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Friday
Jan052024

ISSUE #264: The Burlingame Curse  (12/4/23)

"In a time of universal deceit, telling the truth becomes a revolutionary act."

-- George Orwell (perhaps)

The city of Aspen really doesn't want you to read this column. But I do. HERE it is.

Things at Burlingame Phase 3 are nothing short of an unmitigated disaster. But you won't read about it anywhere but here. "There's nothing to see here" is the city's mantra - an attempt to keep the nightmare contained to the 79 households that will eventually be living there.

But the domino effect is real: those hoping/planning to move into BG3 are on hold, therefore the people who hope/plan to move into the units being vacated are jammed up. And those hoping/planning to move into their units are too. And it's December. And that's just scratching the surface...

THIS is what happens when the city develops subsidized housing. There is zero oversight and even less accountability. It isn't a one-off. Burlingame shows that it's the status quo.

But just think, last week council approved spending $14 million to begin work on The Lumberyard. What could possibly go wrong?

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As the lottery winners of new subsidized housing units at Burlingame Phase 3 prepare to close on their future homes, the evil construction defect specter that haunts the former Bar X Ranch has raised its ugly head once again.

In form letters from the city communications department, lottery winners and the APCHA board were recently informed that impending closings at the third phase of the beleaguered Burlingame housing development have been delayed due to the project’s failure to pass a state inspection in order to obtain a certificate of occupancy. Notably, APCHA staff already conducted sales lotteries and the city is under contract with the winners, but the 79 units won’t all be inhabited for the foreseeable future.

Amid haunting echoes of prior Burlingame nightmares, BG3 had intentionally been designed to avoid the prior construction defect disasters and lawsuits experienced at both earlier phases of the project. 

The city, the builder and the siding manufacturer of Burlingame 1 were named in and settled a lawsuit in 2015 that held the manufacturer responsible for poor quality siding and the developer for installing it. 

In ongoing litigation, Burlingame 2 is suing the city for catastrophic construction defects that have bedeviled residents since their 2014 move-ins. Envision failing roofs and malfunctioning solar systems, damaged patios, handrails, siding, sidewalks, exterior stairways, water heater plumbing, fan coils, coaxial cable, fire alarm pulls, pressure valves and water quality issues. The BG2 HOA has retained counsel on contingency to fight the city and its claim of governmental immunity despite serving as developer, funding and managing the project, and maintaining control of the HOA board throughout the warranty period. 

The tortured saga at Burlingame continues as future BG3 households twist in the wind. Some relinquished their rental units in anticipation of November move-ins. Others have had their existing APCHA units “lotteried” to new buyers. The massive domino effect is already affecting hundreds of local families, just as ski season begins. Most are caught in no-man’s land, many without secure housing, while mortgage rates increase, credit ratings get dinged and the city repeatedly tells them, “It’s not our fault.”  

BG3 was approved for development in 2011 and construction began in 2019.  Plagued ever since by delays attributed to labor shortages, supply chain problems, construction complications and delivery challenges, BG3 is the scariest nightmare of them all.

The plan for BG3 was to simplify the construction process. Comprised of 230 pre-fabricated modular boxes built in Boise, Idaho, and shipped to Aspen to be “stitched” together atop poured foundations, BG3 arrived nearly complete with flooring, cabinets, appliances, drywall and paint, windows, carpet, water heaters, bathtubs, showers, shelving and the kitchen sink already built-in, to which the builder added the roof, siding and walkways. Despite lengthy delays when “the boxes” sat for years, by September 2021 the builder was bragging, “The only thing that’s missing is the towel to hang on the towel bar.”

The optimism didn’t last. By spring of 2022, significant problems emerged, starting with moisture around the windows indicating faulty sealing. After much finger-pointing, 280 windows were replaced; a complex fix involving the removal of exterior siding and significantly impacting interior drywall. Fall 2022 move-in dates were pushed back. 

But by October 2023, the public was informed by the city that “only punch work is left.” But this was far from the truth. The city was only just beginning its cruel and deceptive plan to prey upon local working families and individuals, desperate for subsidized housing, by selling them the grievously defective properties.

In the buyer’s contracts, there is no seller’s disclosure of “adverse material facts” pertaining to “construction defect actions,” specifically despite the leaky window issues and other vague “complications” referenced throughout the project timeline. And notably, the city/seller is conveying the property in “as-is” condition, “with all faults” and “no warranty.” In fact, by agreeing to the contract, the “buyer waives any and all claims against seller … for any defects or any damage to the property that may exist at closing or shall be subsequently discovered by buyer.” 

Rightfully spooked by these stipulations, and all too familiar with the city’s unconscionable behavior at BG2, many contracted buyers obtained independent inspections. One report revealed a serious issue where the circuit breaker flipped when the stove was in use, uncovering a massive electrical system failure across the entire project. BG3 is now undergoing an extensive electrical overhaul. There are numerous reports of refrigerators that don’t hold temperatures, malfunctioning appliances long past their warranties, faulty dishwasher and disposal drain lines, and even black mold. 

BG3 is currently uninhabitable. 

Once again, the city proves it’s a lousy developer that doesn’t hold itself to the same standards it holds others. Responsibility for BG3 lies with the city manager. She is the developer, the financier, the construction manager and is the listed seller of BG3. She also manages APCHA, which serves as the city’s broker for each sale. Her appalling lack of respect for BG3 buyers is shameful and contrary to Aspen’s community values. It’s time for city council to finally hold Sara Ott accountable.

After all, she’s preparing to build The Lumberyard next. 

At press time, nearly 20% of BG3 lottery winners have walked away, leaving their defective units to the next guy in line.  Contact TheRedAntEM@comcast.net

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