The Salida City Council unanimously approved a $452,945.90 utility replacement project contract with Pridemore Construction during their January 20, 2026 meeting at City Hall, with total project costs reaching $498,240.49 including contingencies. The council split 4-1 on Resolution 2026-03 establishing a policy for transferring money from the city’s $2.1 million affordable housing fund to cover building permit fee waivers, with Council Member Suzanne Fontana casting the sole dissenting vote citing concerns about fund priorities and declining short-term rental tax revenue. Council members unanimously expanded the Public Art Commission into a broader Arts and Culture Advisory Commission, increasing membership from seven to nine members with new responsibilities including budget evaluation and partnership reviews. The meeting featured extensive public comment from theater professionals and community members challenging rising Steam Plant rental costs they say are pricing out local performing arts groups. Mayor Justin Critelli and all council members also approved a five-year communication tower lease generating $750 to $1,545 monthly revenue for the city. The council directed staff to write a support letter for Chaffee Housing Trust’s Two Rivers Phase Two project without committing specific fee waiver amounts.
Housing Fund Transfer Policy
The approved policy requires financial analysis before any transfers from the affordable housing fund to cover fee waivers for projects with at least 50% permanently deed-restricted affordable housing units. City Administrator Christy Doon explained the policy formalizes existing 2020 fee waiver guidelines that weren’t consistently enforced.
The affordable housing fund currently holds $2.1 million but projects only $55,000 uncommitted by year-end. Council members engaged in extensive debate about whether to prioritize grant matching versus fee waivers.
Steam Plant Theater Pricing Debate
Multiple residents during public comment challenged rising Steam Plant Theater rental costs, with theater professionals reporting total costs now exceeding $1,000 and forcing some groups to cancel performances after decades of community programming.
Residents reported pricing now exceeds typical $1,000 concert revenue, forcing cancellations after decades of performances. Speakers questioned whether full economic impact analysis was considered, citing $40 per patron spending and potential $1.5 million revenue impact.
City staff corrected misinformation about pricing, clarifying the theater package increased from $750 to $875, a 16% increase rather than doubling. Staff compared Salida’s $1,050 total pricing to Aspen’s weekday nonprofit rate of $1,628 total.
Arts Commission Expansion
The council unanimously approved transforming the Public Art Commission into the Arts and Culture Advisory Commission. Art, Parks, Recreation and Culture Director Diesel Post explained the commission will advise on the Salida Arts and Culture Fund through the Community Foundation.
The new structure increases membership to up to nine members with expanded responsibilities including budget evaluation, funding priorities, and creative sign permits. Multiple residents advocated for performing arts representation on the expanded commission.
Communication Tower Lease Revenue
Council members approved a five-year lease renewal with Smiling J LLC d/b/a Hilltop Broadband for communication tower space. Monthly rent starts at $750 in February 2026, escalating to $1,545 by February 2030.
The lease includes 4% annual increases during extension terms and $40 monthly utilities with 10% increases each extension term.
Infrastructure Investment
The council approved the 2026 Utility Replacement Project as part of the consent agenda without discussion. The contract with Pridemore Construction covers essential infrastructure improvements throughout the city.
Housing Trust Support Request
Read McCulloch from Chaffee Housing Trust requested building permit fee waivers for the Two Rivers Phase Two project, eight affordable housing units at 80% area median income. The request requires city response by February 2nd for state grant application purposes.
After extended debate about the newly passed transfer policy requirements, council members directed staff to write a support letter highlighting existing fee reductions without committing specific dollar amounts. Estimated fees total $15,000-$18,000 for the project.
Financial Performance Update
Treasurer Ben Gilling reported November sales tax increases of 2.7% for city portion and 8.2% for county portion, totaling 4.1% higher than previous November. Year-to-date sales tax remains 4.2% higher through November.
Third-quarter 2025 lodging taxes declined with occupancy lodging tax down 2.3% and short-term rental tax down 0.1%. Year-to-date through September shows occupancy lodging tax down 4.3% and short-term rental tax down 3.1%.
Additional Council Actions
Council members unanimously appointed Council Member Shelley Schreiner as liaison to the Arts and Culture Advisory Commission, replacing Council Member Alisa Pappenfort who had scheduling conflicts. The council also approved graywater control regulations allowing opt-in water conservation systems for new construction managed by Chaffee County.
The council unanimously approved aligning PROST board powers with the Arts and Culture Advisory Commission structure. Council members approved an amendment removing “creative” from “creative memorial applications” in the ordinance language.
Public Comment on Development
A resident expressed concerns about Vanderveer Ranch development, wanting agricultural land preservation and questioning water usage impacts. Another resident suggested Steam Plant partnership with nonprofits and exploring Denver’s specialized theater tax model.
Routine Approvals
The consent agenda included approval of January 6, 2026 meeting minutes, Ordinance 2026-05 correcting economic development fund allocation from 10% to 2%, and an AI policy for city use. The meeting adjourned after council members provided reports on various board meetings and upcoming community events.
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