The Crested Butte Town Council approved two five-year planning strategies and a liquor license renewal at its May 18 regular meeting, while more than a dozen mobile home district residents showed up during the work session to oppose proposed zoning incentives they said would open their neighborhood to developers and destroy its character. The council also passed consent agenda items adopting the town’s PROST plan and approving spring community grants, directed staff to draft a shared-trash ordinance, approved a referral letter on a major county subdivision proposal, and appointed a two-member subcommittee to lead public outreach on a potential second-home excise tax.
Mobile Home District Residents Oppose Zoning Incentives
Residents of the Block 5 mobile home district packed the work session to oppose proposals under the ongoing zoning code update that would allow property owners to build second stories or replace mobile homes with stick-built structures in exchange for deed restrictions.
David Watkins, of 17 2nd Street, said residents were united in opposing the second-story and stick-build proposals and the parking problems denser development would create. Brandon Burns, of 122 Butte, told the council the deed restriction incentive would benefit developers, not current homeowners. He said if even a few properties converted, the rest would follow. “Nobody likes any of your proposals,” Burns said, “and we’re all prepared to do whatever we have to do to stop it.” Michelle English said the neighborhood was already too dense and had too little parking, and asked the council to state what it was trying to accomplish.
Community Development Director Mel Yemma said the town was not proposing to force any changes — participation in the incentive program would be strictly voluntary. Mayor Ian Billick said no decisions would be made that night and that multiple public comment opportunities would come before any vote.
Council members debated the problem without resolving it. Billick said he would consider it a success if even one or two units took up the incentive and became deed restricted. Council member Beth Goldstone said she would prefer to preserve the neighborhood as it is but worried that without action, future ownership would lose its affordable character. Council member John O’Neal noted that the Valley Housing Fund’s three trailers in the district would all be deed restricted. No vote was taken. Staff offered to organize a separate meeting with neighborhood residents.
Five-Year Housing and Community Spaces Strategies Adopted
The council voted 6-0 on each to approve both a five-year housing strategy and a five-year community spaces strategy, the companion documents to the town’s 2025 Community Plan.
Yemma presented the housing strategy in place of Housing Director Erin Ganser, who was absent. The strategy focuses on supporting zoning code incentives for deed-restricted housing, strengthening stewardship of the town’s existing housing portfolio, and monitoring how the Whetstone development is absorbed before pursuing major new projects. A biennial rental market analysis will begin this year to establish a baseline. The council asked that the executive summary be revised to more explicitly identify the housing gap at 60 to 100 percent of area median income. Staff said it would make the change before finalizing the document.
The community spaces strategy establishes a framework for preserving and expanding community-serving businesses, nonprofits, and gathering places. A council member asked during discussion whether any other Colorado communities had adopted a similar plan; staff said none they were aware of had done so explicitly. Staff plans to bring a draft outline for a community spaces challenge focused on the old fire station building at the June 1 meeting.
Zoning Code Update: Lighting, FAR, and Subdivision
Town planners briefed council on three additional sections of the draft zoning code during the work session.
Senior Planner Jessie Earley said the lighting update would consolidate holiday lighting deadlines — currently split between January 15 and April 15 — into a single April 15 cutoff and incorporate dark-sky best practices. Council members expressed interest in adding a nighttime shutoff hour for decorative lights. Staff said the details would return at the next BOZAR meeting.
On floor area ratio, Earley said the current code definition does not match how the town has actually calculated FAR for 20 to 30 years. Staff proposed shifting to the International Building Code method — measured per floor from the interior wall face — while exempting basements, egress covers, mechanical equipment, and small front porches. A porch exemption of up to four feet by eight feet is intended to encourage front porches that the town’s design standards have long promoted.
A planning consultant presented a streamlined subdivision framework creating a new “exempt subdivision” category for deed-restricted micro-lots and accessory dwelling unit condominiumization. Those applications would move through staff approval with a BOZAR appeal option, reducing the burden for homeowners seeking to add deed-restricted units.
