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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.

Urban Renewal Authority

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.”

KRDO

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.

KRDO

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."

Scott Harrison

Scott is a reporter for KRDO. Learn more about Scott here.

Comments

16 Comments

  1. Not exactly the affordable housing the city claims to be looking for… Also, who wants our downtown to look like Denver?

  2. “We want more money and found an excuse”

    Locals don’t want this gross stuff downtown anyway. Hope it catches fire.

    1. The ski area of the Broadmooooor isn’t being used. Why not put it there?
      .
      #planningfail

  3. downsizing the units from 1200 sf to 950 sf- think how many more rentable spaces they can squeeze out and of course, the rent will still be the same.

    1. No per the article the sq footage is being reduced and the rental price is going up not staying the same. I wonder what sort of kickbacks our mayor and city council members are receiving from these developers…

      1. I see that after re-reading the article-less apartment AND more money.
        Can it smell any greedier?
        Doubt it.

        1. FCN, Never tempt a Government elected official by these statements, they will always try to prove you wrong while screaming, “hold my beer, watch this!”

  4. “Economic factors” = Local Public Opinion.
    .
    Want to see how much the current Colorado Springs city hall cares about Colorado Springs?
    .
    Drive down to city hall; and notice how the entire building will now be forever in the shade. Of a giant hotel building.
    .
    Adds a whole new meaning to the word “Shady”.

  5. Just like California a lot of lip service about affordable housing and none of it is Affordable. Pay more get less. Colorado’s looking like California more and more everyday know

  6. The developer is Kevin O’Neil, a Colo Spgs native who comes from humble beginnings. He has earned his way up and into a lucrative business entrepreneurial position that includes Catalyst Campus, commercial & residential real estate, and other ventures. I respect that. I also am a native with humble beginnings. I have a job and own a small home, nothing fancy. Colo Spgs is overcrowded, cost of buying or renting real estate is outrageous, the homeless have destroyed the beauty we once had and don’t care, and the city leaders and developers continue catering towards those with higher incomes. I see high-end homes under construction. We need AFFORDABLE housing, not downtown high-rise apartments and high-end homes geared towards those with high incomes. City leaders and developers hear us, so why is nothing happening to fix this housing mess of a mess? Life is grand for those with big incomes. For the rest of us everyday average citizens, it has become a struggle.

    1. With all the shoddy, slap-dash electrical work that’s going into these buildings, they’ll probably burn down anyway.

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