A disagreement over property rights could hinder a proposed townhome project along College Drive on the former Boker Lumber site.

Reynolds, Ash and Associates is proposing 18 townhomes on the site, and property owner Steve Cadwallader would like to reserve the upper portion of the 5.7 acre site for future development, Tracy Reynolds said.

He described the request as similar to other phased developments in town, such as Three Springs.

The Planning Commission approved the townhome proposal, but denied a request to reserve the adjacent elevated shelf for development in late April.

“The city is insisting that it be dedicated as common area, which basically takes that property away from him,” Reynolds said of Cadwallader.

The property at 960 East College Drive has a large flat area previously occupied by Boker Lumber and Hardware, where the townhomes could be built. To the east there are very steep hillsides and a relatively flat area above them.

It is unclear how much of the upper portion of the property could be developed, planner Craig Roser said.

A request to reserve development rights for upper shelf was included in a conceptual plan for the property but the planning commission deferred it because the property owner wanted to explore other options for the site including the tax benefits of designating it as open space, city documents said.

Durango City Council will consider the development in June and it could decide to allow the property owner to reserve development rights. If the property rights are not reserved, Cadwallader may decide to not move forward with the project, Reynolds said.

“For me, everything is up in air,” he said.

If allowed, homes could be built on the shelf, despite some steep topography, Reynolds said.

But planner Craig Roser said the shelf would need a road and utilities to support a development and it doesn’t have either.

The property could be reserved for development if it was subdivided, but a subdivision would require the property to have a road and access to utilities as well, he said.

“It would be difficult to meet city standards,” he said.

Development on the hill could affect the drainage and slope stability for the proposed townhomes below, he said.

Aside from refusing to reserve additional development rights, planning commissioners supported the townhome project.

“I think it’s the best option for the site we have seen in my opinion ... It addresses a lot of the concerns of the neighbors,” Planning Commissioner Peter Tregillus said.

Several dense housing projects for the site have been proposed.

In 2011, Collegiate Partners proposed an 80-unit apartment complex and after hearing from the neighborhood, brought forward a 66-unit apartment proposal. The Planning Commission denied the request.

The proposed 18 townhomes would be between 1,300 to 1,500 square feet and two stories tall, documents submitted to the city said.

The units were downsized and simplified from the original proposal to respond to the real estate market need for lower prices, the documents said.

To manage traffic on College Drive, motorists would only be able to turn right into the development and right out.

Another driveway serving the development would lead out to the intersection of East Ninth Avenue and East Fifth Street.

mshinn@durangoherald.com