City close to Iron Horse deal
Officials also considering affordable housing on Bear River parcel
Tuesday, September 18, 2007
Video
Affordable housing
The city of Steamboat Springs has entered into a contract to purchase the Iron Horse Inn for worker housing.
If you go
What: Steamboat Springs City Council meeting
When: 5 p.m. today
Where: Centennial Hall, 124 10th St.
Call: City offices at 870-2060 for more information
Agenda
4 p.m. Executive session to discuss real estate
5 p.m. Staff reports; second reading of ordinances related to the acquisition of the Iron Horse Inn
7 p.m. Public comment; planning commission report; second reading of an ordinance imposing a moratorium on accepting applications for building or demolition permits substantially affecting any exterior aspect of any historic structure
Steamboat Springs — The city of Steamboat Springs is close to finalizing a $4 million purchase of the Iron Horse Inn. City officials say they hope to convert the inn into affordable rental housing for city employees beginning next fall.
"We have that property under contract," Deputy City Manager Wendy DuBord said Monday.
At its meeting tonight, the Steamboat Springs City Council will consider the second readings of ordinances to approve the purchase of the hotel and the financing of the purchase. At a Sept. 4 meeting, the council unanimously approved the first readings of these ordinances.
While the Iron Horse Inn would be aimed specifically at providing housing for city employees, DuBord said others may be able to rent space there as well.
"We certainly wouldn't let them sit vacant," DuBord said. "If we don't have enough employees to fill it up, it would become community employee housing."
DuBord said the Iron Horse Inn will continue to operate as a hotel through the upcoming ski season, be remodeled next summer and then be made available as an affordable rental property in fall 2008, if all goes as planned. Darrell Randall, the inn's general manager, said he has been asked by city staff to stay on and manage the property through its transition.
The inn is owned by Iron Horse Partners, a Missouri limited liability company. Randall said the company is controlled by a group of attorneys who bought the hotel as a real estate investment. Randall said the owners have decided to sell the property for a profit, even though the inn as a business is "very profitable."
Closing, financing and renovation costs bring the city's total cost for the acquisition to $5.8 million, which would be funded with certificates of participation, a form of borrowing.
Bear River parcel
Also at today's meeting, the council will consider hiring Maryland-based consultants UniDev to do a $80,000 feasibility study for building affordable housing on a piece of city-owned property known as the Bear River parcel. The property is a former "sewer lagoon" located on the Yampa River near the recently completed Routt County Justice Center.
The Iron Horse Inn acquisition and Bear River study represent some of the city's first steps toward providing affordable housing for Steamboat's workforce. Providing such housing has been identified as a priority by the City Council.
Earlier this year, the City Council approved an inclusionary zoning and linkage fee ordinance that requires developers to either build affordable housing for each new development they undertake or pay significant fees to the city to help fund affordable housing projects. Also this year, the council provided the Yampa Valley Housing Authority with a $945,000 loan - interest-free for five years - to help the Housing Authority purchase the Fish Creek Mobile Home Park.
While the city has taken these and other steps toward creating affordable housing, the Iron Horse Inn and Bear River projects constitute the city's first attempts at creating housing of its own.
"This is one way to put our money where our mouth is," DuBord said. "It's only going to get more expensive. We've probably waited to long to get into workforce-housing mode."
While the Iron Horse Inn will provide affordable rental housing, DuBord said the city hopes to provide deed-restricted, for-sale housing at Bear River. Like the Iron Horse Inn, housing on the Bear River parcel would be primarily aimed, but not restricted to, city employees.
The 18.5-acre parcel is zoned for open space. Only five or six of those acres would be used for housing, according to a city staff report. DuBord said the city would like to see a park there as well. Because the parcel is zoned for open space, the staff report identified a possible conflict with Parks, Open Space and Recreational Services regarding the affordable housing option, but Open Space Supervisor Craig Robinson said there would be no issue if that's what the city decides to do.
"If there's a change in vision for what that property should be used for," said Robinson, "we'll just do whatever we're told."
Comments
addlip2U 5 years, 8 months ago
I am bit confused in understanding the role of a City of Steamboat?
Are they: =A lender of interest-free for of ( OUR ) taxpayers money - for the Yampa Valley Housing Authority, =Builder, Realtor, Landlord and Property Manager of Affordable Housing? What else? What is next? Are these not roles of a PRIVATE competitive businesses? What is City of Steamboat - a Social Government?
stompk 5 years, 8 months ago
This is odd. If your going to make it affordable for city employees (whom are well compensated by the way), you must do it for the people the city employees work for.
Citizens.
And to put all employees in one spot? What happens if a fire or natural disaster happens at the Iron Horse. What then?
