Durango, Colorado Development News
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City Council Study Session July 7, 2026
Published: Jul 7, 2026
City Council Reviews Options for Joining Durango Fire Protection District and Funding Implications
Assistant City Manager Bob Bremer, CFO Gloria Patt, Transportation Director Sarah Hill, and Fire Chief Randy Black presented information on the process and implications of the city potentially joining the Durango Fire Protection District (DFPD). The Matrix Consulting Group recommended inclusion as the most effective method to continue fire services, estimating an annual contract renewal cost of $15-18 million or $86 million to create a separate district. Joining the DFPD is projected to have the lowest per capita cost for residents and businesses, offering governance integration with three potential city seats on the fire board, long-term stability, and operational efficiency. Financially, the city currently subsidizes DFPD services by approximately $3.8 million from the general fund. Joining the district would require the city's mill rate to increase from 8.537 mills to match the DFPD's rate of 12.65 mills by 2028, an increase of approximately $3.2 million in mill levy annually. This would free up general fund money currently used for subsidies. A residential taxpayer with a $735,000 home could see an annual increase of about $189, and a commercial property with a similar value could see an increase of about $816 annually. Four legal options for inclusion were presented: 1) a single election for immediate inclusion at the full mill levy, 2) a phased, multi-year mill levy increase followed by an inclusion election, 3) the DFPD lowering its mill rate with the city subsidizing the difference, and 4) offsetting the mill levy increase with a district-wide sales tax. Fire Chief Black detailed these options, noting that all residents within the district must pay the same mill levy, and that governance integration would occur post-inclusion. Transportation Director Sarah Hill highlighted that freeing up funds could address the Transportation Enterprise Fund's $2.2 million annual deficit, preventing significant transit service reductions anticipated for 2028, which would coincide with major events like the UCI World Mountain Bike Championships. The council discussed the financial impacts, particularly on commercial properties and the complexity of phased approaches and election timelines, with a preference leaning towards April 6, 2027, for a potential election. Concerns were raised about the accuracy of commercial impact data and the need for educational campaigns for voters.
Durango Creative District Reports Progress on Public Art Master Plan, Lodgers Tax Programs, and Community Engagement
Katherine Wagner, Executive Director of the Durango Creative District, presented updates on the Public Art Master Plan, Lodgers Tax funding, and First Fridays events. The Public Art Master Plan, a living document updated annually, has undergone revisions based on public feedback and aims to integrate art into both public and private properties. The district is collaborating with city departments, including Parks and Recreation and Transportation, to identify potential locations for sculptures and integrate public art into future CIP projects. Chris Warren, chair of the Public Art Master Plan committee, discussed efforts to align city policies with industry standards, exploring funding sources like council determination funds and potential tax reauthorizations (1% for art). He highlighted upcoming CIP projects on Rosa Avenue and Park Avenue West as opportunities for public art integration and noted the successful piloting of a partial payment upfront model for commissioned art pieces. Wagner also discussed public engagement initiatives, including three public art tours, notably a trolley tour in collaboration with the Welcome Center and Transportation Department, set for beta testing in August. Regarding Lodgers Tax, the Creative District consults with applicants and provides post-award programming. First Fridays are being used to highlight recipients of the Lodgers Tax Arts and Culture Fund and replace the defunded Durango Arts Month, featuring programming from grant recipients and exhibition partnerships. Examples include a projection for a Wildwood dance project and a mural for the Boys and Girls Club. The Durango Creates grant facilitation deadline was approaching, with an update on round two planned for the next council meeting. Regional creative development efforts were also mentioned, including the Western Slope Creative Consortium, which brings together 13 creative districts. Future events include a social justice exhibition and the traveling 'Space Cowboy' installation. First Fridays have seen significant expansion in participation, with new nonprofit collaborations like microgrants with the Good Food Collective for food trucks and musicians. The district aims to make Durango a cultural hub and increase cultural tourism, ensuring safety nets for offseason programming. Discussions also included maintenance of public art, with funding through Tommy Crosby's department, and the integration of various events and partnerships, such as the motorcycle rally and gallery walks, to create a cohesive community experience. The goal is to foster collaboration rather than competition among creative entities.
