Council approved Resolution 44-26 authorizing a joint development agreement among Dillon, Keystone, Summit County and Summit Habitat for Humanity for the Soda Creek project — formalizing Dillon's previously discussed $500,000 participation contingent on partner funding.

After the applicant presented revisions — including a reduction from 150 to 139 units, lower rooflines and a housing covenant limiting condo conversions — Dillon Town Council voted 4–3 to deny final approval and return the revised plan set to Planning & Zoning for further review.

Engineering staff and a contractor estimate the seawall replacement and associated work could cost about $5.5 million; council members asked for geotechnical work and an updated marina master plan before committing to construction.

Staff told council the Housing 5A fund holds about $5 million and DURA has $2 million and suggested preparing multi‑year plans (5–11 years, DURA TIF through 2037) to guide incentives and capital choices.

Staff told council revenues are down from lodging excise and marina receipts; projections show a $732,000 shortfall in 2026 and $532,000 in 2027 (including a $500k per‑year transfer from capital) and urged new revenue and strategic planning.

The Economic Development Advisory Committee voted to recommend that Town Council solicit geotechnical bids for a proposed Dillon marina seawall, citing low water as an opportunity to start subsurface work and noting design and funding will follow.

Staff told council the sewer fund’s net position includes significant fixed assets but about $2.6M is spendable; the water fund faces a projected shortfall (~$308,000) because of lower usage, legal costs for drought/augmentation work and delayed project billings.

Page West promises 20% deed‑restricted units and priority leasing for local workers, but an attorney representing neighbors said the covenant draft contains no AMI or rent caps and that recirculation rules (45 days) could return units to the open market; staff and the developer agreed to continue working on covenant language.

Homeowners near the Mitchell Theater site asked the council to continue the public hearing and request redesigns, arguing the proposed building heights and massing will block views, produce a long 'wall' effect on Dillon Ridge and set a precedent for future developments.

The council held a lengthy public hearing on Ordinance 05‑26 (Skyline Apartments PUD), a proposal to convert the Dillon Ridge Cinema site into 150 rental units with 20% deed‑restricted workforce housing. Staff and the applicant recommended approval but residents raised objections over height, scale, affordability details and technical gaps; the council left the matter open for additional staff/applicant follow‑up.

The Dillon Town Council voted unanimously to continue the quasi-judicial public hearing on a proposed PUD to Sept. 15, and tabled two related items as read. The motion included a reminder that new materials submitted before the continued hearing cannot be considered.

Staff said accelerating drawdown has moved the boat‑pull deadline to mid‑September and described ramp/mooring adjustments; a recent hypothermia incident at the marina led to a rescue and temporary lodging for the boater.

HC3 presenters described Solarize Summit bulk‑buy solar, Energy Smart Colorado home assessments with town/Xcel rebates, ResourceWise business grants, and plans for an electrification outreach campaign and 2026 emissions inventory update.

Troy Wineland, Blue River Basin water commissioner, told Dillon officials this year produced the warmest winter on record, early low snowpack and early runoff; Dillon Reservoir sits about 60,000 acre‑feet low and Green Mountain is ~21% full. He urged mandatory conservation measures and noted an emergency $1M substitute water supply was used to support municipal providers.

The applicant voluntarily offered a 20% deed restriction for workforce housing and a priority leasing approach for local employers but told the commission there is no AMI limit proposed; staff said a draft workforce covenant is under negotiation and will be part of the development agreement considered by Town Council.

Commissioners and staff discussed how steep site topography creates a building-height calculation that exceeds the 35-foot MU limit; staff described the PUD process and site-specific standards that can allow a measured building height up to ~53.7 feet from the lowest terrace, while keeping the perceived street elevation closer to the 43-foot allowance.

Dozens of residents urged a continuance, citing blocked views, building bulk, drainage and wildlife impacts; nearby employers and a regional ski-area representative supported the project as urgent workforce housing and emphasized transit access and employer priority leasing.

Page West and design team presented a 150-unit, 4.1-acre PUD at 312 Dillon Ridge Road that would convert the Skyline Cinema parcel to market-rate rental housing with a voluntary 20% deed restriction for local workforce and a ban on short-term rentals; staff recommended moving the application to council with conditions.

Review of the Dillon'Keystone cooperative shows Keystone paid about 25% of 2025 shared operating costs (after removing Dillon-only items); staff found a roughly $108,000 overage to reconcile and recommended an amendment to clarify expense allocation going forward.

Public works reported steady but constrained water levels, near-complete pickleball courts, and new wayfinding signs; the police department announced recent hires and onboarding improvements; the marina described dock adjustments and strong summer business while continuing to monitor falling lake levels.

The Dillon‑Keystone Police Department reported persistent vacancies and the operational impacts of several critical incidents; the chief urged coordination on nuisance‑code updates, community service officer deployment and recruitment/retention measures.

Hinkle and Company issued an unmodified (clean) audit opinion for the town’s 2025 financial statements, found no material weaknesses, and recommended longer-term planning to increase general-fund reserves; council members asked about internal controls, fund variances and cash-on-hand.

Staff recommended adopting Summit County's 2024 code package to align inspections and plan review; planners suggested removing the Renewable Energy Mitigation Program (REMP) from the adoption package and instead handling offsets via a land‑use code amendment or a town‑held payment‑in‑lieu fund.

Interim finance director Heather Prezella told the Dillon Mayor and Council the town received an unmodified opinion on its 2025 financial statements, with net position up $5.5 million and an unrestricted general fund balance of $5.3 million. Council asked for clarifying notes on the capital improvement and marina accounting.

Public works reported water use down 20–25% year‑over‑year but warned stream flows track a low historic benchmark and a full ban remains possible; planners reported a 4‑charger DC fast‑charge site out to bid and work on a phase‑2 level‑2 charger plan for the town center.