The Dolores Board of Trustees approved a major step for the Ice House project, a small-scale affordable housing development proposed for 311 Central Avenue.
The approval of Resolution No. 714 at Monday’s regular meeting allows project developers Jordan Lang and Darby Dettloff to receive town support and move the project along.
The couple intends to construct four units and to address a critical gap in the community for attainable and workforce housing. Two one-bedroom units and two two-bedrooms are proposed, targeting renters earning between 60% and 80% of the area median income.
The town will now apply for a $900,000 grant from the Colorado Division of Housing, though the town’s primary role is that of a sponsor or intermediary for the state grant funds.
Town Manager Leigh Reeves said the name "Ice House" was chosen as a sentimental nod to the property’s history, as it was a site where ice cubes were historically made and sold.
The developers take on responsibility for all construction, consulting and legal fees of the development, and they are required to carry insurance to protect against catastrophic outcomes, Ethan Sumrall, town attorney, said.
Since the developers are a private entity that is not normally eligible for the grant, the town’s participation enables it.
“Worse-case scenario that you could think of, all the town is on the hook for is the labor for administering the grant,” Sumrall told the board Monday.
The project is one of the first statewide. Currently, it’s one of three through a state pilot program designed to help rural communities finance small-scale affordable housing projects. The program is jointly administered by the Colorado Department of Local Affairs, the Division of Housing and the Housing and Finance Authority.
Lang said financing these projects is difficult due to typically low returns on investment.
She and her husband didn’t think it would be possible but yearned to somehow give back to the community. The couple bought the lot behind the patio of Kelly’s Kitchen near where the Scout Pop-Pp shop runs in 2021.
“When CHFA (Colorado Housing and Finance Authority) came back to us with this offer … we were just completely overwhelmed,” Lang said.
The project was initially introduced last fall to the board. The project seeks funding through the $900,000 grant, as well as low-interest loans from CHFA and other sources. Total costs are estimated at $2.24 million, according to town board documents.
Lang and Dettloff are currently in the engineering phase of the project, Reeves said, and surveyors visited the site a few weeks ago.
Mayor Chris Holkestad on Monday commended the developers, saying it’s nice the process is moving forward. He added the town has two lots they hope to eventually turn into attainable housing, but said “it’s a process we are still learning.”
“I wouldn’t even know where to start, so thank you for trying,” Holkestad said.
awatson@the-journal.com
