May 6, 2024

Westminster to mull millions in incentives for pair of residential projects

WESTMINSTER — In an effort to spur the construction of new homes in Westminster, city officials on Monday will consider millions of dollars in tax and fee incentives packages aimed at moving a pair of residential projects — one for affordable apartments and another for market rate units — across the finish line. 

St. Charles Town Co. LLC and Maiker Housing Partners, through a joint entity called  8775 Clay Street LLLP, are requesting more $1.78 million in rebates on future permit fees, park development fees, public art fees, and city sales and use taxes for a planned 247-unit affordable, multi-family development in the Uplands district.

Overlook at Uplands, as the project is known, would be built at 8775 Clay Street and serve residents who earn between 40% and 70% of Westminster’s area median income. 

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Construction of the apartment community is expected to cost about $88 million, according to Westminster planning documents.

“The request for city rebates equates to approximately 2% of the project costs and will help to reduce the existing financial gap so the project may be economically feasible,” a city memo said. “But for this project, the city would not have these fees to rebate, meaning the project is generating new fees and taxes, a portion of which to be rebated, that would not exist otherwise.”

The developer, which expects to receive a $3 million loan from the Colorado Division of Housing, has indicated to Westminster planning staff “this project will not move forward without financial support from the city,” the memo said. 

A few miles to the south of Overlook at Uplands, 3551 W. 71st LLC, a holding company controlled by Diverse Blue QOF LLC, is planning to build a 75-unit market rate residential building in the Westminster Station neighborhood.

To complete the project, which is expected to cost a total of $25 million, Diverse Blue is asking for more than $1.76 million in fee and tax rebates. 

“While there are approximately $700 million in potential private sector development projects in the Station Area, the unique challenges of redevelopment such as undersized or outdated infrastructure, odd site configurations, site cleanup and preparation, and the risk associated with the uncertain future of surrounding properties can make redevelopment more expensive,” a Westminster planning memo said. 

The city and its public partners have already invested $80 million in infrastructure improvements around the Westminster Station area, and planning staff recommend extending an incentives offer to help spur an initial wave of private investment.

“The challenges and risks can be especially great for the first, pioneering developers within a redevelopment area,” the memo said. 

The Westminster City Council is scheduled to review fee and tax rebate requests for both projects at the board’s meeting at 7 p.m. on Monday. 

Westminster city officials on Monday will consider millions of dollars in tax and fee incentives packages aimed at moving a pair of residential projects — one for affordable apartments and another for market rate units — across the finish line.

Lucas High
A Maryland native, Lucas has worked at news agencies from Wyoming to South Carolina before putting roots down in Colorado.
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