ADU Compliance Update Highlights Owner Occupancy Challenges and Potential Policy Adjustments
Jamie Lopkco, Community Development Director, presented an update on Accessory Dwelling Units (ADUs), focusing on compliance with owner occupancy requirements. The city's ADU program, established in 2014, aimed to increase housing options, provide income assistance, and accommodate family needs. Lopkco detailed the current land use and development code, which requires either the primary residence or the ADU to be owner-occupied, with a notarized affidavit submitted biennially. Enforcement efforts began in March 2026 with letters sent to 168 properties, followed by a second letter to 132 properties in June 2026. As of the presentation, 108 out of 165 total ADUs (65%) were considered compliant, with approximately 55 properties remaining non-compliant. Staff is actively working with 13 owners on resolutions, while 42 have not responded. Compliance efforts have generated about 30 calls and visits, with many owners unaware of the requirement. The presentation also covered complex circumstances encountered, such as deceased property owners, properties in trusts, potential renter displacement, and owners misleading buyers. Several owners are choosing to decommission ADUs, which removes housing options. A key issue identified is the lack of a clear definition of 'owner occupancy' in the land use code, with staff currently relying on the physical address matching county tax records. Staff continues to discover and register unpermitted ADUs, indicating evolving numbers. Next steps for non-responders include a third certified letter with a notice of violation and potential citations if compliance is not achieved. Other considerations for council included options like 'leasing to locals' programs, removing owner occupancy requirements (which could encourage more ADUs but potentially lead to more investment properties), becoming an ADU supportive jurisdiction through the state (requiring code changes like allowing ADUs by right and removing owner occupancy), and implementing prorated fees for pre-existing units to ease compliance costs, which currently exceed $7,000 for some units. Councilors expressed concern about the timing of the ADU program implementation, the financial burden of compliance, and the potential impact of removing owner occupancy on neighborhood quality of life versus affordable housing goals. They also sought more research on comparable communities and the effectiveness of enforcement actions.
Economic Opportunity Manager Updates Council on Grant Approvals and Programmatic Details
Tommy Crosby, economic opportunity manager, provided an update on grant approvals, noting three grant categories to be on the regular meeting agenda. The process involves applicant submission, staff review, committee review by subject matter experts, and final council approval, except for the Renew Grant which is more administrative and faster for small businesses. Three grant types were presented for approval: the second and final round of 2026 Lodgers Tax Arts and Culture funding, recommending eight projects with over $400,000 in requests and $80,000 available; the third and final round of the Lodgers Tax Local Event Marketing Grant, recommending 17 projects for over $41,000, with remaining funds possibly forming a pilot program for a larger tier; and the Renew Grant, recommending two projects for $10,000, nearly exhausting the 2026 budget. Crosby also addressed questions about the proposed larger tier for the event marketing grant, stating it would be a pilot program with potentially one or two recipients and that eligibility for previous recipients would be considered. He also confirmed that 23 applicants requested over $420,000 for the arts and culture funding, highlighting strong demand. The presentation also touched upon the administrative aspects of grant management, including efforts to streamline applications and assist applicants, and the importance of community volunteers in reviewing applications. Before the council meeting, a moment was taken to acknowledge JJ D. Roiier's contribution as the administrative engine for over 100 grants annually. Additionally, the team's efforts to capture before-and-after photos for grant reports and social media were discussed, as was the integration of business development assistance into grant programs, particularly for the Arts and Culture Fund and planned for the Local Event Marketing Grant. The importance of geographical distribution and advertising for grants to reach underserved areas was also raised, with efforts noted to target businesses in areas like North Main and Bodo. Finally, the team's work in developing grant programs and assisting repeat applicants was highlighted, emphasizing a commitment to helping applicants present the best possible proposals and addressing complex circumstances like deceased property owners or displaced renters.
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