1. “Commercial development” means any nonresidential development including, but not limited to, commercial and government projects, excluding workforce housing, as defined by Section 17.8.1. This term does not include municipal facilities as defined in Section 17.8.1.

2. “Employee” means a person who is employed or can show intent to be employed within the Telluride R-1 School District and maintains residence in the Town. The Housing Authority, or its designee, shall determine whether a person qualifies as an employee based on criteria including evidence of income earned within the Telluride R-1 School District, place of voter registration, place of automobile registration, driver’s license address, income tax records and public service involvement within the Telluride R-1 School District community. “Employee” includes those self-employed and independent contractors so long as their income is actually earned within the Telluride R-1 School District. A person not otherwise meeting the definition of employee may be qualified as an employee by staff if that person is more than sixty (60) years of age and has been employed in the Telluride R-1 School District. Determination of employee eligibility by the staff may be appealed to Town Council.

3. For purposes of the Mitigation Worksheet, “net floor area” means the gross floor area minus any bathrooms, permanent storage areas (such spaces that can never be converted to commercial or other space that generates employees or parking demands as evidenced by physical separation, access or an appropriate legal restriction that runs with the property) or garages, and the gross floor area of any halls or stairs. For bar and restaurant uses, this calculation excludes kitchen and storage areas. For single-family residential uses, “net floor area” means the gross floor area of conditioned spaces, as defined in the International Energy Conservation Code (2018 Edition).

4. “Residential development” means any development intended for primary use as a residence, including but not limited to attached and detached single-family dwellings, apartments, condominiums, townhouses and cottages, and their associated outbuildings such as accessory dwelling units. This term does not include Workforce Housing Units.

5. “Workforce housing” means residential lots and dwelling units restricted by deed to use and occupancy by employees and their spouses or domestic partners and children. This term is synonymous with “affordable housing” as used in Title 16 and throughout the CDC.

6. “Workforce housing restriction” means the deed restriction placed on workforce housing units constructed pursuant to this Section. This term includes employee housing restriction and affordable housing restriction as used in Chapters 16.01 and 16.02, respectively.

7. “Workforce housing units” means dwelling units with employee apartment, employee condominium, employee dormitory, or employee single-family zoning designations which are deed-restricted to occupancy by employees and their spouses or domestic partners and children.

1. With a land use application for new commercial or residential development, the developer shall provide a completed Mitigation Worksheet. The burden is on the developer to demonstrate which areas of the proposed development count toward the calculation of net floor area.

2. The developer shall decide whether to provide the workforce housing units or make the payment in lieu, or some combination thereof.

3. Compliance with the requirements of this Section shall be a condition of issuance of a building permit for the proposed development.

4. Housing mitigation and fees in lieu calculated pursuant to the Mitigation Worksheet shall be phased in as follows:

5. The requirements of this Section shall not apply to development projects for which building permits have been issued as of the effective date of Ordinance No. 2022-04.

6. Town Council may amend the Mitigation Worksheet, by resolution, from time to time but no more than annually.

1. Municipal facilities as defined in Section 17.8.1;

2. Workforce housing units created pursuant to this Section and other preexisting deed-restricted housing;

3. Redevelopment of preexisting use and change in use provided such activity does not generate new employees;

4. Nonprofit and volunteer-based organizations providing community benefits provided the developer can demonstrate the new development shall not generate new employees.

1. The form and content of the workforce housing restriction or like agreement shall be reviewed and approved by Town Council and may be modified based on project-specific concerns at the discretion of Council.

2. The workforce housing restriction or like agreement shall be executed and recorded prior to the issuance of any certificate of occupancy.

3. The workforce housing restriction or like agreement shall be administered by the Town, or its designee, and shall be enforceable by any appropriate legal or equitable action including, but not limited to, specific performance, injunction, abatement or eviction of noncomplying owners, users or occupants or such other remedies and penalties as may be provided by Colorado law or the ordinances of the Town.

1. Workforce housing density assigned to a lot on the official land use and density allocation list or by an effective resolution shall be built concurrent with any free-market units on that lot, and workforce housing density cannot be transferred to the density bank or to another lot unless Town Council determines, in its sole discretion, that the workforce housing density cannot be built on a site due to a practical hardship.

1. Workforce housing developed prior to the effective date of the CDC is subject to a workforce housing restriction that has a provision that removes the deed restriction upon foreclosure by a public trustee in accordance with Section 16.01.120.

2. Even if the workforce housing restriction is removed upon foreclosure, a rezoning is required to change the zoning designation from a workforce housing designation to a free-market zoning designation.

3. During the review of any zoning amendment that involves a foreclosed workforce housing unit that has a deed restriction that is effectively removed upon foreclosure, the Town shall determine if the workforce housing density assigned to the lot was a part of the original density in the density limitation or if such is considered workforce housing bonus density that was granted after the Town’s incorporation. If it is workforce housing bonus density, Town Council may, in its sole discretion, either deny a zoning amendment because the change to a free-market unit would increase the density limitation, or require the applicant to transfer the needed density from the density bank or another lot prior to approving the ordinance approving the zoning amendment. Any denial of a rezoning in this situation shall allow the continuation of the workforce housing zoning designation as an unrestricted free-market unit since such is not encumbered by a deed restriction.

4. Free-market housing may only be allowed on active open space in the event that the workforce housing restriction is terminated in the event of foreclosure by the holder of the promissory note secured by a first deed of trust (other private seller financing) on a workforce housing unit and subject to the issuance of a public trustee’s or sheriff’s deed to the holder of the promissory note or governmental agency guaranteeing, insuring, or acquiring the promissory note from the holder.

5. Workforce housing units pay half the tap fee of a free-market unit. Therefore, any foreclosure action that results in a rezoning development application to a free-market condominium shall only be approved by the Town if the full tap fee is paid. (Ord. No. 2022-04 § 2(A) (Exh. A)).