Weird move.
spukomy 5 years, 8 months ago
Addlip, The $954K didn't come from taxes. It's from Jim Cook's riverwalk developement. He paid in lieu of providing affordable housing units.
steamvent 5 years, 8 months ago
Here we go ... the city is now starting to convert designated open space into affordable housing. Steve Ivancie suggested this at a council retreat a few years ago and now it is happening. First they get the public to buy into preserving open space within city limits, and then they convert it to other uses with no public involvement. Robinson says, "We'll do whatever we're told." Of course they will ... they want to keep their jobs and get into some of that publicly funded housing. This council that claims to be pro-environment and concerned for Steamboat's future is now ignoring it's citizens' wishes by destroying what has been the number one priority in every recent survey ... preserving open space. They know the public will not vote to spend tax dollars on subsidized housing, so they are going to cram it down our throats without a vote. Watch out ... the open space or park near you may be next!
Matthew7_1_5 5 years, 8 months ago
We must shelter all of our empoloyees who serve own community. Each public and private entity should try to help provide temporary housing for up to a certain amount of time when these workers have their feet on the ground. The school district, and many private employers should join together with the city to help solve this problem. We talk about it all the time. Do you have other suggestions which could help our town with this very real problem? We must work together to keep this a well-rounded community.
thecondoguy1 5 years, 8 months ago
Wow, this is terrific, with the city owning and mananaging residential property we will need no private ownership of such housing. I hope they buy the Sheraton and the Steamboat Grand, I would like to put my application in for the penthouse.
thefarmer 5 years, 8 months ago
The Iron Horse Inn is an ASBESTOS shell. Who is going to do the remodle or live in that thing?
Jason Miller 5 years, 8 months ago
I agree with thefarmer,that place is a DUMP. I wonder how many of the city employees are married and want to be living there with there families?
beentheredonethat 5 years, 8 months ago
You can count on the real estate market in Steamboat having reached it's peak, when the City is willing to pay such an excessive price. It would be cheaper to construct new buildings on currently vacant City property.
Jason Miller 5 years, 8 months ago
One more question.What does comcast fixing cable have to do the city buying the iron horse?I think someone posted the wrong video!
thecondoguy1 5 years, 8 months ago
matthew, I agree with you, everybody could stay at your house, or you could put them up at the Steamboat Grand, nobody should be without shelter.................
colobob 5 years, 8 months ago
preferential treatment for "city employees"?? How about preferential treatment for all? Why not free rent and a limo? You gotta love it! Sounds like just another divide of the people of Steamboat..............., the haves and the have nots.
colobob 5 years, 8 months ago
Why not line the walls of the proposed rec. center with Murphy Beds?
Matthew Stoddard 5 years, 8 months ago
How many people in this thread own businesses?
powderchase 5 years, 8 months ago
At least the Hell's Angels won't be able to stay there again. The council is trying for headlines since all they have accomplished is to make housing less affordable far faster than it would have. This doesn't make sense and it is great to see that so many others saw through what Ken and his buddies are up to.
powderchase 5 years, 8 months ago
BTW I am a business owner
Matthew Stoddard 5 years, 8 months ago
Powderchase- Let's start with you, then.
1-Does your business have workers that you have to hire?
elphaba 5 years, 8 months ago
Does this commit the new Council - Since we will be replacing 5 of these knuckleheads in Nov?
spukomy 5 years, 8 months ago
Imagine if Ski Corp didn't have Walton Pond to house their employees.
Hammurabi 5 years, 8 months ago
Ironic that no one has so far commented on the use of certificates of participation. That's one way of avoiding a community ballott queston on further taxation via a bond issue for purchase. Where is the Housing Authority on this one?????? Once again, the council is circumventing any public process.
WZ4EVER 5 years, 8 months ago
Hammurabi- That's a good observation. I don't think that anyone in the public EVER heard about this expensive purchase before the first reading as it was all done in executive session. It was never advertised until the last minute as a line item under "first readings" which can go unnoticed by most, and the newspaper didn't see it or report on it. There's a serious problem there. Also, the questions about using Certificates of Participation seems a sidestep to voter approval of debt. What is the difference between a COP and a bonded debt? How does that work with TABOR? I wonder if anyone has challenged the use of COP's anywhere else in the State?
smr 5 years, 8 months ago
Wonder if any of these people have ever tried to attract and retain new employees with the current pool being so low. Blockbuster was CLOSED on Labor Day with a sign that read "closed due to not having enough employees". We are most likely in one of the largest development periods in our history, which by the way, means more tax dollars to spend on YOUR rec center and $11 million dollar library! Should we really be spending our time criticizing the efforts of these public servants? Or should we be thankful someone is taking the reins to solve the employee shortage/housing problems??
zirkel 5 years, 8 months ago
My first thought after reading the title of this story was... Wow, what a great addition to the City's parks holdings this parcel will be. My second thought, after reading a little further was... Wow, what a great use for the property by the City.
