Image: Artist rendering of small housing units proposed by Servitas in 2021.
We know very little about the scheme underway at Pagosa Springs Town Hall, since Town Council voted unanimously to enter into auctions on three bankrupt condo complexes located near Village Lake, with the apparent understanding that, if they win the auctions, they will borrow up to $9.5 million, placing the obligation to repay that money onto the shoulders of the town taxpayers.
We might describe this project as an example of American socialism at work. American socialism has its own unique style, and in cases like this, that style involves multi-million dollar loans from wealthy investors to be repaid by local taxpayers.
But that’s how almost all housing works in America, whether it’s capitalistic or socialistic. Money is borrowed, by a family or a corporation or a government, and the rich get richer.
I quoted local resident Nancy Rea, back in Part Six, wondering on June 29 if the Town Council fully understood what they were getting all of us into. Because, in fact, although seven Council members can make these multi-million-dollar decisions, they know that we — the citizens — will have to foot the bill if the project fails.
Local resident Gary Noland also offered public testimony on June 29. His concern focused on how his neighborhood might be affected, if the Town wins the auctions and converts these bankrupt Wyndham timeshare condos into workforce housing.
Mr. Noland:
“I hope these some consideration into how the parking is going to be handled, based on the number of units verses the number of parking spaces…
“The Master Place condos are two-bedroom, two-bath units, so they are not large. I hope there’s some consideration into how many individuals can live in each of these units. Obviously, I have no idea what considerations have taken place, in reference to these thoughts. Just asking you to make sure that the quality of life for everyone out there in that area is upheld.
“It’s going to take a lot of work to keep these building up. Wyndham has done an excellent job… they keep it clean, they keep the buildings up… it looks nice. Keep in mind, this complex is right in the middle of residential housing…
“I have no issue with workforce housing, and no issue with workforce housing being at Masters Place. I ask you, as a group, to make sure you uphold your part of the obligation, in making sure that everyone’s quality of life stays the same. The people moving in to Masters Place, and the people around it.”
Obviously, Mr. Noland has no idea what considerations have taken place, because all the Town Council discussion about this project have taken place behind closed door, in executive sessions. The Council has made zero effort to inform the taxpayers about the details of their discussions.
This is a separate (but still potentially serious) problem from — in Mr. Noland’s opinion — the Town’s obligation to make sure everyone’s quality of life “stays the same.”
I’ve lived in downtown Pagosa Springs for 33 years and I can vouch for the fact that nearly everyone’s quality of life has not stayed the same. In some ways — in my opinion — my quality of life has improved. In other ways, it has been diminished. The only constant has been ‘change’.
One of the biggest changes has been financial.
33 years ago, Pagosa Springs was one of the most ‘affordable’ mountain communities in Colorado. We could look at other resort communities like Aspen and Vail and Telluride, and even to some degree, Durango, and thank our lucky stars that we could afford to live surrounded by scenic beauty, clean air and clean water.
The stats provided by local realtor Lee Riley last month show the change in just four years.
Through June of 2023, 64% of the homes sold in Archuleta County were over $500,000.
Of the 145 homes sold through June this year, 109 of them — 75% — cost more than $500,000.
What does this mean for the ‘quality of life’ in our community? And then, the question facing the Town Council and the rest of our local governments, and also our business owners:
Can Archuleta County save itself?
In the summer of 2007, Archuleta County had about 7,050 persons in its civilian workforce. That was about 64% of its population.
In May 2026, Archuleta County had about 6,740 in its workforce. About 46% of its population.
Workers are disappearing, as a proportion of our population. Most people probably didn’t notice this change, because it happened slowly.
Has this change affected our ‘quality of life’? I have to assume it has.
We knew about these demographic problems a decade ago, and in 2020 the Town of Pagosa Springs went out on a limb and purchased two half-acre parcels on Apache Street, with the intention of donating them to an organization that would build workforce housing.
In 2021, a fledgling organization called Pagosa Housing Partners offered to build 8 units on one of the parcels, with no financial risk to the taxpayers. The proposed fourplexes, to be assembled from modular units, looked like this:
The Town Council decided instead to engage a Texas company called Servitas to build up to 64 units of rather small (and rather expensive?) apartment units. The negotiations with Servitas were conducted behind closed doors, and it wasn’t until after the contracts were signed that the taxpayers learned we would be assuming all the financial risk, if the project failed.
It’s now five years later, and Servitas has yet to build any units.
Instead, we have a new scheme, whereby the Town Council could potentially put the taxpayers in debt for three bankrupt Wyndham condo complexes.
How this might affect the ‘quality of life’ for the Village Lake neighborhoods is unknown. The taxpayers have been given zero information regarding the Council’s decision to enter into this auction, other than the amounts of the bids the Town was willing to make as the ‘stalking horse’ bidder.
The taxpayers would assume all the financial risk.
Will the Council do the right thing, and ask voter permission to enter into this risky venture?
It doesn’t appear so. The Council met again behind closed doors, on Tuesday July 7, to discuss the Wyndham condo venture, and adjourned without providing any public information.
Read Part Nine… tomorrow…