Efforts to develop the La Fun Motel property at 123 Manitou Ave. will continue. Last week Rich Block, the president of Indiana-based Paragon Realty, discussed a new affordable housing proposal during a Jan. 28 special meeting of the Manitou Springs City Council and asked Council to provide a letter of support to the Colorado Housing and Finance Authority.
Block had hoped to build two 39-unit apartments on the 2.2 acre lot, and the project had received support from the Manitou Springs Urban Renewal Authority (URA) and the Manitou Springs Housing Advisory Board (HAB). During a Dec. 11 meeting, the Planning Commission denied Block’s request for a density variance.
“Literally right after that hearing was denied, 4-3 I think you all know, we got introduced to a development group, TWG,” said Block. “They are a tax credit, LIHTC (Low-Income Housing Tax Credit) developer, really active throughout the state of Colorado. They’re actually quite excited to get involved with Manitou. I think there are a variety of reasons, because of some of the history, or let’s say lack thereof, of other affordable housing developments that have occurred, but also just generally apartments that have not been developed over time. We believe very strongly in the market as well. These guys are experts at this application and there are a number of consultants that they have involved from design and people that help them with the application.”
The latest proposal from Paragon consists of approximately 43 housing units. This proposal calls for a much less dense development than the previous proposal. The proposed development would be consistent with the City’s Land Use Development Code.
“They have shifted what I’ll call kind of an ‘ideal unit mix and’ and actually added more three-bedroom [units] that decrease the unit count and meet the density requirements,” explained Block.
According to a draft of the application letter, this proposed development would be a public/private partnership between Paragon, TWG Development, and the El Paso County Housing Authority as a Special Limited Partner. The new housing is proposed to serve people with incomes from 30% area median income (AMI) to 60% AMI. The site would include a community center, small library, in-unit washers and dryers, a playground, a small dog area, and picnic tables.
The Manitou Springs Housing Advisory Board (HAB), which voiced support for Block’s previous proposal, also issues a letter of support for the new proposal.
“We strongly recommend that CHFA consider funding this development, as it is critically needed in our community,” wrote HAB Chair Alison Gerbig in a Jan. 17 letter. “Like many communities across the nation, Manitou Springs is experiencing a housing affordability crisis. Compounding this issue, our city has limited growth opportunities due to a lack of vacant land for development, and construction costs are extremely high. Consequently, very few new rental housing units have been added to our housing stock in recent years, despite the pressing demand. The HAB is encouraged by the proposed redevelopment of 123 Manitou Avenue and fully supports the addition of rental housing at this location. The east corridor of Manitou Avenue is ideal for residential growth, offering proximity to public transportation and supporting stable growth within the boundaries of the Urban Renewal Authority. This project will bring opportunities for residential housing, retail, and other development, contributing to the vibrancy and stability of the area.”
City Council voted unanimously to approve a letter of support for Paragon’s proposal.