You see, I'm a former City employee who left for a higher-paying job in order to afford my current rent. I'm glad to see the City taking the lead, putting their money where their mouth is, and providing (at least temporary) housing for their employees.
Now if the hospital and the country and Smartwool would only follow...
rossmike 5 years, 8 months ago
I applaud the City Council on their decision to purchase the Iron Horse Inn this is one of the smartest moves the City Council has recommended in a very long time. I think the benefits to the City are considerable. I cannot imagine a property that better fits the needs and goals of the City with respect to providing affordable housing. Thanks for your efforts in this regard.
stompk 5 years, 8 months ago
I think the Iron Horse is much more valuable as a commercial property.
If the city buys it, take the profits from it, and buy a piece of land, and build some decent housing, that will be more beneficial to all
The Iron Horse is not really set up for long term tenants, so major renovations will be needed.
To answer Matts question. I own my own business. USA Electric.
stompk 5 years, 8 months ago
And why are we financing it. Don't we have enough money to buy it outright, and not pay interest on $4 mil??
Matthew Stoddard 5 years, 8 months ago
Stomp- Same question I asked powderchase
Do you have to hire employees?
smr 5 years, 8 months ago
I have to wonder again....where were these people during the last several years of City Council Meetings? All public meetings, with public comments welcome. This concept and affordable housing mandate; 15% of all new development has to include ("inclusionary zoning") a deed restricted element for the affordable housing. This is not old news, nor is it an old issue. Just take a look around at other ski areas. We are NOT inventing the wheel with regarding to housing a WORK FORCE.
JLM 5 years, 8 months ago
The People's Republic of Steamboat Springs should stay out of the real estate business. It is particularly offensive to have a tax levying entity use tax money to take property OFF the property tax rolls. Has nothing been learned since the Sheraton fiasco?
If the City Council want to create a "social" good, they should do it by manipulating public policy --- they are after all only policy makers, are they not? --- to create incentives which will motivate the free market to provide the desired services. This is true whether the issue is affordable housing or historic preservation.
The free market will provide the goods and services if the City Council is wise in creating financial incentives whether by the donation of land, the use of the City's borrowing capacity or the creative manipulation of tax rates.
City's are notoriously ineffective in the real estate business as it is a very capital intensive operating business which requires expertise which is beyond the normal City beauracrat. Even the Federal government uses tax incentives as the primary driver of affordable housing creation but leaves the actual execution to the private sector.
The City will rue the day it decided to get into the real estate business when the first tenant slips on the ice.
Hadleyburg_Press 5 years, 8 months ago
Housing City workers may be a good investment. Without seeing all of the numbers involved I cannot make that determination. This shouldn't be about feeling good or caring for the poor or alleviating whatever other social guilt complex people are suffering from. It should be a justifiable business decision that saves us money in the long run while ensuring quality services. The City is afterall, just another business and we are the shareholders and clients. I think this is probably a good move. Just my two cents.
steamboatsconscience 5 years, 8 months ago
condoguy do you know how many units there are so we can get an idea of the cost per unit for this boondoggle? I am assuming that they will have to join 2 or 3 existing units to create 1 livable unit. and you have to believe that the remodel costs will be at least double their estimate. I am also really po'ed about the obvious circumventing of the public vote.master
colobob 5 years, 8 months ago
Just another red herring! Another scheme by the elitest faction of steamboat to better their lives at the expense of others.
Matthew Stoddard 5 years, 8 months ago
LOL! Yeah, that's it. Elitists want to better their lives with the Iron Horse. Bwa-ha-ha-ha-ha-ha!
Look- the city needs employees, right? I don't see any city employees living up on Dakota Ridge, but maybe they are and just hide it.
So- in order for the city to keep employees, they decide to house them, just as many businesses do in Steamboat when they bring in J1 and H2B employees...just not at taxpayer expense. If not, they have to pay them more so they can afford to live in the city they work for. Where's that money going to come from? You tax money. Not enough tax money to cover it, 2 things can happen- no employees for city services or higher taxes.
Which are you willing to go with?
...actually, the 3rd alternative is that people on this forum complaining could volunteer their services to the city, since they obviously don't have to worry about their living expenses.
colobob 5 years, 8 months ago
FYI there are a number of businesses in Steamboat that actually pay their employees a wage sufficient enough for them to be able to live in Steamboat and no I'm not going to mention them by name. In addition to a decent wage they also subsidize their education, training, as well as paying for licensing fees where applicable.
As far as city employees go most are already at the top of the food chain by comparison to many others residing here. And before you tell us all how little they make don't forget to factor in things like benefits, something a lot of local workers have none of. In addition nepitism, favoritism, and more 'isms than you could wave a fly rod at would come into play when it came time to allocate housing units. If you think otherwise then you live in a dream world. Finally if people weren't trying to push through white elephants like the proposed rec. center and other pork barrel projects like it the tax burden would be less and there would be more money for these people to survive on. The private sector should care for the private sector and city government should be concerned about all its people not just city employees and those that are WELL CONNECTED in the private sector!
stompk 5 years, 8 months ago
It's good to see public forum debate like this.
