Developers from Calkins Redevelopment LLC had pursued tax credits to rehabilitate and convert the Calkins building at 121 E. First St. into a multifamily development. At Valley Sun Village, developers planned a $3.3 million upgrade to the senior apartment complex at 700 E. Second St.
The Colorado Housing and Finance Authority awarded $13 million in tax credits to 13 housing projects across the state, according to a Sept. 13 report from the agency. Awards range from $553,000 to $1.2 million per project, according to the report. The agency awarded tax credits to just 13 of the 43 applicants, CHFA communications specialist Megan Herrera said in an email.
Most projects that were awarded tax credits are in Front Range communities, including three in Denver, two in Colorado Springs, and one each in Boulder, Littleton, Aurora and Pueblo. Other projects awarded tax credits are in Buena Vista, Basalt, Cañon City and New Castle.
Herrera said applicants can apply more than once for tax credits. There lots of quality applicants in 2016, she said.
“Choosing what projects to award (tax credits) is a challenging task as there is not a shortage of strong projects to select, only a shortage of resources,” she said.
The agency considers market demand, development costs, and credit requested, among other criteria, in determining which projects to fund, Herrera said.
Cortez City Manager Shane Hale said the city sent out a letter of support for both projects.
“Both (projects) are extremely needed,” he said. “They are both worthwhile, and we were disappointed that neither got funding.”
Calkins building developers Becky Barber and Ivy Tu plan 13 apartment units in the former school building, which has qualified for the National Register of Historic Places. They also plan 34 units in a new annex building on the northwest side of the property, according to planning documents. The Calkins building is 6,540 square feet, and the annex building would be 35,963 square feet.
City officials approved a conditional-use permit, a primary plat and a site plan for the development. Cortez City Council members also endorsed the project, urging CHFA representatives to award it tax credits.
Barber and Tu said they are still invested in the building and they hope to create something good for the community. They are regrouping and working on a new plan to save the building, Barber said.
“We know that there’s a dire need for housing,” she said. “We are looking at ways to save this historical property.”
Valley Sun Village developers had planned to invest $66,500 in remodeling and accessibility improvements for each of the 50 one-bedroom units in the complex.
San Diego-based Treadstone Cos. is looking to purchase the senior housing complex before the end of the year in order to improve it, said representative Court Allen. The company is working with lenders to find another funding solution to proceed with the repairs, even though the tax credits were not awarded to the project, he said. However, developers may be able to apply for tax credits again next year, Allen said.
“It’s in critical need of rehabilitation,” Allen said of Valley Sun Village.