Boulder City Council advances study of Area III expansion that could eventually add 8,700 homes

The Boulder City Council on Feb. 12 voted to continue studying possible expansion of the city into the Area III planning reserve, a 493-acre parcel northeast of the city that remains largely undeveloped.

The site has the capacity for up to 8,700 units of housing, making it one of the city’s largest potential opportunities to address its housing shortage and create a new neighborhood. Skeptics of expanding into the area have cited the need to prioritize infill projects within city limits, the significant cost of extending city services and the workload it would impose on city staff.

On Jan. 20, the Boulder Planning Board voted 4-3 that there was not sufficient community need to warrant further consideration of expansion into the planning reserve. The council’s decision means the Planning Board will now have the opportunity to reconsider its vote. 

The council voted 7-2 that community need exists, with Mayor Aaron Brockett and Councilmembers Matt Benjamin, Rob Kaplan, Tina Marquis, Ryan Schuchard, Nicole Speer and Tara Winer voting in favor, and Mark Wallach and Taishya Adams voting no.

Supporters framed the vote as a generational opportunity to address affordability.

“Homeownership is super important for the next generation so that they can build wealth,” Winer said. “I feel like this is our opportunity of a lifetime.”

Councilmember Rob Kaplan said housing prices are unlikely to stabilize without bold action.

“These prices aren’t going to go down, they’re going to continue to escalate. I feel like we should be visionary,” he said.

Wallach said he did not dispute that community need exists and indicated he would switch his vote if guardrails are added in a future resolution to ensure middle-income housing is prioritized.

A majority of council voted to add language outlining guardrails for future land use in Area III and agreed to provide feedback to staff by Feb. 19.

Adams cited concerns about land conservation in explaining her vote.

“We need to invest in natural systems in the same way that we invest in our roads, in our utilities and our housing,” she said, adding that she has seen habitat loss “all around us” in the 15 years she’s lived in Boulder and that land within current city limits “is sufficient for our population needs.”

For the potential expansion to remain a possibility, both the Boulder City Council and Planning Board must agree that there is a “community need.” If either body ultimately decides against it, the process would pause until the next Boulder Valley Comprehensive Plan update, roughly five to 10 years from now. 

If both agree, the next step would be to begin creating a Service Area Expansion Plan. That plan would require approval from the Planning Board, Boulder City Council, Boulder County Planning Commission and Board of County Commissioners. 

Even if all approvals are secured, significant development would not occur until at least the 2030s.

The property, located east of the North Foothills Highway and north of Jay Road, was first identified as a potential site for urban expansion in 1993. The city owns approximately 220 acres, much of it purchased for future parks, while most of the rest is privately held by dozens of property owners, according to city officials. Adjacent to the site are a shooting range and Boulder Valley Ranch, a city-managed open space.

Proponents of annexation argue it would allow the city to build more affordable housing than it can within city limits, largely because the city could negotiate annexation terms requiring housing priced for people earning a certain income. However, at least one developer previously struggled to deliver the amount of on-site affordable housing promised in an annexation agreement.

While the planning reserve offers significant housing potential, the costs of extending city services are steep. Baseline off-site infrastructure costs, such as water lines and wastewater treatment, are estimated at up to $1 billion, according to a November report by AECOM, a Denver-based consulting firm hired by the city. On-site costs, such as roads, add another $159 million, much of which would likely be paid by developers.

Another key concern among skeptics is the staff time required to create a service area expansion plan, which city officials said would take up to two years to collect community feedback and draft. Staff told council they have capacity, “but that would mean not doing other things.” Consultant costs could also top $500,000, according to a city official. 

This process would begin after the city completes its update to the Boulder Valley Comprehensive Plan, a joint planning document between the City of Boulder and Boulder County that guides land use and development decisions.