Colorado pitches 99-year ground lease model to bring affordable housing to Golden

A roughly 41-acre parcel of land owned by the state in the city of Golden, Colorado, could be transformed into hundreds of new housing units under a proposed public-private partnership aimed at expanding affordable housing.

The project, known as Golden Range at Lookout Mountain, would develop one of the largest undeveloped tracts remaining in the city. The site sits between the Fossil Trace Golf Course and the state youth services facility. In a largely built-out and landlocked community, officials say the property presents a rare opportunity for a public-private housing partnership.

"We are looking at an opportunity to turn this land into low-income, affordable and attainable housing," said Doug Platt, communications manager for the state's P3 Collaboration Unit.

The master plan anticipates 300 to 400 multifamily units, with at least 80 reserved as low-income housing. The project is also expected to include attainable housing for moderate-income households, generally those earning between 80% and 120% of the area median income, according to the state's request for qualifications.

The homes would likely be attached units rather than high-rise buildings, reflecting Golden's preference for lower-profile, horizontal development. Limited neighborhood-serving commercial uses could also be considered.

The site is currently zoned for single-family housing, meaning any higher-density development would require city approvals and potential rezoning.

While the project is still in the very early stages, the state is nearing its deadline for developer proposals. The bidding process closes March 17. More than 20 developers attended an initial site visit, Platt said.

The P3 office, created by the legislature, works to leverage public-private partnerships to address statewide priorities. In addition to identifying underutilized state land, the office is tasked with expanding affordable housing and childcare infrastructure.

Under the proposed model, the land would remain publicly owned and leased to a developer for up to 99 years. Sean Flanagan, a water broker with Hydrosource who has followed the project closely, said that structure could significantly improve the project's financial feasibility.

"If you think about a traditional development, you have to put out a huge slug of cash on day one to buy the land," Flanagan said. "In this scenario, instead of pulling multiple millions upfront, you're spreading that cost out over 99 years. That can make the whole project more feasible and potentially more affordable for the renter."

Platt said developing the land could also generate long-term revenue for taxpayers.

"Right now, this is a piece of land that's not generating any income," Platt said. "Once it's developed and we have residents here, it will help the tax base."

Water availability and infrastructure capacity will also factor into the project's feasibility.

Flanagan said securing reliable water supplies is essential to any Colorado development, particularly along Clear Creek, where water resources are closely managed. While water in the region is scarce, he said he believes Golden is in a relatively strong position.

"My understanding is Golden planned its water supply around its municipal boundaries and ultimate service area, and it wasn't projecting major growth," Flanagan said. "Because it's been landlocked, they haven't exhausted those supplies the way some fast-growing communities have."

City and state officials are continuing to evaluate utility capacity, including water and sewer service, as part of the development review process.

If approved, officials estimate construction could begin as early as 2028.