GREELEY — Caught in the escalation of labor and material construction costs, Denver-based Power Equipment Co., went back to the drawing board and downsized its plans to build an industrial building in Greeley.
Willie Plessman, vice president of general services at Power Equipment, said the size of the building has changed from two stories and approximately 32,000 square feet to one story and 25,500 square feet.
While owning a building seems like something every successful business should do, that’s not always the case. For many companies, it makes more sense to continue leasing space, freeing up time and capital that can be better utilized in other ways.
The original plans were first submitted in 2015. But the changes to the plan required that the company start from scratch through the city of Greeley’s planning process.
“We pulled back and resized the plan to stay within our budget,” Plessman said. In 2015, Power Equipment’s budget was $3.5 million. Now, it’s still $3.5 million, but the company won’t be getting the building it first envisioned.
“We had some second-floor mezzanine offices planned. We eliminated the mezzanine, and now we’ll just have a one-story building, Plessman said.
The building will be used for sales, rental, service and repair of heavy industrial equipment. It will be constructed on about 6.9 acres at 2836 First Ave., part of a 22-acre site being developed by Windham Developments Inc. of Windsor.
Plessman said the company is waiting for a grading permit. “We hope to start moving dirt real soon,” he said.