That a portion of the Durango Mall property was being considered for mixed-use development is good news, even if the initiative has ended (Herald, Jan. 14). Known as the JCPenney location to longtime residents, the mall’s south end has sat vacant far too long. A wintertime indoor pickleball facility has been a constant, partly tongue-in-cheek suggestion. Although the wack, wack of pickleballs might be hard on the brain, yes, that could be a dandy use.
For many, the withdrawal of the redevelopment proposal was a relief, largely because it would have placed a national organic grocery store alongside hundreds of apartments on prime riverfront property. While the community wants redevelopment, it was this combination that sparked concern.
Durango already supports a handful of locally or Colorado-owned natural food stores, including one co-op. Both these stores and the local farmers who rely on them for part of their income would have been affected. Redevelopment should benefit the community first, and it’s time for Durango to take the offense rather than remain in reactive defense.
A development firm began pre-application in December to demolish about 165,000 square feet and replace it with housing and retail, likely a Whole Foods. That plan has been withdrawn and would have included a property sale. The Durango Renewal Partnership was considering Tax Increment Financing for a new South Urban Renewal Authority area plan (see https://bit.ly/3Zg25fd). The north end continues to host stable tenants, but the former JCPenney site still begs redevelopment. The acreage, including a sea of unused asphalt, has a signal light connecting to U.S. 160-550 and sits along the river trail. Once at the southern edge of town, the property now connects to fast-growing Three Springs and moderately growing Bayfield – ideal for redevelopment that serves both communities and the region.
The withdrawn proposal would have built 230 to 270 apartments and a 30,000- to 35,000-square-foot grocery store. Of these, about 200 would be rental units, with only 12% required to be affordable under fair share housing requirements – roughly 24 units – leaving the vast majority unattainable for working people.
While mixed-use development can be valuable, a national chain offers little clear public benefit beyond possible lower prices – but at what cost? Local business layoffs could offset any job gains. Public economic development tools should support projects providing tangible benefits. Incentives should prioritize workforce and deed-restricted housing, child care, and locally owned businesses – not national chains or housing that does little for working people.
The redeveloped hotel on Highway 160, which includes deed-restricted units, and the Animas City Park Overlook townhomes north of 32nd Street show how redevelopment can meet community needs. At Animas City Park Overlook, TIF helped transform five planned high-cost homes into 22 townhomes, 11 deed-restricted for local workers. Mixed-use development at the mall could work, but lessons from Joe Minicozzi of Urban3 are clear: Building up rather than out generates far more sales tax than malls that require driving and rarely pencil out (Herald, Oct. 8, 2015).
Instead of waiting for developers to propose projects, the city and residents need to define what the community truly needs. Housing for working families, child care, recreation, a vibrant river walk with river access and small retail, incentives for independent businesses, and connections to the river trail and Three Springs are all opportunities worth pursuing. Michael French with the city’s prosperity office has tried to recruit a grocery store to Three Springs; similar efforts should guide redevelopment.
TIF uses the increment above base property taxes – and sometimes a negotiated portion of new sales tax – to reimburse eligible infrastructure improvements for 25 years, the length of a URA. Developers still pay full taxes; TIF cannot fund operations or wages. Any use must meet the “but for” principle – projects unlikely without assistance – and demonstrate clear public benefit.
The Durango Mall is highly visible, strategic real estate. The key lesson is that the city cannot simply react to proposals over which it has little control – especially when tenant selection is left to developers.
Moving forward, the city should work more closely with economic developers, local businesses, nonprofits and the public to determine what the community truly needs and proactively attract projects that meet those needs. With thoughtful planning, this prime riverfront site could become a redevelopment success that serves residents, supports local businesses and strengthens our community's character and economy.
