Did the Pagosa Springs Planning Commission make an expensive mistake last night?
Let’s hope not.
The Commission unanimously voted to approve a ‘Sketch Plan’ for a proposed subdivision tentatively named ‘Pagosa West’, on 100 acres immediately south of the City Market shopping center and immediately east of the Pagosa Springs Medical Center. The potential developers are the Dragoo family from Montrose, applying as ‘Arena Labs LLC’.
You can download the subdivision application here.
The 100-acre parcel in question is within the town limits, as is the Pagosa Lakes Ranch subdivision that borders the proposed development along the south property line. As I understand the history of the immediate area, the property in this area was once owned by Tom Grant — the developer of the City Market shopping center and the Pagosa Lakes Ranch subdivision.
Mr. Grant also donated 14 acres, on the west side of South Pagosa Boulevard, to the Upper San Juan Health Services District (USJHSD) to allow the construction of the Pagosa Springs Medical Center.
The scenic 100-acre parcel under consideration last night was apparently intended to be developed as part of Pagosa Lakes Ranch, to include commercial parcels along Highway 160. The property changed hands in 2003 and again in 2019, but remained undeveloped.
Last night’s presentation to the Planning Commission was handled by Pagosa architect Brad Ash, who highlighted some of the adjustments (improvements?) to the previous two Sketch Plan presentations — the one tabled in March 2025 and the one withdrawn in October 2025. The improvements included a much larger setback from the Pagosa Lakes Ranch for a proposed ‘workforce housing’ complex at the west side of the proposed subdivision. Other changes included a division of the project into 12 phases, which — we were told — might take up to 20 years to be completed.
I would put my money on “30 years” if I were a betting man, to judge by the obvious lack of development in the nearby 90-acre Aspen Village subdivision, which is now 20 years old and still half-vacant.
Mr. Ash indicated that the only project that seems somewhat certain to be developed within the next couple of years is the ‘workforce housing’ complex, although the developers claim they are negotiating with someone to purchase the northwest corner as the site for a future gas station.
I am putting the phrase ‘workforce housing’ in quotes because the developers have not yet revealed the projected rents for the (possibly 88) apartment units. Based on previous presentations, my suspicion is that the apartments will be aimed at higher-income households.
The Town government obtained a grant about three years ago to help fund the infrastructure for the apartment complex and the road serving it.
You can click the map for a larger view.
Practically everything about this proposed development is still unknown, because this is merely a ‘Sketch Plan’ — meaning that this was intended to be a ‘conceptual’ approval. None of the actual buildings have been approved, nor has the subdivision itself been finally approved; final approval comes with the Preliminary Plat followed by the Final Plat. There’s no proposed timeline for the various phases. The developers could conceivably request an adjustment to the parcel sizes in the future — and even request a zoning change — and knowing the Town planners as I do, the developers would likely get those approvals. We don’t know if La Plata Electric Association (LPEA) is able to serve the subdivision’s full build-out. Pagosa Area Water and Sanitation has not yet been asked to run the necessary water and sewer modeling.
We don’t know if the development will preserve environmental and scenic values.
And speaking of environmental and scenic values, one interesting point of discussion was raised by Mr. Ash, and was supported by the audience during public comments. (This was a required public hearing.)
The property includes a Ponderosa pine forest, including some trees that might be 200 years old or older. Mr. Ash noted that Arena Labs has been in discussion with neighbors around the idea of dedicating some of the forest as a public park, and said the developers were open to the idea.
A couple of audience members noted that the Town of Pagosa Springs has ten municipal parks, of various sizes, within the historic downtown area — but zero parks in the uptown area, where the majority of Pagosa’s population lives.
Would the Town be willing to partner with the developers to establish the first uptown municipal park, and preserve some of the ancient trees and the existing wildlife corridor through the property?
Heidi Dragoo was representing her family at the presenters’ table, and she offered this comment:
“We fully intend to do some kind of park. So I appreciate the comments that you all have made about that.
“Now what that looks like? I want y’alls input on. And I want community input. I want the Town involved… there’s a ton of funding out there, as you already know. We can go after that, together, and we can make that really great…
“We are absolutely committed to creating really great, natural open spaces for the community to use, as part of this development. I just want everybody to hear that, because that matters.
“I don’t know what that looks like, but let’s make it great together…”
As I mentioned, practically everything about this proposed development is still unknown. We know that the Town has a grant to be used to promote ‘workforce housing’ — however that might be defined in the future. We know that, according to Heidi Dragoo, the developers are absolutely committed to creating really great, natural open spaces for the community to use.
Will there be a gas station at the northwest corner, right across the highway from three already existing gas stations and a new Tesla charging station? Time will tell.
Will the Dragoos construct streets and water lines and sewer lines and the rest of the necessary infrastructure… and then watch the development remain mostly vacant for the next 30 years?
Let’s hope not.