Salida City Council approved substantial changes to the South Ark Neighborhood development’s affordable housing requirements at their March 17 meeting, reducing Phase 1 requirements from 50% to 33% affordable units after an owner’s representative reported that the original plan was financially infeasible for developers. The council also approved $20,000 to order Fourth of July fireworks on a 3-2 vote despite community fundraising producing only $7,000 to date, and unanimously issued an order to show cause against Arlie Dale’s Jug Liquor after the owner operated the store with a blood alcohol level of 0.192 — nearly four times Colorado’s legal driving threshold.
South Ark Development Changes
Community Development Director Bill Almquist presented modifications to Ordinance 2026-10 governing the 93.5-acre South Ark Neighborhood development, which plans up to 400 residential units. The owner’s representative hired to engage potential developers reported that after consulting local and regional developers, architects, and financial institutions, the project “cannot work as it is currently written” due to inflation, high interest rates, and construction cost increases since the original plan was adopted.
The proposed changes reduce Phase 1 affordable workforce housing requirements from 50% to 33%. Staff also recommended reducing non-income-based workforce housing from 25% to 10% for Phase 1, though the Planning Commission had recommended keeping it at 25%. The certificate of occupancy timing changes from requiring one restricted unit for every four total units to one in six, giving developers more flexibility to recoup costs from market-rate units before delivering affordable units.
The city is building backbone infrastructure — water, wastewater, and primary streets — using DOLA grants, CMC and county contributions, and affordable housing funds. Phase 1 lots will be sold through an RFQ process to private developers required to meet affordable housing construction agreements. Chaffee County Medical Center has expressed interest in 36 Phase 1 units.
Council members discussed concerns about setting precedent and the risk of reducing affordability commitments. Others argued that without modifications, the project would not attract developers and no affordable housing would be built. Council unanimously approved the ordinance on first reading, with second reading and public hearing set for April 7.
Fireworks Funding Debate
Council approved $20,000 to order Fourth of July fireworks on a 3-2 vote despite community fundraising producing only $7,000 of the $35,000 total needed for both Fourth of July and Parade of Lights displays. The decision covers only the July 4 show; Parade of Lights fireworks can be ordered separately as fundraising continues.
Salida Community Center representatives, including Vickie Sue Vigil, told council they have deployed 12 donation boots at locations around Salida and Poncha Springs and that the Community Foundation believes fundraisers can raise at least $20,000 by June 1. Vigil said Salida’s fireworks celebration has been featured in several publications and called it a valued community tradition.
Fire Chief Aaron Jonke warned council of historically low snowpack statewide and said he would cancel the show if fire conditions are too dangerous. He noted the fireworks, if unused, could be saved for the Parade of Lights or a subsequent year, though stored fireworks can degrade and become unstable.
Council members who opposed the expenditure questioned whether $7,000 raised over two months — roughly $1 per resident — demonstrated sufficient community demand to justify committing city funds without a fundraising guarantee. Council members who supported it argued the Fourth of July and Parade of Lights are significant economic drivers for tourism and that fundraising would accelerate closer to the event. The motion passed with Council Members Rovinsky, Fontana, and Pappenfort voting yes; Council Members Schreiner and Martin voted no.
Liquor License Actions
Council approved a new hotel and restaurant liquor license for Graystone Roadhouse at 720 East Highway 50 on a 4-0 vote, with Council Member Fontana recused. The applicant cleared all required background checks, and the property owner spoke in support.
Council also unanimously approved an order to show cause for Nine Stripes LLC, which operates Arlie Dale’s Jug Liquor at 220 North F Street. Police Chief Russ Johnson filed a complaint after store licensee Chad Thornton operated the store on February 28 with a blood alcohol level of 0.192 at 3:00 p.m. — nearly four times Colorado’s 0.050 DWAI threshold. A public hearing is scheduled for April 7 to determine whether the license should be suspended or revoked.
F Street Closure Approved
Council unanimously approved Resolution 2026-11 establishing the F Street pedestrian mall closure from May 21 through September 22, along with new fee schedules. Businesses will pay $50 annually — or $100 for three-year approval — for parklet permits, and $50 annually for liquor license modifications to serve in expanded outdoor areas. The closure program originated during COVID and previously carried no fee; staff said the charge covers staff time to administer applications.
The closure received 63% voter approval in November 2025. Public Works staff will install bollards on opening day; bollards can be lowered for parades, and businesses are required to pull moveable items back to clear parade access.
Three business owners raised concerns during public comment. Deidre Wilda of Arts Collective Gallery requested regulations for bicycles, e-bikes, skateboards, and electric vehicles on F Street, citing near-accidents with pedestrians last summer. Heidi Krivonik of Krivonik Jewelers, who opposes the closure, requested timed parking limits, open containers within the closed block, and foot patrol officers. City staff said they will assess signage and obstacle placement strategies after this summer’s season.
Citizen Comment
During citizen comment, Adam Martinez told council a Salida police officer had appeared at his door and yelled at him, and that a second officer delivering papers had used profanity toward his elderly mother. Martinez said he has experienced ongoing issues with police and requested a meeting with the mayor and city administrator. City Administrator Christy Doon said she had reviewed body cam footage of the interaction and would follow up with council.
Other Business
Council unanimously reappointed Ryan Short to the Historic Preservation Commission for a three-year term expiring March 17, 2029. Two other applicants can reapply when two positions open in October.
City Clerk Kristi Keller reported a referendum is being filed challenging the council’s decision to rezone 5H LLC property to R2. Petitioners begin collecting signatures March 21, requiring 254 valid signatures. If sufficient signatures are gathered, an emergency ordinance will come before council in May requiring them to either affirm or rescind the decision. Affirmation would trigger a special election costing the city approximately $30,000.
The city treasurer reported January 2026 sales tax collections decreased $54,160, or 7.6%, compared to January 2025. Fourth quarter 2025 lodging tax decreased $27,600, or 13.2%, representing 3,615 fewer room nights.
Council approved consent agenda items including final settlements for the Oak Street Improvements Project ($4,272,327.05) and Downtown Streetscape Project ($2,160,209.02), along with various MOUs, routine liquor licenses, and a special event liquor license for a Veterans Expeditions fundraiser April 18 at A Church.
Council Reports
Council Member Rovinsky congratulated Salida High School girls basketball on winning the school’s first state championship. Mayor Critelli noted a council retreat is scheduled for March 27 and a Steam Plant open house is set for March 28.
City Administrator Doon reported that State Senate Bill 26098, a noise abatement authority bill supported by the city, passed second reading on the Senate floor and moves next to the House. Doon also said a meeting is being arranged with school officials to address obstacles that have stalled a student-led SRO survey that council has sought for several years.
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