Breckenridge is offering housing units at what officials have dubbed the town’s “last neighborhood” to the Summit School District in exchange for a 10-acre parcel of land in town. 

Town representatives are proposing a trade that would exchange 35 for-sale, deed-restricted units in the town’s upcoming Runway Neighborhood for a Summit School District-owned tract of the McCain property just off of Colorado Highway 9. The 128-acre parcel houses the Vista Verde development on its very northern edge and an open space.

The McCain property also has dedicated space for a community center, called the Sol Center, that local nonprofits will share. A portion of the plot of land has been eyed by Breckenridge officials as they look to relocate free skier parking. The parking will need to be moved off of Airport Road to accommodate the construction of the Runway Neighborhood.

While the offer was made public at a Feb. 20 Summit School District Board of Education meeting, no official decisions were made, and the matter hasn’t been voted on. All board members present expressed interest in the proposal. A vote on this initiative is slated for a March 6 board meeting.

Summit School District chief financial officer Kara Drake said an October 2023 appraisal of the district-owned tract valued it at roughly $1.1 million. She said a more recent appraisal, which she didn’t have on hand at the meeting, valued it at a similar amount.

“There’s a misconception that the value of the property is worth millions of dollars,” she said, noting the current zoning for the land prohibits residential development since it is zoned for “school use,” limiting its value. The property could not be sold to a residential developer without a vote by Breckenridge officials to rezone it to allow for residential use, she said. 

“That’s why the appraisers don’t feel comfortable in appraising it at any higher value,” she said.

The town of Breckenridge’s Runway project is estimated to have around 150 units, which include a mix of unit types including single-family homes and different varieties of townhomes ranging from duplexes to sixplexes. All units will be sold through a lottery system.

Breckenridge housing manager Laurie Best said the units will likely roll out in four phases. A Feb. 25 joint news release from the district and the town outlined 25% of the available units in each phase will be reserved for Summit School District employees until the 35-unit threshold is met. The presentation given to the board detailed units are geared toward people making 80% to 150% of the area median income, with purchase prices ranging from $351,000 to $850,000. 

The joint news release said a first right of refusal clause will be in place to ensure district employees will have continued access to units, even if any are resold, preserving at least 35 units in perpetuity. 

While final cost estimates aren’t solidified, Breckenridge committed to subsidizing $39 million for the cost of land, density, infrastructure and a portion of the cost of vertical construction, according to the news release. Breckenridge officials said the proceeds from the sale of the units will go toward paying off construction, too.

Board of Education director Julie Shapiro indicated this was not the first time officials have discussed the matter.

“We’ve actually been wrestling with this for a long time … at least a year and a half,” she said. “It started with executive sessions, some legal advice and things like that, and so it might feel abrupt to the public though because it is like the first time they’re really hearing us hash it out.”

Drake presented the board with a staff survey, featuring around 160 responses, which asked “If the district were to move forward this exchange, would you be interested in purchasing workforce housing in Breckenridge.” That demonstrated 46.5% of staff members weren’t interested in the proposal, 31.2% were very interested, 16.6% were somewhat interested and 5.7% were “unsure.”

Survey respondents had an opportunity to write and give more detail explaining their stance. Drake said the answers were given to artificial intelligence to analyze, and it found around 55% of those who answered “not interested” said their reasoning had something to do with them already having housing. 

In a presentation slide given to the board titled “Notable Quotes,” she called out one that recommended the district sell the property and earmark the earnings for teacher wages. 

The district and town addressed the claim in the joint press release and said “rather than selling the land for a one-time budget increase, SSD is considering a strategic land exchange that would provide teachers and staff with access to homeownership for generations to come.”

“Our responsibility is to make long-term, strategic decisions that serve the best interests of our students and staff,” Shapiro stated in the release. “Selling the land might provide a small financial boost, but not enough to make a meaningful impact on our budget.”

Drake drew attention to a district staff housing needs assessment done in 2023 that showed nearly half of all district employees were considering leaving due to high cost of living and around 42% of employees are “cost burdened” by “excessive housing expenses.” It also showed many staff members who rented their homes didn’t feel like they had the opportunity to get into home ownership in the county. 

Similar messaging related to this needs assessment was used by the district as it sought to push forward a ballot initiative for a $195 million, $46 million of which would have gone toward the district building employee housing. Voters shot down the measure in November.

“(What) we heard back after the bond (and during the bond) was we should really be considering partnerships,” Superintendent Tony Byrd said, noting the feedback he received showed people wanted the district to participate in a partnership to pursue housing for staff as opposed to pursuing by itself.

He added, via the joint press release, “This agreement represents a major step forward in supporting our educators and staff. We recognize that access to affordable housing is essential for recruiting and retaining the best talent for our students.”

If approved, the groups are aiming to finalize the property transfer agreement in 20 days, “with a closing date set for before December 1, 2025,” according to the release.

“Final cost estimates are expected to be determined in the coming months,” the release stated.

The initiative aims to have initial units come online in 2027 with the phased construction timeline spanning roughly six to seven years, according to the tentative plans.