The city of Durango is racing to purchase a parcel near Animas Surgical Hospital south of downtown Durango with its remaining American Rescue Plan Act funds before Dec. 31, its deadline to commit the federal funding.
Mike French, city prosperity officer, said the city is under contract to purchase the approximately 1.6-acre lot from Rivergate III LLC for $1,250,000.
At a City Council meeting last week, councilors voted to approve an ordinance authorizing the city’s acquisition of the parcel. Councilors will hold a final reading of the ordinance at the next regular meeting on Tuesday.
Assuming the ordinance passes a final reading, French said a 10-day public notice will be issued on Dec. 8 with a Dec. 18 closing date on the purchase.
The parcel sits just below Colorado Highway 3 and just east of the Rivergate development, which includes the surgical hospital, Rivergate Lofts and other businesses. Weidman Sawmill used to be located on the same property.
The contract between the city and Rivergate III LLC gives the city a first right of refusal on lot 5 north of lot 4. French said that means if the owner decides to sell that lot, the city will have the opportunity to buy it before another buyer.
Two residents who live near the Rivergate lot 4 subdivision said in public comments the city should be aware the ground on the parcel is structurally suspect and do proper due diligence before building housing there.
Durango resident George Richardson, who described himself as a geologist by profession and the former president of the Rivergate Homeowners Association, said the ground visible on the surface of lots 4 and 5 is “very different from what you’re seeing 6 to 8 feet underground.”
He said lots 4 and 5 used to contain a lake used by Weidman Sawmill years ago and it is his understanding other builders have avoided developing the property because of expected complications.
“If the city is looking at a soil sample study, you really need a series of drill holes because you would be building on a block that is actually physically separate from where the condos at Rivergate are now,” he said. “And the drainage system around that and the ability to manage it makes the block that you’re considering really suspect.”
The city’s contract with Rivergate III LLC requires a phase 1 environmental study, a geotechnical survey and an appraisal of the parcel, each at the expense of Rivergate III LLC, French said last week.
He said the Rivergate lot 4 subdivision was approved in 2003 for residential and commercial development and the site is well suited for modular, prefabricated housing units in addition to traditionally built housing up to about 31 residential units.
French stressed last week and in an interview with The Durango Herald on Wednesday the city is not proposing to develop the lot itself. Rather, it will pursue a public-private partnership with a foundation or a private developer, possibly through a request for proposals process.
“This presents an opportunity for us to acquire and own the land that gives us those options,” he said.
cburney@durangoherald.com
