ASPEN, Colo.—A sweeping development including two new hotels, a new lift and affordable housing in this mountain resort may not be possible because of finances.
A consultant told Aspen’s Lift One task force Thursday that the development is 25 to 35 percent short of the financing developers would need to proceed. The task force made up of hotel executives, city officials and residents was assembled after city leaders rejected separate plans for a new hotel last year.
Financial consultant Byron Koste told the task force the outlook for a new Aspen development is grim. As planned, the development would include six buildings, comprising two large hotels, an acre of underground parking, affordable housing and a Poma lift ascending the hillside. The development would be at the base of Lift 1A.
“To put it mildly, these numbers are a little upside down,” said Koste, executive director of the University of Colorado Real Estate Center.
The Lift One task force is to recommend to the city council next week whether the development should proceed.
Task force members are debating whether part of the project—the section of affordable housing—should be scrapped to lure investment. The plans contain approximately 16,000 square feet of affordable housing that could equal tens of millions of dollars if the space could instead be sold as a part of the hotels. But the idea has critics who say Aspen is already overloaded with pricey condos.
“It’s important we have people to take root here,” said task force member Denis Murray.
The task force also is looking at scrapping some of the underground parking originally planned. Lodge at Aspen Mountain developer John Sarpa said underground parking can cost up to $75,000 per space.
Mayor Mick Ireland and Community Development director Chris Bendon have said the city may be willing to waive some of the estimated $28 million in fees the development would incur.
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