Pending congressional action, Steamboat officials ready to sign US Forest Service lease for housing project
Momentum behind plans to develop more than 80 workforce housing units on a U.S. Forest Service land parcel in Steamboat Springs hangs in the balance ahead of a congressional deadline to extend provisions of the U.S. Farm Bill needed for it to move forward.
The U.S. Farm Bill is a $1.5 trillion piece of legislation that funds a range of programs beyond those supporting farmers and ranchers, including food export subsidies, school lunch and nutrition programs and rural development initiatives — such as a leasing authority provided to the U.S Forest Service to develop workforce housing.
Passed in 2018, the current version of the Farm Bill was set to expire last year before federal lawmakers passed a year-long extension meaning some provisions, including the Forest Service’s leasing authority, are now slated to expire Sept. 30, while other provisions are due to terminate Dec. 31.
Despite the looming deadlines, City Council members voted earlier this year to accept an offer of first refusal from the Forest Service to lease its unused 8-acre property on Hilltop Lane to develop workforce housing on the site.
A memorandum of agreement signed between the city and the Yampa Valley Housing Authority allowed the housing authority to take the lead on the project.
The development is anticipated to provide 18 workforce housing units for Forest Service staff, 10 units for city employees, and 56 units of affordable housing for local residents who earn between 50-140% of the area median income, according to the housing authority.
Along with naming Irving, Texas-based Servitas as its development partner in August, a memo sent to council members last week noted “significant progress” made between the housing authority and the Forest Service on finalizing a lease for council members to sign.
But the lease cannot be signed by the Forest Service after Sept. 30 unless its authority to enter the agreement is secured through an extension of the Farm Bill before that deadline.
Both U.S. Sen. Michael Bennet and U.S. Rep. Joe Neguse have advocated for the Forest Service’s leasing authority to be continued under an extension of the Farm Bill.
In an email to City Council President Gail Garey earlier this month, the regional director for Rep. Neguse, Julie Sutor, recommended council get a lease in place before month-end and offered perspective on the likelihood of any extension vote before then.
Sutor said the later December deadline for some Farm Bill programs “creates a little less urgency for Congress to get the Farm Bill done by Sept. 30.”
“One possible scenario is that the Farm Bill extension doesn’t get done until the end of the calendar year. In this scenario, the (Forest Service’s) leasing authority would lapse for a few months until the extension passes,” she added.
Still, even if the Farm Bill were to be extended by month-end, it is unclear if the city and the Forest Service would be able to sign a lease before Sept. 30.
According to a memo to council members, an appraisal of the leased property is needed, “to justify in-kind compensation in lieu of cash payments” for the Forest Service to lease the property.
The memo noted that the Forest Service has requested an appraisal, “but several additional steps must be completed before the selected appraiser can conduct the appraisal and a final lease proposal developed.”
The city’s assistant attorney, Jennifer Bock, told council members in a Sept. 11 email the Forest Service would not sign a lease by Sept. 30 without the completed appraisal, “which will not be done by then.”
Acknowledging prospects of the lease moving forward before month-end, Garey said last week council members should be ready to act quickly “if the stars align and we get the appraisal done.”
“We just wanted to make sure there weren’t any sort of last-minute Hail Marys that could be done, so we will wait and see,” said Garey.
Council is not scheduled to meet again until Oct. 8, meaning an emergency meeting would need to be called to approve any finalized lease prior to, or on, Sept. 30.
Under the city’s charter, an emergency meeting can be called either with a 72-hour public notice or by consent of council.
City Attorney Dan Foote said the “consent of council” option would involve a notice sent to council members about holding a meeting. If enough members respond in the affirmative, the meeting can proceed.
“That will depend on a couple of things happening and right now the indication is that they won’t be happening (by the deadline),” added Foote.
Trevor Ballantyne is the city government and housing reporter. To reach him, call 970-871-4254 or email him at tballantyne@SteamboatPilot.com.
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