Historic Pueblo building destroyed in 2021 fire finally set for demolition

It has been more than two years since a fire ripped through the historic Albany Building in downtown Pueblo, but city government has taken one more step to remove the now-hazardous building.

Pueblo City Council unanimously approved a contract on Dec. 11 to abate and demolish the structure at 125 E. Seventh St.

While the demolition is taking longer to complete than city officials first expected, the cost of abating asbestos and tearing down the building is approximately $500,000 lower than initial estimates.

Here’s what we know about the expected demolition and what’s next for the property.

What happened to the Albany Building?

The Albany Building was first built in 1887 as a church and has served myriad purposes over the years, most recently as an event venue.

A fire broke out in August 2021, accidentally started by a contractor working on a bathroom. The contractor also passed away from COVID-19 three months after the fire, the building’s owner, Robert O’Callaghan, previously told the Chieftain.

City Councilor Dennis Flores noted that the property was not insured at the time of the fire, which Andrew Hayes, the director of public works for the city, confirmed. Flores lamented that city taxpayers are going to be paying for the cost of demolition.

“I'll be voting for it because it's been an eyesore for over two years,” Flores said, adding that it’s environmentally dangerous and “an attractive nuisance for children” but that an adequate insurance policy could have covered the demolition.

Hayes said the property is condemned and the city could place a lien on the property, which could eventually be foreclosed. However, the owner has been cooperative with the process so far and is planning on giving the property to the city eventually without the lien process.

Why the cost of demolition is lower than expected

Back in June, the total cost of the demolition and abatement of the Albany Building was expected to be $1 to $1.2 million. But the project is now slated to cost $605,000, with an extra $100,000 for contingencies.

In an interview with the Chieftain, Hayes said the lower price could have been because demolition contractors are often busier during the summer. He also noted that the city received a range of competitive bids and “that’s not always the case.”

The city received four bids for the project, ranging from $605,000 to $793,000.

Another factor that could have contributed to a lower cost estimate was hearing back from state agencies about the necessary work at the site, Hayes said.

City council approved $1.2 million for demolition and abatement costs in June, but that wasn’t just specifically for the Albany Building. Hayes said that the funding left for demolition after the Albany Building is gone will be used for other demolition projects around the city.

Why the timeline is longer than expected

Hayes said in June that he hoped the demolition could be completed during the summer, but he told the Chieftain Friday it will likely take place sometime within the first quarter of the 2024.

Hayes said that the project is still awaiting a few permits before demolition can proceed, but the city has obtained an important open-air demolition permit from the state health department. The city applied for a “variance” permit from the Colorado Department of Public Health and Environment in November 2022, which took longer than expected to come through.

This permit took a lot of time and scrutiny from CDPHE to make sure everything was right, Hayes said. It was needed because the integrity of the building is compromised; it’s impossible to contain the asbestos within the building, which is partially burned and falling apart.

“We can't really seal the building up when we do the abatement,” Hayes explained.

The application for the variance permit was submitted in November 2022, Hayes said, and they heard back this summer that it had been approved. The request for bids for the project was posted on Oct. 17.

What will happen after the building is demolished?

The future of the lot without the Albany Building is still unclear, Hayes said. The city is poised to assume ownership of the parcel but could potentially sell it to a developer.

“We just want to make sure that, from a safety perspective and from a ‘livability of our town’ perspective, that this thing doesn't just linger out there any longer than it needs to — so we're happy to get it done,” Hayes said.

Anna Lynn Winfrey covers politics for the Pueblo Chieftain. She can be reached at awinfrey@gannett.com. Please support local news at subscribe.chieftain.com.

This article originally appeared on The Pueblo Chieftain: Pueblo historic Albany Building set for demolition; was destroyed by fire