Electeds consider dropping Pennrose, leaving murky future for 200 affordable homes

Developer says ‘deeper’ affordability is possible even after council walks away.
County Commissioner Wes Gardner (left) listens to Pennrose CEO Timothy Henkel as the developer tries to win over skeptics at the May 11, 2026 joint meeting. (Evan Robinson-Johnson/KHOL)

After two years of planning, affordable housing at 90 Virginian Lane is in jeopardy as Jackson Town Councilors indicated this week that they no longer want to work with developer Pennrose. It’s not clear how the county would move forward on their own. 

The land for the proposed 221 affordable homes is currently a publicly-owned RV park.

Pennrose flew in the big guns Monday, hoping their East Coast CEO might be able to stem a rising tide of opposition. 

Tim Henkel’s team began the meeting by apologizing and remained on the defensive as officials questioned the project’s waning affordability. Town councilor Devon Viehman said 90% of Jacksonites on the housing waiting list won’t be able to afford the projected units.

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“I’m not willing to settle for less than what our community deserves out of fear that we won’t get a second chance,” she said.

Commissioner Luther Propst suggested the Community Foundation, Jackson’s largest philanthropic organization, could help identify fresh funding.

The majority of councilors – except Jackson Mayor Arne Jorgensen – voted to not proceed with Pennrose. Commissioners voted unanimously to table the deal until the end of June to allow for that funding conversation.

Despite the stall, developer Henkel remained optimistic.

“I’ve heard clearly that they’re interested in deeper levels of affordability and I think there are ways to get there,” he told KHOL after the meeting.

Some electeds say the mixed messages hurt the project no matter how it proceeds. Commissioner Natalia Macker said the lack of broad support and general confusion will make it hard to fundraise. 

In the buildup to the meeting, Commissioner Wes Gardner and a handful of other officials publicly expressed frustration with Pennrose. They said rising costs and a $5 million miscommunication shortly before the April meeting had reduced trust in the partner. 

Public commenters were almost entirely supportive of the project Monday, describing the need to expedite solutions. Democratic state Rep. Mike Yin, a neighbor of the proposed development, said he didn’t want to have gray hair by the time people move in. 

Stephanie Williams, who first spoke out against the project in 2024, returned to cast a general concern about Pennrose as a partner. Commissioner Gardner said he agreed. 

“We’ve increased the rents considerably in the process,” he said. “I am very uncomfortable with Pennrose.” 

Commission Chair Mark Newcomb, who originally planned to skip the meeting because of a conflict, emerged as one of the developer’s strongest supporters. 

After a call to adjourn, Newcomb chastised the town.

“If you continue to hope for a project with lower income categories then you’ll never get to where the county is,” he said, before adding: “I apologize, I don’t want to be lecturing.” 

“You are lecturing,” Jorgensen shot back. 

Henkel oversees projects in 17 states and told KHOL he hears some of the same concerns from partners around the country. 

“The challenge is so broad,” he said. “When you look at different income mixes and different buckets of affordability, there is need in each bucket.”

As for Propst’s idea of a fundraising summit, Henkel said: “I think there’s a time and a place for that. I think that there’s a little homework to be done first.”

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