Sun Valley mandates affordable housing
Council adopts changes 
to commercial zoning
By GREGORY FOLEY
Express Staff Writer
In a bold legislative move, Sun Valley 
City Council members Thursday, Aug. 14, formally adopted a sweeping set of 
changes to the city zoning code, one of which will mandate the construction of 
affordable housing as a part of some new developments.
With only a handful of residents looking 
on, the panel voted 4-0 to approve a new city ordinance amending the regulations 
that govern the city’s Commercial Center zoning district.
In broad terms, the amendments will 
require that affordable housing and commercial space be developed as part of new 
projects in the city’s two commercial-zoned village centers. The CC district 
comprises approximately 85 acres of land in Sun Valley Village and central 
Elkhorn Village.
The changes approved by the council will 
require that a minimum of 5 percent of the gross floor area of new hotel and 
residential projects in the district be developed as deed-restricted community 
housing—affordable housing units that would have to be approved by the city.
As an alternative, the new regulations 
provide for developers to build 4 percent of the total floor area of the project 
as on-site community housing and 2 percent as off-site community housing.
The amendments also require that 
developments in the district must dedicate a minimum of 3 percent of the gross 
floor area of each project—except for parking structures—to commercial space for 
permitted business.
Addressing concerns that new commercial 
space in Elkhorn Village might go unused, Sun Valley Fire Chief Jeff Carnes—who 
once owned a business in Elkhorn—said he believes the village can become a 
viable commercial center. "If you have a good product at a good price, you’re 
going to have customers," he told the council.
In addition, the new ordinance provides 
density bonuses to developers who build 15 percent of the project floor area as 
community housing. An additional density bonus is provided for the construction 
of so-called compact dwelling units—units comprising 1,200 square feet or less 
of interior living space.
An existing 64-foot height limit for 
buildings in the CC district was not altered by the city. 
The city’s review of the CC zoning 
district was initiated last year. Council members last December enabled a 
120-day moratorium on new applications for development projects in Elkhorn 
Village and Sun Valley Village.
The moratorium proposal was put forth by 
city staff in response to a potential surge in development applications for 
CC-zoned lands that propose only residential uses—rather than the intended mix 
of residential and commercial uses.
A second 120-day moratorium was passed in 
April and expired on Saturday, Aug. 16, just two days after the new ordinance 
was adopted.
The proceedings to develop the proposed 
amendments were conducted with an abundance of comments from representatives of 
development partnership CG-Elkhorn, which is preparing a plan to redevelop 11 
acres of land that once included Elkhorn Resort. The closure of the moratorium 
has opened the door for CG-Elkhorn to submit an application to redevelop the 
now-vacant site.
Representatives from Sun Valley Co., which 
owns the majority of the land in the CC zoning district, did not comment 
publicly during numerous meetings on the proposed amendments.
Sun Valley Co. general manager Wally 
Huffman announced last Wednesday that the company in September will present a 
50-year master plan of its property holdings in Sun Valley and Ketchum. Huffman 
has said the plan will likely include a new hotel in Sun Valley Village.