Iron Mountain Hot Springs plan approved, Lofts phase III heads to council
Glenwood Springs’ demand for both free-market and deed-restricted housing was on full display Tuesday night.
The city’s planning and zoning commission considered two separate proposals at their regular meeting Tuesday.
A majority of a proposal from Iron Mountain Hot Springs, LLC, includes deed-restricted units while Realty Capital Management, LLC, brought forward a proposal focused exclusively on free-market housing.
FREE MARKET HOUSING
Phase III of the Lofts at Red Mountain, as proposed by Realty Capital Management, LLC, would see the construction of an 89-unit, multi-family apartment building in the Glenwood Meadows.
The already occupied phase I portion of the Lofts at Red Mountain houses 88 residential units and the currently under construction phase II segment will provide an additional 97 units upon completion.
The Lofts at Red Mountain only offers free-market housing units, meaning rent would be based on market demand.
“Have you guys entertained the thought of entering our voluntary, deed restriction program,” Marco Dehm, planning and zoning commission chairman, asked of the applicant concerning phase III.
Bob Moore, asset manager for Realty Capital Management, LLC said it was his understanding that the development firm had discussed the possibility of offering deed-restricted units as part of phase I, but ultimately decided against it.
“It was decided that there was a market for market-rate units here,” Moore said. “That would be a better way to go.”
To which Dehm replied “On your end.”
Deed-restricted housing offers more affordable rates, particularly for employees in resort communities who oftentimes face long commutes because of the high cost of living.
“Unfortunately, there is also a market on our end for deed-restricted units, that’s why I am asking,” Dehm said. “You have a chance to do this with your third phase and I am just wondering have you thought about it, have you ran numbers or not?”
Moore said deed-restricted units were not discussed for phase III of the Loft’s at Red Mountain.
According to loftsatredmountain.com, a two-bed, two-bath unit costs between $2,385 and $2,900 a month.
A one-bed, one-bath unit at the Lofts at Red Mountain ranges between $1,630 and $2,035 a month.
“I find it a real bummer that we don’t have voluntary, deed-restricted units in this building,” Dehm said. “There’s a lot of people that can afford that level, there’s also a lot of people that cannot.”
Because phase III of the Lofts at Red Mountain includes 25 or more new dwelling units, the entire proposal must go before city council for approval at a later date.
The Planning and Zoning Commission was the final decision-making body concerning Iron Mountain Hot Springs, LLC’s request to construct a three-story, mixed-use building that will offer deed-restricted housing.
The commission approved the development planned for just east of Iron Mountain Hot Springs and immediately south of Interstate 70 in Glenwood Springs.
The building’s first floor will house Colorado Department of Transportation (CDOT) and Colorado State Patrol offices. However, the building’s second and third floors will offer 19 residential units, with 15 being deed-restricted.
“We’re losing entry to midlevel managers, leaving to go to Denver, because they can’t find a place to live,” said Steve Beckley, Iron Mountain Hot Springs owner. “Unfortunately, some of the other developments in town are out of reach for a lot of our employees.”
Of the 15 deed-restricted units, 12 will consist of two-bed, two-bath units whereas three will be one-bed, one-bath units.
According to Beckley, a two-bed, two-bath deed-restricted unit would cost between approximately $1,600 and $1,700 a month. An estimate for the cost of a one-bed, one-bath deed-restricted unit was not immediately available.
Now that the project has received approval, Beckley anticipated an April 2020 groundbreaking date and thought construction would last roughly a year.
Iron Mountain Hot Springs and Glenwood Caverns Adventure Park will prioritize its employees for the deed-restricted units.
However, should the deed-restricted units not fill up with those employees, they will open up to any individual who works in the 81601 ZIP code.
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