Home

Steamboat Springs — Steamboat Springs City Council members said they want to see language inserted to discourage speculation and property flipping but otherwise directed no major changes to a draft annexation agreement with Steamboat 700.

Steamboat 700 is a proposed master-planned community west of Steamboat that is seeking annexation. It proposes about 2,000 homes - from apartments to large-lot single-family residences - on 508 acres. On Tuesday, council members had their first discussion of the annexation agreement that could govern the property until it is fully built out. A final vote on the agreement and other items related to the annexation is scheduled for Oct. 13, and the project is emerging as the No. 1 campaign issue for the 2009 City Council election.

Affordable housing is the No. 1 goal of the city's West of Steamboat Springs Area Plan, which is guiding the city's review of the project. Four of six council members present Tuesday said that, to that end, they'd like to see something added to the agreement to prevent flipping. At a meeting today of the development team and the city's negotiating team - which includes two council members - council members' direction and resulting revisions to the agreement will be discussed.

On Tuesday, Steamboat 700 Principal and Project Manager Danny Mulcahy said he is considering putting restrictions on the majority of the development's lots that would require any profits derived from re-sales within a certain number of years to be remitted to the master developer. Mulcahy was not receptive to other proposals to curb speculation by placing deed restrictions on lots that would require them to be sold to people who live or work in Routt County.

In addition to affordability, council members and residents also raised concerns about water, traffic and the prospect of the developer or Steamboat 700's future metro districts going belly up. But at the end of the night, the consensus of council was that they had the beginnings of an acceptable annexation agreement, at long last. Mulcahy and his partners purchased the Steamboat 700 property in early 2007. They submitted a formal petition for annexation last fall.

"I feel well protected from disaster if that were to be," Councilman Scott Myller said. "I'm convinced staff has been very conservative. It looks to me we've done about as good as we can."

Jerry Dahl, an attorney the city contracted to deal specifically with annexation issues, said the annexation agreement contains many layers of protection for the city.

"(Risk) comes with the territory," Dahl said. "If you want to enter this territory, I think you've done everything you can."

Many Routt County residents spoke in favor of the project Tuesday and urged council members to look past any perceived risks in an effort to try to meet the city's housing needs and create jobs.

"A good plan today is going to be a lot better than no plan in the future," Gary Jones said.

Hayden resident Brady Meier said he and his wife spend too much time commuting to their jobs, restaurants and amenities in Steamboat.

"Steamboat is what we participate in. It's where we want to participate in, yet we can't afford to live here," Meier said. "All we want is a reasonable house with a small yard for our dog that's big enough for two kids when the time comes and a spare bedroom for grandma and grandpa to come visit. : (Steamboat 700) needs to be annexed because we feel like this is our last chance to move back."