The Crested Butte Town Council voted 6-0 on May 18 to adopt both its Five-Year Housing Strategy and Five-Year Community Spaces Strategy, setting affordability and community infrastructure policy through 2031, while more than a dozen mobile home district residents packed an earlier work session to oppose voluntary zoning incentives they said would transform their neighborhood.
The housing strategy targets the 60- to 100-percent area median income range as the town’s most acute gap — households that earn too much for subsidized housing but too little for a market where mobile home units now sell above $700,000. Council directed staff to add language explicitly naming that gap in the executive summary before approving the document. The strategy pursues four approaches: supporting zoning code implementation through incentives and pilots, strengthening housing stewardship, staying opportunistic on acquisitions, and deepening regional and statewide collaboration. Annual check-ins with council are planned.
The community spaces strategy adds an executive summary, expands language around community connection, and refines partnership frameworks. Council confirmed Beth Goldstone and Kate Guibert as a two-member subcommittee — with Mayor Ian Billick as alternate — to develop long-range plans for the old fire station building, with a full overview scheduled for the June 1 meeting. Both strategies passed on motions by Mayor Pro Tem Mallika Magner, seconded by Goldstone. Housing Director Erin Ganser was absent; Community Development Director Mel Yemma presented in her place.
Mobile Home Residents Push Back
More than a dozen Block 5 residents and neighbors filled the chambers during the work session to oppose proposed zoning incentives for the Residential Small Lot District — the town’s mobile home neighborhood on the west side of town. Staff proposed allowing owners to voluntarily replace mobile homes with stick-built or modular structures up to 24 feet tall in exchange for a permanent deed restriction requiring owner-occupancy or long-term local workforce rental. No changes would be required of current units.
Yemma said the deed restriction would limit the buyer pool and suppress prices to keep units affordable. Residents disagreed.
“No one will spend a couple hundred thousand dollars for those upgrades and then put a deed restriction on it,” said Brandon Burns, of 122 Butte Avenue. Burns argued the incentive was designed for developers, noted the neighborhood has 30 units and only 60 off-street parking spaces, and submitted a written petition opposing all of the proposals.
“We are concerned about the second story idea and the possibility of stick-built houses being constructed,” said David Watkins, of 17 2nd Street. “Parking is also a concern with allowing bigger units. It’s already crowded.”
“Nothing is broken there,” said Eric Baum, of 101 Second Street. “It’s already the highest density neighborhood in town. You don’t need to double it.”
Michelle English questioned the town’s goals and said life in the neighborhood works as-is. Ted Connor raised safety and snow removal concerns in the dense neighborhood. Megan Reamer asked why the town would change what was working. Xavier Fane said the proposed density increases would make the neighborhood unrecognizable. Tallie Morrison, a 45-year resident, said the trailer park remains filled with locals even as units sell above $500,000. Molly Minneman, who lives in the nearby Red Lady Trailer Park, asked for a shading study showing 24-foot buildings next to 16-foot structures.
During the regular session public comment period, Morrison returned to urge preservation of the trailer park’s character. Burns appeared a second time, proposing the town compensate existing owners now in exchange for deed restrictions — a model similar to the suspended Good Deed program — rather than rely on future development incentives. An online commenter thanked staff for the Trash Bash volunteer cleanup and suggested the town turn off residential holiday lights in January.
Billick told residents no vote would be taken that evening and offered individual meetings. He said he would consider it a success if only one or two owners took up the incentive over time and asked whether council could cap the number of conversions. Council also discussed reviving the Good Deed program, which previously compensated owners a percentage of home value in exchange for deed restrictions; staff was directed to revisit the program’s economics in one to two years.
Lower Verzuh Referral Letter Amended
Council voted 6-0 to approve an amended referral letter on the Lower Verzuh major county subdivision proposal, which has reduced its unit count and increased its essential housing component — units at 140 to 220 percent AMI that would be built rather than simply platted. The proposal also includes a 3-percent transfer tax to support HOA affordability. Billick asked staff to amend the letter before the vote to stress three concerns: the 60- to 100-percent AMI gap the project creates but does not address, the need for the county to specify what happens if units are not absorbed, and the need for an impact statement on transit, recreation, and schools. Motion by Magner, seconded by Goldstone.
Zoning Code Update on Track for September
The work session covered progress on the broader zoning code update. Planning Manager Jessie Earley and Yemma presented proposed incentives for the Bellevue District — a 20-percent parking reduction in exchange for at least 500 square feet of deed-restricted commercial space plus one deed-restricted residential unit — and for the 6th Street corridor, where transit proximity would support a floor-area ratio increase from 0.5 to 1.5 with a 40-percent parking reduction.
Town Attorney Karl Hanlon and planning staff presented a simplified three-tier subdivision framework: exempt and minor subdivisions handled at the staff level with a BOZAR appeal option, and major subdivisions requiring a BOZAR recommendation. The next full draft of the zoning code and subdivision regulations is due June 15, with a BOZAR recommendation in June, first reading in July, and a target enforcement date of September 1.
Liquor License Renewed After Violation
Council voted 6-0 to renew the liquor license for Pitas in Paradise following a public hearing on a state-adjudicated violation. Owner Drew Victor said an employee served alcohol to an underage patron and also used a non-conforming takeout container. Victor accepted a four-day suspension rather than pay a fine, retrained staff, and did not renew his delivery and takeout permit this year. No public comment was offered. The license was renewed through May 18, 2027, on a motion by Goldstone, seconded by council member John O’Neal.
308 3rd Street Lease Approved
Council voted unanimously on second reading to approve a lease of the former fire marshal space at 308 3rd Street to the Gunnison County Metropolitan Recreation District. Staff said the building had vacancies and received flooring and paint upgrades before the lease. Motion by O’Neal, seconded by council member Kate Guibert.
Shared Trash Ordinance Directed
Sustainability Coordinator Dannah Leeman Gore presented a proposal allowing up to two units under common ownership on the same parcel to share a single 64-gallon trash bin while retaining a 96-gallon recycling container. The program would be voluntary, apply only to residential customers under the town’s waste management contract, and carry no financial impact to the town. Up to 175 households — including 118 accessory dwelling units — could potentially participate. Council directed staff to draft ordinance language for two readings.
Budget Pressure on the Horizon
The town’s marshal facility addition is carrying a concept-level construction estimate of $5.25 million, based on input from two contractors. Design costs are not yet determined; grant funding is being pursued for the design phase.
Hanlon told council the state legislature has concluded its session, that the HOME Act affecting local housing authority takes effect in January 2028, and that state budget cuts may affect grant funding the town had anticipated. Town Manager Dara MacDonald said sales tax revenue is down significantly and that a deeper budget review is coming by mid-June. The June 1 meeting will open with a two-hour work session on long-range financial planning and potential revenue measures.
In council reports, O’Neal said the Valley Housing Fund closed on its second Block 5 trailer — at 112 and 114 Butte Avenue — about two to three weeks ago, and also acquired a 3.5-acre Wilson parcel north of Gunnison sold to Archway Impact Development. A third trailer is targeted for sale under a 3-percent appreciation cap. Council briefly confirmed that Crested Butte already prohibits drive-throughs under its existing code.
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