NEDERLAND — There were three official actions taken at the February 17 meeting of Nederland’s Board of Trustees: One approved the consent agenda; a 3-2 vote extended the meeting to 10:15 p.m. — Trustees Nichole Sterling and Tania Corvalan opposed.

The third was a unanimous decision to apply for a Local Impact Accelerator (LIA) grant from the Colorado Energy Office (CEO) that, if awarded, would improve Nederland’s bus stops, connect downtown to the middle and high school and ease the process for building so-called granny flats.

The grant takes a two-phase policy-before-project approach, Sustainability Coordinator Cass Grady explained, meant to ensure municipalities enshrine greenhouse gas emissions reductions into their regulations.

“If we show we’re making progress on policy side, it unlocks project funding as it goes along,” Grady said.

Housing help

Nederland’s application includes eight separate proposals, referred to as tasks. Three are policy-related, while the other five are project-based. 

Applicants were asked to request funding at the “standard” level and an enhanced “vision” level. In all, Nederland requested $633,000 for its standard projects, and $989,500 to complete its vision-level plans.

Most of the policy and project tasks revolve around becoming an “ADU-supportive jurisdiction.” ADUs, or accessory dwelling units, are smaller, separate dwellings often built in basements or backyards. 

A state law passed in 2024 requires single-family homes in larger municipalities be allowed one ADU. As part of the grant program, Nederland’s rules must go above and beyond state requirements to be eligible for funding.

The Town proposes to do this in a number of ways, including:

• Developing pre-approved plans for ADUs. Two plans could be developed with $50,000 in funding, staff estimated, while $75,000 might allow for an additional 1-2 plans. “Having more plans developed will also help us accommodate the varying terrain in Nederland” and avoid a “cookie cutter” look, staff wrote in notes to Trustees. 

• Providing technical and financial assistance to homeowners looking to add an ADU. Technical assistance could be in the form of one-on-one counseling or community workshops. Financial assistance would be targeted for lower- and middle-income households. 

Bus stops and bike paths

The three remaining proposals are transportation-related. 

One would help with a planned redesign of First Street, identified in the Subarea Plan that was part of the recent Comprehensive Plan update. It involves wider sidewalks and possible closure of First Street to cars during farmers markets, festivals, or high-traffic seasons.

Nederland’s Downtown Development Authority is set to discuss that project in coming weeks.

Another proposal is to revamp Nederland’s eight bus stops with improved signage, disability access, trash cans, and benches. The 2-3 most utilized bus stops (up to four if vision-level funding is granted) would also receive shelter, wayfinding, and lighting. 

Grady noted the grant proposal would cover only the design work of bus stop improvements, not the actual construction.

A final proposal will only be funded if the state decides to grant the full, vision-level amount. Nederland Middle-High School is just 1.5 miles from downtown Nederland: walkable and bikeable enough for many of its 230 students. 

But the only route is a single walk-bike path along Highway 119 that ends at Eldora Road. Nederland’s grant proposal would explore designs for an alternative route utilizing roads through Old Town and an informal trail. 

This project is more complicated, as the school lies outside town boundaries. As such, intergovernmental agreements will be necessary to allow the path to proceed, requiring additional consultant and staff time for legal review. 

Match waiver requested

Staff has worked extensively with the state Energy Office on the grant proposal. Applications were due February 18; the Town will hear about the award in April.

The grants do require a 5% match from local jurisdictions, of which half can be in-kind, such as staff time. Nederland is requesting a waiver due to financial hardship, with a pledge to contribute between $15,825 and $24,863 in manhours.

“With the fire that destroyed the Caribou Shopping Center and other impacts affecting local businesses and sales tax revenues, the Town is facing significant fiscal constraints while continuing to fund essential services and infrastructure,” Mayor Giblin wrote in a letter of commitment to the Energy Office.