The city of Durango revealed a few spots that are ripe for redevelopment around downtown during an open forum this week.
More than 70 people attended the event, which functioned as a way to court developers, inform them about Durango’s growth priorities and ask for input about the city’s project approval procedures. City staff members focused on the MidTown Urban Renewal Area, financial incentives and real upcoming opportunities.
“We’re casting a wide net when we reach out to partners, and we’re looking at a wide range of tools we can use to facilitate the right types of development and growth in our community,” said Scott Shine, Durango’s planning manager.
Future development would focus heavily on creating workforce housing, according to a presentation by Michael French, La Plata Economic Development Alliance executive director. Such housing would support people earning 80% to 100% of the area’s median income, or about $46,800 to $58,500 a year for a single-person household.
The emphasis on workforce housing comes as home prices in La Plata County are rising while the housing stock fell dramatically during the COVID-19 pandemic.
“We can’t have economic development without housing, specifically workforce housing and housing for essential workers,” French said.
The city identified three locations, currently parking lots, that are ready for development. Staff members plan to ask for development proposals this summer.
An 0.8-acre plot at 1917 East Third Ave., the parking lot across the street from Durango Public Library, has an estimated market value of about $804,000.
Another parking lot at 678 East Second Ave., next to 2nd Ave Sports, is about 0.3 acres and is valued at $564,000.
The third option is a parking lot close to The Rochester Hotel, at 742 East Second Ave. It is worth about $1.1 million and about half an acre.
“Really for all three of these sites, we really want to see workforce housing,” said Alex Rugoff, the city’s business development coordinator, highlighting multifamily, townhome or mixed-use development options.
The city also hinted at another property that could see development in a case study. This one was worth about $1.6 million, a block off Main Avenue and a half acre in size. Staff members did not share the address of the parcel, but laid out a possible redevelopment project that could generate $1.65 million over 25 years.
Durango has tools available to help developers complete projects. For example, tax increment financing, a tax incentive offered through the city’s urban renewal authority, can help with expenses such as property improvements, sidewalks, utilities or other infrastructure upgrades and environmental cleanup.
In the case study, tax increment financing could provide about $710,000 to help developers pay for eligible improvements, according to the city’s calculations.
The urban renewal authority’s financial incentives can also overlap with federal incentives offered through the city’s opportunity zones when a property falls within both zones, city staff members said.
“Each project is unique,” Rugoff said. “The URA is willing to be flexible and help facilitate the project, if it meets those community goals and values that are laid out in the plan.”
smullane@durangoherald.com
