Western trustees approve housing project

In a unanimous decision on March 27, the Western Colorado University Board of Trustees gave final approval for a 36-unit housing project on campus at a cost of nearly $13 million. The move concludes a years-long effort to alleviate the university’s hiring difficulties due to a shortage of suitable housing in the valley.

“This is a huge day for Western,” Western President Brad Baca said after the vote. “This has been a long time coming and is going to make a remarkable impact on our ability to recruit and retain high caliber faculty and staff. To have our own housing complex at rates that our staff can afford is going to be a game changer for us.”

The housing will be available to staff and faculty members only, with an emphasis on incoming employees in need of transitional housing upon arrival in the valley. The 36-unit development is planned as a mixture of one-, two- and three-bedroom apartments. Rents are projected to range from $1,000 per month for a one-bedroom, one-bath unit to $2,150 for an apartment with three bedrooms and two bathrooms. These are based on what the university already charges for housing units under master lease at the city’s Lazy K development in west Gunnison.

Rent revenue is expected to fully cover the cost of debt service over the life of the bond as well as anticipated operating expenses. That includes one full-time employee to manage the property.

Previous versions of the plan contemplated placing the project in the parking lot just north of the Aspinall-Wilson Center, which houses the offices of the Western Colorado University Foundation. However, the site has now shifted to the south, to another parcel currently owned by the foundation.

The City of Gunnison recently extended College Avenue, which lies south of Aspinall-Wilson, bisecting the 5-acre plot. That triggered a subdivision process with city planners. Once that is completed, the foundation will deed the new parcel to the north of College Avenue to Western at no cost. No city building permit is required, since the land will be owned by the sState following the transfer.

Prior to the vote, Trustee Kristen Blessman asked about the impact that taking on new debt might have on the university’s credit rating. She cited the example that Metro State University’s rating was recently downgraded following the launch of a housing project at the Denver campus.

Fred Marienthal, a representative of the firm providing bond counsel to the university through the process, stated in the meeting that the difference between the two projects was one of scale.

“The largest reason for that is the transaction that Metro is going to execute is north of $100 million,” he said. “It’s 10 times the size of this project.”

Ian Higgins, Western’s vice president for financial affairs/CFO said he did not expect the new bond to have any adverse effect on the university’s financial standing.

“We met with Moody's (credit rating service) in August, and we made them aware of our intent to issue financing for this project and the dollar amount,” he said “It didn't impact our rating then, nor did it impact the stable outlook. So we don't anticipate that this will cause any problems with future ratings.”

Higgins expects the bond to be issued in late May. Following that, Western will sign a contract with Buena Vista modular construction company Fading West to build the project. Fading West is the same firm that recently completed Gunnison County’s Sawtooth affordable housing project in Gunnison.

According to Higgins, site preparation could begin in early fall this year, with the project completed and ready for occupancy as early as September 2026. One funding hurdle remains, in the form of pending state approval for appropriation of $1.4 million to upgrade campus electric infrastructure. The request has been approved by the Joint Budget Committee of the Colorado legislature, but has yet to be signed into law by Gov.Jared Polis.

The plan also envisions setting aside a number of the new units for a master lease agreement with Gunnison Valley Health (GVH). According to GVH Vice President for Operations, Wade Baker, the health system currently controls 39 housing units in the valley — 29 that they own and 15 which are leased. A potential deal with Western for additional units in the new project could trigger a reevaluation of that mix.

“We're actually going through that strategy of what number of units makes the most sense,” he said. “If we're able to get these Western units, does it make sense for us to let some go? Do we need to increase numbers? We're most excited that Western is investing in bringing new housing. One of the things we have seen as an employer, we're all kind of fighting for housing. It's scarce.”

Baca believes the project will provide less tangible benefits as well.

“We're going to start showing activity on the east end of campus near Gunnison Rising,” he said. “My hope is, this is the trigger that's going to create an avalanche of great development to really help position Gunnison for future success.”

(Alan Wartes can be contacted at 970.641.1414 or publisher@gunnisontimes.com.)