Breckenridge officials support accessory dwelling units in the town’s Runway Neighborhood, but staff members say it could create affordability issues.

Breckenridge Weighs Role of Accessory Units in New Runway Neighborhood Project

 

Construction has officially begun on Breckenridge’s Runway Neighborhood, a major housing development that local leaders say could be the last large-scale workforce housing project in town. As work gets underway, the Town Council is considering whether accessory dwelling units (ADUs) should be included in the community design. 

At the Aug. 12 council meeting, no vote was taken, but many members voiced support for building the neighborhood with “ADU-ready” infrastructure. The first phase of the Runway Neighborhood calls for 81 homes, 27 of which could eventually accommodate an ADU. While the original plan proposed two phases with about 148 homes, officials chose to move forward with only the first phase, supported by a $34.6 million town subsidy, citing economic uncertainty.

Town staff recommended a compromise: build “shell” units that already have the utilities and infrastructure needed for future ADUs but stop short of completing them. Officials noted there may be grant funding available to help homeowners finish the spaces later. 

The idea behind ADUs is twofold: they could help expand the rental market for local workers while also giving homeowners a way to earn rental income. Still, council members were divided on whether homeowners should be required to rent them out. 

Cost is also a sticking point. Fully building out ADUs is estimated at $120,000 each, plus about $30,000 in utility and permit expenses. That price difference—roughly $800,000 across 27 homes—raised concerns about affordability. Housing project manager Melanie Leas said fully finished ADUs would push some homes close to $1 million, which could shrink the pool of qualified buyers and undermine the town’s affordability goals. She also noted that leaving the units unfinished allows owners to invest and add value over time. 

Mayor Kelly Owens asked whether owners could recoup their ADU investment when reselling, and staff confirmed that was possible. Some council members, however, felt the higher upfront cost might be worth it. Council member Todd Rankin argued that without ADUs, the project’s density is too low and said he’d like to see at least some completed. Others pushed back, noting someone would still need to cover the additional cost.

 

Discussions also touched on the logistics of attached versus detached ADUs, with detached units bein more expensive and complex to connect to utilities. Council member Jay Beckerman said he was concerned about the cost and permitting implications, though he ultimately supported building at least half of the units.

 

Meanwhile, council members Dick Carleton, Carol Saade, Marika Page, and Steve Gerard all voiced support for the shell approach, especially if grants could encourage homeowners to finish them later.

 

The debate highlights a central tension: balancing the community’s need for more workforce housing with the town’s commitment to affordability. Further decisions are expected as the project moves forward