Estes Park Housing Authority Misuse of STR Linkage Fees & 6E Tax

[Robert Pries]

Hello, my name is Rob Pries,

I am a multi-STR owner and have owned property in Estes Park for almost fifteen years. I also owned a unit in the Fall River Village Resort as one of three independent property owners in that complex from 2012 to 2021, so I know that property very well too.

I recently started digging into how the "linkage funds" from almost 600% of increases in our annual STR fees, and the "6E" tax funds, are being used - and I have to say, I'm deeply concerned. 

I've been following the recent Fall River Village situation through public documents and recent reporting, and I understand the Housing Authority is considering using the SkyView Events Center as office space. If that's the case, it raises serious questions. Using such a high-profile, purpose-built venue as an office doesn't seem aligned with the mission of providing housing for those in need -  it feels more driven by ego and image than practicality.  Is a modern, expensive, building like SkyView the right image for a Housing Authority? Is there no oversight their use of funds? 

I know that there is a lot of office space in the lower part of the resort, certainly more than enough for a small town housing authority (easily 8-10+ people), as well as a huge over-sized garage that served as the resort's primary storage, and a large conference/gathering room. 

I think the misperception is that SkyView is somehow “free” (included in the resort purchase), so it might as well be used for something, but that is wrong. It’s a special purpose building that has to be worth at least $3M. The finance interest alone on that at current rates would have to be more than $16,000/month, which is the same as paying that much for office space. The justification is that they are saving $2800/month in rent, but obviously that doesn’t make sense.

Also, if all the upper units aren't sold together, SkyView won't be usable as a venue again, which would essentially render one of Estes Park's best venues completely useless. That would erase millions of dollars of value that could’ve been used to provide housing for many other families. 

I, and many others are asking: why are we buying the nicest, high-end, mountain-view, riverfront properties for affordable housing? Those townhomes are some of the nicest in all of Estes Park. It's hard to understand how this maximizes impact when those same funds could potentially support many more units elsewhere.  

This feels like an egregious misuse of resources and one that could reflect poorly on the community if not addressed. 

Several concerned STR owners and Estes Park residents, including myself, have put together a letter and formal request for badly needed oversight and a proposal for what we feel would be a better use of these funds for the community.  

Please find attached that letter for your review.

[Kirby Hazelton]

Hi Rob,

Thank you for your email and for the joint letter. I've received and read it. Did you also direct this to the EPHA Board? I understand you are addressing the Town, Larimer BOCC, and VEP but want to make sure the Housing Authority Board receives your comments and has an opportunity to consider, reply, address, etc.

Thanks again,
Kirby

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Kirby Nelson-Hazelton

Town of Estes Park Trustee

khaz...@estes.org 

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[Mark Igel]

Mr Pries,

Thanks for your articulate email about the housing authority. Several of the points you raised are among those on my list for discussion at an upcoming joint study session with the housing authority and town board. I believe that is scheduled for June 9th, the earliest date the Housing Authority was available.

I have been surprised at the level of interest in this issue, which has surfaced publicly following the email correspondence you referred to. I am looking forward to a candid discussion in public, and would encourage you to participate through your continuing engagement.

Sincerely,

Mark Igel, Trustee

Town of Estes Park  |  PO Box 1200  |  Estes Park, Colorado 80517

www.estes.org
Direct voice mail: 970-577-3713

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[Gary Hall]

Thanks, Robert (and those you represent). We do have a June 9 study session scheduled with EPHA to have dialogue around many of these items, including the recent rejected offer for the upper units, as well as the office space and other considerations. I do not see June 9 as the end of the discussion, there may certainly be additional exchanges. And, I do want to see robust interchange between the Housing Authority and the Town Board on a regular basis (including but not limited to liaison reporting). So, those steps are coming. 

Some of my current understanding and surmise include:

The debt service costs are being paid regardless of whether the event room is used or not, so saving downtown rental fees by putting simple offices up there would help. My understanding is that it would be simple modular cubicles, desks, tables, printers, and easily reversible in the future when/if a more elaborate step is taken to use the events room in bigger ways. 

Most of the focus (again, my opinion) has been on getting the workforce housing up and populated and getting to the partial sale of units, so less focus on long-term future of the events room - so far. I expect there will be a future point where other options are explored for that building. 

I won't try to get to all/most of the points made in email. Thanks for the information in your email and the letter. It's very useful in advance of our discussions with EPHA. Thanks for writing and for your  concerns for the community. We knew that FRV was a rare, close-to-downtown opportunity, and the deal was complex and challenging. It falls to us to ensure that the long-term result is beneficial in the ways expected and desired. Take care.   

Gary M. Hall

Mayor of the Town of Estes Park

Cell 970-744-9052

Email: gh...@estes.org