Modular Workforce Housing in Gunnison, Colorado: Sawtooth Development Phase II
Workforce housing has to do two jobs at once. It has to open quickly for the people who need it, and it has to stay affordable to operate for decades. Sawtooth Development Phase II in Gunnison, Colorado, does both by pairing sustainable modular construction with a geothermal heat pump system.
EVstudio partnered with Fading West to deliver the project for Gunnison County. The three-story building adds 32 units of workforce housing in approximately 30,500 square feet. It builds on Phase I, which introduced duplexes and ADUs west of the County Fairgrounds at Evans Avenue and 14th Street.
Why Sustainability Matters for Workforce Housing
Green building is often framed as a premium feature. For workforce housing, however, it is a practical one. Lower energy use means lower operating costs for the county over the life of the building. In addition, durable materials mean fewer repairs and replacements down the road.
Gunnison’s long, cold winters raise the stakes. In a climate like this, heating is one of the biggest ongoing costs a building carries. As a result, the choice of heating system shapes the building’s energy profile for decades.
Geothermal Heat Pumps at the Core
The project’s defining green feature is its geothermal heat pump system. Instead of burning fuel, a geothermal system moves heat between the building and the ground, where temperatures stay steady year-round. That approach supports long-term energy efficiency and reduces operating costs.
EVstudio’s mechanical team designed the geothermal equipment and piping inside the building, while a specialty geothermal firm designed the well field outside it. The system provides both heating and cooling. In addition, a 25-kilowatt solar array on the roof offsets the building’s energy use. Fading West notes that together, geothermal and solar significantly reduce utility costs for the project. In fact, developer Tributary Development describes Sawtooth Phase II as one of the first geothermally heated and cooled volumetric modular apartment projects in the United States.
The system also required a creative design solution. Its specialized equipment needed more room than a standard module could offer, so the team added a site-built mechanical room. In other words, modular and site-built construction work side by side in one building, each where it makes the most sense.
Sustainable Modular Construction
Modular construction is a green strategy in its own right. Fading West Building Systems built the modules in a controlled factory setting, which improves quality control. Better quality control helps produce a tighter, more consistent building.
At the same time, factory construction shortened the on-site schedule. Crews set 39 modules in four days in August 2024, and the building opened in April 2025. Less time on site generally means less disruption to the neighborhood and the surrounding environment.
Durable, Fire-Resistant Materials
A sustainable building also has to last. Fiber cement panelized siding and corrugated metal siding clad the exterior. The team selected both materials for durability and enhanced fire resistance, which adds resilience in a mountain community.
Design character does not take a back seat. Custom exterior shade structures wrap the corners of the building and shade the north and south entry doors. On the west elevation, they transition to open forms. Meanwhile, angled columns give the facade a dynamic, modern look.
Project at a Glance
- Location: 14th Street and Evans Avenue, Gunnison, Colorado
- Client: Gunnison County
- Modular manufacturer: Fading West Building Systems
- Site general contractor: Fading West Construction
- Units: 32
- Total area: Approximately 30,500 SF
- Heating and cooling: Geothermal heat pump system
- Timeline: Contracted September 2023, groundbreaking June 2024, modules set August 5–9, 2024, grand opening April 2025
A Green Precedent for Mountain Communities
Sawtooth Development Phase II shows that sustainable modular construction and workforce housing belong together. Geothermal heating, factory-built quality and durable materials all point toward the same goal: housing that costs less to run and lasts longer. Through close collaboration, EVstudio and Fading West helped Gunnison County set a strong precedent for future developments.
Planning energy-efficient housing for your community? Talk with EVstudio about how modular design and high-performance systems can work for your project.
Interior photography courtesy of Fading West, images by Joe Roode.
