New life for southwest downtown

Housing, offices, a hotel, a revamped arts district and the relocation of amateur sports groups to an old city utilities building would be the centerpieces of a new plan to jumpstart southwest downtown’s stalled redevelopment.

The Colorado Springs Urban Renewal Authority on Thursday unanimously approved an idea for several projects that would make up a first phase of redevelopment in 100 acres southwest of Colorado and Cascade avenues, with a portion extending north of Colorado Avenue.

Other than construction of the city’s America the Beautiful Park, little has happened in the area since the City Council designated it an urban renewal site 4½ years ago.

Efforts to anchor the area with a convention center and hotel were shelved last year by private developers, civic leaders and downtown boosters.

Meanwhile, the nonprofit Downtown Arts District Association, which had grand visions of artist studios and housing, recently was forced to scale back and regroup after failing to obtain funding.

Now, the Urban Renewal Authority has introduced a plan that still needs the backing of City Council members, developers, the arts district and downtown boosters. Authority officials stressed Thursday that their plan is conceptual, could change and depends upon initial goals being realized before others could fall into place.

The authority will seek support from various groups during the next couple of months.

A public forum probably will take place in the next 60 days.

First up in the plan: The Urban Renewal Authority wants Springs developers Classic Cos. and Nor’wood Development Group, which partnered to redevelop much of southwest downtown and have spent millions on land purchases, to build 400 residences next to America the Beautiful Park.

The project would help fill a need for more downtown housing. More important, the state’s urban renewal law would allow tax revenue generated by the project to be used to finance other improvements in the area. The housing would be in place by 2009.

At the same time, the Urban Renewal Authority expects longtime Springs builder and developer Chuck Murphy to construct 25 residential units by 2009 on land he owns north of Colorado Avenue in the urban renewal site.

Ron Butlin, a Classic executive, said the 400-unit residential project is feasible, because housing is in demand, especially for downtown. Murphy said his smaller project could serve downtown workers and members of the arts community.

The Urban Renewal Authority’s other key goals include:

c Classic and Nor’wood would build 200,000 square feet of office space by 2010 and a 200-room hotel a year later, both of which would go up near Vermijo Avenue and Sierra Madre Street. Classic’s Butlin said the company supports the concept of both but can’t commit to them.

c The Urban Renewal Authority would buy three buildings north of Colorado Avenue and provide studios, offices and retail space for local artists. The site would substitute for the Downtown Arts District Association’s plan to buy Colorado Springs Utilities’ gas department operations building south of Colorado Avenue, which it wanted for similar uses. The association never obtained funding and couldn’t afford the $2.1 million price tag for the building, which is closed.

c The gas operations building would be converted into a headquarters for Colorado Springs-based national governing bodies, some of which have offices at the U.S. Olympic Committee headquarters on Boulder Street in central Colorado Springs. City government officials are studying the idea. But questions include who would own the building, how many of the governing bodies would relocate there or whether they’d receive free or discounted space. USOC officials are in Turin, Italy, for the Winter Olympics and couldn’t be reached for comment.

c Nearly $22 million in bonds would be issued by the Urban Renewal Authority to finance acquisition and improvements, and would be paid by tax revenues generated from development in the area.

CONTACT THE WRITER: 636-0228 or rich.laden@gazette.com