With construction now underway at Breckenridge’s Runway Neighborhood, town officials are deciding on the role of accessory dwelling units (ADUs) in what is considered the community’s last major workforce housing project.
During a recent Town Council meeting, a majority of members expressed support for including ADU-ready infrastructure in the development, though no formal vote was taken. The first phase of the Runway Neighborhood will feature 81 housing units, 27 of which are single-family homes that could accommodate ADUs. Citing economic uncertainty, the town has committed a $34.6 million subsidy for this initial phase rather than funding the entire two-phase, 148-unit project.
Town staff recommended an “ADU-ready” model, where homes are built with the necessary infrastructure for a future unit but the interior space is left as an unfinished “shell.” This approach allows homeowners to complete the ADU at a later time, and staff are exploring potential grants to incentivize the build-out.
The debate centers on balancing housing density with affordability. Officials noted that ADUs could increase the rental inventory for the local workforce and provide homeowners with an additional source of income. However, fully constructing the ADUs from the outset would add significant cost. Estimates place the construction of a complete ADU at $120,000, plus an additional $30,000 for utility connections and permits.
Staff cautioned that including fully finished ADUs would push the price of a deed-restricted, five-bedroom home toward $1 million, narrowing the pool of qualified buyers and undermining long-term affordability. “We just really couldn’t feel great about the million-dollar price point,” said housing project manager Melanie Leas. She added that it would also remove the opportunity for homeowners to build equity through their own investment over time.
Despite these concerns, some council members advocated for building complete units. “The flat land in the bottom of the valley is limited,” said Council member Todd Rankin, who argued the project’s density of six units per acre is too low without the ADUs. He suggested at least some units should be fully built, possibly with a lighter deed restriction to manage costs.
Council member Jay Beckerman also favored building at least half, if not all, of the ADUs, questioning the efficiency of the shell model and the potential complexities homeowners would face with utility connections for both attached and detached units.
However, the majority of the council sided with the staff’s recommendation. Council members Dick Carleton, Carol Saade, Marika Page, and Steve Gerard all supported the shell model, emphasizing the importance of keeping initial home prices attainable for local workers. They agreed that providing the option for future expansion, potentially aided by a grant program, was the most balanced approach.
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