A workforce housing project planned on U.S. Forest Service land in Summit County is on hold as the project parameters continue to be negotiated, according to county officials.

Construction of the 162-unit workforce housing project just outside the town of Dillon had previously been expected to start this year. But while county and Forest Service officials say they remain committed to the project, they have not provided a timeline for when it might move forward.

“It is a pause on the project,” Summit County communications director Adrienne Saia Isaac said. “The project is not dead in the water. Building housing on that parcel still remains a priority for the county.”

The White River National Forest leased the approximately 11-acre parcel northeast of the intersection of U.S. Highway 6 and Lake Dillon Drive to the county to build workforce housing in late 2023. It was the first time the Forest Service had leased land to a local government to develop workforce housing, and officials have said they hope the project will serve as a blueprint for communities across the country.

The existing plans for the site include six buildings about 47 feet high, or three stories. The units would include studio, one-, two- and three-bedroom apartments, with rents ranging from about $1,550 to just over $3,450. The target area median income range would be 80% to 120%, representing an annual income of between $68,240 and $102,360 for an individual, according to 2024 figures from the Summit Combined Housing Authority.

“The reason for the pause — I’m sure it’s no surprise — construction costs have gone up. In-kind considerations changed, and we need to evaluate the parameters and terms of the partnerships,” Isaac said. “… We need to pause and reevaluate and make sure this project is both financially and operationally successful.”

She added, “I cannot say whether this will cause significant delay. I don’t have a timeline.”

White River National Forest public affairs officer David Boyd said in a statement that the “Forest Service remains committed to the Dillon Work Center agreement with Summit County. We have been working hand-in-hand with the county on specifics of the project and agreement for the past five years. We are working to better understand their concerns and discuss how to resolve them. We value our partnerships and recognize the work we accomplish together.”

Boyd did not respond to emailed questions about what caused the pause or how long the Forest Service expects the project to be delayed.

Negotiations between the Forest Service, Summit County government and the town of Dillon continued for months after the lease was signed and, for a time, sparked uncertainty about whether the project would move forward. Then, early last year, Dillon formalized a deal with the county government to provide water in exchange for the county’s support to build a roundabout to mitigate increased traffic.

Dillon Mayor Carolyn Skowyra said that the town remains “100% on board” with the project.

“Dillon is ready to hold up our end of the deal and move forward with it if the county chooses to do so or if the county and the developer choose to do so together,” Skowyra said. “We’re in and excited about it still.”