Developer of proposed high-rise project in downtown Colorado Springs speaks out Friday

COLORADO SPRINGS, Colo. (KRDO) -- Two days after some criticism and skepticism was expressed about a 25-story apartment building concept downtown, its developer spoke publicly about the project.

Kevin O'Neil, CEO of the O'Neil Group in Colorado Springs, made his first public comments on the project Friday to KRDO NewsChannel 13.

O'Neil, a Colorado Springs native, said that a 316-unit apartment building, with an adjacent 11-story office building, is his first development project.

"Colorado Springs is becoming a nationally-known city," he said. "I think we need to use this opportunity to build our community in the image we want it to grow in... in a form and fashion that will live beyond us."

O'Neil explained why he thinks a demand exists for his project.

"The market is looking to attract more talent and more young adults," he said. "We'd like to see a different product in the market. We're a job-builder. People want Class A office space and a different type of living. The timing is right -- interest rates, the economy is strong -- and our community is ready to take off downtown."

The completion of the city's soccer stadium (Weidner Field) and the Olympic and Paralympic Museum, O'Neil said, make the southwest downtown area ripe for growth and development.

On concerns that the project will block mountain views:

"The height of the building has been taken a little bit out of context. and used as a little bit of hype. The building actually is only about 20 feet taller than the (existing) Wells Fargo building. The difference is that the 25 floors of residential are each 10 feet high. In a commercial building, they're 13 feet high. But it's a unique product in the marketplace, and it is different. I don't think we're building it in Denver's likeness. I think we're building it in the size and (to) the standard that fits our community. We're trying to do the right thing. Some people are comfortable with change, some people are not. But change is inevitable."

On the apartment units to be rented at market rates and not be more affordable and accessible for tenants:

"The answer to maintaining or lowering those prices is to put more product in the community. My belief is (rents) will be 5% to 10% above (current market rates). The question is whether you build up, or build out. Building out and sprawling is not the way we want to be seen. The building is a different look, but we haven't finalized that look and we're still working through it. Keep in mind that the last building built downtown was over two decades ago. I'm still trying to be respectful of the community that I was born and raised in. This is the only place downtown where a product like this, fits. It's a very risky project to make work for the investors. We have to give them the best chance to succeed. But I do believe that workforce/attainable housing is something we'll be interested in. We'll counterbalance that (with the apartment project) in the future."

On the possibility of project being denied by city leaders:

"We're excited about the project, but construction costs are changing on almost a daily basis. Costs have risen 6% just in the last 30 days. It's hard to estimate costs for a two-year project. The risk is high, but I still think the community is ready for something like this. If the project fails, it won't be because of community opposition. It will be because of economic factors. A project like this helps attract high-paying jobs. We need more projects like this to fill out that part of downtown."

What have you been doing before proposing this development?

"We normally don't do developments. We started the Catalyst Campus (on the east end of downtown). We try to attract high-tech companies that have high-paying jobs. We have three campuses across the country and will expand that to six. We're responsible for 1,200 jobs in town. But we're losing folks out of our community because they can't find housing, and we don't have a place to hose the businesses as they grow. This project is a community thought about what we need and what we're missing to enhance our downtown. We've listened to citizens and civic leaders who have said this is what it takes to get to the next level."

What's the latest on the two houses in the project area that you want to give away?

"There are hundreds of people across the country who are interested. The level of interest is almost unbelievable. The hardest part is finding people who can pay to have the houses moved. But I think we have two local nonprofit organizations who will likely take them, if we can work it out."