People work all day, and don't have time to go to meetings about this stuff. We have families to feed and bills to pay.
That is why we elect people to run things like this. But I believe more and more, these forums allow anonymous input on important subjects,
which I think is a good thing for the people.
I appreciate the job the city employees do, but they do get good benefits, and most are paid a decent wage.
Like in real life, the more valuable ones service is, the more they get paid.
Let's not forget we have $25 million in reserves. Why finance. And why remodel. Building new is much more efficient.
Matthew7_1_5 5 years, 8 months ago
When I see the young kids (early to mid twenties) riding in the four-wheelers to water flowers, work maintenance, landscaping, I think of city employees who may need shelter. I do not think they are at the top of the salary chain. Those are the people who will live in the city housing complex. I think it would be nice if those of you who are against this plan to try to help the city find a better choice. I don't think of this area as prime real estate for another developer. I think of it as a place for these young workers to live in the town they are working to make a nice place to live.
Jesus said there would always be poor, that the poor were the closest to the gates of heaven, and will find it easier to enter. These young people will benefit from our labors. We should be proud of our city fathers (and mothers) to finally address our employee concerns with tangible action.
Communism allows for all people to have the same things, I hardly think that living at the old Iron Horse is the same as living on Dakota Ridge. Remember even in communist Russia after the Bolshevik revoluation some people lived in mansions while others starved. This is not communism, this is helping those who earn so little while helping us.
Housing shortages affect all of us. This is a problem for small and large businesses to coop, and others to help.
let us give the city council it's due. They are trying to solve a problem for their workers. Nearly everyone complains about this problem. Let our actions truly support our words.
Let us think of others less fortunate and praise any works which make our good intentions a reality.
colobob 5 years, 8 months ago
Being exclusionary or showing preferintial treatment based on the fact that you are a city employee is a bad idea. It's not much different than shaving 20pts. off a college entrance exam because of race. Many people in this community commute on a dialy basis in order to be able to afford to live here. If the city would do a better job prioritizing its expenditures they could pay workers on the lower end of the pay scale higher wages. City employees should be treated just like anyone else or everyone else should be treated like a city employee. Struggle in one form or another is a part of life. Many people struggle here yet their housing isn't subsidized. To many this isn't fair, but frankly there isn't much fairnes in the world in general. Communism was derived in order or in theory for all to be treated equally. It doesn't work either. Ask a Russian immigrant. It would be nice if everyone was worry or care free, it's just not reality.
Matthew Stoddard 5 years, 8 months ago
Colobob- This particular statement makes no sense:
"Many people in this community commute on a dialy basis in order to be able to afford to live here. If the city would do a better job prioritizing its expenditures they could pay workers on the lower end of the pay scale higher wages."
Commuting in this area means you AREN'T able to afford to live where you work. Plus, this isn't just a City employee issue. A majority of businesses can't retain workers because they can't afford to live here and it isn't worth it monetarily to commute.
CoJustice 5 years, 8 months ago
It appears everyone has enjoyed the growth in a number of areas including property sales, taxes and recreation. However no adjustments to employee salaries to meet the economy, industry, geography and employee positions. Everyone is investing in the profits, no one is investing in the employees.
Kind of seems insulting to employees, some popular real estate law terms that have come to mind::hum::. "slavery nor involuntary servitude".
Just pay employees appropriately.
colobob 5 years, 8 months ago
Mat, A vast number of people commute so that they can afford to live in whatever place it is that they choose to call home. Additionally most people prefer to live here because they prefer not to live in the same local in which they work. This is a great place. I guess I just don't understand what part of this makes no sense to you. Are you suggesting that because a person can't afford to work here that they can't afford to live here as well? Maybe I'm missing something in your response or it didn't come out quite the way you meant it to. Part of the solution to me seems to be as CoJustice says, making a decent wage. Admittedly not all employers can pay wages high enough to make residential life here possible for all. Some employers can't because they are trying to survive here themselves while others can and don't. That's called greed. People commute both in and out of here. Some come here from area cities and towns while others leave here to work in other areas. Commuting is a way of life for millions of people so they can either survive where they are now or survive here if this is the place where they have chosen to live. I don't know what part of this makes no sense to you.
paddlefisher 5 years, 8 months ago
I beleive the Iron Horse owners are remodeling or were anyway(abspesees)...they are efficentency apts....so it is right two or three units to make one place for city employee and family..hmm don't know how many units are there but do the math your cutting units by a thrid..so 70 units is know only 23
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