Economic factors force ‘re-pricing, re-sizing’ of proposed downtown high-rise project in Colorado Springs

COLORADO SPRINGS, Colo. (KRDO) -- Changing economic factors are forcing the planners of a proposed downtown high-rise development to re-assess its cost and scope.

Planners said that since the 25-story project was announced late last year, the cost of construction materials has continued to go up -- and rents elsewhere in downtown keep increasing.

Kevin O'Neil, CEO of the O'Neil Group Company, said that rents for the 316 high-rise units haven’t been determined yet but are likely to cost more, and be smaller, than originally intended.

“We think that they’re probably up 5% from what we originally thought," he said. "We think that the surrounding apartments are probably following in suit, so that we’re still above the normal apartment market in downtown Colorado Springs. Our average size was around 1,200 square feet, and we’re looking at moving them more towards 950 feet.”

The project’s re-assessment will give planners more time to give away two houses on the proposed construction site; the historic 1900s-era structures were supposed to be claimed by now.

But because of the expense of having the houses moved, the planners said that they may have to subsidize some of the cost.

O'Neil said that two nonprofit organizations and a for-profit group have shown the most interest.

"it's moving forward," he said. "We are working diligently."