Durango City Council approved the $1.55 million acquisition of another lot in the Rivergate subdivision near Animas Surgical Hospital on Tuesday for a future workforce housing development.
The property in question, lot 5, is 2 acres and adjacent to the north of lot 4, a 1.6-acre lot in the Rivergate subdivision, which the city previously purchased for $1.25 million in December 2024 using the last of its American Rescue Plan Act funds.
Cody Minnich, housing programs and operations administrator for the city’s Prosperity Office, said the city obtained a state land banking grant to pay for the acquisition of lot 5.
Southwest Community Partners was selected to develop both lots and is expected to produce an estimated 56 for-sale townhomes at below market value.
Concerned residents previously spoke up about the city’s ambitions to develop lots 4 and 5, citing impacts to the existing neighborhood and questionable soil conditions because of a lake previously being located on the lots.
Residents will have another chance to voice their thoughts at a Community Development Commission meeting and then a City Council meeting later this summer, Minnich said.
The city was not oblivious to residents’ concerns about soil conditions on Rivergate lots 4 and 5.
Prosperity Officer Mike French said a year ago one geotechnical survey of the site had already been performed and no mitigation had been deemed necessary at that time.
On Tuesday, Minnich said two geotechnical surveys have been performed and development will require micropiling – high-strength foundational materials.
He said the city has likewise had two meetings with members of the Rivergate Lofts Homeowners Association.
Councilor Shirley Gonzales asked if the city is on a strict timeline to develop lot 5 because of the land banking grant.
Minnich said plan approvals are required within five years and building permits must be issued within 10 years.
Councilor Gilda Yazzie asked how the project will satisfy Proposition 123 requirements. Proposition 123 is a 2022 voter-approved initiative that dedicates state income tax revenues toward affordable housing, with requirements for participating municipalities to expand their affordable housing stock by 9% every three years in the program.
Minnich said Durango is approaching the end of its first three-year cycle in the Proposition 123 program and is in a good position to meet its requirements. Development of Rivergate lots 4 and 5 won’t contribute to the city’s housing stock by the end of that cycle – but it will contribute to the next three-year cycle.
A final development plan is scheduled to be completed in the fall, and construction is anticipated to begin next year, according to the city’s Engage Durango webpage on the project.
cburney@durangoherald.com
