Proposed urban renewal projects in Colorado Springs could bring much-needed housing, hundreds of jobs, officials say

Jan. 23—Colorado Springs City Council members Monday generally lauded plans for a proposed urban renewal project called Hancock Commons on the city's southeast side, commending plans to bring more housing to the area and a long-sought road improvement to Hancock Expressway.

"We are in a housing crisis so it's really good that we're near the airport, Amazon and we're going to be able to alleviate some of that housing crisis," Councilwoman Yolanda Avila said. The project is proposed in her district.

Developer Ray O'Sullivan of RJ Development plans to build between 150 and 180 market-rate apartments and between 72 and 87 market-rate townhomes on about 20 acres at the southeast corner of Hancock Expressway and Chelton Road.

The development would bring needed housing to the area near the Colorado Springs Airport and the Amazon fulfillment, sorting and distribution centers in the airport's Peak Innovation Park, he said.

The apartments could be rented for between $1,150 and $1,250 per month for a one-bedroom apartment and between $1,400 and $1,600 per month for a two-bedroom, O'Sullivan said. The apartments would be "suburban-style" with few amenities so rents are at "a more modest price-point," he said.

Townhomes could sell in the high $300,000s to low $400,000s, project documents state.

Hancock Commons plans for between 10,000 to 14,000 square feet of commercial space to provide a variety of retail, restaurant other services, according to presentations made to the El Paso Board of County Commissioners and the Colorado Springs City Council.

It also envisions realigning Hancock Expressway where it curves south toward Milton E. Proby Parkway. O'Sullivan wants to straighten and extend Hancock Expressway from Clarendon Drive east to Chelton Road, an improvement no other private developer has been able to complete, he said.

The extension could open up more land for development on a triangular parcel just north of the Hancock Commons, O'Sullivan said.

"You're doing exactly what needs to be done," Councilman Wayne Williams told O'Sullivan. "I appreciate that you're addressing a longstanding transportation need."

Avila said she was excited about the prospect of fixing Hancock Expressway.

"It's dangerous," she said.

O'Sullivan estimated major planned improvements at the site, including the road realignment, could cost between $5.5 million and $6.5 million.

The city of Colorado Springs has designated the site an urban renewal area, allowing an increased portion of sales and property tax revenues generated from various taxing entities, including the city and the county, to be spent on public improvements at the site.

The city expects to appropriate about $660,238 in future property tax revenues and about $1.4 million in future sales tax revenues over 25 years to help finance the project, project documents show.

El Paso County agreed to designate approximately $1.9 million in future property tax revenues and about $722,500 in future sales tax revenues over the 25-year period. Harrison School District 2, the Pikes Peak Library District and the Southeastern Colorado Water Conservancy District could also contribute property tax revenues, according to project documents.

Project Garnet

The council also on Monday heard a presentation on a proposed urban renewal plan called Project Garnet in northwest Colorado Springs.

Massachusetts-based Entegris, a global supplier of electronic materials that support the semiconductor and other high-tech industries that has a longtime presence in the Springs, wants to spend as much as $631 million to build its so-called "manufacturing center of excellence," an approximately 500,000 square-foot facility on about 88 acres of commercial land at 301 S. Rockrimmon Blvd.

The "highly competitive project," as Cope characterized it Monday, could have a nearly $2.5 billion local economic impact over the next five years, the Colorado Springs Chamber of Commerce and EDC President and CEO Johnna Reeder Kleymeyer said in December, when Entegris announced its planned expansion.

The site was previously the location of the Compaq Computer Corporation's manufacturing facility that was demolished in 2012, said Bob Cope, Colorado Springs' economic development officer. It is north of an existing Entegris facility on Arrowswest Drive and just off Garden of the Gods Road, where for decades several high-tech companies have operated.

There's also potential for a "significant" Phase 2 expansion in 2028, he said.

Entegris expects to add nearly 600 jobs to the area over five years, Cope said, with the average wage around $75,700.

Project officials are pursuing an urban renewal designation from the city to address blight, facilitate "an extraordinary investment, job creation and economic growth," and to make Colorado Springs more competitive, Cope said.

A series of incentives for Entegris include nearly $3.9 million approved by the Colorado Economic Development Commission in November.

The Colorado Springs Chamber & EDC and several development organizations, utilities and municipal institutions also offered more than $115 million in incentives to the company.

The package includes funding from the city, rebates from Colorado Springs Utilities, the creation of an urban renewal district and money from the joint city-Chamber & EDC Deal Closing Fund.

The site is also located within a city enterprise zone, where job-creating employers are eligible for tax breaks.

Entegris plans to break ground on the new facility sometime in 2023, Cope said.

Over 15 years, the city expects the Entegris expansion will create about 1,200 permanent jobs and about 4,200 construction jobs, Cope said. With approximately $6.6 million in city sales and use tax rebates calculated during this period, Colorado Springs expects to see about $48 million in new net city revenue over 15 years, Cope said.

If the project earns urban renewal designation, documents show the city could, over 25 years, designate about $2.2 million in future property tax revenues toward phase 1 construction.

The city plans to present an informal request on Tuesday asking the El Paso Board of County Commissioners to contribute future property tax revenues for the project.

Project documents show Academy School District 20, the Pikes Peak Library District and the Southeastern Colorado Water Conservancy District could also contribute future property tax revenues.

The City Council is expected to consider renewal area plans for both the Hancock Commons and Project Garnet projects during its regular meeting Feb. 14. At that meeting, the council will also consider resolutions approving agreements between the city and the Colorado Springs Urban Renewal Authority for both projects.

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