On March 4, Gunnison County commissioners approved the issuance of just under $120 million in bonds, the largest ever in Gunnison County, for the income-restricted Whetstone housing project. The project is protected by a reserve fund of around $7.3 million, the amount needed to cover project payments for one year.The 13-acre Whetstone parcel is located along Hwy. 135, two miles south of Crested Butte across from Brush Creek Road. At full occupancy, the project could house more than 350 people. Gunnison County will be the developer and owner of Whetstone. The $120 million bond amount translates to $396 per square foot, which compares to the 2025 median home sale price at $421 per square foot. When the bonds mature in 34 years, the total interest costs are estimated to be $128 million. To prepare for possible uncertainy, the county hired a consulting firm to model various economic “stress tests.” For example, one test looked at the effect of a drop in occupancy rate to 80%. John Cattles, assistant county manager, said the project could survive for two years before it would not be able to pay its debt. Modeling showed the biggest risk to the project is sustained slow growth as occurred in deep recessions in the recent past, Cattle said.Gunnison County has grown at a slow, but steady 2% annual rate. Housing has not kept pace with that rate of growth, Cattle said. Lost housing due to second homes and short-term rentals has resulted in a tightening market, putting pressure on the valley’s economy. The Whetstone project is designed to address this.After bonds are issued in six weeks, ground breaking is slated for April. Construction is not expected to be complete until late 2027. Cattles described the construction process.“The building will occur in phases. The first residences will be walk-up apartments, available in March 2027,” Cattles said.At full build out, there will be 26 housing structures with 252 separate residences, the tallest structure being three stories along with several townhomes and a few owner-occupied small business spaces, possibly for local contractors who need shop or garage space.The project will not have all its homes filled until 2028. At that point, the county estimates that it will collect $8 million per year from rents. Operating costs will offset some of the rental income and are projected in 2028 to be roughly $1.7 million or $6,700 per rentable unit annually. Fees come from residents with a variety of targeted income brackets. Brackets are based on the area median income (AMI) for the county. In 2024, the AMI for a two-person household was $120,100. The project serves residents who earn annually between 60% and 170% of AMI ($72,060 and $204,170). But overall, 67% of Whetstone residents are slated to earnunder 120 % AMI ($144,120). In the final plan, the project’s guiding principles are stated – support for the local economy, support for the local community and reduction of environmental impacts. According to Cattles, the goal of the project is to build 300 additional workforce rental units to meet an underserved need. That goal will be monitored by the housing authority, which will determine how much progress is being made.“Our economy has grown substantially, but housing has not,” Cattles said. “The housing that has been built is largely catering to second homeowners, which just creates more jobs and more demand for housing that workers can’t afford,” Cattles said.(Dave Pinkerton can be contacted at 970.641.1414 or dave@gunnisontimes.com)
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