Despite two and a half years of planning and support from both the City of Glenwood Springs (deferred payment of $800,000 in development fees and construction of a park on the property) and Garfield County ($1.5 million in cash), a proposed 120-unit lower-income apartment project at Glenwood Meadows is dead.
The Colorado Housing and Finance Authority turned down a request from the Aspen-based Dunrene Group for $8.9 million in tax credits.
Arny Porath, the project’s developer, is hoping to build the project on another property, but finding that property could be a challenge.
CHFA previously had awarded the project the tax credits, but developers couldn’t meet the deadline to use them. They reapplied once they had put together a package that included the city and county assistance, but CHFA worried about continuing increases in construction expenses for the project.
While the developers can reapply for the tax credits later this year, but Dunrene Group’s Robert MacGregor said he couldn’t afford to losing another construction season and the prospoect of even higher construction costs.
Macgregor said he expects he will look to partner with a developer of more traditional middle-class housing on his property. Such a project would have to comply with Glenwood Springs requirement to provide 15 percent affordable housing, or contribute an equivalent amount to an affordable housing fund.