Councilmembers on Thursday, Aug. 21, approved an amendment to an annexation agreement intended to help a stalled housing project near Eben G. Fine Park move forward.
The development at 90 Arapahoe Ave., known as the Saddle Creek development, proposes 46 attached for-sale homes, including duplexes and triplexes. The developer, Canyon Creek Villas LLC, requested an amendment to an annexation agreement first approved in 2017 to lower the share of on-site affordable housing units from 45% to 24%. The city’s Planning Board signed off on the change earlier this year.
If completed, the project would include affordable homes for low- and middle-income buyers. That commitment is unusual in Boulder, where developers often opt to pay a fee to subsidize affordable housing elsewhere instead of building units on-site.
The project has been stalled for more than a year, underscoring the challenges of building affordable housing in Boulder, where high construction costs can combine with regulatory and site-specific hurdles. In this case, landmarking of the former Silver Saddle Motel, unexpected site work and rising construction expenses contributed to the financial challenges.
A 2023 city-commissioned study found that even Boulder’s baseline 25% on-site affordability requirement is likely not feasible for most for-sale housing developments. Many builders instead pay cash-in-lieu to the city’s Affordable Housing Fund. What made the Saddle Creek project unusual was its original commitment to provide nearly half of the affordable homes on site and for sale.
The developer is also facing significant financial strain. Foreclosure records show Tebo Properties loaned Canyon Creek Villas about $3 million at 14% interest and later filed for foreclosure over an unpaid balance. In March, the developer filed for Chapter 11 bankruptcy protection.