Over the last several months, Breckenridge has been planning what officials describe to be the last shot at building a workforce-centric neighborhood attainable for locals — the Runway Neighborhood. 

Officials have stressed the importance of thorough decision making as they have gone back and forth on home prices, potential income caps, the inclusion of accessory dwelling units and the types of affordability mechanisms that should be used. 

Ethan Guerra, a Breckenridge planning commissioner who has a background in building, made public comment at a Breckenridge Town Council meeting May 13 regarding some of the parameters being contemplated for the Runway Neighborhood. Guerra said he attended the meeting “as a citizen and a constituent” rather than as a planning commissioner.

Ahead of the meeting, he submitted a written letter via email noting that the concerns were not formulated in a bubble, but are reflective of numerous community members’ sentiment. He ultimately encouraged more examination of “nuanced topics” that accompany building workforce housing in the region. 

The first concern he broached regarded the details of the proposed deed restrictions and the inclusion of accessory dwelling units in the project. He said the town’s usage of the restrictions in this project and in others has left him wondering about the “long-term socioeconomic consequences” on Breckenridge’s year-round population. 

“I am increasingly concerned that, as we apply different deed restrictions, financial restrictions and (accessory dwelling units) to the project products that we offer, that are we are boosting the potential accumulation of wealth of those able to buy the higher-end units, while restricting the potential of those that are only able to purchase the lower-end units,” he said.

Guerra said he understands the intent behind the town’s usage of deed restrictions, but he pointed to the potential for adverse effects in how they are structured.

Breckenridge’s deed restrictions vary in intensity, with some placing appreciation and income caps on properties, while others have a requirement that the renter or buyer of a unit live and work in town or Summit County. The heftier deed restrictions come with a higher subsidy, and they are intended to produce a lower-cost unit for lower income earners. The “light” deed restrictions come with a lower subsidy, making for a higher unit price compared to units with a more robust deed restriction, which is mostly intended to have a unit designated via a deed for a member of the local workforce.

Guerra said this is another situation where the financially fortunate get a leg up, because those with light deed restrictions have the “opportunity to build wealth by unrestricted appreciation” while those who need a more robust deed restriction to own a unit do not.

In the same vein, he said he took issue with the council’s interest in restricting homeowners whose incomes qualify them for lower-priced units in the Runway Neighborhood, which are proposed to be priced just under $400,000, from owning other property. He said this is another instance in which the more financially fortunate are given the opportunity to extend their wealth that others in lower income brackets are not.

He was also worried about the plan to include accessory dwelling units, which owners could earn additional income from via renting, on the higher-priced units. He pointed to the idea as another way the town would be subsidizing more financially well-off buyers as opposed to mid- to low-income buyers. He suggested this could perpetuate the “social stratification” of the community.

While he was limited to the town’s three-minute speaking limit for public comment, Guerra outlined further concerns in a letter he sent the town.

In the letter he wrote: “In short, winning the housing lottery that allows one to purchase a four-bedroom home with an (accessory dwelling unit) would, in effect, be winning a financial trifecta underwritten by the taxpayers.”

Guerra said he has no financial stake or business connection to the project. While his last name is attached to one of the companies helping to build the neighborhood, he said he is not part of that company. He said the owner of the company and the developer of the project, Susan Allen-Sabo, is his ex-wife, and he used to be a part-owner of the company but no longer is.

In response to his comments, the town of Breckenridge provided the following statement: “The Runway Neighborhood is intended to provide new home ownership opportunities for local workforce. The neighborhood will include a variety of housing types and price points with homes starting under $400K. We heard and understood Mr. Guerra’s comments, and we are still working on ADU’s, deed restrictions and other affordability aspects of the development.”

What the neighborhood could look like

The town has committed a subsidy of $33 million for Phase 1 of the Runway Neighborhood, expected to yield 81 units. At an April 11 meeting centered on summer tourism, Town Manager Shannon Haynes told attendees there was some uncertainty around whether the entire project as planned would happen.

In total, the project could produce 148 units, but a staff memo from the May 13 meeting states “there is no commitment to Phase 2.” If the town were to go forward with a phase 2, it’s been discussed that the overall subsidy could come closer to $50 million.

After a handful of meetings hashing out the number of units, officials chose a neighborhood layout including 45 townhomes, 42 duplexes and 61 single-family homes.

Citing economic volatility and a need to refine the negotiating terms of the project with the developer, the town has used three executive sessions in the past two meetings for officials to discuss the matter.

There were no details discussed or included in the May 13 staff memo indicating where the town landed on pricing for the units.