Staff said a full draft of the updated zoning code chapter is expected at the June 15 meeting, with a BOZAR recommendation in June, first and second readings in July, and a proposed effective enforcement date of September 1. Design standards integration is targeted for December.
Referral Letter Approved on Lower Verzuh Proposal
The council unanimously approved a referral letter to the Gunnison County Planning Commission on the amended Lower Verzuh subdivision proposal, a large residential development south of town.
Billick said the town’s concern was that the project — roughly 450 units targeted at 140 to 220 percent of area median income — would generate demand for workforce housing at 60 to 100 percent AMI but provides nothing in that range. The letter asked the county to require the developer to quantify the workforce demand the project creates and address it, and called for additional impact studies on transit, recreation, and schools. Council member Gabi Prochaska, participating via Zoom, echoed concerns about the enforceability of deed restrictions and parking impacts. Council member Beth Goldstone said she appreciated the letter’s tone and noted the developer’s proposed 3 percent real estate transfer tax as a positive element.
Pitas in Paradise Liquor License Renewed
The council voted 6-0 to renew the liquor license for Pitas in Paradise through May 2027 after a public hearing required by a prior code violation.
Owner Drew Stichter said an employee served alcohol to an underage compliance operative and that the alcohol was delivered in a to-go container that did not meet takeout permit requirements. He said he took a four-day suspension rather than a fine and had retrained all staff. Town Attorney Karl Hanlon confirmed the license had been adequately noticed for the public hearing. No members of the public commented. Stichter did not renew his delivery and takeout permit for the current year.
Consent Agenda
The council approved the consent agenda 5-0, passing the April 20 regular meeting minutes, the spring 2026 community grant recommendations, adoption of the Parks, Recreation, Open Space and Trails plan, and Ordinance 7, Series 2026, on second reading authorizing a lease of a portion of 308 Third Street to the Gunnison County Metropolitan Recreation District.
Shared Trash Ordinance Directed
The council directed staff to draft an ordinance allowing up to two dwelling units on the same parcel, under common ownership, to share a single trash and recycling can under the Save as You Throw program. Sustainability Coordinator Dannah Leeman Gore said the change responds to residents who were already informally sharing cans and were confused when the current code was enforced. Units opting to share would use a 64-gallon trash can but keep their full-size recycling bin. Staff estimated 175 households, including 118 accessory dwelling units, could be affected. Two readings will be required before any ordinance takes effect.
Community Outreach Subcommittee Appointed
The council appointed council members Beth Goldstone and Kate Guibert to a two-member subcommittee to work with staff on public outreach and polling related to the potential second-home excise tax being considered for the November 2026 ballot. Town Manager Dara MacDonald said the town has $25,000 budgeted for polling and has received a proposal from a pollster at $15,000. Council member John O’Neal offered to serve as an alternate. The appointment passed 6-0.
Multiple residents submitted written comments ahead of the meeting on the proposed excise tax. John Simmons offered to discuss an alternative sales-tax approach. Brennan Riley, Jeff Lehman, Hayden Spencer, and Nancy Benson wrote in opposition. Lisa and Joseph Massa asked the town to reconsider residency-based affordability requirements. Jamie Hinkle submitted an analysis of tax burden calculations. Karen Carroll suggested the real estate transfer tax as a more effective tool. Laird Kagan wrote about federal budget impacts on Gunnison Valley Hospital.
Legal and Other Business
Town Attorney Karl Hanlon briefed the council on the state legislative session, noting that none of the Colorado Association of Ski Towns’ priority bills gained traction this year. He said the town will need to address the HOME Act, which takes effect in January 2028, and expressed concern that the law does not adequately account for affordability in communities like Crested Butte.
A council member noted during other business that Crested Butte already prohibits drive-throughs under existing code, a point raised after a visit to San Luis Obispo, California, where a similar ban has been in place since 1982.
The council’s next meeting is June 1, with a two-hour work session beginning at 6 p.m. on long-range financial planning and revenue measures.
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