After considerable discussion, the Town of Pagosa Springs has released a ‘Request For Proposals’ (RFP) for a housing project tentatively referred to as “Eagle Mountain Workforce Housing.”
The Town of Pagosa Springs, Colorado seeks to enter into a public-private partnership with a qualified developer to build, own and manage between 12-16 workforce housing units within the town limits of Pagosa Springs by December of 2023. The Town may consider alternative proposal types. Workforce housing units are a defined need in Southwest Colorado, and the Town is accepting proposals from firms that have the capacity, vision and expertise to help us meet the growing demands of our community’s work force.
The RFP can be downloaded here.
The Town purchased the half’-acre property at the corner of Apache and South Fifth Street, in a residential neighborhood that traditionally served lower-income families — very modest homes that most recently changed hands in the 1980s for around $4,000 each…
The neighborhood has lately seen the construction of new, short-term rentals — STRS, vacation rentals — that in some cases were purchased for $500,00 to $600,000.
The half-acre parcel in question, purchased by the Town government last September has an existing foundation in place, originally intended for a high-end condominium complex. The project appears to have gone into foreclosure in 2019. The Town paid $230,000 for the parcel, with the intention of creating a public-private partnership to develop workforce housing — possibly, atop the existing foundation.
From the Town RFP:
The property is located near amenities such as the high school, the San Juan River, recreational opportunities such as the Riverwalk Trail, Yamaguchi Park, and Reservoir Hill…
The Town seeks to encourage workforce housing development by offering up to 16 units that serve residents employed in the local workforce area (e.g. employed within Archuleta County) at the area median income (AMI) level of 60% to 150%. The Town is interested in proposals that the developer finds best meets the needs of the local workforce while providing quality units that are largely for rent. The Town may entertain a mix of for rent and for sale units, as well as a mix of units serving various income levels within the 60% to 150% AMI ranges…
The “area median income” is a thorny concept, in my opinion. The dollar amount used by government such as the Town of Pagosa Springs, to define “median” income — the income of a person located exactly in the ‘middle’, with half the population making more, and half the population making less — this dollar amount is typically borrowed from CHFA (Colorado Housing and Finance Administration) or HUD, rather than being calculated locally. Unfortunately, in a community like Pagosa Springs, where 50% of the population are retirees and the remaining 50% work largely at low-paying jobs, the “area median income” does not accurately represent the “median income” or working families and individuals.
While the actual “median income” for an individual household in Archuleta County might in fact be calculated by CHFA at around $55,000, the “median income” among all employed individuals is probably closer to $30,000. When the Town offers a range of “60% to 150%” in an RFP, they are actually choosing a range that extends between “the median working stiff with a decent job on low end and a very wealthy retired couple on the high end.”
We also note that most American households, in 2021, consist of a single person, or a single parent with children.
To truly subsidize workforce housing for those most in need, community leaders ought to first (in my humble opinion) stop and calculate an accurate number for “area median workforce income.” But that has never been done.
From the Town website:
The Town intends to negotiate a right of development agreement with the awarded bidder. This will lock in the partnership for up to five years. The developer will have until August 1, 2022 to begin vertical construction, and until December 31, 2023 to complete construction of the units and receive a certificate of occupancy.
Any requests for clarification or additional information deemed necessary by any respondent to present a thorough proposal shall be submitted in writing to Andrea Phillips, Town Manager, P.O. Box 1859, Pagosa Springs, Colorado, 81147 or aphillips@pagosasprings.co.gov, referencing this Request for Proposal.
Proposals are due June 11, 2021.