Coal Creek Housing in Erie on Hold as Mayor Pushes Alternatives

In 2023, Erie purchased the 46-acre Village at Coal Creek near Old Town for $6.9 million, using a mix of federal American Rescue Plan Act (ARPA) dollars and contributions from the town’s Trails, Natural Areas, and Community Character (TNACC) fund. The money was awarded to help the town invest in open space and affordable housing, and the project was initially promoted as a future mixed-income neighborhood with trails, parks, and workforce-level housing.

A year later, that vision has become increasingly uncertain.

As political priorities on the Erie Town Council have shifted, so has the interpretation of what the land should become. Council members Anil Pesaramelli, Dan Hoback, and Emily Baer continue to support the original affordable-housing-focused plan. But Mayor Andrew Moore, joined consistently by council members John Mortellaro, Brian O’Connor, and Brandon Bell, has pressed for alternatives that would eliminate or significantly scale back residential development.

Erie is currently committed to increasing its affordable housing stock to 12% by 2035, a target adopted in 2021. The town also opted into Colorado’s Proposition 123, which requires jurisdictions to build a set number of affordable units per year to remain eligible for state housing funds. Coal Creek Village was expected to be a cornerstone project toward meeting those obligations.

However, Mayor Moore has consistently questioned whether the property should include housing at all. At an April 15 study session, he floated transforming the site into a park. By November, he was openly asking staff to consider non-housing options, including retail, a parking lot for Old Town, and even relocating a church.

“What are other uses we could potentially do on this property?” Moore asked at the Nov. 18 Town Council meeting. “Is it the right use for affordable housing? Is there a better use for this property?”

Responding to a request from the mayor and council majority, Senior Planner Aly Burkhalter presented five redevelopment concepts. Some maintained the original mixed-income neighborhood vision; others showed what the land would look like as open space only, or a hybrid of both visions.

A central question looming over the project was whether ARPA funding required Erie to include affordable housing. Staff clarified that it did not: the federal grant applied solely to the land purchase, which the Treasury Department has already approved. In practical terms, the town is not legally required to build any housing on the property.

If the council chooses to abandon affordable housing at Coal Creek, Councilmember Baer hoped the town would either reimburse the Affordable Housing Fund or identify another site for future housing development.

Mortellaro, who also serves as the council’s liaison to the Open Space and Trails Advisory Board, said OSTAB wants the entire parcel preserved as open space, arguing that adding homes “would take away from the value of the open space.”

Moore, meanwhile, introduced several new possibilities, including relocating St. Scholastica, a Catholic parish, to the site to keep parishioners near Old Town. Asked by Yellow Scene Magazine whether anyone on the council attends or is involved with the parish, Moore replied he does not. He also floated bringing in Catholic Charities, a faith-based nonprofit that develops affordable housing, to explore potential partnerships, though he acknowledged he had “no idea if it’s viable.”

The increasingly scattered discussion sparked frustration from some on the council.”
“I feel like we’re all over the place,” Baer said, urging the group to remain focused on options that include affordable housing. She argued that a mixed-income neighborhood, such as three-story townhomes, “could be an amazing development” and an asset for the surrounding area.

Although no development concept was selected, the council did agree on one point: they will not pursue new Parks & Open Space facilities on the site due to cost, traffic concerns, and the parcel’s proximity to Old Town.

Councilmembers ended the meeting by voting to continue negotiations regarding the property in an executive session later that evening.

With no clear direction yet chosen, the future of the Coal Creek property, and whether it will contribute to Erie’s affordable housing goals, now rests on those closed-door discussions. 

The next Erie Town Council meeting is scheduled for Tuesday, December 2 at 6 p.m. Public Speaking begins at 6:05 p.m.