EDITORIAL: Springs Resort Management Evicting 16 Families on Eaton Drive, Part Two

Read Part One

A group of local activists, of various political persuasions, have assembled themselves over the past few days to try and address an unpleasant situation here in Pagosa Springs: the eviction, of 16 families in the dead of winter, from an apartment complex on Eaton Drive, by the new property owner, Olympus SRH Eaton LLC.

Olympus SRH Eaton LLC has reportedly purchased the two apartment building with the intention of converting them into ’employee housing’ for the Springs Resort. As many of our readers know, the Springs Resort is planning a significant expansion — perhaps 80 additonal hotel rooms, a new restaurant, a new spa, and two dozen more geothermal bathing pools overlooking the beautiful San Juan River in downtown Pagosa.

During the COVID pandemic, we’ve heard quite a bit of discussion and debate, locally and nationally, about personal freedoms, and the rights guaranteed by the U.S. Constitution.

It’s easily apparent — if we bother to look — that certain ‘rights’ are available only to those who can afford to buy them. For the apparent price of $2 million (according to Assessor records) — for example — Olympus SRH Eaton LLC purchased the legal ‘right’ to kick 16 families out of their homes in the middle of winter… not because the families failed to pay their rent or were otherwise abusive of the property, but simply because Olympus SRH Eaton LLC wants them out, right now.

Colorado has, over the years, created and amended certain laws (as permitted by the Colorado Constitution) that are meant to protect the ‘rights’ of people who do not have access to $2 million, but who might be evicted from their homes for whatever reason. I’m not personally familiar with these ‘tenants rights’ laws, although some of the activists who have — on a volunteer basis — become involved with helping the 16 Eaton Drive tenant families, appear to be more familiar with the rights a tenant family may have here in Colorado during a mid-winter eviction effort.

My friend Glenn called me the other day, after hearing about the families being evicted from the Eaton Drive apartments.

“What do they want our community to become?” Glenn asked rhetorically. “The City of Industry?”

“The City of Tourism Industry?”

Glenn was, of course, referring to a very strange city in eastern Los Angeles County: The City of Industry. As suggested by its name, the 12-square-mile city is almost entirely industrial. It is home to over 3,000 businesses employing 67,000 people, but it is “home” to only 220 full-time residents, thus making it the second smallest city in California by population (2010 Census).

The city was incorporated on June 18, 1957, and has since become the economic hub for the San Gabriel Valley. Yes, the City of Industry has shopping malls, and fast food franchises, and a golf course, and hotels… and many of the things you might imagine a real city having. What it doesn’t have, is homes for the 67,000 people who work there. It’s merely ‘The City of Industry’.

As Glenn and I pondered a potentially dystopian future for the community we know as Pagosa Springs, he was imagining “The City of Tourism Industry”. Lots of hotels, lots of vacation rentals… and restaurants… and playgrounds for tourists. But no actual homes for the families who work here.

Or, if homes still exist, they might be merely motel rooms that have been converted into tiny apartments — like the 98 tiny apartments proposed by the new owners of the Pagosa Inn & Suites, which appear to be sized for single persons — but not for any type of family.

Or the small, two-story, 450-square-foot cubicles proposed by Texas-based Servitas along Apache Street, renting out for possibly $1,200 a month.  Once again, perhaps suitable for single individuals.

But not families.

The Town of Pagosa Springs is in negotiations with Servitas, after that company won the competition for three downtown parcels (2 1/2 acres) of free municipal land, with a promise they would build perhaps 60 ‘workforce housing’ units on the three parcels. The Town has not yet revealed how large each cubicle apartment might be, nor how much they would rent for, but the Town Council did vote to enter into a “Pre-Development Agreement” with Servitas this past Tuesday (you can download the Pre-Development Agreement here, if you’re having trouble sleeping.)

From the original Servitas proposal:

A true mixed-income community:

Pagosa Springs is to be commended for seeking a public-private-partnership to meet the needs of a diverse set of incomes. Our proposed AMI stack will allow residents of many walks of life to live, work, and play among neighbors with various backgrounds, means, and perspectives. We envision 60 units total, which is just under the suggested limit of 64 units total.

  • 4 units will be deed-restricted as workforce housing for residents earning 60%-80% of Area Median Income (AMI).
  • 2 units will be deed-restricted as workforce housing for residents earning 120%-150% of AMI.
  • 54 units will be deed-restricted as workforce housing for residents earning between 80%-120% of AMI.
  • Rents are targeted at a 30% Rent-to-Income ratio. For instance, rents at 80% AMI for a one-bedroom apartment are $1,176 per month.

According to a survey conducted last July by Pagosa Housing Partners (PHP), the majority of workers responding to the survey live in one- or two-person households, and thus could presumably be served by a one-bedroom apartment. (Servitas used PHP’s survey, specifically, to justify their allocation of proposed housing units.)

But not all families can be served by a 450-square-foot cubicle. A “true mixed-income community” is not necessarily the same thing as a “true family-friendly community.”

As we note in the Servitas proposal, “54 units will be deed-restricted as workforce housing for residents earning between 80%-120% of AMI.” That is actually a huge range. The rents for a household earning 80% AMI might indeed be $1,176 per month, but the monthly rent for a household making 120% AMI would be more like $1,800.

So far, Servitas has not made it clear to the public how many of their small apartments would actually be available at $1,176 per month.

Nor do any of us currently understand how we can prevent Pagosa Springs from becoming “The City of Tourism Industry”.

A dystopian future is further suggested by the recent (or ongoing) eviction of 16 families at 158 Eaton Drive, by the Springs Resort…

Read Part Three…

Bill Hudson

Bill Hudson began sharing his opinions in the Pagosa Daily Post in 2004 and can't seem to break the habit. He claims that, in Pagosa Springs, opinions are like pickup trucks: everybody has one.