Here's a clear explanation of what I am confident will occur if/when council enacts Ordinance 13, their answer to fixing residential development by way of demolition allotments.

1. More intensive renovations — homeowners will be incentivized to do projects that fall below the 40% demolition threshold. These projects will become highly intensive and impactful — more so than new builds, causing more community impact, thereby defeating the purpose.

2. Sacrificing revenue and the real estate transfer tax — the city will be self-limiting the amount of revenue it generates as a result of fees/exactions on developments. It will impact the RETT monies collected by limiting high-value inventory that has generated so much of the RETT recently. This will impact the primary source of funding of our AH program.

3. Creating speculative demand for demolitions — by limiting the number of demolitions, homeowners are going to speculatively apply for them. If they get one, their property will suddenly be worth more and will likely be sold to a developer to build a new home. You are actually going to incentivize people to apply, sell and demolish their properties, when they might not have been considering doing so.

4. Increased values of housing — the rising tide will float all ships and all free market housing will increase in value once you limit the supply of the product most in demand.

5. Loss of jobs and economic opportunities for Roaring Fork Valley residents — reduced construction activity will result in lost opportunities.

Bill Guth