Park City approves firm’s plans for restricted housing in the $500,000s
September 5, 2018
Park City leaders at a recent meeting approved a developer's plans to build work force or otherwise restricted housing as part of a project on the Park City Mountain Resort slopes, agreeing to a pricing structure that puts the most expensive units into the $500,000s and caps annual household incomes in the $160,000s.
The Kings Crown project is underway off Lowell Avenue close to the Resort Center and involves 23 condominiums, seven townhomes and 27 lots for houses priced at market rates. The developer, a firm called CRH Partners, LLC, is required to build seven units of income-restricted work force housing based on City Hall rules for a project the size of Kings Crown. The firm opted to build eight additional units not required by City Hall that will be priced at levels deemed attainable.
The Park City Council at the recent meeting, acting in its role as the Park City Housing Authority, approved the plans unanimously. Nobody testified at a hearing prior to the vote. The Park City Planning Commission earlier forwarded the plans to the elected officials with a recommendation for approval.
The City Councilors did not discuss the plans extensively prior to the vote. Tim Henney, a City Councilor, said the taxpayers of Park City should thank the Kings Crown developer. The comment from Henney appeared to be a recognition of the Kings Crown housing plans aligning with City Hall's own efforts to develop units for the work force and others priced out of Park City's resort-driven real estate market, the most expensive in the state.
The Kings Crown units included in the plans approved at the recent meeting will range from the 671 square feet of one of the attainable places to the 1,377 square feet of one of the units required by City Hall. The City Hall-required units will range in price from $197,881 to $303,647 while prices for the attainable units will be set at between $455,470 and $569,338.
The affordable units will be restricted to buyers earning between $57,834 and $85,680 while the attainable places will be restricted to those earning between $128,520 and $160,650.
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The prices and earning caps are based on the size of the units. The prices were set based on a formula that relies on the U.S. Department of Housing and Urban Development-calculated area median income. That figure in the spring was $107,100 annually for a household with four members in Summit County, according to City Hall.
The first building permit CRH Partners, LLC will seek will be for the affordable and attainable units. No certificates of occupancy, which are required before someone moves in, will be issued for the market-rate units until the building with the affordable and attainable units is granted one.
Rory Murphy, one of the CRH Partners, LLC members, told the elected officials the firm will likely subsidize the building with the affordable or attainable units by approximately $1 million. He said there will be restrictions prohibiting the owners from renting the units on a nightly basis. Murphy also said the units will add vitality to Kings Crown since people will be living there on a year-round basis.
"We're doing it because it's the right thing to do," Murphy said.