plan to the Aspen City Council during a Jan. 26 work session, saying the project will include 277 units in three buildings and that the city’s ongoing contribution to the development is estimated at $250,000,000.

"Gorman's plan includes 277 units in 3 buildings," said Chris Ederson, a city staffer, recapping the agreement reached with Gorman and Company. He told council the first closing is scheduled for April 2026, with the first building of 104 units expected to start construction shortly after the closing and complete as part of a staggered schedule that could finish between 2028 and 2029.

Kimbal Crangle of Gorman and Company said the developer has advanced modular designs, placed a deposit to hold production capacity and is preparing permits now. "We are already in collaboration with our entire design‑build team and the city, we have locked the design on that," Crangle said, adding modular construction reduces weather‑dependence and subcontractor constraints by allowing off‑site module production while site work proceeds.

The presentation framed the financing as a multi‑piece puzzle: a first mortgage, equity/subordinate debt and philanthropic or impact investors. Crangle said those sources are out for solicitation and that Gorman will procure the first mortgage and provide equity commitments as part of the deal. "The net operating income is quite low... the capacity to raise mortgage dollars is not as high," he said, explaining why the city contribution is central to the project’s feasibility.

Council members pressed for additional detail about several areas they said could affect schedule and risk. Councilmember Bill expressed concern that legal easements and the off‑site routing for the electric connection were still being resolved late in the permitting sequence. "This is giving me a lot of concern," he said, adding that finding a pathway for utilities this far into the process raises questions about what else remains unresolved.

Ederson and Crangle said they had identified feasible routing options through the Aspen Airport Business Center (AABC) and that coordination with Pitkin County, Aspen Electric and private owners was ongoing. "We do think that we have a pathway that is feasible, and have had excellent coordination across the board," Crangle said, while acknowledging easement research and legal easement work remain active tasks.

The city staff presentation reiterated that the $250 million figure represents the city's contribution going forward and does not include roughly $40 million in prior sunk costs the city previously invested in the site. Ederson also said Gorman’s work includes procuring the first mortgage and some equity/subordinate debt, and that the development team will request a special‑limited partner role for APHA to enable tax‑exempt status in the operating entity.

Council members asked for written follow‑ups. Member requests included a concise summary showing any substantive deviations between previously approved plan‑development documentation and Gorman’s modularized plans, a clearer breakdown of financing sources and an update on utility easements. Ederson asked the council for follow‑up work sessions in March: a March 9 session to review the final first‑closing budget and March 24 for a resolution authorizing closing documents.

The developer said the project includes sustainability measures: council members confirmed the plan aims for roughly 75% of on‑site electricity produced by solar with battery storage. Crangle said modular construction shortens some schedule unpredictability but that phase‑0 infrastructure work will still require two construction seasons.

Next steps: staff and the developer will return to the council on March 9 with the final budget for the first closing and again on March 24 with the resolution and closing documents the council will be asked to approve.