Montrose, CO — Development agreements for a new hotel and a multi-family housing project were given the green light this week by the Montrose Urban Renewal Authority (MURA) and Montrose City Council. Both projects are set to begin later this year.
The new construction will be completed in the Colorado Outdoors development located on the northwest side of the city along the Uncompahgre River.
In separate meetings, the MURA and City Council voted unanimously Tuesday to approve development agreements for a 90-room Fairfield by Marriott hotel to be built on the northern edge of the Colorado Outdoors development.
Developer Lamont Companies will invest $14 million in the project to go along with about $600 thousand in public infrastructure investment from MURA to support the project. This includes horizontal site improvements such as parking lot, curb, gutter, sidewalks, and landscaping.
The City’s incentive package includes $55,000 from the city’s Office of Business and Tourism (OBT) to assist with the construction of signage infrastructure. The city will waive $82,000 with building permit fees and $82,000 in utility connection fees.
Multiple studies have revealed the community could sustain 200 new hotel rooms to keep up with current demand from tourism and business travelers.
Lamont Companies, a Marriott franchisee, reported 10 full-time and 20 part-time employees will be needed to staff the hotel. The project, located on 2.56 acres, is scheduled for completion in early 2022.
"We’ve spent a long time building the ‘ship’ and now it is time to ‘set sail’ in terms of community development," said Chelsea Rosty, the city’s director of business innovation and tourism. "We’re thrilled to be partnering with Lamont Companies to bring a world-class hotel to Montrose to fill a long-empty niche in the lodging market."
The Montrose Urban Renewal Authority (MURA) also approved phase one of the Southern Multi-Family Housing Project, a housing development located within Colorado Outdoors. Four new, multi-family apartment buildings will be built on a portion of a 21-acre lot between North 9th Street and North 6th Street along Grand Avenue.
Approximately 96 units of modular 3-story apartment buildings will be completed by the end of 2021. The city will begin extending North 6th Street west from Grand Avenue to allow for the new development to take place. Developer Kurt Soukup of Range Development will invest $16 million into the project to go along with about $4 million investment in public infrastructure to support the project. This includes roadways with water, sewer, storm sewer, power, gas, and communications utilities.
"We are very pleased to get this approval along with our partners. We think the Montrose community and region will greatly benefit from the new projects; from the construction work to the ongoing employment, to the new housing opportunities," said Colorado Outdoors President David Dragoo.
Response to a 2016 citizen survey conducted by the city concluded that the number one issue facing the community is a shortage of housing. The Envision 2040 Comprehensive Planning process has garnered much of the same feedback from Montrose citizens.
“Housing is a huge issue, it has risen to the top of all other issues other than public safety," said Montrose City Manager Bill Bell.
Bell made the announcements regarding the hotel and housing projects during The Forum public meeting Wednesday morning. Bell said that as potential businesses eye Montrose and local employers recruit, low housing inventory and high prices have led to a severe housing crunch for locals and those looking at Montrose for relocation.
"This is really going to help our employers in our community," Bell said. "A lot of employers are trying to recruit employees into Montrose, but there is no place for them to live. A lot of them are commuting to Montrose from other communities. They have told us they prefer to live in Montrose.”
Bell said the market-rate units will have various sizes and rental rates. For example, rent for a small studio-sized apartment could go for about $700 per month. The larger two and three-bedroom units will be priced between $1,300 and $1,400 per month.
This phase-one project is expected to precede two additional phases that include town-homes and single-family homes with frontage along the Uncompahgre River. Once phases two and three are completed, approximately 200 units will be added within the 21-acre development area.
More information will be released as it becomes available.
For more city news visit CityOfMontrose.org.