Eagle County to decide on new Stratton Flats developer next week

By Real Vail
August 13, 2010

The Eagle County Board of Commissioners will consider approval of a new developer for Stratton Flats at its Aug. 17 meeting, which begins at 9 a.m. The project is located just off of Jules Drive in Gypsum. The county's agreement with the previous developer required approval from the county for such a transfer.

After months of negotiations, the county has come to an agreement that will result in the transfer of the project to Stratton Flats Homes LLC, an entity created by the principals of the Pauls Corporation. The transfer will bring an influx of new dollars to expedite completion of Stratton Flats.

Loans previously made by Colorado Business Bank and the county will remain in the project and are to be repaid from sales of units. The Pauls Corporation is bringing an additional $3.5 million in capital to the development. “We believe Stratton Flats Homes LLC and the Pauls Corporation, with its 30 years of Colorado construction experience, brings the best opportunity for a successful completion to Stratton Flats,” said Commissioner Sara Fisher.

“We reviewed our options and felt moving forward with this arrangement provided the best opportunity to ensure a viable project, put our locals back to work, and provide the best opportunity to protect the previous investments made by the county,” said Commissioner Peter Runyon.

In addition to a new developer, the project will have a new unit mix as well. Of the approximately 300 units, one third will be dedicated and restricted to local workers. The remainder will be listed as free market units. Previously, the project was required to provide two-thirds restricted units, half of which contained price cap restrictions. Under the new agreement, there will be no price cap restrictions on units at Stratton Flats; the county will have the option of adding additional deed restrictions through is down payment assistance program.

“The current economic climate, as well as the price points proposed by the new developer warranted flexibility in the deed restriction requirements. We still feel very confident that this project will remain the local workforce housing that was originally intended,” said Commissioner Jon Stavney.

Once approved, the three entities will continue to work toward a quick transfer so that construction can resume. “We are committed to the project and excited about the opportunity to work with the Town of Gypsum and Eagle County to successfully complete construction and bring much-needed workforce housing to the community,” said Brian Pauls, principal of the Pauls Corporation.

“At the end of the day, we all want the same thing,” said Fisher. “We want to provide an opportunity for three hundred families to own their own homes in this valley. We feel this agreement provides the best chance for that opportunity.”

For more information, contact County Attorney Bryan Treu at 970-328-8685.

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