The city of Ouray will pass on the opportunity to purchase a tract of land at the northwest end of town for affordable housing, instead turning its attention to a larger piece of property it already owns near Cascade Falls.

City councilors unanimously agreed Monday night to release the city’s option to purchase a rectangular slice of land at the corner of Hinkson Terrace and Silver Shield Trail. Under a 2008 development agreement, the city had the option to buy the 7,584-square-foot property fr...