Challenges for Development Under Chaffee County’s New Land Use Code
Chaffee County’s newly adopted Land Use Code, effective January 1, 2025, introduces sweeping changes that could pose significant challenges for developers. While the county aims to balance growth with environmental and community preservation, these regulatory shifts may increase costs, lengthen project timelines, and limit development opportunities.
Increased Zoning and Density Restrictions
One of the most concerning changes for developers is the restructuring of zoning regulations. Previously, a uniform two-acre lot size allowed for more predictable development patterns across the county. The new code, however, introduces stricter zoning categories, including a new agricultural and ranching zone that requires a minimum lot size of 35 acres. This restriction limits opportunities for residential development in rural areas, reducing the available land for potential projects.
Increased density closer to town may seem beneficial, but it comes with practical limitations. Higher-density projects—permitting up to 16 units per acre—are only feasible with access to public water and sewer systems, which may not be readily available in all areas. Developers may face increased infrastructure costs or find certain projects unviable due to these limitations.
More Burdensome Development Approval Process
Although the county claims the new code streamlines the approval process, developers may still face significant bureaucratic hurdles. The requirement for a pre-approval review by the Planning Department before public hearings could introduce new layers of complexity. While the county estimates a reduction in approval timelines to 12-18 months, unforeseen challenges—such as unclear regulatory interpretations or opposition from local stakeholders—could still lead to delays and increased costs.
Environmental and Setback Restrictions
New environmental regulations impose stricter setbacks from rivers, streams, and wildlife habitats, ranging from 50 to 300 feet. While intended to preserve natural resources, these setbacks could limit buildable land and reduce the profitability of projects. Developers may need to conduct additional environmental impact studies, adding time and expense to an already rigorous approval process.
Impact on Economic Feasibility
For developers, the new regulations introduce uncertainty that could make investment in Chaffee County less attractive. Increased zoning restrictions, higher infrastructure costs, and lengthy approval processes all contribute to financial risk. Additionally, the shift towards conservation-oriented subdivisions—where large portions of land must be preserved in exchange for limited density bonuses—may not offer enough incentive to offset lost development potential.
Adapting to a Stricter Landscape
With these new constraints, developers must carefully evaluate project feasibility before committing to new investments. Understanding the nuances of the updated Land Use Code is critical for navigating potential pitfalls. Developers may need to work closely with legal and planning experts to mitigate risks and ensure compliance with evolving regulations.
While the county plans to review the code in six months and allow public input, there is no guarantee that changes will favor developers. Those looking to invest in Chaffee County should stay informed and engage in advocacy efforts to push for more balanced regulations.
As a real estate attorney, I can help developers analyze the new code and assess its impact on potential projects. Whether you are looking to navigate zoning restrictions, streamline the approval process, need help papering a deal, or drafting a declaration for your subdivision once approved, I am here to provide guidance and support. Reach out to discuss how we can work together to make your project a success.
For a full review of the updated Land Use Code, visit ChaffeeCounty.org/Planning-and-Zoning-Land-Use-Code.