Fall River Village developer expresses interest in buying back 24 units from Estes Park Housing Authority

Updated

A new proposal could reshape part of one of Estes Park’s most prominent housing projects, as a Colorado developer has formally expressed interest in purchasing a portion of Fall River Village from the Estes Park Housing Authority.

In a March 10 letter of interest submitted to the Housing Authority, Paul Pewterbaugh of Crescendo Development, LLC, outlined interest in acquiring 24 residential units and the SkyView Events Center located within the Fall River Village property at 200 Filbey Court.

The proposal comes less than two years after the EPHA purchased the 89-unit boutique mountain resort and SkyView, a three-story 6,500-square-foot building with a wraparound deck that offers some of the best views of Longs Peak and Rocky Mountain National Park in Estes Park, with the intent of converting the units into workforce housing and SkyView into a childcare center.

The property was purchased for $35 million, according to a website maintained by the Larimer County Clerk and Recorder’s office, in October 2024 from Grand Heritage Holdings.

The EPHA executive director, Scott Moulton, signed a nondisclosure agreement with Pewterbaugh on March 24 to discuss details and financial terms. A purchase price was not disclosed in the redacted letter of intent provided Thursday to the Estes Valley Voice following a Colorado Open Records Act request.

Proposal details

Pewterbaugh’s March 10 letter of interest framed his potential acquisition as both an economic opportunity and a continuation of his long-standing connection to the property. Pewterbaugh developed the high-end vacation lodging property along the Fall River, just west of downtown in 2008, then sold it in 2022 to Fall River Village LLC, a company owned by John Cullen, owner of Grand Heritage Holdings.

“Returning these units and the Skyview facility to active resort operation would generate meaningful and sustained economic benefits for the Town of Estes Park and its residents,” Pewterbaugh wrote.

The non-binding letter of intent outlines a potential purchase of 24 residential units in the upper section of the property, The SkyView Events Center, a three-story venue known for weddings and events, and associated furniture, fixtures, equipment, and operational assets.

The proposal also includes rights to branding, signage, booking data, and existing operational infrastructure associated with the resort and event center.

Economic argument

In their letter of interest, Crescendo Development argued that restoring part of the property to lodging use would bolster local lodging tax revenues, increase sales tax through visitor spending, and support local businesses, jobs, and entrepreneurship.

Pewterbaugh emphasized the property’s role in Estes Park’s visitor economy, noting that the upper units offer panoramic views of the Rocky Mountains that are “a defining feature of the Estes Park experience.”

The letter also asserts that the SkyView Events Center can operate alongside residential uses without disruption, citing prior experience managing the venue when it functioned as part of the resort.

Balancing housing and tourism

At the same time, the proposal acknowledges the community’s workforce housing needs—one of the primary drivers behind the Estes Park Housing Authority’s 2024 acquisition of the property.

“We fully recognize and respect that workforce housing is an important and essential need for the Estes Park community,” Pewterbaugh wrote. “Our perspective is simply that… we should also be careful not to unintentionally diminish the very experiences that draw visitors to the community.”

The proposal characterizes the potential transaction as a “win-win” that could support both housing goals and the local tourism economy.

Concerns expressed about the potential sale

In 2024, as John Cullen prepared to sell The Stanley Hotel to the Stanley Partnership for Art Culture and Education, LLC — known by the acronym SPACE — he also arranged the sale of Fall River Village to the Estes Park Housing Authority for conversion into workforce housing near downtown.

Cullen told the Estes Valley Voice that at today’s building costs, which run more than $500 per square foot for residential space “not including land, zoning, interest,  carry costs, and lease up,” it would be cost-prohibitive for a developer to replicate the 24 Fall River Village units for workforce housing, particularly in the downtown area.

In addition, Cullen mentioned the value of the  SkyView venue, a building he says is worth $4 million, which the EPHA now plans to use as its corporate office space rather than as a childcare setting.

The housing authority has been paying commercial rent rates in the U.S. Bank Building on Elkhorn Avenue. The agency has outgrown the office space and the SkyView building, while tony digs for a quasi-governmental not-for-profit agency, will be rent-free to the organization since it owns the property.

Cullen is concerned that Pewterbaugh will be able to buy back units at a discount from what he sold them for in 2022 and profit unfairly from the transaction.

Part of the Housing Authority’s financing plan for Fall River Village did include the need to sell 13 of the larger units at market value – for an estimated $9 million – to make the entire project financially viable. According to Moulton, that estimate is now $12.5 to $13.5 million.

The sale of an additional 11 units was not anticipated in the original financing strategy. The EPHA is funded through rent receipts from its properties and through money generated by the 6E lodging tax, passed by area voters in 2022. The 6E tax provides nearly $5 million in annual revenue, 80% of which is allocated to workforce housing and 20% to childcare.

Workforce housing needed in the Estes Valley

The units at Fall River Village are designated for workforce housing. To qualify, at least one resident in a unit must work at least 24 hours per week on average within the Estes Park School District R-3 boundaries. Rents range from 60% to 80% of the area median income, with no income restrictions on the units in the upper portion of the property. The lower portion has the same income targeting, but no income restrictions. The blended average must remain below 90% of AMI based on the Prop 123 $7 million equity investment, according to Moulton.

A housing needs assessment conducted in 2023 by Root Policy Research for the Town of Estes Park and the Estes Park Housing Authority estimated that 2,720 units will be needed by 2030 to address the current shortage of workforce housing and forecasted employment demand. Two-thirds of these units are needed at price-points affordable to households earning less than 120% AMI; 21% are needed for households earning less than 30% AMI.

What’s next?

A letter of intent is non-binding and serves as a framework for negotiating a formal purchase and sale agreement. Pewterbaugh’s letter includes a proposed 60-day due diligence period, a $100,000 earnest money deposit, and a targeted closing shortly after due diligence is completed.

The proposal also includes a 45-day exclusivity period during which the Housing Authority would agree not to negotiate with other potential buyers if the letter is executed.

A special board meeting of the EPHA board of directors has been called for 1:30 p.m. on Tuesday, March 31 to address the matter.

If pursued, the transaction would mark a significant shift in how a portion of Fall River Village is used—reintroducing lodging and event operations within a property now dedicated to workforce housing—and could prompt broader community discussion about balancing housing needs with tourism-driven economic activity.