A previously approved 492-unit apartment complex near Mercy Hospital in Durango has evolved into a 500-unit project called the Crader Apartments that will be built over five phases.
The 12-building apartment complex is planned to be built directly west of Mercy Hospital in Three Springs.
BLD Group of Fort Lauderdale, Florida, proposed the original 492-unit development for market rate rentals in October 2022. Now, Shaw LTD has taken on the project.
The vast majority of units will still be offered at market rates, although Shaw LTD volunteered to include 25 below market rates to people earning between 80% and 125% area median income, said Mark Williams, city planner.
In La Plata County in 2024, 80% area median income for a two-person household is $60,300, and 120% area median income for a two-person household is $106,100, according to the Colorado Department of Local Affairs.
Twenty-five below market rate, affordable or workforce housing units is less than half of the 60 units Shaw LTD would be required to offer if the city held the developer to its latest Fair Share inclusionary zoning program standards.
But the project was submitted before the latest Fair Share standards took effect, Williams said.
Updates to the Fair Share program took effect Oct. 1 and were made to incentivize developers to build affordable or workforce housing units instead of paying fees in lieu of below market units. The program was expanded to apply to rental units, as it used to only apply to for-sale units.
The program currently requires 12% of for-sale and rental units to be offered at below market rates for projects of nine units or more. It used to require 16% of units to be offered at below market rates, or fees in lieu, for projects of four or more units.
Williams said the project as it was originally approved was just for rental units, and so the old Fair Share standards did not apply.
The 25 units will be required to be offered at the reduced rates for a period of 30 years. In exchange, the city will contribute development fees for those units, totaling about $162,000.
But the benefit of reduced rents over 30 years adds up to much more than that and is a good deal for the city, he said.
The project description said the income range for the 25 affordable or workforce housing units currently equates to rental rates of $1,548 for studios rented at 80% area median income, and $3,082 for two-bedroom units at 125% area median income.
In September, Durango’s Community Development Commission unanimously recommended the project to City Council for approval.
The project as initially proposed had a projected completion date of 2028 after five years and two phases of development. The project description said it is currently expected to take no less than five years to complete.
Williams said planned amenities include walking paths, a clubhouse and gym, picnic areas in larger open spaces on the site, and pickleball courts, which are new to the project.
cburney@durangoherald.com
