Craig — The Craig City Council applauds compromise.

And it did so at its Tuesday night meeting after a second public hearing on the proposed Frazier East Annexation.

"It's great to see the Pine Ridge folks come out and be part of the process," he said. "It's nice that two sides can concede back and forth with each other."

The roughly 59-acre annexation project southwest of town has garnered dispute recently after residents who live near the project in the Pine Ridge subdivision opposed its development plans.

Although Pine Ridge residents still opposed the plans' inclusion of duplexes and apartment buildings, the council unanimously approved annexing the property, approved the annexation agreement and approved the project's zoning proposal.

Councilor Byron Willems stepped down from the discussion and vote because he lives in Pine Ridge and he said that could be seen as a conflict of interest.

Pine Ridge residents joined the council in thanking the developers for participating in compromises to their original plans.

The Las Vegas-based development company, 9 Cents, LLC, agreed to increase the size of single-family homes on property abutting Pine Ridge and moved commercial zoning south so the neighborhood wouldn't see sudden, different growth around its borders.

The developers also agreed to add conditions to the property's annexation agreement.

For one, there is a stipulation requiring the developers to receive state permission to build a second, southern access from Colorado Highway 13 to divert traffic from Pine Ridge and build it before any other building permits can be issued on the property.

The developers also are now required to limit apartment buildings to two stories tall, a move they openly supported in Tuesday's hearing.

Pine Ridge residents remained unhappy with the development's housing plans.

"Both sides, I think, made some concessions," Pine Ridge resident Ron Schnackenberg said. "I still think we're making a mistake, putting that particular piece of property into high-density.

"I commend the developers for this project. I just think it's in the wrong spot."

He added the current city limits include many lots already zoned for high-density development and questioned why this project wasn't asked to go there.

Schnackenberg's question was not addressed directly Tuesday, but Jones has said previously those lots were not developed because no one came forward to develop them.

David Fedel, 9 Cents co-manager, said the apartment units were a business decision to help pay for construction of the property's duplexes and town homes.

A 74-page feasibility study done by a Grand Junction-based economist convinced Fedel, his partner Blair Hadley and their lender that affordable housing in Craig is an important and profitable venture.

Fedel said the cheapest house he found on the local market was about $269,000. With a 10 percent down payment, that would amount to about $1,728 a month in house payments.

"Your kids have to make almost $60,000 a year to be able to afford that," Fedel said. "That's ridiculous for an entry-level property. That's what's available."

The base model for a town home in his development, Fedel continued, will cost about $149,000 for a three-bedroom, one-bath home. With three percent down, house payments would come to about $1,034 a month.

"These kids have to make $2,600 a month to be able to afford this house," he said. "A man and wife making $10 an hour can afford to buy this. This is what everyone has told us we need to build. We are prepared to start this when we break ground for the apartments.

"We think there is a tremendous market here for this."

Fedel said the developers plan to pre-sell each lot except for some show homes before building. Prospective homeowners will be able to choose different features - such as countertops, flooring and whether its one- or two-stories tall - before building.

Collin Smith can be reached at 875-1794 or cesmith@craigdailypress.com